Retail: 75
12.52%
Retail: 184
1.41%
Mon, Aug 28, 2017
Vol 1, Issue No. 33

APPAREL
Gildan Exits Mexico; Champion Keeps Rolling for Hanesbrands

Citing weak sales in the imprintables channel in North America and internationally, Gildan Activewear reported a 2 percent decline in Q3 revenues to $740 million. A 1.1 percent increase in overall activewear sales to $619.2 million was driven by double-digit growth in sales to global lifestyle brand and higher fleece and fashion basic sales in North America. Meanwhile, late last month, GIL decided to shutter its textile and sewing operations in Mexico and relocate the equipment to its facilities in Central America and the Caribbean. The Montreal-based company says it is continuing to evaluate additional cost-cutting initiatives, including the possibility of phasing out its direct-ship-to-the-piece imprintables business to put more focus on its distributor segment.

Meanwhile, at Hanesbrands, global Champion brand sales rose 26 percent in Q3 at a constant currency rate as U.S. sales of the brand increased 29 percent and international rose 24 percent. During the first three quarters of 2019, Champion sales have risen approximately $470 million.

Hanesbrands CEO Gerald Evans told analysts that Champion is well-positioned to generate another $1 billion in sales growth over the next several year, particularly given the brand’s equity with the Gen Z and Millennials. Champion’s product portfolio is being expanded to include more performance, kids and women’s lines, casual footwear and accessories. Internationally, there is new focus on China via a second distributor and South Korea. Current Q4 sales expectations for the brand have been increased by $15 million, representing a high teens growth rate for the period.