Hanesbrands Inc. fell the most in almost four years after declining sales of intimate apparel hurt second-quarter profit.
Net income fell 39 percent to $94.9 million, or 23 cents a share, the Winston-Salem, North Carolina-based company said Thursday in a statement. While sales rose 13 percent to $1.52 billion, that trailed analysts’ $1.57 billion average estimate.
Hanesbrands is facing declining sales of intimate apparel as women shift to buying those items from boutiques and specialty shops, rather than department stores and mass-market retailers. And while the increasing use of athletic apparel for everyday activities boosted the company’s activewear sales, it also may be eating into traditional lingerie sales, Omar Saad, an analyst at Evercore ISI, said in a note Thursday. Innerwear sales fell 1 percent last quarter, Hanesbrands said.
The shares fell 9.1 percent to $31.03 at the close in New York, the biggest drop since August 2011. Hanesbrands has gained 11 percent this year.