Hanesbrands (HBI)

 

The apparel essentials market is highly competitive and evolving rapidly. Competition is generally based upon price, brand name recognition, product quality, selection, service and purchasing convenience. Our businesses face competition today from other large corporations and foreign manufacturers. These competitors include Berskhire Hathaway Inc. through its subsidiary Fruit of the Loom, Inc., Warnaco Group Inc., Maidenform Brands, Inc. and Gildan Activewear, Inc. in our Innerwear business segment and Gildan Activewear, Inc., Berkshire Hathaway Inc. through its subsidiaries Russell Corporation and Fruit of the Loom, Inc., Nike, Inc., adidas AG through its adidas and Reebok brands and Under Armour Inc. in our Outerwear business segment. We also compete with many small companies across all of our business segments. Additionally, department stores and other retailers, including many of our customers, market and sell apparel essentials products under private labels that compete directly with our brands. These customers may buy goods that are manufactured by others, which represents a lost business opportunity for us, or they may sell private label products manufactured by us, which have significantly lower gross margins than our branded products. We also face intense competition from specialty stores that sell private label apparel not manufactured by us, such as Victoria’s Secret, Old Navy and The Gap. Increased competition may result in a loss of or a reduction in shelf space and promotional support and reduced prices, in each case decreasing our cash flows, operating margins and profitability. Our ability to remain competitive in the areas of price, quality, brand recognition, research and product development, manufacturing and distribution will, in large part, determine our future success. If we fail to compete successfully, our market share, results of operations and financial condition will be materially and adversely affected.

 

 

The apparel essentials market is highly competitive and evolving
rapidly. Competition is generally based upon price, brand name
recognition, product quality, selection, service and purchasing
convenience. Our businesses face competition today from other
large corporations and foreign manufacturers. These competitors
include Berskhire Hathaway Inc. through its subsidiary Fruit of
the Loom, Inc., Warnaco Group Inc., Maidenform Brands, Inc. and
Gildan Activewear, Inc. in our Innerwear business segment and
Gildan Activewear, Inc., Berkshire Hathaway Inc. through its
subsidiaries Russell Corporation and Fruit of the Loom, Inc.,
Nike, Inc., adidas AG through its adidas and Reebok brands and
Under Armour Inc. in our Outerwear business segment. We also
compete with many small companies across all of our business
segments. Additionally, department stores and other retailers,
including many of our customers, market and sell apparel
essentials products under private labels that compete directly
with our brands. These customers may buy goods that are
manufactured by others, which represents a lost business
opportunity for us, or they may sell private label products
manufactured by us, which have significantly lower gross margins
than our branded products. We also face intense competition from
specialty stores that sell private label apparel not
manufactured by us, such as Victoria’s Secret, Old Navy and
The Gap. Increased competition may result in a loss of or a
reduction in shelf space and promotional support and reduced
prices, in each case decreasing our cash flows, operating
margins and profitability. Our ability to remain competitive in
the areas of price, quality, brand recognition, research and
product development, manufacturing and distribution will, in
large part, determine our future success. If we fail to compete
successfully, our market share, results of operations and
financial condition will be materially and adversely affected.