Hanes(HBI)2025-02-14 13:31Business Operations - Hanesbrands operates a portfolio of recognized apparel brands, reaching nine out of ten U.S. households and holding the No. 1 position in innerwear sales[13] - The company produced or sourced nearly 75% of its apparel units through its own plants or dedicated contractors, enhancing cost efficiency and scalability[15] - The company plans to exit the U.S.-based outlet store business and the global Champion business, with the sale of related assets expected to be completed by September 30, 2024[22] - The company aims to drive transformational growth by expanding its core business and exploring new markets and opportunities[20] - The company’s business strategy focuses on simplifying its portfolio, improving operations, and delivering measurable results to enhance sales and margins[19] Financial Performance - In 2024, the U.S. segment generated net sales of 908 million, representing about 26% of total net sales[36] - Walmart, Amazon, and Target were the largest customers, contributing 24%, 13%, and 11% of total net sales, respectively[38] - Sales to mass merchants in the U.S. accounted for approximately 38% of total net sales in 2024[39] - Sales to pure play e-commerce customers in the U.S. represented about 13% of total net sales[40] - Brand investment, including advertising and promotion expenses, was approximately 126 million or 3.5% in 2023[55] Sustainability Initiatives - Hanesbrands achieved over $31 million in cost savings from sustainability initiatives since 2020, with significant progress made in 2024[17] - Hanesbrands has set 2030 targets to reduce carbon emissions, surpassing its goals seven years ahead of schedule[16] - The company achieved a 51.5% reduction in Scope 1 and 2 emissions and a 27.7% reduction in Scope 3 emissions against a 2019 baseline, exceeding its science-based greenhouse gas goals[69] - The company is committed to sustainability, with updated sustainability goals expected to be announced in the second quarter of 2025[68] Product Innovation - In 2023, Hanesbrands launched the M by Maidenform collection, targeting younger consumers, and received strong initial consumer response[30] - The Hanes brand introduced the Hanes Originals SuperSoft collection in 2024, reinforcing its innovation leadership in comfort-driven apparel[28] - In 2024, the company filed 20 patent applications and had 23 patents issued globally, focusing on innovative fabric platforms and product design innovations[55] - The Total Support Pouch is sold in eight countries, while Hanes Originals and M by Maidenform are sold in eight and five countries, respectively[55] Workforce and Employment - As of December 28, 2024, the company employed approximately 41,000 employees, with 93% located outside the United States[70] - Approximately 36% of the global workforce is male and 64% is female, with 18% representation of people of color at senior manager levels in the U.S.[72] - The company's OSHA recordable rate improved to 0.29 in 2024 from 0.33 in the prior year, indicating enhanced workplace safety[71] - In 2024, associates completed over 11,000 hours of micro-learning modules as part of the company's talent development initiatives[73] - The company plans to launch another global engagement survey in 2025, following positive results from the 2023 survey[74] Manufacturing and Distribution - The company operates 20 manufacturing facilities, with most cutting and sewing operations located in Asia, Central America, and the Caribbean Basin[45] - As of December 28, 2024, the company distributed products from 26 distribution centers, including 9 in the U.S. and 17 internationally[48] - The company reduced the number of SKUs across its portfolio by nearly 40% since 2020[50] - Approximately 75% of apparel units sold in 2024 were from finished goods manufactured through owned and third-party facilities[44] - Approximately 79% of employees are employed in large-scale supply chain facilities primarily located in Central America, the Caribbean Basin, and Asia[70] Market Position - Bonds, Australia's largest innerwear brand, operates over 140 retail stores and has a thriving e-commerce business[29] - The International segment's largest markets include Australia, Mexico, Canada, and Latin America[36] - The company is a market leader in men's underwear and intimate apparel in the U.S. under the Hanes and Polo Ralph Lauren brands[34]