Champion parent swings to Q4 profit
Hanesbrands (NYSE: HBI), parent of Champion and Duofold, swung to a fourth-quarter profit, saying higher revenue offset rising costs for cotton and other commodities. It said it plans to raise prices in the current year to offset the rising costs.
Net income totaled $28.1 million, or $0.29 per share, compared with a loss of $1.1 million, or $0.01 per share, last year. Excluding expenses related to debt refinancing, net income was $0.43 per share.
Revenue rose 16 percent to $1.15 billion from $988.7 million.
For the year, net income rose to $211.3 million, or $2.16 per share, from $51.3 million, or $0.54 per share last year.
Revenue rose 11 percent to $4.33 billion from $3.89 billion.
In 2011, the company said it expects net income of $2.60 to $2.80 per share on revenue of $4.85 billion to $5 billion.
Hanesbrands said it expects to raise prices throughout 2011 as warranted by cost inflation. The increases will range anywhere from the low-single-digit percentages to 30 percent or more for products made with cotton. Depending on product category and where it is sold, some price increases could be quarterly.
Under Armour reports Q4 revenue growth
Under Armour (NYSE: UA) posted a 36 percent increase in fourth-quarter revenue, partially driven by a 32 percent increase in apparel sales.
For the quarter ended Dec. 31, net revenues were $301.2 million compared with net revenues of $222.2 million in the fourth quarter of 2009.
Net income increased to $22.9 million, or $0.44 per share, compared with $15.2 million, or $0.30 per share, in the prior year’s period.
Fourth-quarter apparel net revenues increased 32 percent to $254.0 million compared with $192.1 million in the same period of the prior year. Footwear net revenues for the quarter increased to $21.9 million from $8.7 million in 2009.
Direct-to-consumer net revenues, which represented 33 percent of total net revenues for the quarter, grew 56 percent year-over-year during the fourth quarter.
For the full year 2010, net revenues increased 24 percent to $1.064 billion compared with $856.4 million in the prior year.
Diluted earnings per share for the full year increased 46 percent to $1.34 per share on weighted average common shares outstanding of 51.3 million compared with $0.92 per share on weighted average common shares outstanding of 50.7 million in the prior year.
Looking ahead, the company said it now expects 2011 net revenues in the range of $1.33 billion to $1.35 billion.
Winmark offers cash dividend
Winmark (Nasdaq: WINA), parent of Play It Again Sports, said its board of directors approved the payment of a cash dividend to its shareholders. The quarterly dividend of $0.02 per share will be paid on March 2 to shareholders of record on Feb. 9. Future dividends will be subject to board approval.
Costco announces quarterly cash dividend
Costco (Nasdaq: COST) said its board of directors declared a quarterly cash dividend on its common stock. The dividend of $0.205 per share is payable Feb. 25 to shareholders of record on Feb. 11.
–Compiled by Wendy Geister
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