Hanesbrands, a global clothing company, experienced a loss in the third quarter due to a 10% decrease in sales and an increase in interest expenses. The company reported a loss of $38.8 million ($0.11 per share), compared to a profit of $80.1 million ($0.23 per share) in the same quarter last year.
After adjusting for one-time items, the company’s earnings were $0.10 per share, slightly below the expected $0.11 per share according to analysts polled by FactSet.
Sales for the quarter totaled $1.51 billion, down from $1.67 billion in the previous year’s quarter, falling short of the projected $1.54 billion.
The decline in revenue was primarily driven by lower sales in U.S. activewear, Europe, and parts of Asia. Additionally, consumer spending in Australia slowed down, while growth was seen in Latin America and Japan.
While revenue declined significantly, the company’s costs did not decrease at the same rate, resulting in a 50% decrease in operating profit compared to the previous year. Furthermore, interest expenses rose to $72.6 million from $41.7 million.