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This excerpt taken from the HBI 10-Q filed May 11, 2009. Innerwear
Overall net sales in the Innerwear segment were lower by
$30 million or 6% in the first quarter of 2009 compared to
the first quarter of 2008. The recessionary economic environment
continued to significantly impact consumers’ discretionary
spending in the first quarter of 2009. Total intimate apparel
net sales were $42 million lower in the first quarter of
2009 compared to the first quarter of 2008. We experienced
lower
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intimate apparel sales, especially sales of average figure
products, in our Hanes brand of $18 million, our
smaller brands (barely there, Just My Size and
Wonderbra) of $11 million and our Playtex
brand of $10 million which we believe was primarily
attributable to weaker sales at retail. Our Bali brand
intimate apparel net sales were flat compared to the first
quarter of 2008. Net sales in our Hanes brand male
underwear product category were $23 million higher which
reflect growth in key segments of this category such as crewneck
and V-neck T-shirts and boxer briefs and product innovations
like the Comfort Fit waistbands. Lower net sales in our
socks category reflect a decline in men’s and kids’
Hanes brand net sales of $4 million and Champion
brand net sales of $3 million in the first quarter of
2009 compared to the first quarter of 2008. The rate of sales
decline for our Innerwear segment was approximately half that of
the fourth quarter of 2008. Net sales in our
direct-to-consumer
retail business, which is included in the Innerwear segment,
were slightly lower due to lower traffic at our outlet stores.
The Innerwear segment gross profit was lower by $24 million
in the first quarter of 2009 compared to the first quarter of
2008. The lower gross profit is due to lower sales volume of
$17 million, unfavorable product sales mix of
$7 million, higher cotton costs of $6 million, higher
production costs of $6 million related to higher energy and
oil-related costs including freight costs, higher other
manufacturing costs of $6 million, higher sales incentives
of $2 million and other vendor price increases of
$2 million. These higher costs were partially offset by
higher product pricing of $16 million before increased
sales incentives and savings from our cost reduction initiatives
and prior restructuring actions of $5 million
As a percent of segment net sales, gross profit in the Innerwear
segment was 35.8% in the first quarter of 2009 compared to 38.3%
in the first quarter of 2008, declining as a result of the items
described above.
The lower Innerwear segment operating profit in the first
quarter of 2009 compared to the first quarter of 2008 is
primarily attributable to lower gross profit, higher pension
expense of $4 million and higher expenses of
$1 million as a result of opening retail stores. These
higher expenses were partially offset by lower media related MAP
expenses of $15 million, lower technology consulting
expenses of $7 million and savings of $4 million from
prior restructuring actions primarily for compensation and
related benefits. A significant portion of the selling, general
and administrative expenses in each segment is an allocation of
our consolidated selling, general and administrative expenses,
however certain expenses that are specifically identifiable to a
segment are charged directly to each segment. The allocation
methodology for the consolidated selling, general and
administrative expenses for the first quarter of 2009 is
consistent with the first quarter of 2008. Our consolidated
selling, general and administrative expenses before segment
allocations was $31 million lower in the first quarter of
2009 compared to the first quarter of 2008.
This excerpt taken from the HBI 10-Q filed Oct 31, 2008. Innerwear
Net sales in the Outerwear segment were lower by
$16 million or 2% in the nine months of 2008 compared to
2007 primarily as a result of lower net sales of retail
casualwear of $29 million and lower net sales through our
embellishment channel of $16 million, primarily in
promotional t-shirts, offset by higher
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fleece sales. These decreases were offset by higher net sales of
Champion brand activewear of $28 million and higher
intersegment sales of $2 million.
As a percent of segment net sales, gross profit percentage in
the Outerwear segment was 23.1% in the nine months of 2008
compared to 21.7% in 2007. The improvement in gross profit is
primarily attributable to savings from our cost reduction
initiatives and prior restructuring actions of $11 million,
favorable product sales mix of $11 million, lower other
manufacturing overhead costs of $11 million, higher product
sales pricing of $5 million and lower freight costs of
$2 million. These lower costs were partially offset by
higher cotton costs of $8 million, higher production costs
of $6 million, $6 million of unfavorable timing in
cost recognition that is expected to reverse in the fourth
quarter, higher on-going excess and obsolete inventory costs of
$4 million, lower sales volume of $4 million, higher
sales incentives of $2 million and other vendor price
increases of $1 million. The higher production costs were
related to higher energy and oil related costs including freight
costs.
The higher Outerwear segment operating profit in the nine months
of 2008 compared to 2007 is primarily attributable to higher
gross profit and savings from our cost reduction initiatives and
prior restructuring actions of $5 million partially offset
by higher technology consulting and related expenses of
$4 million, higher distribution expenses of
$3 million, higher bad debt expense of $2 million
primarily related to the Mervyn’s bankruptcy, higher
media-related MAP expenses of $1 million and higher
non-media related MAP expenses of $1 million. A significant
portion of the selling, general and administrative expenses in
each segment is an allocation of our consolidated selling,
general and administrative expenses, however certain expenses
that are specifically identifiable to a segment are charged
directly to each segment. The allocation methodology for the
consolidated selling, general and administrative expenses for
the nine months of 2008 is consistent with 2007. Our
consolidated selling, general and administrative expenses before
segment allocations was $2 million higher in the nine
months of 2008 compared to 2007.
This excerpt taken from the HBI 10-Q filed Aug 1, 2008. Innerwear
Overall net sales in the Innerwear segment were lower by
$102 million or 8% in the six months of 2008 compared to
2007. The lower net sales in the Innerwear segment were
primarily due to a decline in sales of intimate apparel,
underwear and sock product categories. We experienced softer
sales at retail which resulted in lower intimate apparel sales
in our secondary brands (Just My Size, barely there and
Wonderbra) of $24 million, lower Hanes brand
intimate apparel sales of $24 million and lower sales of
private label brands of $8 million. In the six months of
2008 compared to 2007, our Playtex brand intimate apparel
net sales were higher by $5 million offset by lower Bali
brand intimate apparel net sales of $4 million. In
addition, we experienced lower Hanes brand kids’
underwear sales of $15 million, lower Hanes brand
men’s underwear sales of $9 million, lower Hanes
brand sock sales of $8 million, lower Hanes
sleepwear sales of $6 million and lower Champion
brand sock sales of $5 million. We exited a license
arrangement for a boys’ character underwear program in 2008
which accounted for $7 million of the overall decrease in
the Hanes brand kids’ underwear sales. We believe
the net sales decline during the six months of 2008, including
some of the declines noted above, was impacted by a shift in
timing by our largest retail customers of back-to-school
programs from June to July in 2008. The amount of our
back-to-school shipments that shifted from June to July 2008 was
approximately $25 million.
As a percent of segment net sales, gross profit percentage in
the Innerwear segment was 38.5% in the six months of 2008
compared to 38.6% in 2007. The lower gross profit dollars are
attributable to lower sales volume of $37 million,
unfavorable product sales mix of $17 million, higher
freight costs of $6 million, higher production costs of
$5 million, lower product sales pricing of $3 million
and higher cotton costs of $1 million. These higher costs
were offset by $17 million of savings from our cost
reduction initiatives and prior restructuring actions, lower
sales incentives of $7 million and lower excess and
obsolete inventory costs of $5 million.
The lower Innerwear segment operating profit in the six months
of 2008 compared to 2007 is primarily attributable to lower
gross profit and higher MAP expenses of $9 million, higher
technology consulting and related expenses of $7 million
and higher distribution expenses of $2 million partially
offset by savings from prior restructuring actions of
$9 million. Our media related MAP expenses were higher in
the six months of 2008 primarily to support the launch of
Hanes No Ride Up Panties and marketing initiatives for
Playtex. A significant portion of the selling, general
and administrative expenses in each segment is an allocation of
our consolidated selling, general and administrative expenses,
however certain expenses that are specifically identifiable to a
segment are charged directly to each segment. The allocation
methodology for the consolidated selling, general and
administrative expenses for the six months of 2008 is consistent
with 2007. Our consolidated selling, general and administrative
expenses before segment allocations was flat in the six months
of 2008 compared to 2007.
This excerpt taken from the HBI 10-Q filed May 7, 2008. Innerwear
Overall net sales in the Innerwear segment were lower by
$47 million or 7.9% in the first quarter of 2008 compared
to 2007. The net sales decline was broad based, affecting most
product categories and most customers. We experienced lower
sales of Hanes brand men’s underwear of
$10 million, lower Hanes brand kids’ underwear
sales of $8 million, lower Champion brand sock sales
of $4 million, lower Hanes brand socks sales of
$3 million and lower Hanes brand sleepwear sales of
$3 million. In addition, we experienced lower sales of
Just My Size brand intimate apparel of $6 million,
lower sales of barely there brand intimate apparel of
$5 million, lower sales of Bali brand intimate
apparel of $4 million and lower sales of Hanes brand
intimate apparel of $2 million.
As a percent of segment net sales, gross profit percentage in
the Innerwear segment was 38.3% in the first quarter of 2008
compared to 38.6% in 2007. The lower gross profit is primarily
attributable to lower sales volume of $15 million,
unfavorable product sales mix of $8 million, higher freight
costs of $5 million and higher production costs of
$2 million. These factors were partially offset by savings
from our cost reduction initiatives and prior restructuring
actions of $7 million and lower excess and obsolete
inventory costs of $5 million.
The lower Innerwear segment operating profit in the first
quarter of 2008 compared to 2007 is primarily attributable to
lower gross profit on lower sales volume, higher MAP expenses of
$10 million and higher technology consulting expenses of
$5 million partially offset by savings from prior
restructuring actions of $5 million and lower distribution
expenses of $2 million and $3 million of lower
spending in numerous other areas. A significant portion of the
selling, general and administrative expenses in each segment is
an allocation of our consolidated selling, general and
administrative expenses, however certain expenses that are
specifically identifiable to a segment are charged directly to
each segment. The allocation methodology for the consolidated
selling, general and administrative expenses for the first
quarter of 2008 is consistent with 2007. Our consolidated
selling, general and administrative expenses before segment
allocations was flat in the first quarter of 2008 compared to
2007.
These excerpts taken from the HBI 10-K filed Feb 19, 2008. Innerwear
Net sales in the Innerwear segment decreased primarily due to a
$65 million impact of our discontinuation of certain
sleepwear, thermal and private label product lines and the
closure of certain retail stores. Net sales were also negatively
impacted by $15 million of lower sock sales due to both
lower shipment volumes and lower pricing.
Gross profit percentage in the Innerwear segment increased from
35.1% in 2005 to 37.2% in 2006, reflecting a $78 million
impact of lower charges for slow moving and obsolete
inventories, lower cotton costs and benefits from prior
restructuring actions, partially offset by lower gross margins
for socks due to pricing pressure and mix.
The increase in Innerwear segment operating profit is primarily
attributable to the increase in gross margin and a
$37 million impact of lower allocated selling expenses and
other selling, general and administrative expenses due to
headcount reductions. This is partially offset by
$21 million related to higher allocated media advertising
and promotion costs.
Innerwear
Net sales in the Innerwear segment decreased primarily due to a $65 million impact of our discontinuation of certain sleepwear, thermal and private label product lines and the closure of certain retail stores. Net sales were also negatively impacted by $15 million of lower sock sales due to both lower shipment volumes and lower pricing. Gross profit percentage in the Innerwear segment increased from 35.1% in 2005 to 37.2% in 2006, reflecting a $78 million impact of lower charges for slow moving and obsolete inventories, lower cotton costs and benefits from prior restructuring actions, partially offset by lower gross margins for socks due to pricing pressure and mix. The increase in Innerwear segment operating profit is primarily attributable to the increase in gross margin and a $37 million impact of lower allocated selling expenses and other selling, general and administrative expenses due to headcount reductions. This is partially offset by $21 million related to higher allocated media advertising and promotion costs. This excerpt taken from the HBI 10-Q filed Nov 5, 2007. Innerwear
Overall net sales in the Innerwear segment were lower by
$13 million or 0.7% in the nine month period in 2007
compared to the same nine month period in 2006. We experienced
lower sales volume of Playtex brand intimate apparel
sales of $23 million, lower Hanes brand kids’
underwear sales of $17 million and lower licensed
men’s underwear sales in the department store channel of
$11 million. The lower net sales were partially offset by
higher Hanes brand intimate apparel, socks and sleepwear
sales of $14 million, $11 million
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and $7 million, respectively, and higher Bali brand
sales of $6 million. Our Hanes brand intimate
apparel sales were higher primarily as a result of the Hanes
All-Over Comfort Bra that was introduced earlier this year
in a new national television, print and Internet advertising
campaign.
As a percent of segment net sales, gross profit percentage in
the Innerwear segment was 37.6% in the nine month period in 2007
compared to 37.5% in the same nine month period in 2006. While
our gross profit percentage slightly improved, our gross profit
was lower from lower sales volume and unfavorable plant
performance of $12 million, $10 million in higher
cotton costs, higher excess and obsolete inventory costs of
$10 million and unfavorable product sales mix of
$9 million. These higher expenses were partially offset by
lower duty costs of $16 million primarily due to the
receipt of $7 million in duty refunds relating to duties
paid several years ago, lower allocations of overhead costs of
$15 million and $6 million in savings from our cost
reduction initiatives.
The lower Innerwear segment operating profit in the nine month
period in 2007 compared to the same nine month period in 2006 is
primarily attributable to lower gross profit on lower sales
volume and a higher allocation of selling, general and
administrative expenses of $28 million. These higher
expenses were partially offset by lower media, advertising and
promotion expenses of $15 million. Our consolidated
selling, general and administrative expenses before segment
allocations were lower in the nine month period in 2007 compared
to the same nine month period in 2006 primarily due to lower
spin off and related charges, lower media, advertising and
promotion expenses, lower distribution expenses, amortization of
gain on curtailment of postretirement benefits and lower pension
expense offset by lower allocations of overhead costs, higher
accelerated depreciation and higher technology consulting
expenses.
This excerpt taken from the HBI 10-Q filed Aug 3, 2007. Innerwear
Overall net sales in the Innerwear segment were higher by
$3 million or 0.2% in the six month period in 2007 compared
to the same six month period in 2006. We experienced higher
volume of Hanes underwear and intimate apparel brand
sales of $11 million and $4 million, respectively, and
higher women’s socks sales of $9 million. Our Hanes
intimate apparel brand sales were higher primarily as a
result of the Hanes All-Over Comfort Bra that was
introduced recently in a new national television, print and
Internet advertising campaign. The higher net sales were offset
by lower Playtex intimate apparel brand sales of
$19 million.
As a percent of segment net sales, gross profit percentage in
the Innerwear segment was 38.6% in the six month period in 2007
compared to 37.8% in the same six month period in 2006. The
improvement in gross profit is attributable to lower allocations
of overhead costs of $10 million and lower duty costs of
$7 million related to refunds received for duties paid
several years ago, offset primarily by higher cotton costs of
$8 million.
The higher Innerwear segment operating profit in the six month
period in 2007 compared to the same six month period in 2006 is
primarily attributable to higher gross profit and lower media,
advertising and promotion expenses of $23 million offset by
a higher allocation of selling, general and administrative
expenses of $20 million. Our consolidated selling, general
and administrative expenses before segment allocations were
lower in the six month period in 2007 compared to the same six
month period in 2006 primarily due to lower media, advertising
and promotion expenses, lower spin off and related charges,
lower distribution expenses and amortization of gain on
curtailment of postretirement benefits offset by lower
allocations to inventory cost and higher technology consulting
expenses.
This excerpt taken from the HBI 10-Q filed May 14, 2007. Innerwear
Overall net sales in the Innerwear segment decreased slightly in
the first quarter of 2007 compared to the same quarter in 2006.
We experienced lower sales of men’s and kids’
underwear of $11 million, lower intersegment sales of
$5 million and an aggregate of $4 million lower sales
in all other product categories in the first quarter of 2007
compared to a year ago. The lower net sales of men’s and
kids’ underwear were primarily offset by higher net sales
in our women’s products in socks of $8 million,
women’s intimate apparel of $5 million and
women’s sleepwear of $4 million. Following our recent
launch of our Hanes All-Over Comfort Bra with ComfortSoft
Straps media campaign, we experienced a higher retail sell
through of the All-Over Comfort Bra.
As a percent of segment net sales, gross profit percentage in
the Innerwear segment increased in the first quarter of 2007 to
38.6% as compared to 37.9% in the same quarter of 2006. The
improvement in gross profit is primarily attributable to lower
sourcing costs and other manufacturing efficiencies of
$8 million and lower allocations of overhead costs of
$4 million offset primarily by $7 million of higher
incentives on sales and $5 million of higher cotton costs.
The decrease in Innerwear segment operating profit in the first
quarter of 2007 as compared to the same quarter in 2006 is
primarily attributable to the higher gross profit on lower net
sales, and lower media, advertising and promotion costs of
$7 million offset by a higher allocation of selling,
general and administrative expenses of $12 million. Our
consolidated selling, general and administrative expenses before
segment allocations increased in the first quarter of 2007 as
compared to the same quarter of 2006 primarily due to a
reduction of allocations to inventory cost, higher technology
consulting expenses, higher distribution expenses and higher
stand alone company expenses offset by the elimination of
allocations from Sara Lee and lower media, advertising and
promotion expenses.
This excerpt taken from the HBI 8-K filed Nov 29, 2006. Innerwear
Net sales in the innerwear segment increased primarily due to a
$40 million impact from volume increases in the sales of
men’s underwear and socks. Net sales were adversely
affected year over year by a $47 million impact of the
53rd week in fiscal 2004.
Gross profit percentage in the innerwear segment declined from
37.5% in
fiscal 2004 to 35.1% in fiscal 2005, reflecting a
$60 million impact of higher raw material costs for cotton
and charges for slow moving and obsolete underwear inventories.
The decrease in innerwear segment operating profit is primarily
attributable to the following factors. First, we increased
inventory reserves by $30 million for slow moving and
obsolete underwear inventories in fiscal 2005 as compared to
fiscal 2004. Second, innerwear operating profit was adversely
affected by a
$12 million impact of the 53rd week in fiscal 2004.
The remaining decrease in segment operating profit was primarily
the result of higher unit volume offset in part by higher allocated distribution and media
advertising and promotion costs.
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