Hanesbrands Inc. ended 2007 strongly, with net income in the final quarter of 2007 more than double that of the prior year. Overall, however, full year earnings were down by 39%.

“We capped a successful first year, in which we exceeded our financial goals, with solid performance in the fourth quarter in a tough consumer climate,” said Hanesbrands chief executive officer Richard A. Noll. “And, as we have done all year, we continued to generate strong cash flow, using it to reduce long-term debt by an additional $50 million in the quarter.”

Net income for the quarter ended Dec. 29, 2007, totalled $49.8 million, or $0.52 per diluted share, compared to $23.8 million, or $0.25 per share, a year earlier. Full year net earnings were 39.4% lower at $126.1M., or $1.31 per share, versus $208.0M., or $2.16 per share in 2006.

Total net sales in the fourth quarter increased by 2.4% to $1.16 billion. By sequential quarter, sales in the fiscal year grew by 0.7%, 0.2%, 3.1% and 2.4%. Total net sales for the full fiscal year increased by $71 million, or 1.6%, to $4.47 billion.

“One of our strategies is to invest in our largest and strongest brands with innovative key items supported by great media,” Noll said. “This strategy is delivering results.”

For the quarter and the full year, Hanes, Champion and Bali brand sales increased. The Champion brand has recorded double-digit sales growth for three consecutive years. For the full year, sales to each of the company’s top three customers increased.

As part of its global supply chain strategy, Hanesbrands acquired in December the Inversiones Bonaventure S.A. de C.V. hosiery sewing operation in Las Lourdes, El Salvador. The 900-employee Bonaventure plant had been a contract sewing supplier for Hanesbrands for 12 years.

Source：www.itmalive.com