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Hanesbrands acquires Alternative Apparel, reaffirms Q3 EPS guidance

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Hanesbrands acquires Alternative Apparel, reaffirms Q3 EPS guidance

Hanesbrands Inc. said it has completed a deal to buy apparel maker Alternative Apparel for about $60 million in cash and expects its fiscal third-quarter sales and EPS to be in line with its previous guidance, according to a statement the company released Oct. 18.

Hanesbrands forecasts fiscal third-quarter sales of about $1.80 billion, EPS of about 55 cents and adjusted EPS of about 60 cents, meeting its previous guidance, on higher-than-expected international sales.

The company will release its final third-quarter results Nov. 1 and also update its full-year guidance. It expects to incur an acquisition-related pretax charge of about $17 million in the third quarter.

Hanesbrands said it bought Alternative Apparel in a bid to diversify its sales mix as it continues to focus on omnichannel growth, including online.

Georgia-based Alternative Apparel is expected to report full-year 2017 net sales of about $70 million, according to the statement. Hanesbrands said it completed the purchase Oct. 13.