In order to navigate the challenges presented by the ongoing health crisis, HanesBrands, the Winston-Salem, North Carolina-based owner of brands has reduced its discretionary spending and capital expenditures, cut salaries and furloughed specific employee groups, as well as managing its inventory and supply chain production. These measures are expected to result in a $200 million saving in 2020. The company also intends to secure around $500 million in debt financing.

HanesBrands reported a loss in its first quarter as a stronger than expected performance early was undermined by the escalation of the coronavirus pandemic. For the first quarter ended March 28, 2020, the company announced a net loss of $7.8 million, or $0.02 per diluted share, down from earnings of $81.1 million, or $0.22 per diluted share, in the prior-year period.

The group’s quarterly net sales totaled $1.32 billion, representing a 17.1 per cent decline compared to the $1.59 billion reported by the company in the same period in the previous year. Along with the negative impact of the ongoing global health crisis, sales were also affected by HanesBrands’ exit from its C9 Champion mass program and DKNY intimate apparel license, which together represented around $94 million in revenue in Q1 2019.

Sales declined by 14 per cent in the company’s international segment, 11 per cent in its US innerwear segment and 29 per cent in US activewear. Before mid-March, the innerwear and activewear segments were performing better than expected, but both have since suffered a significant negative impact due to the Covid-19 pandemic.

HanesBrands’ international segment was impacted both by wholesale declines and the temporary closure of its brand stores, approximately 1,000 of which (out of a total 1,200) are located in international geographies. However, the company’s sales from its online channels increased by 5 per cent in the first quarter.