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HanesBrands Names New CFO as Pandemic, E-Commerce Weigh on Its Business

29/04/2021 9:47pm

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By Kristin Broughton 

Underwear maker HanesBrands Inc. named a new finance chief to help it navigate a shift to online shopping that has been accelerated by the coronavirus pandemic.

Michael Dastugue will take over as chief financial officer on May 1, the Winston-Salem, N.C.-based company said Thursday. Mr. Dastugue was previously CFO of the U.S. division of retailer Walmart Inc., a role he held for six years until earlier this year. He joined Walmart in 2013 to lead the finances of its Sam's Club warehouse division. Before that, he served as CFO of J.C. Penney Co., the department store chain that emerged from bankruptcy protection in December.

Mr. Dastugue's appointment comes amid a leadership reshuffle at HanesBrands, which also owns brands including Champion, an athletic clothing line, and Maidenform, a maker of bras and shapewear. The company in August named a new chief executive, Stephen Bratspies, another Walmart executive who was previously the retail giant's chief merchandising officer. Walmart is HanesBrands' largest customer, accounting for 15% of total net sales of $6.7 billion in 2020.

HanesBrands has not had a permanent CFO since late 2019, following the departure of former finance chief Barry Hytinen, who was in the role for two years. Scott Lewis, the company's chief accounting officer and controller, has served as interim CFO since January 2020. He will return to his former position once the transition takes place, the company said.

In his new role, Mr. Dastugue will lead the company's finances as it adapts to changes in how its customers shop, said David Swartz, an analyst at Morningstar Research Services LLC, a research firm. Younger customers in particular are more frequently buying underwear online instead of visiting a department store or retail chain, where HanesBrands has traditionally sold its products.

"Hanes is having to go where its customers are going, and its customers are going online and to specialty stores," Mr. Swartz said.

Net sales during the year ended Jan. 2 declined 4%, to $6.7 billion compared with a year earlier, due in part to temporary closures of retail stores last spring. HanesBrands posted a $75.6 million loss for the year, compared with a $600.7 million profit a year earlier.

About three-quarters of the company's sales in 2020 were wholesale. The company also sells directly to consumers online and through company-operated stores.

HanesBrands has said it plans to provide details on a multiyear plan to improve profitability at an investor day scheduled for May 11. The company plans to boost athleticwear sales, build out its e-commerce operations and appeal to younger customers, executives said during a February earnings call.

"[Mr. Dastugue] has been a driving force in large-scale change programs and in positioning companies for long-term growth," Mr. Bratspies said in a release.

Mr. Dastugue will receive an annual base salary of $750,000, an annual bonus targeted at $750,000 and long-term incentive pay of $1.5 million, according to a regulatory filing.

Write to Kristin Broughton at Kristin.Broughton@wsj.com

 

(END) Dow Jones Newswires

April 29, 2021 16:32 ET (20:32 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

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