slumped on worries about a potential slowdown in its Champion streetwear brand.
In a research note Friday,
analysts cut their rating on the underwear company’s stock to underperform from neutral, cautioning that Champion sales could slow. The analysts also lowered their price target to $13 a share from $16.
The maker of Hanes underwear, the Wonderbra and L’eggs pantyhose fell 5.1% to $14.40 a share, making it the worst performer in the S&P 500. The index was roughly flat for the session.
The Champion brand has been a success story for the Winston-Salem, N.C.-based company in the past few years, having been embraced by celebrities including Chance the Rapper and attracting nearly 6 million followers to its Instagram account.
“We think the brand is still popular, but its distribution is relatively saturated in the U.S. and we worry that changing fashion trends could rein in brand momentum,” Bank of America analysts wrote.
Hanesbrands has also struggled this year with soft sales in its core innerwear segment, which includes underwear and socks sold in the U.S. That business accounted for $2.4 billion in net sales last year, or 35% of the company’s total, filings show. Hanesbrands’ share price is down 25% from its 2019 high in February.
The stock peaked above $34 in 2015.
A spokesman for Hanesbrands didn’t respond to a request for comment.
Write to Alexander Osipovich at [email protected]
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