HanesBrands has announced record first-quarter financial results for the second consecutive year, driven by the recent acquisition of DB Apparel and Maidenform.
Net sales increased 14% to $1.2 billion in the quarter ended April 4, 2015, while operating profit increased 25% to $90 million.
The group said the results reflect the benefits of its multiyear acquisition strategy and “continued improvement” in base business operating margin.
“Our acquisition strategy continues to create value with DBApparel, Maidenform and Gear for Sports all contributing substantially to our double-digit growth,” said Hanes chairman and CEO Richard A. Noll.
Hanes said adjusted operating profit increased 13%, primarily as a result of “strong Maidenform cost synergies”.
Meanwhile, DB Apparel, which was acquired by Hanes in August 2014, contributed net sales of $184 million in the first quarter.
The news follows reports that the DB Apparel UK distribution centre in Glasgow will close as part of a restructure at HanesBrands, which could see 600 European jobs axed.
All work carried out at the Glasgow centre is expected to be moved to DB Apparel’s French centre in Autun.
DB Apparel, the maker of Wonderbra, Playtex and Shock Absorber in Europe, declined to comment when contacted by Lingerie Insight.
Hanes has increased its full-year 2015 guidance to reflect the recent acquisition of sportswear company Knights Apparel.
For 2015, Hanes now expects net sales of approximately $5.9 billion to $5.95 billion and adjusted operating profit of $853 million to $873 million.