HanesBrands has posted its third-quarter results for FY25, with slightly lower sales but stronger margins signalling resilience for the apparel giant.

The company’s net sales slipped 1 per cent to $892 million, hit by delayed replenishment orders from a major US retail partner.

Despite softer revenue, operating profit rose 14 per cent to $108 million, lifting the operating margin to 12.1 per cent. Adjusted operating profit increased 3 per cent to $116 million, with an adjusted margin of 13 per cent.

“Our inventory position at retail is strong. We’re encouraged by our unit point-of-sale trends, which sequentially improved each month during the quarter. We are also pleased with our strong back-to-school season as the Hanes brand continued to gain market share,” said Steve Bratspies, CEO.

In the US, sales dropped 4.5 per cent, while international revenues fell 8 per cent on a reported basis (6 per cent in constant currency). Japan was a bright spot, offsetting weaker sales in the Americas and Australia.

HanesBrands reaffirmed its full-year EPS outlook but will not provide detailed guidance or hold a conference call this quarter due to its pending acquisition by Gildan Activewear. 

“Looking forward, our team remains focused on driving the business and the successful completion of the transaction with Gildan,” Bratspies added.