WINSTON-SALEM, N.C.– (BUSINESS WIRE)–HanesBrands (NYSE: HBI) announced today that it has made positive changes to its retirement credit facility to improve the company`s overall growth and long-term capital allocation strategies. Hanesbrands` BBB rating reflects the dominant positions and competitive advantages in the apparel industry, which are underscored by high middle-aged performance, continued implementation of an active acquisition strategy, and a clearly defined short-term fiscal objective of reducing debt to its target by the end of 2019. Hanesbrands` moderate business risk score is supported by leading brands and integrated and cost-effective production capabilities. Hanesbrands` portfolio includes the number one or two market share position in each of its core apparel categories, with strong brands such as Hanes and Champion. Sales are well diversified between interior and activewear, with products sold in the United States, Europe, Australia and Asia. The brand`s power has been enhanced by the history of providing new innovative product offerings, despite a limited ability to generate premium prices in a highly competitive sector. Morningstar believes that Hanesbrands` large, geographically balanced production and distribution infrastructure contributes to its competitive advantages. The company owns and operates most of its 50 production sites and 43 distribution centres, reducing product costs and effectively meeting the needs of its customers. Hanesbrand`s success in integrating acquisitions is largely due to its manufacturing platform, which the company uses to reduce costs through synergies and economies of scale. Hanesbrands` credit profile is weakened by the cyclical nature of the apparel industry, although many of its products are refuelling items.
A stable outlook reflects the expectation that strong market positions will continue to support strong returns on invested capital and that the entity will manage its balance sheet debt leverage within its target range of 2 to 3 times. HanesBrands is a leading socially responsible distributor of basic indoor apparel and active clothing in North and South America, Europe, Australia and Asia Pacific. The company sells t-shirts, bras, panties, shapewear, underwear, socks, stockings and active clothing under some of the world`s most powerful clothing brands, including Hanes, Champion, Maidenform, DIM, Bali, Playtex, Bonds, JMS/My Just Size, Nur Die/Nur Die, L`eggs, Lovable, Wonderbra, Berlei, Alternative and Gear. For more information about the company and its award-winning corporate social responsibility initiatives, visit www.Hanes.com/corporate.
Recent Comments