Hanesbrands, the popular underwear company, reported a loss in the latest quarter due to a decline in sales. The company recorded a loss of $22.5 million, or 6 cents per share, for the second quarter ending on July 1. This is in contrast to a net income of $92.1 million, or 26 cents per share, from the same period last year. Adjusted losses were reported at 1 cent per share, slightly better than the expected 2 cent loss according to analysts polled by FactSet.
The company's sales also experienced a dip, falling by 4.9% to $1.44 billion from $1.51 billion. The projected sales by analysts polled by FactSet was $1.46 billion.
Hanesbrands attributed the decline in sales to the slowdown in consumer spending impacting Australia, as well as the decline in the U.S. activewear segment. However, the company found some bright spots with innerwear and its Champion brand in Asia.
While Hanesbrands has made progress in certain areas of its turnaround efforts, Chief Executive Steve Bratspies acknowledged that some expected results have not materialized as quickly as anticipated. Bratspies stated, "We're taking a number of actions, including additional cost-saving initiatives, to improve performance as well as actively looking across the business at additional options to enhance shareholder value."
In other news, it has been reported that activist investor Barington Capital has acquired an undisclosed stake in Hanesbrands. The investment firm is calling for new board members with experience in apparel and manufacturing, and potentially a new CEO.