Underwear manufacturer Hanesbrands UK has returned to profit despite recording a fall in sales, accounts filed with Companies House show.
The group, which owns the Wonderbra, Shock Absorber and Playtex brands, ended 2016 with a pre-tax profit of £1.8 million, compared to a loss of £1.7 million in 2015.
But revenue declined by 63% to £19.6 million in the same period, versus £54 million the year before.
Hanesbrands attributes the decrease in sales to the closure of its UK Philippines branch, the impact of shipping from its new central warehouse in France and a shorter accounting period – the previous period was 18 months.
The company said its pre-tax profit result includes “exceptional income” related to the reversal of unused reserves from the recently finished restructuring.
Following the acquisition of DB Apparel by Hanes Brands in August 2014, the company closed its Port Glasgow facility and transferred its stock to a new distribution centre in Autun, France.
The company, which operates in Woking, Surrey, is now acting purely as a sales business in the UK and Ireland, with turnover in the UK now accounting for 73% of total turnover. European turnover accounts for 25%, versus 45% in 2015.
Going forward, Hanesbrands said it wants to strengthen its wholesale business with established companies and expand its retail business.
Last month, Lingerie Insight reported that Hanesbrands has appointed a new cluster manager for the UK and Benelux markets.
Arn Van Huyck was promoted to the position in July after five years at the company.
He is now responsible for leading a team of 120 in selling underwear brands Playtex, Wonderbra, Shock Absorber, Maindenform and DKNY in the UK and Benelux.