Winston-Salem - Activewear giant Hanesbrands has unveiled details of a new, strategic plan which its hopes will drive growth across the business.
Entitled Full Potential, the three-year growth plan is designed to drive approximately US$1.2 billion in incremental revenue and expand operating margins to 14.3 per cent by 2024. Key elements of the plan include driving the rapid growth of the Champion brand by investing in key geographic markets, expanding into women’s and kids’ apparel and casual footwear, and creating a premiere online experience at Champion.com.
Full Potential also seeks to drive renewed innerwear growth by delivering innovation and marketing that appeals to younger consumers. The company says is investing in its portfolio of leading innerwear brands and expanding its e-commerce and digital capabilities to deliver a seamless consumer experience to drive growth with retail partners and in online channels.
“HanesBrands is an amazing company with a portfolio of strong, iconic brands and significant and sustainable competitive advantages,” said CEO Steve Bratspies. “Full Potential builds on these advantages to deliver approximately $1.2 billion in topline growth as well as improved profitability over the next three years. We are putting the consumer at the centre of everything we do. We’ll do this by investing in innovation that delivers products that meet consumers’ needs and by creating a seamless experience that lets consumers shop for our products how, when and where they want to shop.”
The Full Potential plan consists of four growth pillars. Firstly, the plan calls for Champion to become a $3 billion global brand by 2024, representing a 14 per cent compound annual growth rate (CAGR) from projected 2021 sales of approximately $2 billion. This will involve forging deeper connections with consumers, expanding its strong share position in the sweats market and a focus on expanding Champion's offerings in women's and kids’ apparel, innerwear and casual athletic footwear.
Secondly, Hanes hopes to re-ignite innerwear growth. The company expects global innerwear revenue growth of approximately $200 million through 2024, driven by sales in the United States and Australia. This growth represents a 2 per cent compound annual growth rate on top of 2021 projected sales of nearly $3.7 billion.
In the U.S., the company is looking to double its share with consumers under the age of 39. Hanes believes it can capture significant growth opportunities by leveraging its iconic brands such as Hanes, Maidenform and Bali. It is also applying a more consumer-centric, globally coordinated approach to product design and innovation, as well as increasing investments in brand marketing and e-commerce initiatives.
The other two pillars are to drive consumer-centricity and to focus the portfolio. For the latter, Hanes says it will continue to simplify all aspects of its business – from global holdings to SKU counts – to enable investment in its key global brands, categories and growth markets.