“We are tracking consistent with our expectations, and now with the worst of the cotton inflation behind us, our operating profit margin for the remainder of the year should average in the low double digits,” Hanes Chairman and Chief Executive Officer Richard A. Noll said. “Sales, profits and cash flow are running consistent with, or better than, our plans. When coupled with the visibility of our pricing and costs for the rest of the year, we feel very good about our momentum and are confident in our ability to achieve our full-year financial goals.”
The global price of cotton brought HanesBrands last-quarterly profits for 2011 down, due to an unexpected spike in the cost. Now, however, Hanes seems to have weathered the worst of the cotton storm.
Men’s underwear only increased, percentage wise, in the mid single digits. Per diluted share, HanesBrands had a net loss for the quarter of $0.27. However, net sales went down as compared with first quarter 2011 — $1.01 billion in Q1 2012 versus $1.04 billion last year, a decrease of 3 percent. However, the financial results were still better than the company’s estimated EPS loss of up to $0.35 and net sales of approximately $1 billion.