Hanesbrands' Champion Brand Is Living Up to its Name

Hanesbrands (NYSE: HBI) has been a tale of two businesses. On the one hand, its namesake innerwear segment has struggled to grow sales amid a weak domestic retail environment. On the other, Hanesbrands has one of the hottest athleisure brands in the industry with Champion, which continues to enjoy strong momentum around the world.

The latest quarterly results showed both of these trends continuing their course. Innerwear sales were down 3.5% year over year, but robust growth from Champion and modest growth in the international segment pushed total sales and earnings up 1% and 9%, respectively.

The shares are trading below 10 times forward earnings estimates, but with the business posting growth on the top and bottom lines, Hanesbrands looks like one of the most undervalued stocks in the apparel industry at the moment.

Source Fool.com