HanesBrands announced on Tuesday that its board of directors and executive leadership team have sought financial and legal advisors for an evaluation of strategic options for its global Champion business.
The U.S. apparel giant said it would consider a broad range of options to “maximize shareholder value,” including a potential sale or other strategic transaction, as well as continuing to operate the business as part of HanesBrands.
“Champion is a renowned global lifestyle brand, with a storied heritage in sports as the pioneer of American athletic wear,” said Ronald Nelson, chairman of the board of directors, HanesBrands.
“In recent years, the executive leadership team has implemented significant structural improvements within Champion that have resulted in greater distinction between the company’s innerwear and activewear businesses. With this in mind, and after careful consideration, we have commenced a comprehensive review of strategic options for the global Champion business. We are committed to working with our advisors to identify the right path forward that enables both Champion and HanesBrands to reach their fullest potential and maximizes value.”
The company added that a timeline for the completion of the process, a potential sale or not, has not been defined.
“We are executing a strategy that is based on leveraging our iconic brands and competitive advantages to drive accelerated growth and profitability, while simplifying and focusing all aspects of the business,” said Steve Bratspies, CEO, HanesBrands.
“With this as our foundation, we are continuing to take the actions necessary to adapt and ensure all of our brands in both innerwear and activewear, around the world, are on the optimal path to achieve long-term success. As the board pursues this review of strategic options with the support of our advisors, our team remains focused on executing across our operations, continuing to serve our customers and consumers globally and advancing our initiatives to drive revenue growth, margin improvement and greater cash flow.”
The company concluded by saying no further commentary on the process will be made until a decision is reached.
Sales at the company’s Champion brand have been waning in recent quarters, with the brand clocking big declines in its U.S. market in particular, as well as dips overseas.
In its most recent trading update in August, North Carolina-based HanesBrands said revenues at its global Champion brand fell 6% on a reported basis as compared to prior year, with a 25% decline in the U.S. and a 1% decline internationally.
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