By Denny Jacob
Hanesbrands swung to a loss as sales declined in the latest quarter, highlighting areas the company will be pressed to change as it deals with an activist investor.
The underwear company swung to a loss of $22.5 million, or 6 cents a share, for the second quarter ended July 1, from net income of $92.1 million, or 26 cents a share, a year earlier. Adjusted losses were 1 cent a share. Analysts polled by FactSet expected an adjusted loss of 2 cents a share.
Sales edged down 4.9% to $1.44 billion from $1.51 billion. Analysts polled by FactSet expected $1.46 billion.
Hanesbrands said innerwear and the Champion brand in Asia more than offset declines in the U.S. activewear segment, and the continued macro-driven slowdown in consumer spending impacting Australia.
Chief Executive Steve Bratspies said the company has progressed or jumped ahead in some areas regarding turnaround efforts, while others haven’t delivered results in the time it expected.
“We’re taking a number of actions, including additional cost saving initiatives, to improve performance as well as actively looking across the business at additional options to enhance shareholder value,” said Bratspies.
The Wall Street Journal on Tuesday first reported that Barington Capital has built an undetermined stake in Hanesbrands and is asking the company to find new board members with apparel and manufacturing experience and possibly a new CEO.
Write to Denny Jacob at [email protected]
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