About Gfsi, LLC
Hanesbrands Inc. is the world's largest marketer of basic apparel. It designs, manufactures, and sells bras, hosiery, men's underwear, socks, and other intimate apparel under brand names such as Hanes, Champion, Bali, Just My Size, L'eggs, Playtex, and Wonderbra. In the US, Hanesbrands sells more units of intimate apparel than any other company and is the leading brand in several basic apparel markets in Europe and Australia. Hanesbrands also makes basic outerwear, such as T-shirts and licensed logo apparel for college bookstores under the Champion and Gear for Sports labels, and has license agreements with Donna Karan and Polo Ralph Lauren. The lineup is sold to wholesalers, major retail chains (Walmart and Target), and through Hanesbrands' own outlet stores and Internet sites. Operations in the US account for more than two-thirds of the company's total sales.
Hanesbrands divides its operations into three segments: Innerwear, Activewear, and International.
Innerwear accounts for about 35% of revenue and includes core apparel products, including men's underwear, women's panties, children's underwear, and socks, and intimate apparel, such as bras and shapewear. Major brands in the Innerwear segment include Hanes, Champion, Maidenform, Bali, Just My Size, Playtex, and products sold under license agreements with Polo Ralph Lauren, Donna Karan, and DKNY.
The International segment includes innerwear, activewear, hosiery, and home goods products sold outside the US. This segment represents about 35% of the company's total sales. Major brands in this segment that are not marketed in the US are Bonds, DIM, Sheridan, Bras N Things, Nur Die/Nur Der, Lovable, Berlei, Abanderado, Shock Absorber, Zorba, Explorer, Sol y Oro, and Bellinda.
Activewear (about 25%) makes and sells shirts, fleece items, sports bras, thermals, and teamwear under the brands Champion, Hanes, Alternative, Gear for Sports, Just My Size, and Hanes Beefy-T.
Based in Winston–Salem, NC, Hanesbrands sells its products globally, ringing up almost 70% of its sales in the Americas region, followed by Asia Pacific and Europe, each generating about 15% of total sales. The company operates some 45 distribution centers and about 50 manufacturing facilities in 40 countries. It also operates close to 240 retail and direct outlet stores in the US and Puerto Rico and nearly 700 internationally (outside the US).
Sales and Marketing
Hanesbrands is highly dependent on its two largest customers, Walmart and Target, each accounting for about 15% of total sales. Mass merchandise stores are vital to the company's performance, accounting for about a third of Hanesbrands' revenue. Hanesbrands also allies with mid-tier stores, including Kohl's, J. C. Penney, Macy's, and Belk, which focus on higher-income consumers and the sale of apparel rather than other consumer goods. Its L'eggs and Hanes brand underwear are also sold in food, drug, and variety stores. Hanesbrands also sells apparel to the US military for sale to soldiers and through discount chains, such as Dollar General. About 65% of the company's revenue are wholesale sales to retailers and 35% comes from consumer-direct sales through the company's own stores and e-commerce sites.
Advertising expenses average about $150 million annually.
Hanesbrands' annual sales and profits have been growing over the past few years as new brand acquisitions have spurred higher sales in more geographic markets. Net sales for fiscal 2018 amounted to $6.8 billion, a more than 5% increase from $6.5 billion the previous year. The acquisition of Bras N Things in 2018 and Alternative Apparel in 2017 added $177 million to the company's top line in 2018. Other growth factors were higher global sales of its Champion brand and favorable currency exchange rates in the International business.
Net income was $553.1 million in 2018, comparable with past years, excluding 2017. In 2017, net income dipped to $61.9 million due to a large provisional charge of $435 million for income tax expense that year (due to the Tax Cuts and Jobs Act).
Cash at the end of fiscal 2018 was $433.0 million, an increase of $11.5 million from the prior year. Cash from operations contributed $643.4 million to the coffers, while investing activities used $418.7 million, mainly for business acquisitions and purchases of property and equipment. Financing activities used another $200.5 million for loan payments and dividends to stockholders.
Hanesbrands continues to follow its Innovate-to-Elevate strategy that involves leveraging its brand power, manufacturing platforms, and low-cost global supply chain. The company has also been expanding its global business by acquiring top brands in its less-tapped markets. Going forward the company will focus on fast-growing key geographies outside the US including Europe, Australasia, Japan, Canada, Mexico, China, and Brazil.
Key to Hanesbrands' success is the ability to react to changing customer needs and industry trends. Using insights in consumer demand in the basic apparel industry, the company develops new products within its existing lines and modifies core products to make them more appealing. The company focuses on identifying 5- to 10-year, long-term megatrends and incorporating those trends in its manufacturing platforms. The company targets platform innovations, such as tagless apparel, temperature-control fabrics, and odor protection technology, that can be leveraged across brands, product categories, business segments, and geographies.
To drive sales growth, the company is focusing on promoting its Champion brand apparel, especially in Europe and Asia, and its business through consumer-direct channels, such as its own stores and online channels.
Hanesbrands' large scale of operations gives it a competitive advantage. The company's global supply chain spans both the Western and Eastern hemispheres and includes a combination of owned, contracted, and sourced manufacturing operations that provide a reliable source of supply and reduces product cost. Plans are in place for further optimization in the size, scale, and production capabilities of its supply chain.
Mergers and Acquisitions
In early 2018, Hanesbrands acquired BNT Holdco Pty Limited (Bras N Things), a leading specialty retailer and online seller of intimate apparel in Australia, New Zealand, and South Africa, for $389.2 million. The acquisition complements Hanesbrands' consumer-directed sales strategy and allows for greater expansion in the Australasia region.
9700 COMMERCE PKWY
Lenexa, KS 66219-2402
Phone: 1 (913) 693-3200
Employer Type: Privately Owned
Senior Vice President sls: Mike Gary
Vice President Of Creative Design: Greg Johnson
Technical Designer: Angela Stein
Employees (This Location): 460
Employees (All Locations): 802