HanesBrands' global headquarters has revealed further elements of its 'Full Potential Plan' and what that means for Australian operations.
The Full Potential Plan's (FPP) overarching aim is to drive approximately $1.2 billion in incremental revenue and operating margins above 14% by 2024.
To do this, the business will focus its efforts on the biggest growth opportunities across Australia, China, Europe and North America.
So far, this has involved the appointment of former Hanes Australasia creative director Jane Newman to chief design officer, global innerwear for parent company HanesBrands and the scale back of sales of PPE garments.
Moving forward, this means a heightened focus on growing Champion and continuing growth of innerwear sales, especially Bonds in Australia.
The plan calls for Champion to become a $3 billion global brand by 2024, representing a 14% compound annual growth rate (CAGR) from projected 2021 sales of approximately $2 billion.
This will involve strengthening connections with consumers, widening the product offering, expanding the online channels and growing in key markets.
Meanwhile, Hanes expects to grow its innerwear revenue by approximately $200 million through 2024, driven by sales in Australia and the US.
This growth represents a 2% CAGR on top of 2021 projected sales of nearly $3.7 billion.
Locally, this focus on innerwear will mean continued investment in the Bonds brand and its eCommerce infrastructure.
"In Australia, Bonds has become the leading innerwear brand by delivering breakthrough product innovation and consumer marketing," Hanes Brands said in a statement.
Hanes' FPP focuses on four key pillars for growth, with investments in Champion and innerwear representing the first two pillars.
The other two pillars focus on; driving consumer-centricity through product innovation, digital investment and brand marketing; and, focusing the portfolio through simplification of all aspects of the business from global holdings to SKU counts.
Speaking on the FPP, Hanes Brands CEO Steve Bratspies said that the plan will help the business better serve its customers.
"HanesBrands is an amazing company with a portfolio of strong, iconic brands and significant and sustainable competitive advantages.
"Full Potential builds on these advantages to deliver approximately $1.2 billion in topline growth as well as improved profitability over the next three years.
"We are putting the consumer at the centre of everything we do.
"We’ll do this by investing in innovation that delivers products that meet consumers’ needs and by creating a seamless experience that lets consumers shop for our products how, when and where they want to shop," he said.