on May 30, 2012, HanesBrands (NYSE: HBI), the American largest maker of branded lingerie, announced on Wednesday that it will sell its European imagewear division and, in the Unites States, close the private-label business and plan divestiture of its Outer Banks brand.
Imagewear accounts for 8 percent of the company's sales before the actions. Hanes expects to incur pretax charges in the second quarter of up to $85 million to $95 million of this restructuring action for imagewear and the announced restructuring will reduce net sales in the second half of the year, by approximately $60 million.
"This restructuring action won't incur staff reducing", said Richard A. Noll, Hanes Chairman and Chief Executive Officer.
This sales will close all the Hanesbrands' s outlets in Europe where the economy situation seems becoming worse.
This company plans to sell its European imagewear division to an affiliate of Smartwares B.V. for €15 million (approximately $18.8 million). Hanes will sell the basic apparel to the wholesale screen-print channel customers. After this transaction, the company will change the name of its imagewear operations to Branded Printwear, then it will be focus on Hanes and Champion branded products.
This sale plan will be finished this week. "With our exit from Europe," Hanes Chairman and Chief Executive Officer Richard A. Noll said, "we can devote all of our energies to growing our branded portfolio in core geographies in the America and Asia."
Hanebrands, the American well-known lingerie and sports suit maker, owns several brands which are Hanes, Champion and Wonder bra. It shows in the financial data last month that, the first season of 2012, it lost $26.8 million with the net profit decreasing by 3 percent. This company reconfirmed that in 2012, the whole year, each stock expects to get profit of $2.5 to $2.6.
Imagewear accounts for 8 percent of the company's sales before the actions. Hanes expects to incur pretax charges in the second quarter of up to $85 million to $95 million of this restructuring action for imagewear and the announced restructuring will reduce net sales in the second half of the year, by approximately $60 million.
"This restructuring action won't incur staff reducing", said Richard A. Noll, Hanes Chairman and Chief Executive Officer.
This sales will close all the Hanesbrands' s outlets in Europe where the economy situation seems becoming worse.
This company plans to sell its European imagewear division to an affiliate of Smartwares B.V. for €15 million (approximately $18.8 million). Hanes will sell the basic apparel to the wholesale screen-print channel customers. After this transaction, the company will change the name of its imagewear operations to Branded Printwear, then it will be focus on Hanes and Champion branded products.
This sale plan will be finished this week. "With our exit from Europe," Hanes Chairman and Chief Executive Officer Richard A. Noll said, "we can devote all of our energies to growing our branded portfolio in core geographies in the America and Asia."
Hanebrands, the American well-known lingerie and sports suit maker, owns several brands which are Hanes, Champion and Wonder bra. It shows in the financial data last month that, the first season of 2012, it lost $26.8 million with the net profit decreasing by 3 percent. This company reconfirmed that in 2012, the whole year, each stock expects to get profit of $2.5 to $2.6.
