The board of directors at Hanes Brands has declared a regular quarterly cash dividend of 15 cents per share to be paid June 9, 2020, to stockholders of record at the close of business May 19, 2020. The Winston-Salem-based global marketer of everyday basic apparel under world-class brands has returned more than $1.2 billion in quarterly cash dividends to stockholders since initiating its program in April 2013.
The declared cash dividend will be the 29th consecutive quarterly return of cash to stockholders. The announcement comes on the heels of the company’s first-quarter 2020 earnings report, in which it estimated the late-quarter impact of Covid-19 reduced revenue by approximately $181 million, and operating profit by some $86 million. For the quarter ended March 28, 2020, net sales were $1.32 billion compared to $1.59 billion a year ago.
The brand’s first quarter 2019 included net sales of $94 million from the now exited C9 Champion mass program and the DKNY intimate apparel license. Excluding the exited programs, the impact of COVID-19 and foreign exchange rates, total constant-currency net sales for the first-quarter 2020 would have increased 1.6 per cent.
Because of disruptions to retailer operations and the unpredictability of consumer confidence, Hanes Brands’ pandemic response is focused on serving channels of trade that are generating sales, preserving cash and enhancing liquidity, and developing a product line of personal protective garments including face masks to meet emerging commercial and consumer demand.