Hanesbrands, Inc. (HBI)

NetscribeRetail (51.61) Submitted: 3/23/07 8:33 AM : Start Price: $28.77 HBI Score: -18.20

Hanesbrands (HBI) is a consumer goods company with a portfolio of leading apparel brands, including Hanes, Champion, Playtex, Bali, Just My Size, barely there and Wonderbra. The company designs, manufactures, sources and sells a range of apparel essentials, such as t-shirts, bras, panties, men’s underwear, kids’ underwear, socks, hosiery, casualwear and activewear.


The U.S. population is predicted to increase at a rate of less than 1% annually, with the rate of increase declining through 2050, with a continued aging of the population and a shift in the ethnic mix. Moreover, factors like continued increases in body size across all age groups and genders, and especially among children, will drive demand for plus-sized apparel. It is also estimated that plus size represents the fastest growing category in the women’s apparel market, with junior plus-size as the fastest growing segment within the demographic. Hanesbrands with a leading position in most of the brands it markets should be able to gain maximum out of these favorable dynamics for apparel essential industry.


The company during fiscal 2006 witnessed a decline in revenues by 4.3% on account of weakness in its innerwear segment including T-shirts and underwear. However on a positive note has been successfully able to spin-off Sara Lee and discontinue its lower-margin outerwear segment. Moreover, Hanesbrands has strengthened its capital structure by reducing its debt. The company entered fiscal 2007 by reorganizing its supply-chain and is going to further strengthen its brands by investing in advertisement. Looking at all these aspects it Hanesbrands should outperform the market in the coming one year.

Report this Post Replies: 0 | Reply | Permalink