Profile: Hanesbrands Inc (HBI.N)
18 Dec 2013
Hanesbrands Inc. is a consumer goods company with a portfolio of apparel brands, including Hanes, Champion, Bali, Playtex, Just My Size, L’eggs, barely there, Wonderbra, Gear for Sports, Stedman, Zorba, Rinbros, Sol y Oro, Outer Banks and Duofold. The Company designs, manufactures, sources and sells a range of basic apparel, such as T-shirts, bras, panties, men’s underwear, kids’ underwear, casualwear, activewear, socks and hosiery. The Company operates in five segments: Innerwear, Outerwear, Hosiery, Direct to Consumer and International. The Hanes brand covers all of its product categories, including men’s underwear, kids’ underwear, bras, panties, socks, T-shirts, fleece and sheer hosiery. Bali is the brand within its portfolio, offering a range of bras, panties and shapewear sold in the department store channel. In October 2013, the Company announced that it has closed the acquisition of Maidenform Brands, Inc.
Playtex offers a line of bras, panties and shapewear, including products that offer solutions for hard to fit figures. Its brand portfolio also includes Just My Size, L’eggs, barely there, Wonderbra, Gear for Sports and Outer Banks. The Company’s largest customers include Wal-Mart Stores, Inc. (Wal-Mart), Target Corporation (Target) and Kohl’s Corporation (Kohl’s).
The Innerwear segment focuses on core apparel products, such as women’s intimate apparel, men’s underwear, kids’ underwear and socks, marketed under well-known brands that are trusted by consumers. The Company’s brands in this segment include Hanes, Bali, Playtex, barely there, Just My Size and Wonderbra brands. It also manufacturers and markets men’s underwear and kids’ underwear under the Hanes and Polo Ralph Lauren brand names. During the year ended December 31, 2011, net sales from its Innerwear segment was approximately 44% of total net sales.
The Company is engaged in the casualwear and activewear. It markets through its Hanes, Champion, Just My Size and Duofold brands, where it sells products, such as T-shirts and fleece to both retailers and wholesalers. The Company’s casualwear lines offer a range of clothing for men, women and children marketed under the Hanes and Just My Size brands. The Just My Size brand offers casual apparel. In addition to activewear for men and women, Champion provides uniforms for athletic programs and includes an apparel program, C9 by Champion, at Target stores. It also licenses its Champion name for footwear and sports accessories. In the Company’s wholesale casualwear category, which includes imagewear, it supplies its T-shirts, sport shirts and fleece products, including brands, such as Hanes, Champion, Outer Banks and Hanes Beefy-T, to customers, primarily wholesalers, who then resell to screen printers and embellishers. During 2011, net sales from its Outerwear segment were approximately 31% of total net sales.
The Company is a marketer of women’s sheer hosiery in the United States. It markets hosiery products under its L’eggs, Hanes and Just My Size brands. During 2011, net sales from the Company’s Hosiery segment were approximately 4% of total net sales.
Direct to Consumer
The Company’s Direct to Consumer operations include its outlet stores and Internet operations, which sell products from its portfolio of brands. It sells its branded products directly to consumers through its outlet stores, as well as its Websites operating under the Hanes, One Hanes Place, Just My Size and Champion names. The Company’s Internet operations are supported by its catalogs. As of December 31, 2011, it had 216 outlet stores. During 2011, net sales from its Direct to Consumer segment were approximately 8% of total net sales.
The Company’s International segment includes products that span across the Innerwear, Outerwear and Hosiery reportable segments and are primarily marketed under the Hanes, Champion, Wonderbra, Playtex, Stedman, Zorba, Rinbros, Kendall, Sol y Oro, Ritmo and Track N Field brands. During 2011, net sales from its International segment were approximately 13% of total net sales and included sales in Latin America, Asia, Canada, Europe and Australia. Its largest international markets include Japan, Canada, Mexico, Europe and Brazil.
The Company competes with Berkshire Hathaway Inc., Russell Corporation and Vanity Fair Intimates, Limited Brands, Inc., Jockey International, Inc., Warnaco Group Inc., Maidenform Brands, Inc., Gildan Activewear, Inc. and Gap Inc.
1000 East Hanes Mill Road
WINSTON-SALEM NC 27105