#private label activewear manufacturer europe

[fitness-clothing]

Private Label Activewear Manufacturing: The Ultimate Guide

Private label activewear manufacturing is a great option for brands that want to create their own line of activewear without the hassle of design, production, and logistics. By partnering with a private label activewear manufacturer, you can gain access to a wide range of resources and expertise, and focus on what you do best: marketing and selling your products.

Benefits of Private Label Activewear Manufacturing

There are many benefits to private label activewear manufacturing, including:

Reduced costs: By working with a private label manufacturer, you can avoid the upfront costs of design, production, and inventory.

Increased flexibility: You have the flexibility to choose from a wide range of styles, fabrics, and colors.

Faster time to market: Private label manufacturers can often produce your products more quickly than traditional retailers.

Access to expertise: You can leverage the expertise of the private label manufacturer to create high-quality activewear that meets your specific needs.

How Private Label Activewear Manufacturing Works

The private label activewear manufacturing process typically involves the following steps:

Concept development: You work with the private label manufacturer to develop your concept for your activewear line.

Design and development: The private label manufacturer will create designs and prototypes for your activewear line.

Production: The private label manufacturer will produce your activewear line according to your specifications.

Packaging and shipping: The private label manufacturer will package and ship your activewear line to your customers.

DOWNLOAD CATALOG:

Choosing a Private Label Activewear Manufacturer

When choosing a private label activewear manufacturer, it's important to consider the following factors:

Experience: Choose a manufacturer with a proven track record of producing high-quality activewear.

Capabilities: Ensure that the manufacturer has the capabilities to produce the type of activewear you need.

Minimum order quantities (MOQs): Consider the MOQs of the manufacturer to ensure that they align with your production needs.

Communication: Choose a manufacturer with whom you can easily communicate and who is responsive to your needs.

Partnering with Fitness Clothing

Fitness Clothing is a leading private label activewear manufacturer that can help you create your own line of high-quality activewear. We offer a wide range of services, including:

Concept development

Design and development

Production

Packaging and shipping

Contact us today to learn more about how we can help you create your own private label activewear line.

Recommended Blogs:

[mary1286]

[ameliaevansfashion]

How To Start A Sustainable Fashion Brand: A Journey To Ethical Fashion

Embark on a sustainable fashion journey with insights on starting your ethical brand. Discover wholesale private label clothing manufacturers for a greener future.

[missroy33]

Get the workout apparel you need from the best fitness clothing manufacturer near you! Our wholesale unbranded athletic clothes collection includes custom-designed pieces for any fitness level. Shop the latest in fitness fashion today!

[activewearmanufacturer]

Top Four Benefits of Investing in Ethical Activewear

In today’s eco-conscious world, more and more fitness enthusiasts are opting for eco-friendly activewear every day. These clothes, made from organic cotton, bamboo, hemp, and other natural and recycled materials, are purchased in large numbers. Why?

Because they come with plenty of benefits for both the people and the planet.

Have a look at the 4 major ones.

Workers Get Safe Working Conditions

It’s said that slavery was in ancient times, but sadly, many clothing workers in the factories work unlimited hours even today. Reliable sustainable activewear manufacturers among others, however, are working hard to change this. They promote civilized conditions at work and give fair wages to the workers. They produce ethical wear that offers safe conditions at work. Production of such clothes protects farmers against toxic chemicals and fertilizers.

You Get High-Quality Clothes

As earth-friendly activewear is constructed from natural and recycled materials, they are of high quality. These clothes are not only comfortable but they are long-lasting as well. They are easily able to keep up with high-intensity gym routines. Moreover, they are skin-friendly too. So, if you have sensitive skin and are prone to rashes and allergies, you can blindly put your trust in such apparel. Are you a retailer reading this blog and finding ethically generated sustainable activewear? Hurry! Contact one of the most well-known eco friendly activewear manufacturers now!

Usage of Less Water

When producing garments traditionally, a lot of water gets used. Did you know that almost two thousand liters of water is used to make just a t-shirt? However, when producing sustainable activewear, manufacturers can create the best clothing with less water.

They Help You to Perform Better

Eco-friendly activewear can lead to better performance. They come with antimicrobial properties that keep you germ-free and they also don’t cause any static charges. While some materials are naturally cooling, some retain body heat. So, wearing such clothes can improve your performance while exercising in no time.

If you are a private label business owner searching for unusual private label activewear, then now is your chance to order in bulk from a prestigious private label activewear manufacturer Europe!

[eazy-group]

Gym Clothes: Top Wholesale Workout Clothing Manufacturer In USA, Canada, Australia, Europe

New Post has been published on https://eazyfitness.net/gym-clothes-top-wholesale-workout-clothing-manufacturer-in-usa-canada-australia-europe/

Gym Clothes: Top Wholesale Workout Clothing Manufacturer In USA, Canada, Australia, Europe

Wholesale Gym Clothing Suppliers And Manufacturer in USA, Australia, Canada for Men, Women

We, Gym Clothes are hailed as eminent retail fitness fashion online destination, for the workout freaks. We are a renowned e-commerce platform that offers and hassle free shopping experience, boasting of the widest assortment of activewear collections. We have recently given way to the wholesale mode of operation, where you can get access to the readymade retail products in bulk, and place order to get them at wholesale rates. Being the leading athletic clothing and sportswear manufacturer, we incessantly look forward to serve the fashion market, and hence have been operating as a wholesale mode too. While doing this, our team also offers you the private label and custom made products to entice your specific preferences and requirements. Realizing that the fashion scene is a dynamic one, we continuously add fresh oodles of style statements to our inventory of fashion-fitness clothing.

Check Out The Updated Gym Apparel Wholesale Catalog From Us

As we offering you the scope to buy the retail or ready-made products in bulk that you can check in our store at wholesale prices, we have updated our gym apparel wholesale catalogue to woo you with more options. Driven with the desire to flatter the clothing industry with the most humongous range of fitness clothing, we have been maintaining a very wow-worthy and ever-expansive wholesale gym clothing inventory. Keeping product catalogue fresh and large, our clothing items reflect the recent highlights and fashion trends surfacing in the global scenario today.

Our round-the-season collection of wholesale gym wear comes in a wide array of options for the men and women. You get everything ranging from the simple tees and tops, to the printed leggings, casual joggers and tracks, the utility jackets, functional and funky sports bras, and a lot more. You can invest in the gym leggings wholesale pieces in prints, or the brand new range of cycling wholesale gym shorts, wholesale gym t shirts with slogans, gym tank tops wholesale assortment for men and so on.

Realising the fact that fashion differs from person to person, we have stashed our warehouse with gym wholesale clothing products that different in cuts, prints, colors, silhouettes, designs and styles. The products come in perfect line and length to conform on the best fit and silhouette that matters when it comes to hitting the gym in them. Thus, you can lay tour hands on these ready mad products from our exclusive catalogue, and entice your customers and clients.

Being One Of The Leading Wholesale Gym Clothing Suppliers, We Prioritize On Quality

Operating since ages in the clothing industry as a retail store, we have also been tagged recently one of the leading wholesale gym clothing suppliers and custom gym wear manufacturers, and ensuring highest standards of quality is our forte. We strive to serve the customers better, and hence make sure to prioritize on the quality of the products. Apart from smashing our inventory with the most stylish readymade gym apparels, our products also promise the best quality as they are made with the blend of the most top-notch fabrics and incredibly high end raw materials. Thus, we offer only premium quality when it comes to our wide assortment of gym clothing, all highlight active moisture wicking and ventilation properties, thereby guarantying wearers maximum comfort even on the worst of weathers.

Thus, for fusing style and comfort through our activewear pieces, we have become one of the celebrated gym clothing suppliers, with global recognition.

We Are One Of The Gym Clothing Manufacturers, With Best Customer Service Guaranteed

We maintain a cordial relation with the clients and customers, and on operating as one of the gym clothing manufacturers too, we continue with our no compromising attitude towards them. Our professional commitment doesn’t end after the transaction and our team extends the best pre and post-sale support to the customers. We aim to offer all with over-the-top shopping experience and our customer service help desk is always ready to resolve your issues, answer questions and help you through any wholesale ordering problems. Thus, if you have any glitch, hassle or doubt, we are there to take care of them at the soonest.

Owing to our flexible and effective customer service, we have emerged as one of the revered wholesale gym clothing manufacturers in the world, receiving accolades.

Come To Us And Customize The Blank Gym Wear Wholesale Products Accordingly

We have a wide array of blank gym wear wholesale products for the customers, and they can brief us about the specifications to get them customised accordingly. This way, we help you materialise your private label dreams too, as you get access to the customer blank gym apparel pieces from us, with sartorial designs being guaranteed. You just have to place the order on the readymade blank sportswear wholesale products, and we will design them with perfection, after knowing your brief in details.

Thus, it is time to trust our wholesale mode of operation too, that guarantees the best bulk shopping experience to the clients all around the world.

Gym Clothes Is The Best Online Fitness-fashion Store To Buy Activewear In Wholesale

The fitness freak fashion conscious men and women looking out for the most jaw-dropping collections of activewear, must make their way to Gym Clothes, the leading wholesale gym clothes manufacturing hub. We have been a renowned name in the international market, due to the presence of ever-expansive product gallery of newfangled gym clothes. Apart from satiating the customers with stunning style quotients, we also make sure to serve them with the best provisions, be it through strong online assistance to enjoy a flexible shopping experience over different digital mediums, or through the state of the art activewear, coupled with exciting discounts and benefits to make things easy on your pocket. The widest assortment of best gym clothes wholesale we bring forth will leave you spoilt for choice, and we work according to the requirements of our customers. Versatile, practical and convenient, Gym Clothes presents an array of workout gym clothes for men and women, to lend them exquisite style definitions.

We Offer Humongous Range Of Gym Clothing Apparel

We understand that fashion is a combination of style and comfort, and hence only stash the inventory with wholesale fitness clothing pieces which define this. Maintaining a fusion of fashion and functionality, our wholesale workout clothing collection come in wow-worthy features, from perfect silhouette to innovative stance like moisture-wicking capabilities, use of dri-fit technology and more. These active outfits being made of superior materials, maintain the highest standards of quality by conforming on comfort, durability and fade free finesse. From the simple tees, sports bras for the women, to the jackets for winters and tracksuits or leggings and shorts, you will find no shortage of options in our exclusive stock. Thus, wait no more, and pick up the newest and cool customize gym apparel pieces to renovate your closet.

Gym Clothes Assures Best Customer Service On Best Gym Wear

Being a globally acknowledged wholesale sportswear manufacturer, Gym Clothes champions unmatched customer service, assuring timely and reliable worldwide shipping to various countries. The friendly customer care team with easy returns and exchange policy makes us one of the custom sportswear companies in USA. We render satisfying services to the customers, and you can experience seamless and hassle free shopping experience here.

Thus, to buy activewear for sprucing up your monotonous sweat out sessions, check out the updated product category of Gym Clothes and enjoy some fantastic offers and deals on comfy fashion forward outfits. Happy online shopping of high-performing, trendy wholesale sportswear with us!

[zzareeeen]

List Of 10 Sportswear Manufacturers Around The World

The growing interest in exercise and health, the activewear business is growing. This sector has many distinct brands, which shows how competitive it is and its potential.

Activewear is expected to reach 547 million US dollars in 2024, according to AMR. Many other market intelligence firms predict a similar sector expansion rate.

However, due to the abundance of rivals and high profit margins, the business has also expanded to the point where there is no distinction between the items. To gain market share and grow their businesses, the newcomers must be able to differentiate their offerings.

This differential may be based on a variety of factors, including quality, value, cost, or luxury goods. To help you differentiate your product and achieve your company's performance goals, we will identify sports clothing manufacturers in this post who provide top quality and competitive pricing. 

We will begin by discussing activewear manufacturers around the world that offer a wide range of activewear products.

Affix Apparel

Affix apparel and activewear are manufactured and distributed internationally. Production and supply networks have access to the highest quality raw materials. Each product, design, and style has at least 100 apparel pieces. Fitness shorts, trousers, sleeves, tracksuits, yoga pants, women's activewear, men's activewear t-shirts, and many more of their best-selling items are just a few of their top sellers. This activewear manufacturer USA boasts a very remarkable customer. Manufacturers frequently approach them, who have faith in them, to produce fitness apparel.

Azilin

The Azilin firm has a significant level of recognition internationally for its sportswear manufacturers profile. They manufacture high-quality athletic and fitness apparel. Around the world, they ship their goods and clothing. Their primary interest is in high-quality, reasonably priced sportswear. Sports bras, shorts, jackets, exercise leggings, joggers, tracksuits, pants, tights, etc. are just a few of them that sell their goods to countries including Japan, the UAE, China, Turkey, Singapore, Oman, India, etc. 

BHL Sports

One of Pakistan's most well-known producers of athletic apparel is BHL Sports. It caters to a wide range of customers across the globe. Panther GK, Mango Nations, Stylo matchmakers, Harps, and many more businesses received favorable feedback. They produce their goods with the utmost attention to quality control. Both BHL Sports' apparel and its durability are quite nice. Tracksuits, knee wear, gym gear, caps and hats, yoga wear, and other popular items are among their well-known products. To ensure the quality of the product, quality checks are carried out at every stage.

Fush

As a milestone, Fush created promotional clothing, then expanded into activewear, gym apparel, and professional sportswear. With the client's goals in mind, they developed a superb selection of cotton and PES textiles and several superior printing methods. Over the past several years, they have produced an increasing number of streetwear items, including sweatpants, sweatshirts, oversized t-shirts, and personalized hoodies. 

They operate out of a basement apartment block as a sustainable textile manufacturer with two garment factories in Serbia (South-Eastern Europe). They can provide clothing manufacturing services and private label apparel.

Kirpte

In 1997, Kirpte became a renowned producer of gym clothing manufacturers and activewear apparel. They were recognized as the small- to medium-sized firm with the greatest growth in 2017. In the same year, they were put forward as one of the most cutting-edge local businesses. They are a Lithuania-based, one-stop-shop sportswear manufacturer in Europe today. Their adaptable approach to sportswear and athleisure wear development and production is a tight collaboration with well-known European brands and cutting-edge startups. 

Kirpte offers activewear, athleisure, and teamwear. Our long-lasting athletic items cover everything from cycling, jogging, and skiing to yoga, rugby, and football. Finally, they will create as many prototypes as required to materialize your ideas.

NG Apparel

One of the top sports apparel manufacturers in India, NG Apparels has been in business for more than 45 years and has an 81-year history. There is no other business that puts such a strong emphasis on quality, morals, manufacturing, and customer satisfaction. From selecting fabrics to producing and distributing your items, it provides an all-in-one solution for sportswear.

The business customizes its OEM and ODM services. It features top-notch design and engineering teams that guarantee the highest quality. The MOQ for each style, product, and innovation is 500 pieces; however, this is only the minimum. Depending on the kind of goods you want to get, the MOQ may vary. The delivery period is one month by ship and one week by flight. Depending on the information given and the sample payment, the sample may take up to four weeks to complete.

Ningbo Fito Industrial Co., Ltd

Ningbo Fito Industrial Co., Ltd has produced athletic clothing for 10 years. Fito can offer high-quality and affordable sportswear since it is one of the biggest seamless sport clothing manufacturers in China. They are a reputable manufacturer of high-quality sports apparel, yoga apparel, fitness apparel, gym wear manufacturers, and other related items. They were founded in 2010 and are based in NINGBO. Leggings, bras, shirts, shorts, joggers, jackets, and hoodies are just a few of the sporty goods we specialize in. 

Seam Apparel

One of the most trusted manufacturers of activewear apparel in the American clothing industry is Seam Apparel. Working in this field for around 10 years for people who wish to stand out from the crowd, Seam guarantees possibilities in high-quality sportswear with a wide range of customization possibilities. Seam can produce both small- and large-scale sportswear orders for prestigious clients. To fulfill client goals, it provides distinctive, bespoke sportswear solutions. The seam is a significant participant in the U.S. activewear production industry with its exceptional quality and competitive cost.

Taeco Vietnam Company Ltd.

One of the leading sports clothes manufacturers in Vietnam is Taeco Vietnam Company, a reputable producer in the sector. It exports goods to significant parts of the world, including Australia, the United States, Canada, Europe, and the Middle East. In addition to product quality, the firm also emphasizes environmentally friendly and ethical industrial practices. Because of this, many of their items are manufactured from sustainable and natural materials.

Depending on the quantity and material, the company's manufacturing lead time ranges from 35 to 55 days. This is once the necessary data is provided and the advance money is collected. The firm offers expedited orders that are delivered within 15 days for an extra fee. T/T, L/C, and Western Union are acceptable payment methods. With 500 to 1000 pieces per style, the MOQ is higher.

Tack Apparel

One of the most well-known activewear manufacturers in the USA for men's and women's clothing is Tack Apparel. For men and women committed to health and fitness, there is high-quality fitness apparel. The best custom-designed sportswear is well-known. They provide a wide range of clothing, including swimsuits, tracksuits, shorts, tanks, jackets, and t-shirts. Without a doubt, their activewear materials are premium, long-lasting, and sturdy. 

In addition to being excellent for exercising, they also look great. They also provide comfort. Every product is offered in every size, allowing customers to choose the one that fits them best. They also offer private-label and customization services that result in the best fitness-related bespoke clothing for both sexes.

Activewear's primary products 

Activewear apparel makers supply a growing variety of models and types, even though it was always obvious that it was meant to be worn for sport and exercise. Although almost any piece of clothing may be converted into activewear, a few common varieties are listed below.

Yoga Attire

To provide yoga practitioners with the finest experience possible, yoga apparel was developed with this goal in mind. Yoga practitioners can wear a variety of designs made by yoga apparel producers. From leggings and tights to very detailed seamless or compression jackets, shorts, and outerwear, yoga shirts, and t-shirts are all part of the fashion trend. 

Yoga attire is available in a range of fashionable styles and is comfortable and flexible. Yoga clothing, which comes in a wide range of styles and colors, is one of the items that sportswear producers target. This is not just for yogis but also for others who value flexibility.

Men Activewear 

The most effective designs, styles, and materials are available from athletic clothing manufacturers. Their high-quality clothing satisfies exercise enthusiasts' needs. Manufacturers of men's sportswear can help you up your game, whether on the tennis court or the golf course. Men's sportswear includes hats, t-shirts, shorts, and other garments appropriate for a range of sports and outdoor pursuits. Golf, tennis, football, and several other sports all employ men's apparel.

Women's Sportswear

Women's activewear comes in a wide variety. Women's apparel companies provide anything from t-shirts and jackets to high-performance sports bras, shorts, and leggings. Whether you like working out at home, heading to the gym, or expressing your inner self, there is something for everyone. No matter whether you're exercising at home, working out again, or transitioning to sporty chic, women's activewear is always about style and comfort.

Fitness Attire

Gym clothing Manufacturers are another kind of activewear manufacturer. What you wear while exercising is just as essential as what you do. Your comfort and safety can be enhanced by wearing the appropriate gear for your sport. You'll feel exhausted, hurt, and sweaty after a rigorous workout. 

You might be surprised to learn that the clothes you wear to the gym might impact how you feel afterwards. There are a number of factors that can affect the comfort of your workout attire, such as the fabric used to make it. In addition, whether or not they are suitable for the exercise you'll undertake. You should be aware that clothing companies that specialize in fitness wear have designed items that can help you resolve all of the aforementioned issues.

Youth Activewear

Kids' exercise gear producers utilize a combination of synthetic materials to make garments that are long-lasting and fade-resistant but also promote active ventilation, are incredibly simple to put on, and are comfortable. Kids' fitness clothing comes in colors, shapes, and sizes. These include tracksuits, patterned leggings, jackets, tanks, t-shirts, shorts, and more. These are adorable and capable, and they are in total accord with the prevailing fashion trends in the global garment business.

Final words

To benefit from the juicy earnings that are available, several rivals are entering the profitable and quickly expanding activewear business. However, activewear vendors have grown, while product differences have shrunk. Your company must be able to distinguish its offerings as a result.

We have included the best athletic clothing manufacturers from a variety of nations who deliver premium products at reasonable costs.

[jeniferwatson193]

[gymclothesonline]

Contact Popular Private Label Activewear Manufacturer USA, And Get Up to 50% OFF In USA, Australia, Canada, UK, Europe, UAE

Want to start your own private label athletic wear chain? Contact Gym clothes to get products at Up to 50% OFF

[stigbrodersen-blog]

The Intrinsic Value of Hanesbrands Inc.

Introduction

Hanesbrands Inc. is a leading manufacturer and marketer of everyday basic innerwear and activewear apparel in the Americas, Europe, Australia, and Asia/Pacific under some of the world’s most well-known apparel brands, including Hanes, Champion, DKNY, Maidenform, Playtex, and Wonderbra. Unlike most apparel companies, Hanesbrands Inc. primarily operates its own manufacturing facilities. Its products are marketed to consumers through mass merchants, mid-tier retailers and department stores, specialty stores, and e-commerce sites. Hanesbrands also operates its own consumer-facing outlet stores, retail stores, and e-commerce sites.

The company’s current market cap is about $6.7 Billion, and its enterprise value (i.e., market cap + total debt net of cash) is approximately $11 Billion. Its revenues and free cash flows during the previous fiscal year were a $6.5 Billion and $569 Million respectively. The company’s common stock has fluctuated between a high of $25.73 and a low of $16.38 over the past 52 weeks and currently stands at around $18.58. Is Hanesbrands Inc. undervalued at the current price?

Figure 1: Source: Hanesbrands Inc. Investor Day slide deck presented on May 15, 2018.

The Intrinsic Value of Hanesbrands Inc.

To determine the intrinsic value of Hanesbrands Inc., we’ll start by looking at the company’s historical free cash flow. A company’s free cash flow is the true earnings which management can either reinvest for growth or distribute back to shareholders in the form of dividends and share buybacks. Below is a chart of Hanesbrands’ free cash flow for the past ten years.

As one can see, the company’s free cash flow has grown over the last ten years from less than $0 in 2008 to $569 million in 2017, with some lumpiness between due to large increases in inventory in some years. Over the last nine years, from 2009 to 2017, free cash flow grew at a compounded annual growth rate (CAGR) of 8.9%. To determine Hanesbrands Inc.’s intrinsic value, an estimate must be madeof its potential future free cash flows. To help us build this estimate, below we have calculated and displayed an array of potential outcomes for future free cash flows.

When examining the array of lines moving into the future, each one represents a certain probability of occurrence. The upper-bound line represents a 5% growth rate which is less than the 8.9% annual growth achieved over the past nine years as companies can seldom maintain growth rates above the general rate of the economy for prolonged periods. This 5% growth rate has been assigned a 25% probability of occurrence to account for a number of factors including fierce competition and the move from retail to e-commerce (i.e.,the “Amazon” effect). Hanesbrands Inc. still derives the majority of its revenue from retailers (although it is working hard to go direct-to-consumer via various e-commerce channels including Amazon).  

The middle growth line represents a 3% growth rate to match the current rate of a 10-Year Treasury Note, which is a good proxy for projected GDP growth over the next ten years. Hanesbrands is likely to grow at least as fast as the overall economy. This scenario hasbeen assigned a 60% probability of occurrence.

The lower bound line represents a -2% growth rate in free cash flow and assumes that the company will shrink slowly over time. This scenario has been assigned a 15% probability as it is not very likely, but certainly possible if apparel trends change, competition intensifies, and brand equity erodes over the next ten years.    

Assuming these potential outcomes and corresponding cash flows are accurately represented, Hanesbrands Inc. might be priced at a 9.1% annual return if the company can be purchased at today’s price of $18.50. We’ll now look at another valuation metric to see if it corresponds with this estimate.

Based on Hanesbrands Inc.’s current earnings yield, which is the inverse of its EV/EBIT ratio, the company is currently yielding 6.90%; this is above the Consumer Discretionary Sector median average of 6.40% suggesting that the company may be undervalued on a comparable basis. Analysts project that Hanesbrands Inc. will have an earnings yield (EBIT yield) of 8.9% based on next year’s earnings compared to 7.4% for the Consumer Discretionary Sector. Finally, we’ll look at Hanesbrands Inc.’s free cash flow yield, a metric which assumes zero growth and simply measures the firm’s trailing free cash against its current market price. At the current market price, Hanesbrands Inc. has a free cash flow yield of 6.9%.

Taking all these points into consideration, it seems reasonable to assume that Hanesbrands Inc. is currently trading at a discount to fair value. Furthermore, the company may return around 9.1% annually at the current price if the estimated free cash flows are achieved. Now, let’s discuss how and why these estimated free cash flows could be achieved.

The Competitive Advantage of Hanesbrands Inc.

Hanesbrands Inc. has various competitive advantages outlined below.

Brand Value. One of Hanesbrands Inc.’s most powerful competitive advantages is its brand value. Hanesbrands Inc. owns and sells under several industry-leading and trusted brands including Hanes, Champion, DKNY, Bali, Maidenform, Playtex, and Wonderbra. You may even recall the slogan, “Just wait’llwe get our Hanes on you” and that Michael Jordan has long endorsed the Hanes brand. Many of these brands have leading market-share positions in key categories in various regions of the world.

Figure 2: Source: Hanesbrands Inc. Investor Day slide deck presented on May 15, 2018.

For a competitor to challenge Hanesbrands Inc.’s competitive brand position, they would have to deploy a large amount of capital and resources for advertising and celebrity endorsements. As shown in the slide below, Hanesbrands Inc. has spent considerable amounts on marketing its brands ($750 million plus from 2014 through 2017).

Figure 3: Source: Hanesbrands Inc. Investor Day slide deck presented on May 15, 2018.

Hanesbrands Inc.’s various brands help to differentiate the company’s products and likely grant it some pricing power with consumers. This pricing power is one factor that allows the company to outperform the industry on a number of key metrics.

Scale Advantages and Sophisticated Supply Chain. Hanesbrands Inc. has developed extensive manufacturing capabilities that enable it to produce quality products and at an economical price. The company’s global supply chain (with 50 owned facilities) allows it to maximize low-cost production and international distribution. Because most facilities are wholly owned and operated, the company has been able to develop expertise in improving manufacturing processes and techniques all the way from initial design to distribution—which enables them to find the lowest-cost production methods for new product innovations. In other words, the company’s production process is as much a priority as the new product itself.

Figure 4: Source: Hanesbrands Inc. Investor Day slide deck presented on May 15, 2018.

Hanesbrands Inc.’s superb manufacturing capabilities also allow the company to deliver high returns on acquisitions. Hanesbrands Inc. has been able to acquire other apparel companies (e.g., Maidenform and DBApparel) and cut costs by integrating their manufacturing needs into its own low-cost manufacturing facilities and supply chains. Given the success Hanesbrands Inc. has achieved in integrating prior acquisitions, as well as its consistent flow of deals (about one or two per year), acquisitions could become a core driver of returns for shareholders going forward. Although there is always some risk in making acquisitions, the current management team has shown that it is capable of execution and future acquisitions could be a way to not only leverage its manufacturing platform and drive cost savings but also to gain exposure to new high-growth, high-margin product lines.

Figure 5: Source: Hanesbrands Inc. Investor Day slide deck presented on May 15, 2018.

Hanesbrands Inc.’s Risks

Now that Hanesbrands Inc.’s competitive advantages have been considered, let’s look at some of the risk factors that could impair our assumptions of investment return.

The apparel industry is subject to fluctuations in consumer spending, commodity price fluctuations (such as cotton prices), and retailer shrinkage and bankruptcies. That said, Hanesbrands is probably in a better position than most players, as much of its business (38% of Hanesbrands Inc.’s business in 2017) is driven by moderately priced replenishment innerwear products and also because of its vertically integrated supply chain (manufacturing and distribution).

Competition in the innerwear and activewear categories is fierce, and the pricing power Hanesbrands Inc. can expect to achieve from its brand names is somewhat limited as consumers likely have a limited threshold for brand premium pricing given the availability of almost identical products from other strong brands. Competitors include Gildan, Fruit of the Loom, Jockey, Warnaco, and Victoria's Secret. Additionally, Hanesbrands Inc.’s business is sensitive to changes in retailers' private label strategies, which we recently saw when Target decided that it will not renew its contract for the exclusive C9 by Champion apparel line in 2020. Target has decided that it is going to sell its own private label products. Over the last twelve months, C9 generated $380 million in revenue, which is 5.7% of Hanesbrands Inc.'s total revenue during the same period.

Finally, even though most consumers generally replenish innerwear items when the economy is doing poorly, consumers may demand lower prices or be willing to trade down to a different brand or delay purchases when times get really tough. Thus, in an economic downturn, margins could experience pressure if items must be discounted to sell through inventory.   

Opportunity Costs

Whenever an investment is considered, one must compare it to any alternatives to weigh up the opportunity cost. At the time of writing, 10-year treasuries are yielding 2.98%. If we take inflation into account, the real return is likely to be closer to 1%. The S&P 500 Index is currently trading at a Shiller P/E of 32.1 which is 89.9% higher than the historical mean of 16.8. Assuming reversion to the mean occurs, the implied future annual return is likely to be -2.8%. Hanesbrands Inc., therefore, appears to offer a much better return for investors at present, butother individual stocks may be found which offer a similar return relative to the risk profile.

Macro Factors

Investors must consider macroeconomic factors that may impact economic and market performance as this could influence investment returns. At the time of writing, the S&P is priced at a Shiller P/E of 32.1; this is 89.9% higher than the historical average of 16.8 suggesting markets are at elevated levels. U.S. unemployment figures are at a 30-year low suggesting that the current business cycle is nearing its peak. U.S. private debt/GDP currently stands at 199.6% and is at its highest point since 2009 when the last financial crisis prompted private sector deleveraging.

Summary

Hanesbrands Inc. is competitively positioned given advantages that are difficult for competitors to replicate: (1) well-known and respected brands often worn by generations and (2) scale advantages and a mostly-owned extensive supply chain. Analysts believe the company is poised to post significant operating margin growth through recognition of synergies ($85 million in 2018 and 2019) following a recent string of acquisitions, $100 million in net cost savings from Project Booster (a cost-saving plan announced by management last year), and $30 million-$40 million in manufacturing efficiencies.

Figure 6: Source: Hanesbrands Inc. Investor Day slide deck presented on May 15, 2018.

Despite the preceding advantages, one should acknowledge that Hanesbrands Inc.'d business has come under pressure as of late with the move away from brick-and-mortar retailers (retailers have been hit hard with bankruptcies, and many are reducing store counts) toward e-commerce sites like Amazon. Hanesbrands Inc.’s online sales amounted to only 11% of Hanesbrands Inc.’s revenue globally in 2017, but this number is growing. There are also risks stemming from changes in retailer private label strategies (which was demonstrated by Target's plan not to renew its exclusive contract for C9 by Champion line in 2020).

That being said, Hanesbrands Inc. may have a path back to sustained growth as it is distribution channel agnostic, and these trends (move away from brick-and-mortar to e-commerce and private label adoption) may only affect near-term results and the near-term stock price. This has perhaps created an attractive entry point for investors as the market tends to (at least in the short run) weigh near-term perception more than long-term prospects. The transition to e-commerce is proceeding well, with the online revenue growth rate hitting 22% in the fourth quarter of 2017. Online sales are expected to increase as a percentage of total revenue—specifically, analysts believe it can reach mid-teens percentage of total sales in 2018, up from 11% in 2017). A bright spot has been the company’s Champion brand, which grew at a healthy 20 to 30% year-over-year clip in each of the past four quarters. Another bright spot has been its growth in international markets, which has grown from 11% of the company’s business in 2013 to 32% in 2017.

Figure 7: Source: Hanesbrands Inc. Investor Day slide deck presented on May 15, 2018.

With respect to shareholder friendliness, Hanesbrands Inc. has been returning value to shareholders in the form of dividends and share repurchases. In fact, Hanesbrands Inc. returned a total of $1.9 billion in capital to shareholders in the form of dividends and share repurchases during the ten-year period between 2007 and 2017. Furthermore, over the past 2.5 years (from Q3 2015 through Q1 2018), the company has reduced its share count by 10% (from just over 400 million to about 360 million).

Figure 8: Source: Stockrow.com

In summary, Hanesbrands Inc. is a solid player in a fairly stable part of the apparel industry. Its shares are selling at a reasonable price based on its prospects for the future. Indeed, based on conservative assumptions we used in the free cash flow analysis above, Hanesbrands may return around 9.1% to shareholders annually if purchased the current market price of $18.50.

Disclaimer: The author of this article is long HBI at the time of writing.

*

This article was written in collaboration with Stephen Barnes from “The Investor’s Podcast.”

Stig Brodersen is the host of the business podcast “We Study Billionaires.” You can find his free intrinsic value index here of popular stock picks.

[mary1286]

Sports Apparel Manufacturers in Australia

Are you searching for top-rated sports apparel suuppliers in Australia?Activewear Manufacturers, private label clothing suppliers in Australia, canada, europe, usa, uk... visit:-  https://tinyurl.com/esgwgdwg

[ameliaevansfashion]

Your Clothing Brand Will Succeed With The White Hoodies Manufacturer In USA

Elevate your clothing brand's success with the top private label clothing manufacturer in the USA. Discover premium white hoodies for your unique style.

[activewearmanufacturer]

Experience the highest quality athletic apparel when you choose us, an experienced activewear manufacturer with private label and wholesale options. Offering gym clothes, fitness clothing, and sportswear made around the world! Get your apparel today.

[activewearmanufacturer]

Experience the highest quality athletic apparel when you choose us, an experienced activewear manufacturer with private label and wholesale options. Offering gym clothes, fitness clothing, and sportswear made around the world! Get your apparel today.

[activewearmanufacturer]

Get the best quality private label activewear clothes from Activewear Clothing Manufacturer. Our experienced team works on bulk orders as well. Contact us now for more information and customization options!

[activewearmanufacturer]

Get in Touch With off on wholesale Activewear Manufacturer in Europe