Daniel Gleason

Stock Evaluation Project

Hanesbrands Incorporated

HanesBrands Inc. is a consumer goods company that produces leading brands such as Hanes, Champion, Playtex, and Wonderbra. They design, manufacture, and sell very basic apparel such as T-shirts, bras, panties, men’s underwear, kids’ underwear, casual-wear, activewear, socks and hosiery.
HanesBrands Inc. focuses mostly on then basic apparel sector of the apparel industry, It can be characterized as the type of items one would find being replaced a lot, such as t-shirts, underwear, and socks. Unlike other Apparel sectors, Hanes, as a basic apparel provider is not driven by fashion or popularity, in contrast they are driven by peoples basic needs and keeping it affordable. They focus in on certain attributes of comfort, feel and value, while remaining current with regard to consumer trends. Aside from the big name brands HanesBrands has to offer like Champion, Hanes, and Playtex, they also produce brands that you may have never heard of such as Just My Size , L’eggs , barely there , Wonderbra , Gear for Sports , Stedman , Zorba , and Rinbros. But HanesBrands as a corperation has continued to invest in their largest and most popular brands, such as Hanes to achieve their future growth goals. The apparel sector is a highly competitive and quickly moving sector, that is hard to enter as a company. HanesBrands Inc. has a extremely wide economic moat in its sector.

An economic moat, a term coined by Warren Buffet, describes how much power the company has in its industry. The wider the moat, the bigger and more powerful the competitive advantage will be. Along with having well-known brand name (like Hanes), a company can control pricing and the biggest portion of market demand. With HanesBrands having such a wide moat It acquires perks in the industry, that act as barriers for other companies