Hanesbrands Profile
Hanesbrands Inc. (Hanesbrands) operates as a consumer goods company.
The company is a global leader in branded everyday apparel in the Americas, Australia, Europe, and Asia under some of the world’s strongest apparel brands, including Hanes, Champion, Bonds, Bali, Maidenform, Bras N Things, Playtex, Wonderbra, Gear for Sports, Berlei, Comfortwash, Alternative and JMS/Just My Size.
The company designs, manufactures, sources and sells a broad range of innerwear apparel, such as T-shirts, bras, panties, shapewear, underwear and socks, as well as activewear products that are manufactured or sourced in the company’s global supply chain. The company’s products are broadly distributed and available to consumers where, when and how they want to shop, including in mass merchants, mid-tier and department stores, specialty stores, company-owned retail stores, as well as e-commerce sites, both retailer and company-owned websites.
The company’s business strategy integrates its brand superiority, industry-leading innovation and low-cost global supply chain to provide higher value products. The company operates in the global innerwear and global activewear apparel categories. The company’s multi-year growth strategy (‘Full Potential transformation plan’) is based on becoming a consumer-focused company that generates consistent growth and returns over time. The company’s plan is designed to re-energize and reignite its Innerwear business by delivering consumer-driven innovation and attracting younger consumers; to grow the Champion brand through improved product and channel segmentation and expanding the brand across categories and geographies; to become a more consumer-focused organization that delivers products consumers want; and, to simplify the company’s business and the company’s portfolio. The key enablers to unlock the company’s growth opportunities include segmenting its global supply chain, increasing revenue-generating investments in the company’s brands, technology and people, as well as building a winning culture.
As part of the company’s strategy to streamline its portfolio under the company’s Full Potential transformation plan, on March 5, 2022, the company completed the sale of its European Innerwear business to an affiliate of Regent, L.P. and on September 29, 2023, the company completed the sale of its U.S. Sheer Hosiery business to AllStar Hosiery LLC, an affiliate of AllStar Marketing Group, LLC.
Brands
The company’s portfolio of leading brands is designed to address the needs and wants of various consumer segments across a broad range of basic apparel products. The company’s brands have strong consumer positioning that helps distinguish them from competitors and guides their advertising and product development.
Hanes is the largest and most widely recognized brand in the company’s portfolio. Hanes is the number one selling apparel brand in the United States and is found in nine out of ten U.S. households. The Hanes brand covers all of the company’s product categories, including men’s underwear, women’s panties, children’s underwear, bras, socks, T-shirts, fleece and shapewear. Hanes stands for outstanding comfort, style and value. Hanes is one of the most widely distributed brands in apparel, with a presence across mass merchandise retailers, e-commerce sites, discount stores and department stores. Through collaborations with third parties, the brand has also gained distribution with specialty retailers and high-end retail establishments. Following the successful launch of Hanes Total Support Pouch underwear platform in 2021, Hanes launched the Hanes Originals line of innovative products with more modern silhouettes aimed at younger consumers at select retailers in Canada and the U.S. in late 2022. Hanes Originals was the first multi-category, multi-geography product introduction under the company’s new global innovation process and is now in five countries.
Champion is the company’s second-largest brand. Founded in Rochester, New York in 1919, Champion has always been known for authentic American style and performance and helped pioneer some of the most important innovations in athleticwear, including reverse weave sweatshirts, mesh practice uniforms and sports bras. Champion athleticwear can be found in sporting goods retailers, e-commerce sites, department stores, college bookstores and specialty retailers, as well as in the company’s own retail locations and the company’s Champion.com website. In addition, Champion has collaborated with designers and other iconic brands around the world, including Supreme, Kith, Muhammad Ali, Sesame Street, Todd Snyder, Cobra Kai, the Beastie Boys, Beams Boys, Disney and Stranger Things.
Bonds is a megabrand in the company’s global portfolio with strong heritage and deep household penetration in its respective market. The Bonds brand is over a century old and is Australia’s largest and most well-known innerwear brand, holding the number one position in men’s underwear, women’s panties, children’s underwear and socks category. The portfolio also extends to casual apparel, activewear, sleepwear and bras. Historically a wholesale only brand, Bonds now boasts a retail store network of over 145 stores, a thriving e-commerce business and growing omnichannel services making it easier for consumers to interact across multiple direct to consumer formats.
Maidenform is America’s number one shapewear brand and has been trusted for stylish, modern bras, panties and shapewear since 1922. It is one of multiple iconic intimate brands in the company’s portfolio. In 2023, the company launched M by Maidenform, a collection of extremely soft-on-the-skin intimate apparel products focused on younger consumers, across channels with strong initial consumer response. As with Hanes, the company is leveraging its global scale with M by Maidenform already in four countries. Bali offers a range of bras, panties and shapewear sold in the department store channel and is the number one bra brand in U.S. department stores. Playtex, an iconic American brand, offers a range of full-figure wire free support bras and is sold everywhere from mass merchandise retailers to department stores.
In addition, the company offers a variety of apparel products under the following well-known brands: Bras N Things, Wonderbra, Gear for Sports, Berlei, Comfortwash, Alternative and JMS/Just My Size.
These brands complement the company’s primary product offerings, allowing the company to provide consumers a variety of options to meet their diverse needs.
Segments
The company operates through three segments: Innerwear, Activewear, and International.
Innerwear
The company’s Innerwear segment includes core apparel products, such as men’s underwear, women’s panties, children’s underwear, socks and intimate apparel which includes bras and shapewear, sold in the United States, under well-known brands that are trusted by consumers. The company is an intimate apparel category leader in the United States with the company’s Hanes, Bali, Maidenform, Playtex, Champion, and Bras N Things brands; and the company is also the leading manufacturer and marketer of men’s underwear and children’s underwear in the United States under the Hanes, Champion and Polo Ralph Lauren brands.
Activewear
The company’s Activewear segment includes activewear products, such as T-shirts, fleece, performance apparel, sport shirts and thermals, sold in the United States. The company is a leader in the activewear market through its Champion, Hanes, Gear for Sports, Comfortwash, Alternative and JMS/Just My Size brands, where the company sells products, such as T-shirts and fleece to both retailers and wholesalers. The company licenses its Champion name for footwear and sports accessories. The company also sells licensed logo apparel primarily in the mass retail channel and in collegiate bookstores.
International
The company’s International segment includes innerwear, activewear and home goods products, sold outside of the United States, that are primarily marketed under the Champion, Bonds, Sheridan, Bras N Things, Hanes, Wonderbra, Playtex, Berlei, RITMO, Sol y Oro, Zorba, Rinbros, and Polo Ralph Lauren brands. The company’s Innerwear brands are market leaders across Australia and certain markets in Latin America. In Australia, the company holds the number one market share in intimate apparel, and the company is also the category leader in men’s underwear. The company’s largest international markets are Australia, Europe, Japan, Canada, China, Mexico and Latin America.
Customers and Distribution Channels
The company’s products are broadly distributed through its wholesale customers’ stores and websites, as well as through the company’s own stores and websites. In 2023, approximately 69% of the company’s total net sales were in the United States and approximately 31% were outside the United States. The company’s largest customer is Walmart Inc. (‘Walmart’), accounting for 18% of the company’s total net sales in 2023.
Sales to mass merchants in the United States accounted for approximately 22% of the company’s total net sales in 2023 and included all of the company’s product categories under its Hanes, Playtex, Maidenform and JMS/Just My Size brands, as well as licensed logo apparel. Mass merchants feature high-volume, low-cost sales of basic apparel items along with a diverse variety of consumer goods products, such as grocery and pharmacy products and other hard lines. The company’s largest mass merchant customer is Walmart.
Consumer-directed sales in the United States accounted for approximately 17% of the company’s total net sales in 2023. The company sells products that span across the Innerwear and Activewear product categories in the e-commerce environment through the company’s owned e-commerce websites, through pure play e-commerce sites, as well as through the e-commerce sites of the company’s brick-and-mortar retail customers. The company also sells a range of its products through its own retail stores, which include both full-price and value-based outlet stores.
Sales to mid-tier and department stores in the United States accounted for approximately 8% of the company’s total net sales in 2023. Mid-tier stores target a higher-income consumer than mass merchants, focus more on sales of apparel items rather than other consumer goods such as grocery and pharmacy products. The company sells all its product categories in mid-tier stores. Traditional department stores target higher-income consumers and carry more high-end, fashion conscious products as compared to mid-tier stores or mass merchants and tend to operate in higher-income areas and commercial centers. The company sells products in its intimate apparel, underwear, socks and activewear categories through department stores.
Sales to other customers in the United States represented approximately 22% of the company’s total net sales in 2023. The company sells T-shirts, golf and sport shirts and fleece sweatshirts to wholesalers and third-party embellishers primarily under the company’s Hanes, Champion and Hanes Beefy-T brands. The company also sells a significant range of its underwear, activewear and socks products under the Champion brand to wholesale clubs and sporting goods stores. The company sells primarily underwear products under the Hanes brands to food, pharmacy and variety stores. The company also sells licensed collegiate-logo apparel in college bookstores. The company sells products that span across its Innerwear and Activewear segments to the United States military for sale to servicemen and servicewomen, as well as through discount retailers.
Internationally, approximately 55% of the company’s net sales were wholesale sales to retailers and 45% of the company’s net sales were consumer-directed sales through the company’s owned retail stores and e-commerce sites.
Manufacturing, Sourcing and Distribution
During 2023, over 70% of the apparel units the company sold were from finished goods manufactured through a combination of facilities the company owns and operates, and facilities owned and operated by dedicated third-party contractors who perform some of the steps in the manufacturing process for the company, such as dyeing, cutting and/or sewing. The company sourced the remainder of its finished goods from third-party manufacturers who supply the company with finished products based on the company’s designs.
Finished Goods That Are Manufactured by Hanesbrands
The manufacturing process for the finished goods that the company manufactures begins with raw materials the company obtains from suppliers. The principal raw materials in the company’s product categories are cotton and synthetics. Cotton and synthetic materials are typically spun into yarn by the company’s suppliers, which is then knitted into cotton, synthetic and blended fabrics. The company sources all of its yarn requirements from large-scale domestic and international suppliers. To a lesser extent, the company purchases fabric from several domestic and international suppliers in conjunction with the company’s scheduled production. In addition to cotton yarn and cotton-based textiles, the company uses thread, narrow elastic and trim for product identification, buttons, zippers, snaps and lace. These fabrics are cut and sewn into finished products, either by the company or by third-party contractors. The company operates 27 manufacturing facilities. Most of the company’s cutting and sewing operations are strategically located in Asia, Central America, and the Caribbean Basin. Alternate sources of these materials and services are readily available.
Finished Goods That Are Manufactured by Third Parties
In addition to the company’s own manufacturing capabilities, the company sources finished goods from third-party manufacturers, also referred to as ‘turnkey products’. Many of these turnkey products are sourced from international suppliers by the company’s strategic sourcing hubs in Asia.
Distribution
As of December 30, 2023, the company distributed its products from 42 distribution centers. These facilities include 14 facilities located in the United States and 28 facilities located outside the United States, primarily in regions where the company sells its products. The company internally manages and operates 23 of these facilities, and the company uses third-party logistics providers who operate the other 19 facilities on the company’s behalf.
Seasonality
The company’s operating results are typically subject to some variability due to seasonality and other factors. For instance, the company has historically generated higher sales during the back-to-school and holiday shopping seasons and during periods of cooler weather, which benefits certain product categories, such as fleece. The company’s diverse range of product offerings, however, typically mitigates some of the impact of seasonal changes in demand for certain items. Sales levels in any period are also impacted by the company’s customers’ decisions to increase or decrease their inventory levels of the company’s categories in response to anticipated consumer demand or the overall inventory levels of their other product categories.
Although the majority of the company’s products are replenishment in nature and tend to be purchased by consumers on a planned, rather than on an impulse basis, the company’s sales are impacted by discretionary consumer spending trends.
Product Innovation and Marketing
A significant component of the company’s business strategy is its strong product research and development and innovation capabilities, including the development of new and improved products, including the company’s Tagless apparel platform, Comfort Flex Fit apparel platform, ComfortBlend fabric platform, temperature-control X-Temp fabric platform, FreshIQ advanced odor protection technology fabric platform, SmoothTec fabric technology, Cool Comfort fabric technology, DreamWire underwire technology, Reverse Weave StormShell Fleece fabric technology and Eco Future Reverse Weave with CiCLO technology.
In 2021, the company launched Comfort Flex Fit Total Support Pouch boxer briefs, offering a proprietary pouch construction, including unique breathable mesh inserts to help men feel secure, separated and supported. The Total Support Pouch platform is the subject of a number of patent registrations and pending applications. In 2022, the company launched a new and improved line of the Total Support Pouch platform that incorporates its X-Temp fabric technology, and the company expects the patented pouch construction will continue to play a significant role in its innovation pipeline. In 2023, the company launched M by Maidenform across retail channels, elevating the brand with bright colors, soft fabrics and youthful designs. Bonds Whoopsies, created by parents for parents, incorporated anti-odor and absorbency technology into reusable baby products.
As noted above, the company also launched an innovative line of underwear the company is calling Hanes Originals – the first multi-category, multi-geography product introduction under its new global innovation process. Finally, the company’s product research and development teams have done remarkable work to develop a proprietary absorbent layering platform, which has significant opportunity for platform expansion.
Competition
In the United States, across the company’s Innerwear and Activewear segments, the company competes with Fruit of the Loom, Inc., a subsidiary of Berkshire Hathaway Inc., through its own offerings and those of its Russell Corporation and Vanity Fair Intimates offerings. Other competitors in the company’s Innerwear segment include Victoria’s Secret & Co., Jockey International, Inc. and retailers’ private label offerings. Other competitors in the company’s Activewear segment that the company competes with both in the United States and internationally include Gap Inc., Nike, Puma, adidas and Under Amour.
Intellectual Property
The company markets its products under hundreds of its own trademarks in the United States and other countries around the world, the most widely recognized of which are Hanes, Champion, Bonds, Bali, Maidenform, Sheridan, Bras N Things, Playtex, Wonderbra, Gear for Sports, Berlei, Comfortwash, Alternative and JMS/Just My Size. Some of the company’s products are sold under trademarks that have been licensed from third parties, such as Polo Ralph Lauren men’s underwear, and licensed apparel for a number of colleges and universities, including the University of Georgia, the University of North Carolina at Chapel Hill, the University of Texas, Texas A&M University, The Ohio State University and Wake Forest University.
Some of the company’s trademarks are licensed to third parties, such as Champion for footwear and athletic-oriented accessories. In the United States and Canada, the Playtex trademark is owned by Playtex Marketing Corporation, of which the company owns a 50% interest and which grants to the company a perpetual royalty-free license to the Playtex trademark on and in connection with the sale of apparel in the United States and Canada. In Europe, the company licenses the Playtex and Wonderbra trademarks to the DIM Brands International Group for the sale of innerwear products in the European Union, the United Kingdom and a number of European countries. The DIM Brands International Group also has the right to distribute Maidenform-branded innerwear products in the European Union, the United Kingdom, and several other European countries. Outside the United States and Canada, the company owns the Playtex trademark and perpetually license such trademark to an unaffiliated third party for non-apparel products. The company owns the Berlei trademark in Australia, New Zealand, South Africa and a limited number of smaller jurisdictions. Apart from these jurisdictions, the Berlei trademark is owned by an unaffiliated third party in most major markets, including Japan, China, the United States, and the European Union.
The company also owns a number of copyrights. Most of the company’s copyrights are unregistered, although the company has a sizable portfolio of copyrighted lace designs that are the subject of a number of registrations at the United States Copyright Office.
Governmental Regulation and Environmental Matters
The company has been identified as a ‘potentially responsible party’ at certain waste disposal sites in the United States undergoing investigation and cleanup under the federal Comprehensive Environmental Response, Compensation and Liability Act (commonly known as Superfund) or state Superfund equivalent programs.
Research and Development
The company’s research and development expenses were $35,961 in 2023.
History
Hanesbrands Inc. was founded in 1901 as a Maryland corporation.
