Yahoo Finance Hanesbrands (HBI) Inks 10-Year Deal With University of Texas
Hanesbrands Inc. HBI has announced a 10-year strategic agreement with The University of Texas at Austin to act as its primary apparel partner. Per the latest collaboration, the company will develop a consumer-driven collection of fan apparel offering Longhorn fans with "A Selection As Big As Texas."
The company looks forward to designing Texas fan gear for the local Austin market as well as national supercenter and club retailers. This deal grants exclusive rights in the mass, campus and local channels through 2032. We note that Texas will continue its relationship with Nike NKE as the supplier of performance products and fan assortments for the Longhorns’ Athletics programs.
HanesBrands is committed toward expanding the University of Texas' Longhorn brand. It established a modern and one-of-a-kind Champion shop experience at The Co-op in Austin. Texas joins the universities of Georgia, North Carolina, South Carolina, The Ohio State and Cincinnati as a key apparel partner with Hanesbrands. Additionally, Texas looks forward to collaborate with the other important licensees for major product categories.
What’s More?
Hanesbrands is progressing smoothly on its Full Potential plan. This three-year initiative revolves around four pillars including grow the global Champion brand, re-ignite innerwear growth, drive consumer-centricity and focus on the portfolio.
To this end, management expects Champion to become a global brand worth $3 billion by 2024, seeing a 14% CAGR from the 2021 estimated sales figure of about $2 billion. This growth plan is aimed at achieving $1.2 billion additional revenues and expanding the operating margins to 14.3% by 2024.
Management anticipates global innerwear revenue growth of nearly $200 million by 2024, led by sales in the United States and Australia. The company expects to drive global Innerwear growth by using new capabilities in global design, robust innovations and an enhanced contemporary voice.
It also focuses on making innovative products, increasing awareness via higher brand marketing as well as making strategic investments in digital capabilities including online marketing and advanced analytics. Management also focuses on simplifying its business.
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Shares of this presently Zacks Rank #3 (Hold) company have gained 17.1% in the year-to-date period compared with the industry’s 8.1% increase.
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