WINSTON-SALEM, N.C.
HanesBrands Inc.'s net income increased 32 percent in the first quarter and the clothing maker raised its earnings outlook as higher prices boosted its revenue.
The company, best known for its T-shirts, socks and underwear, noted that prices it paid for cotton soared 60 percent to 83 cents per pound, from 52 cents a year ago.
The company, based in Winston-Salem, N.C., began raising prices around February and said it will continue to do so, especially in units like socks and underwear, through the year.
Hanes' net income rose 32 percent to $48.1 million, or 49 cents per share for the quarter that ended April 2, up from $36.5 million, or 37 cents per share, in the same quarter last year.
Earnings topped expectations of 33 cents per share from analysts polled by FactSet.
Revenue rose 12 percent, to $1.04 billion, in line with expectations.
The company that sells the Wonderbra noted that sales of women's intimates, as well as women's hosiery, fell. Revenue from men's socks and underwear rose.
Hanes' newly acquired Gear For Sports unit, which sells college-themed clothing, was helped by the NCAA basketball championship and performed better than expected.
Hanes raised its 2011 earnings guidance to between $2.70 and $2.90 per share, up from $2.60 to $2.80 previously. Analysts expected $2.67 per share.
businessweek.com
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