Net sales of leading US-based apparel manufacturer, Hanesbrands declined by 17 per cent to $1.16 billion during Q1, FY24 as against the corresponding quarter previous year.

The global sales of the Champion brand grew in regions such as Japan, China, and Latin America. However, this growth was overshadowed by a 26 per cent decrease in the sales of the brand on a reported basis and a 25 per cent decrease on a constant currency basis compared to the corresponding period last year.

Both gross profit and adjusted gross profit of Hanesbrands increased by an approximate 2 per cent Y-o-Y during the quarter. Notably, it’s gross margin and adjusted gross margin improved by 750 and 720 basis points to reaching 39.9 per cent, underscoring the effective cost management and operational efficiencies of the company.

The company’s selling, general, and administrative expenses rose by 4 per cent to $409 million. It’s operating profit increased by 4.5 per cent to $52 million while adjusted operating profit rose by 32 per cent to $84 million.

On a less favorable note, the company’s net loss widened to $39 million during the quarter as against the corresponding quarter of the prior year. However, the adjusted net loss improved to $7 million from a loss of $21 million in the first quarter of 2023.

Segment-wise, innerwear sales dropped by 8 per cent due to higher-than-anticipated inventory management actions by certain retailers. Activewear sales saw a steep decline of 31 per cent, or $97 million. International sales also decreased by 12 per cent on a reported basis.