news-record.com

WINSTON-SALEM (MCT) — A significant reduction in restructuring charges led to a sharp increase in profit for Hanesbrands Inc. in the third quarter despite an 8 percent decline in sales.

The company reported on Wednesday net income of $41.1 million in the quarter compared with $15.9 million a year ago. Diluted earnings were 43 cents a share, up 26 cents from a year ago. (Read the earnings release at Hanesbrands.com.)

The average earnings forecast was 54 cents by analysts surveyed by Zacks Investment Research. The company, as is its pattern, released its earnings report after the stock market closed. Its share price fell $1.09, or 4.8 percent, to finish at $21.81 yesterday.

Hanesbrands reported that sales in its five main categories were down during the quarter, including a 10 percent decline in innerwear to $585.3 million. Overall sales were at $1.06 billion.

However, its restructuring charges were $15.1 million in the quarter compared with $28.3 million a year ago.

The company announced separately that it expects to have a 5 percent increase in sales in 2010 from gains in shelf space at retail and through distribution channels.

It said that the sales growth "is not dependent on increased consumer spending."

Earlier this month, Hanesbrands said it was gaining twice as much space for its Just My Size women's clothes in Wal-Mart stores.

Wal-Mart, Hanesbrands' biggest customer, is selling an extended line of the brand, including dress pants, sweaters and other merchandise beyond the underwear and jeans it already stocked. The collection will range in size from 16 to 28 and in price from $6 to $22.