It seems to be party time for the US Textile – Apparel Clothing Industry. Most of the companies in this industry are shining brightly after their earnings reports came out. Among all these companies, one which really caught my eyes is the maker of Hanes and Champion underwear, Hanesbrands Inc. (NYSE:HBI). The company lit up the Street with its fourth quarter earnings, as its net income almost doubled. Let’s have a closer look at the company.
HanesBrands reported a 95% surge in its net income, which reached $80.4 million from $41 million in its fourth quarter earnings. The company’s revenue increased by 4.7% and reached $1.15 billion.
The company performed brilliantly across all of its segments. Net revenue for the Innerwear segment increased 6.6%, backed by a decent performance of men’s underwear and women’s panties. The company’s new product innovation worked successfully in this segment. Hanes and Champion men’s underwear and Hanes panties and Bali bras performed well as their sales increased by double digits, resulting in a 79.6% surge in the operating profit for the segment. Sales in the Outerwear segment also jumped 5.8% as the company’s Hanes branded T-shirts and other products under the Champion brand’s performed much better than expected, resulting the operating profit surging by 241% and reaching $37.0 million during the quarter.
As I have already mentioned earlier, HanesBrands is not the only apparel company showing such positive numbers on its balance sheet. The premium lifestyle clothing, accessories, and perfume company, Ralph Lauren Corp (NYSE:RL) reported a 35% surge in its earnings, and its total revenue rose 2.2%. Even though the company suffered in the second half of 2012 due to the surge in the cotton prices and because of the cost the company had to bear as it eliminated some of its business to focus on the most profitable ones, the premium lifestyle clothing and accessories retailer reported better than expected third quarter results as its affluent shoppers in the US continued to spend even in these challenging economic times. Ralph Lauren reported a 27% surge in its third quarter profit.
Meanwhile G-III Apparel Group, Ltd. (NASDAQ:GIII), which designs, manufactures, imports, and markets a range of outerwear and sportswear apparel to retailers in the United States, also reported in their latest quarter that their net sales surged 6.6% year over year. The significant growth in sales was backed by its strong performance in wholesale licensed apparel and retail operations, which surged 7.6% and 21%, respectively. The company expects their EPS to grow by 20% in the next 5 years.
However, though most of the apparel companies have witnessed growth, HanesBrands was definitely accelerating at the highest speed. Apart from those surging sales let’s see what else helped that let this company deliver such outstanding results.