HanesBrands (asi/59528) recorded a nearly $96 million loss through the first nine months of 2023 and its year-over-year sales during the same period are down almost 9%.

That’s according to a third-quarter financial report from the publicly traded apparel maker, which said that it will temporarily add three additional members to its board of directors as part of an effort to turn business momentum positive again.

HanesBrands’ apparel, including its struggling Champion brand, sells in the promotional products industry. Across all its business channels, total global sales for HanesBrands declined 8.8% year over year in 2023 through the end of September, to about $4.3 billion. Loss per share was -$0.27 on the back of the $95.6 million loss during the nine-month period.

For the most recently concluded quarter, the third, HanesBrands’ sales fell 9.5% year over year to $1.51 billion. The vertically integrated manufacturer of apparel basics posted a loss of about $38.8 million in Q3, or -$11 per share.

During the third quarter, HanesBrands’ activewear sales in particular dropped 17%. “The segment experienced decreases across most channels and brands, driven by ongoing headwinds within the activewear category, including soft consumer demand and excess channel inventory,” HanesBrands said in summarizing the quarterly performance.

HanesBrands’ flagship Champion brand continued to feel headwinds. Total global sales of Champion plummeted 19% in Q3, with U.S. sales slipping 16% and international business off 22% from the comparable stretch last year.

HanesBrands announced in September that it was undertaking a strategic evaluation of its global Champion business – considering, among other alternatives, whether to sell the iconic brand.

Two brand management firms that already boast portfolios populated with household-name apparel brands have reportedly shown interest.

Report: Brand Management Firms Interested in Buying Champion From Hanes https://t.co/2hBrYjlrBw

— Chris Ruvo (@ChrisR_ASI) November 1, 2023

New Board Members

On Nov. 16, HanesBrands announced that it named Colin Browne (formerly of Under Armour), Natasha Chand (formerly of Amazon, Target and Levi Strauss) and John Mehas (Vineyard Vines, formerly of Victoria’s Secret) as independent directors to its board, effective immediately.

“They bring important relevant experience in retail, consumer brands and operations, and we look forward to gaining their insights as the company continues to focus on driving improved performance and pursues key ongoing initiatives, including the evaluation of alternatives for the global Champion business,” said Ronald L. Nelson, chairman of the board.

The three additional board members are slated to serve until the HanesBrands 2024 stockholder meeting, at which time the board will revert to 10 members, according to the company.

“We believe this newly constituted board is positioned to guide the company forward in pursuing our mutual goal to create value for HanesBrands’ shareholders.”James A. Mitarotonda, Barington Capital Group

In connection with the new board member appointments, HanesBrands entered into a cooperation agreement with shareholder Barington Capital Group, an activist investor that over the summer called on the clothing company to slash costs and beef up cash amid weak financial performance.

As part of the agreement, Barington has agreed to standstill, voting and other provisions, and will provide advisory services to HanesBrands.

“We believe this newly constituted board is positioned to guide the company forward in pursuing our mutual goal to create value for HanesBrands’ shareholders,” said James A. Mitarotonda, CEO of Barington. “We appreciate the efforts and recent actions taken by (HanesBrands CEO) Steve Bratspies and the management team. We look forward to working with him and the board.”