Hanesbrands Inc. said Thursday it expects sales to fall this year, with a negative impact from foreign exchange rates.
The Winston-Salem, N.C. apparel company projected full-year sales from continuing operations of $6.45 billion to $6.55 billion, including an FX headwind of around $165 million.
“At the midpoint, this represents an approximate 2% decline as compared to prior year on a constant currency basis and a 4% decline on a reported basis,” the company said.
The company’s previous guidance estimated an FX headwind of $125 million and sales of $7 billion to $7.15 billion.
Hanesbrands said second-quarter sales fell 11% on a constant currency basis when adjusted for a $38 million negative impact from foreign exchange rates.
International sales on a constant currency basis decreased 3% from a year earlier, with low-single digit declines in Europe and Australia more than offsetting growth in the Americas, the company said.
The DXY dollar index is up 9% this year. The U.S. currency is widely expected to remain strong as the Federal Reserve raises rates faster than its counterparts in the developed world.
