Hanes Brands has reported a global net sales decrease of 10% on a constant currency basis in the first quarter of 2023, citing macro-driven slowdown in consumer spending in the US and Australia.
Hanes Brands is parent company to Bonds, Champion and Sheridan.
The company reported net sales of US$1.39 billion, which included a $31 million impact from foreign exchange rates. Hanes confirmed this is a decrease of 12% compared to last year’s first-quarter results.
Subsidiary Champion reported a sales decrease of 17% on a reported basis compared to the prior year, with a 22% decline in the US and a 12% decline internationally.
In constant currency, Champion sales decreased 15%, with a 7% decline internationally. The brand operates two stores in Australia and is stocked in various retailers including Rebel and City Beach, as well as on The Iconic.
Compared to the prior year, Hanes' constant currency sales increased in Europe, Japan, the Americas and Australia. Hanes reported the growth was more than offset by the soft consumer demand environment and strategic channel clean-up actions in the US, as well as a decline in China as re-orders and sell-in shipments were impacted by higher retail channel inventory that resulted from COVID-related closures in prior periods.
Sell-through demand in China increased at a low double-digit rate in the first-quarter.
Hanes’ international sales decreased 9% on a reported basis, and 3% on a constant currency basis compared to the prior year, as growth in Europe, the Americas and Japan was offset by declines in Australia and China.
“We delivered first-quarter results in-line with our outlook, generated positive cash flow and reiterated our full-year outlook,” Hanes Brands CEO Steve Bratspies said. “I want to thank all of our associates for their continued dedication and hard work as they once again delivered near-term results while implementing our transformation strategy.
“We’re confident in the progress we’re making to become a more consumer-centric, data-driven company that consistently generates higher sales and profit growth over time.”
Meanwhile, in the Australian market, Hanes’ Bonds subsidiary launched Bonds Whoopsies toddler training underwear. Bonds operates 84 stores across Australia alongside wholesale distribution.