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Hanesbrands Announces Q2 Sales Increase

Hanesbrands (asi/59528) increased sales in the second quarter of 2017 to $1.65 billion, a 12% rise over the same quarter the prior year, according to an earnings statement released this week. The report also revealed that the leading provider of apparel basics generated a 3% jump in GAAP Q2 operating profit, which rose to $229 million.

“We continued our strong start to 2017 in the second quarter, consistent with our guidance,” said Hanes Chief Executive Officer Gerald W. Evans Jr.

During the quarter ending July 1, Hanesbrands increased GAAP earnings per share 38% to $0.47, while also seeing a 4% rise in adjusted EPS to $0.53. Meanwhile, Hanesbrands’ year-to-date net cash from operations was $34 million, a $163 million improvement versus a year ago. The apparel maker noted that working capital improvement initiatives are expected to drive record cash flow for the year. Globally, Hanesbrands’ online sales accelerated about 25%, accounting for approximately 9% of total sales.

Still, not all Q2 numbers represented rises. Sales from recently acquired units played a key role in driving growth, as organic net sales decreased 3%, a decline that followed respective drops of 4% and 5% in the two immediately preceding quarters. Nonetheless, Hanesbrands stated that positive organic growth is expected in the third and fourth quarters.

Also of note: Innerwear sales declined a bit less than 3%, while activewear sales rose 1%. More encouragingly, international segment sales increased 76% as a result of acquisitions and strong results in Asia, with operating profit in the segment rising 152% -- a benefit of European acquisition synergies.

For 2017, Hanesbrands expects net sales of $6.45 billion to $6.55 billion. Achieving the midpoint of that predicted range would lead to 8% net sales growth over 2016, the company said.

Earlier this year, Hanesbrands reported that first quarter sales tallied $1.38 billion, a 13% increase over the same quarter in 2016.