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Hanesbrands Inc. is a different company, following its agreement to sell the lower-margin Champion business and exit U.S. outlets.
“Hanesbrands is a powerhouse in basics and innerwear, with a global footprint. We’re relatively evenly split between men’s and women’s, and we operated in a category that is core and essential for consumers,” Stephen B. Bratspies, Hanesbrands’ CEO, said during the company’s second-quarter earnings conference call.
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He said that product innovation helped Hanesbrands gain innerwear market share in the second quarter. The portfolio—Hanes, Bonds, Bali, and Maidenform—also represents the number one or two market share positions in their categories. Bratspies added that in the U.S. alone, product innovation has contributed over $500 million of sales in the last 18 months.
One example of innovation is Bali Breathe, a “light-as-air” collection of body basics that was launched on Aug. 1. Hanesbrands said Bali is America’s No. 1 national bra brand.
“Our innovation pipeline is full, giving us visibility to new product launches and brand programming into 2026,” he told analysts. The CEO also reminded Wall Street that its products are available in every channel, plus its manufacturing and sourcing operations gives Hanesbrands a “powerful asset base and capability that we are already leveraging to further widen our competitive moat to extent our market share lead, and to generate consistent top line growth over time.”
Bratspies also emphasized that the company is confident of achieving further margin improvement.
And while Bratspies said retailers are still cautious on inventory, he emphasized that Hanesbrands is till gaining shelf space with retailers.
“We are continuing to gain shelf space, both on a permanent basis and on a promotional basis. So, when you think about the promotions for back-to-school, holiday, share of displays on the floor, we’ve done very well from a share perspective,” Bratspies said.
As for the divestiture of Champion and completion of the exit of U.S. outlet stores in July, those two moves allow the company to change its overall cost structure and improve operational efficiency. That efficiency includes optimization of its supply chain by exiting several manufacturing distribution facilities, which will further simplify operations, reduce overhead, and improve areas such as customer service and in-stocks.