Hanesbrands Inc. is a consumer goods company with a portfolio of apparel brands, including Hanes, Champion, C9 by Champion, Playtex, Bali, L’eggs, Just My Size, barely there, Wonderbra, Stedman, Outer Banks, Zorba, Rinbros and Duofold. The Company designs, manufactures, sources and sells a range of apparel essentials, such as t-shirts, bras, panties, men’s underwear, kids’ underwear, casualwear, activewear, socks and hosiery. Its products are sold through multiple distribution channels. The Company’s operations are managed and reported in five operating segments: Innerwear, Outerwear, International, Hosiery and Other.
The Innerwear segment focuses on core apparel essentials, and consists of products, such as women’s intimate apparel, men’s underwear, kids’ underwear, socks, thermals and sleepwear. Hanesbrands Inc. is an intimate apparel category in the United States with its Hanes, Playtex, Bali, barely there, Just My Size, Wonderbra and Duofold brands. It is also a manufacturer and marketer of men’s underwear and kids’ underwear under the Hanes, Champion, C9 by Champion and Polo Ralph Lauren brand names. Its direct-to-consumer retail operations are included within the Innerwear segment. The retail operations include the Company’s value-based (outlet) stores, Internet operations and catalogs, which sells products from its portfolio of brands. As of January 3, 2009, the Company had 213 and 216 outlet stores, respectively. Net sales, during the fiscal year ended January 3, 2009 (fiscal 2009), from the Company’s Innerwear segment represented approximately 56% of total segment net sales.
Through the Hanes, Champion and Just My Size brands, Hanesbrands Inc. offers products, such as t-shirts and fleece. Its casualwear lines offer a range of comfortable clothing for men, women and children marketed under the Hanes and Just My Size brands. The Just My Size brand offers casual apparel designed exclusively to meet the needs of plus-size women. In addition to activewear for men and women, Champion provides uniforms for athletic programs and includes an apparel program, C9 by Champion, at Target stores. It also licenses its Champion name for collegiate apparel and footwear. The Company also supplies its t-shirts, sportshirts and fleece products primarily to wholesalers, who then resells to screen printers and embellishers, through brands, such as Hanes, Champion, Outer Banks and Hanes Beefy-T. Net sales in fiscal 2009, from its Outerwear segment represented approximately 28% of total segment net sales.
International includes products that span across the Innerwear, Outerwear and Hosiery reportable segments and are marketed primarily under the Hanes, Wonderbra, Champion, Stedman, Playtex, Zorba, Rinbros, Kendall, Sol y Oro, Ritmo and Bali brands. Net sales in fiscal 2009, from the Company’s International segment represented approximately 11% of total segment net sales and included sales in Latin America, Asia, Canada and Europe. Canada, Europe, Japan and Mexico are the Company’s international markets, and it also has sales offices in India and China.
Hanesbrands Inc. is a marketer of women’s sheer hosiery in the United States. It markets hosiery products under its L’eggs, Hanes and Just My Size brands. Net sales in fiscal 2009, from its Hosiery segment represented approximately 5% of total segment net sales.
The Company’s Other segment consists of sales of nonfinished products, such as yarn and certain other materials in the United States and Latin America that maintain asset utilization at certain manufacturing facilities and are expected to generate break even margins. Net sales in fiscal 2009, in its Other segment represented less than 1% of total segment net sales.
The Company competes with Berskhire Hathaway Inc., Fruit of the Loom, Inc., Warnaco Group Inc., Maidenform Brands, Inc., Gildan Activewear, Inc. Russell Corporation, Fruit of the Loom, Inc., Nike, Inc., adidas AG, Armour Inc., Victoria’s Secret, Old Navy and The Gap.