Hanesbrands buys Alternative Apparel, announces in-line preliminary Q3 results
Hanesbrands is continuing its growth-by-acquisition strategy and the outcome is clear from the looks of preliminary Q3 results reported on Wednesday.
The global marketer of everyday basic apparel announced the acquisition of Alternative Apparel for $60 million in cash, as well as strong preliminary third-quarter sales.
The company expects to report third-quarter net sales of approximately $1.80 billion, EPS of approximately $0.55, and adjusted EPS of approximately $0.60.
Full third-quarter results and full-year guidance will be announced on November 1.
In the second quarter of 2017, net sales jumped 12 percent to $1.65 billion, which was proceeded by a strong first quarter and record breaking Q4 2016 results.
The positive results are due to an acquisition strategy that has included the acquisition of brands such as Pacific Brands Ltd., Gear for Sports, Knights Apparel, and more.
Now Hanesbrands has eyed the Georgia-based company, Alternative Apparel, which is expected to have full-year 2017 net sales of approximately $70 million.
“This is an exciting acquisition that supports our activewear growth strategy,” said Hanes Chief Executive Officer Gerald W. Evans Jr., in a news statement. “We will be able to leverage our global low-cost supply chain, which is a recognized social, environmental and ethical leader, with another strong brand to expand our market and channel penetration, including online.”
The acquisition closed on Friday, October 13.
“Alternative Apparel has an attractive business model, a very strong and differentiated brand, and a highly talented team of employees,” Evans added. “Adding the Alternative brand and product lineup further diversifies our sales mix as we emphasize growth across all channels, including online.”
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