WINSTON-SALEM, N.C. -- Clothing maker Hanesbrands Inc. said Tuesday its third-quarter net income rose 21 percent as the company cut costs and sales of its Hanes and Champion underwear were strong.
Hanesbrands and other clothing makers have been facing historically high cotton prices, but those pressures are receding. Hanes said all commodity costs have been fixed for the rest of the year and the company will incur "significantly lower" effects from inflation for cotton and other items, the company said.
Net income for the three months ended Sept. 29 rose 21 percent to $109.9 million, or $1.09 per share, from $90.8 million, or 91 cents, per share. Analysts expected $1.05 per share, according to FactSet.
Revenue rose 3 percent to $1.22 billion from $1.19 billion last year. Analysts expected $1.22 billion.
Hanes and Champion underwear were the strongest performers, with sales of women's panties also increasing.
Revenue from its outerwear segment rose because of higher sales of its Champion activewear.
Hanesbrands, based in Winston-Salem, N.C., adjusted its full year net income expectation to $2.54 to $2.60 per share from $2.50 to $2.60 per share. It expects revenue of $4.52 billion. Analysts expect net income of $2.55 per share on revenue of $4.54 billion.
It expects 2013 net income will be in the "low-$3" range. Analysts expect $3.20 per share.
Shares of Hanesbrands fell 10 cents to $33.25 in after-hours trading following the announcement.