We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hanesbrands' Maidenform Forays Into Activewear for Women
Read MoreHide Full Article
Everyday basic apparel retailer, Hanesbrands Inc.’s (HBI - Free Report) renowned brand Maidenform has forayed into active lifestyle with its first collection of women’s sports innerwear – Maidenform Sport. The new collection is available at major retailer Kohl’s Corporation (KSS) and comes at a price of $44.
Hanesbrands is enthusiastic about the sports collection as it promises to accentuate and adapt to the needs of every woman, while simultaneously providing support to an active lifestyle. Maidenform brands was acquired in Oct 2013 and this takeover added popular brands like Flexees, Lilyette, Self Expressions and Sweet Nothings to its portfolio.
The new product lineup complements Hanesbrands Activewear segment and should expand its reach to the Outdoor Athletic space. Outdoor lifestyle market is anticipated to grow modestly and gain popularity in 2017, as customers are increasingly resorting to an athletic and active life. Moreover, a warmer climate is prompting people to spend more time out of doors, increasing the demand for Athleisure products.
Moreover, since the Activewear segment is experiencing sluggish sales recently, the new product lineup is expected to boost the segment in the coming quarters.
Innovation has traditionally been a strong suit for Hanesbrands helping it to deliver better-than-expected sales in the recent quarters. The Innovate-to-Elevate strategy (focused on value-added, higher-priced and high-margin items that can be supplied at lower costs) has aided it to increase its adjusted operating profit margin and generate significant cumulative cash from operations.
However, Hanesbrands is currently plagued with currency headwinds, soft sales in the Activewear and direct-to-consumer segments, and a lackluster performance of the Champion brand. Consequently, the dismal performance has been reflected in the share price movement as well. In the past three months, the shares of this Zacks Rank #4 (Sell) retailer have declined 26.3%, underperforming the Zacks categorized Textile Apparel industry which has showcased a decline of 4.3%. We don’t expect the stock to turn around in the near future as the industry occupies a space in the bottom 14% of the Zacks Classified industries (227 out of the 265).
Stock Picks
Some better-ranked stocks in the broader consumer discretionary sector areTailored brands Inc. , Francesca’s Holdings Corporation and Perry Ellis International Inc.
Both, Tailored Brands and Francesca’s Holdings sports a Zacks Rank #1 (Strong Buy) and has an expected earnings growth of 17.5% and 13.8%, respectively. While Perry Ellis carries a Zacks Rank #2 (Buy). The company has an average earnings surprise of 19.5% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Hanesbrands' Maidenform Forays Into Activewear for Women
Everyday basic apparel retailer, Hanesbrands Inc.’s (HBI - Free Report) renowned brand Maidenform has forayed into active lifestyle with its first collection of women’s sports innerwear – Maidenform Sport. The new collection is available at major retailer Kohl’s Corporation (KSS) and comes at a price of $44.
Hanesbrands is enthusiastic about the sports collection as it promises to accentuate and adapt to the needs of every woman, while simultaneously providing support to an active lifestyle. Maidenform brands was acquired in Oct 2013 and this takeover added popular brands like Flexees, Lilyette, Self Expressions and Sweet Nothings to its portfolio.
The new product lineup complements Hanesbrands Activewear segment and should expand its reach to the Outdoor Athletic space. Outdoor lifestyle market is anticipated to grow modestly and gain popularity in 2017, as customers are increasingly resorting to an athletic and active life. Moreover, a warmer climate is prompting people to spend more time out of doors, increasing the demand for Athleisure products.
Moreover, since the Activewear segment is experiencing sluggish sales recently, the new product lineup is expected to boost the segment in the coming quarters.
Innovation has traditionally been a strong suit for Hanesbrands helping it to deliver better-than-expected sales in the recent quarters. The Innovate-to-Elevate strategy (focused on value-added, higher-priced and high-margin items that can be supplied at lower costs) has aided it to increase its adjusted operating profit margin and generate significant cumulative cash from operations.
However, Hanesbrands is currently plagued with currency headwinds, soft sales in the Activewear and direct-to-consumer segments, and a lackluster performance of the Champion brand. Consequently, the dismal performance has been reflected in the share price movement as well. In the past three months, the shares of this Zacks Rank #4 (Sell) retailer have declined 26.3%, underperforming the Zacks categorized Textile Apparel industry which has showcased a decline of 4.3%. We don’t expect the stock to turn around in the near future as the industry occupies a space in the bottom 14% of the Zacks Classified industries (227 out of the 265).
Stock Picks
Some better-ranked stocks in the broader consumer discretionary sector areTailored brands Inc. , Francesca’s Holdings Corporation and Perry Ellis International Inc.
Both, Tailored Brands and Francesca’s Holdings sports a Zacks Rank #1 (Strong Buy) and has an expected earnings growth of 17.5% and 13.8%, respectively. While Perry Ellis carries a Zacks Rank #2 (Buy). The company has an average earnings surprise of 19.5% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>