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Hanesbrands (NYSE: HBI) | Company Profile, History, Competitors

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Hanesbrands (NYSE: HBI) is a global manufacturer of innerwear and active apparel. The company was founded in 1901 and headquartered in Winston Salem, NC.

Hanesbrands was founded in 1991 by Pleasant Hanes to produce men's underwear. In 1979, Hanesbrands was acquired by Sara Lee and spun off as a separate company in 2006. Hanesbrands has the leading market share in the US for innerwear, which includes underwear, socks and intimate apparel. Hanes also produces activewear and branded logo apparel. The company has historically used celebrities like Michael Jordan for marketing and brand awareness.

Business Overview

Hanes operates in three main segments:
  • Innerwear (38% of 2017 Revenues): Consists of core apparel such as underwear, socks and intimates.
  • Activewear (31% of 2017 Revenues): Consists of t-shirts, fleeces, athletics and logo apparel.
  • International (26% of 2017 Revenues): Consists of innerwear and activewear sales to international markets.

Innerwear Segment

The innerwear segment consists of underwear, socks and intimate apparel. Main brands are Hanes, Champion, Maidenform, Playtex and Leggs. The company also sells Polo Ralph Lauren underwear and Donna Karan/DKNY hosiery through license agreements.

Hanes has the leading market share in US innerwear[1].

Hanes has been a pioneer in innerwear and developed the Tagless, ComfortBlend and Smart Size platforms.

Activewear Segment

The activewear segment consists of t-shirts, fleeces, athletics and licensed logo apparel in college bookstores and sporting goods channel. Main brands include Hanes, Champion, Just My Size, and Knights Apparel.

International Segment

Hanes also sells internationally to Latin America, Europe, Asia and Australia. Main brands include Hanes, Champion, DIM, Bonds, Playtex, Wonderbra, Maidenform and Bellinda.

Suppliers and Distribution

As of 2017, Hanes produces about 73% of its items from units manufactured out of its owned facilities or operated by third party contractors. Most of its 50 manufacturing facilities are located in Asia, Central America and the Caribbean. The remainder is finished goods sourced by third party manufacturers.

As of 2017, Hanes has 43 distribution centers around the world.

Marketing

During the 1970s, Hanes women's hosiery advertising developed the tagline "Gentlemen Prefer Hanes". In the 1990s, the brand's main slogan was "Just wait'll we get our Hanes on you." In the 2000s, Hanes ran an ad campaign for "Go Tagless" t-shirts and featured celebrities including Michael Jordan, Jackie Chan and Brian Regan.

The company's long history of brands are driven as a function of product innovation, durability and rigorous consumer testing.

Customers

Hanes sells by the wholesale channel to department stores, retailers and specialty stores as well as direct-to-consumer by its online website. Their three largest customers are Walmart, Target and Kohls.

Competitors

Hanes competes with other innerwear manufacturers like Fruit of the Loom (part of Berkshire Hathaway), Russell Corporation, Victoria's Secret (part of L Brands and Jockey.

In activewear, Hanes competes against GIldan Activewear. Nike, Adidas, Puma and Under Armour.

History

The company was founded in 1901 by Pleasant Hanes to produce men's underwear. It was called PH Hanes Knitting Company. Hanes was the first to introduce a two-piece underwear. In the same year, his brother John Hanes started Shamrock Knitting Mills to manufacture men's socks.

In 1918, PH Hanes Knitting Company began manufacturing women's socks. PH Hanes Knitting Company pioneered the introduction of nylon pantyhose.

In 1965, PH Hanes Knitting Company and Shamrock Knitting Mills merged into Hanes Corporation.

In 1979, Hanes Corporation was acquired by Sara Lee Corporation.

In 1980, Hanes Corporation began manufacturing printable t-shirts and other apparel.

In 1989, Hanes Corporation acquired Champion.

In 2006, Sara Lee spun off Hanes as a separate company called Hanesbrands.

In 2013, Hanes acquired Maidenform to expand into women's intimates.

Management

Gerald W. Evans Jr (CEO): Gerald Evans serves as CEO since 2016. Prior, he served in various roles at the company including COO, President International Business and President Global Supply Chain. He had also worked as CEO of Sara Lee Sportswear.

Barry A. Hytinen (CFO): Barry Hytinen serves as CFO since 217. Prior, he served as CFO, VP Corporate Development, VP FInance & Global Business as Tempur Sealy International. He had also worked at General Electric and Vignette Corp.

Financials

 $ USD in millions    2013    2014 2015 2016 2017
 Revenues $4,628 
$5,325 
$5,732 
$6,028 
$6,471 
 Gross Profit $1,628 
$1,978 
 $2,199 
 $2,315 
 $2,546 
 Operating Profit $515 
$564 
 $595 
 $776 
 $723 
 Net Income$331 
$405 
$429 
 $539 
 $62 
 EPS$0.81 
$0.99 
$1.06 
$1.40 
$0.17 

References

Hanesbrands, Inc.
 
  Type     Public
  Ticker     NYSE: HBI
  Industry Retail
  Founded 1901
  Headquarters WInston Salem, NC
  Revenues
$6.5bn (2017)
  Employees 67,200 (2017)
  Website hanes.com