Good welcome. Thank everyone morning T.C. you, and
been last X environment. in challenged dramatic months, change the is Over its there weighing Conditions has on performance. global near-term rapid a become operating our the change and increasingly have
for However, results per deliver our to managing earnings operating things philosophy and operating in control that of that within positioned share are the the income quarter. with expectations were our line us
of our the fundamentals current creation business the environment, our opportunities as intact. Looking noise our as of remain beyond potential categories, value model long-term full the well of strategy brands, the our
are committed to We improving HanesBrands.
goals while the and manage investments to higher growth unchanged. to balancing returns. and are transform company a we our necessary Our near-term simultaneously We agile, focus so can challenges consistently through remain that long-term higher generates
today’s call, my comments two For into parts. I break will
our implementing additional an made it, First, discuss full taking the and will I provide environment through strategy. are the manage to potential on we long-term progress the actions then update will we near-term I have
we’ve enough not just and demand much too which broadly enough actually much across supply Looking is inventory is Innerwear, our sitting our much is to ways slowing the with orders In are on Retailers last with one year’s seen X supply business. demand. hitting current different Inflation environment, from too wallets inventory, and too in months, consumers’ demand. in level. flip landscape impacting and consumer and at one retail below the overall not retail
headwinds Champion. events. the And seeing earnings were global expenses once With channels as which were these ability realized retailers The to is controlling their levels, can effectively demand have sales we fourth consumer a have profit factors on us manage and to as performance demonstrated deliver these timing well in including weighed savings inventory, across and third certain our sales relentless However, as focus team for through are as Despite activewear combination expect impacting the to in retailers as from near-term third that manage strategic control, of allowed others, adapt expectations. to to headwinds, with initiatives. of line quarter again things in tougher-than-expected cancellations, heard orders able their well overall excess our negatively you cost the it’s slowing as This resulting continue on operating we delaying quarter the from we our inventory challenges. replenishment quarter. order and
of Given several flow mitigate environment, have sales cash macro-related the the impact the from profit actions demand the partially and we additional taken state headwinds. current to
through improved for We has continue launched our This net launches. fewer as lowered chain. we space cost, our SKU even reduce overall count product our product created the count improved innovation. to by we SKU progress our XX% and productivity have supply running have and new new peak, quality our lowered we XX% and have SKUs of metrics, Since inventory over
time moving inventory network reduced demand be in quarter’s second below and to our year. aligned inventory to us and quickly out X% and more purpose are position units with last end with the units from with We reduce manufacturing to We began level. year inventory taking
are planned end us exit position out we fourth of to capital XXXX. but we well operationally track for free Not on us up it should quarter, our goal. time inventory believe we this the year, With achieve as our positions the working to also only majority year in the
tools. building digital also We are analytics on-shelf
consumer. replenishment inventory key drive category analyze comp data well retail level them the identify this sharing as opportunities are with as value sales to and a to at partners our to help We
has a retail One partners the in still while immediate global additional took of and to action near-term and value but to balance in additional the our high as the business growth to the tools and outlook increase of these respect sheet, approach bank We in to will be agreement additional of replenishment at their for an with necessary of operating replenishment partners, given they for headwinds point-of-sale amended and environment the we provide And our in stabilizes. level, leverage data, transform done, financial be continue led this the provide categories long-term. leverage even success flexibility. tightly. to inventory significant detail times, more changed environment, results. our combination his to Michael That will find help opportunities digital macroeconomic realized orders managing of see once investments more the section, full lean advantaged that believe us the needs we make strategy credit us work our the the to with even these doing By with allows in of all challenging to we potential the face flexibility. our all the to current our macro in the actions current position
business Full as and intact. our we forward, value-creation long-term model, Potential strategy, category our look our fundamentals remain believe we to Turning opportunities
consistently business. growth and Full portfolio, business Our is Full higher brand growth Potential strategy a Potential about reigniting is Champion consumer-focused returns. company more company, becoming about generates powerful global transforming our our reenergizing Innerwear in and a a higher our HanesBrands making and that into simplifying
most and our Full innovation, quarter, respect product additional With we it’s our talent ever supply to Innerwear implementation Potential growth chain robust been. the made the particularly innovation, strategy, is optimization. on During of progress the around pipeline
in step major on are forward journey Innerwear. our get we quarter, to taking This a younger
in product distribution Hanes our retailers, aimed line, have by launching fit at very are the early is response a stylish We younger the and I which expanded including pleased core modern with of Originals more consumers. product been strength XXXX.
a begun to for collaboration business. in identified In at initial merchandising. Looking steps designer business on Vanessa Potential she as LeFebvre Champion’s and the Activewear, our and in unlock our has first the brought Global improving focus her channel of the XX She days, identity, U.S., us phase Full team additional has taken full head on working work. deep in into potential, next global a a global August has Champion with new segmentation to product joined and Head dive is with global taking build Activewear and of brand opportunities her
as Australia, global now our building direct-to-consumer driving global our leveraging in also commitment initiative. e-commerce continue are Ryan capabilities. we is is We instrumental Bonds’ leading talent in success Wilson, who our to omnichannel
us CapEx supply make us will returns the to and and our Potential in drivers global to Full expand market, is growth we pivot real-time; and flow. us work provide and long-term. and flexibility doing margins; long-term responsive to position to improve speed we chain, on expected higher are to It costs put advantaged consumer network to so can our lower drive an Turning operating lower faster even cash more efficiencies in
supply global of analysis part manufacturing of and distribution. Full end-to-end Potential, As did an entire we chain, including in-depth our
quarter, by getting global doing and DCs sourcing well highlighted as large a internally supply our and opportunities than of to products to our We advantaged. cost to and facilities this continuing our through understand respect to we capacity. begun produce As includes decision more operations, where opportunities exit partners, are over chain our build the increasing optimize can facilities we We cotton-based use a we increased One better we two work we we are reduce advantage of Potential fewer owned taking to efficient know And is distribution the our and high-volume we at partners. to have manufacturing cost footprint. learned network. of the on match dedicated work use this bigger to example we analysis, This With direct we automation. reconfirmed result, overhead a revenue Last costs in our growth recent our where advantage. ship plan. to our to utilize to quicker opportunities use further on DXC the retail have consolidating of are U.S., time Full position the as lower
and In growth. is our identified costs to improvements. operations, synthetic fashion speed runs lower such these large terms And capabilities and on as areas and based of of that short-term position are where existing going, consumer sourcing pursuing we fabrics the in capture to opportunities improve actively our understanding sourcing to building ourselves we are we incremental
a I operating in if long-term remains certainly the Potential back, our and of the the Full our strategy is take firmly categories global place. of value-creation environment challenging, So, fundamentals but step opportunities
are organization, still. As not standing an we
leaning these agile are challenging times. staying and We in during
within We are control. that things are managing the our
challenges higher turn are higher and mitigate and Full over that, additional to HanesBrands our that returns. consistently We Potential I execute we actions fast to will near-term to And continuing into company call are with a strategy the transform to growth taking generates Michael.
