Hanesbrands to Sell Champion to Authentic Brands in $1.2B Deal

Hanesbrands, the apparel company with several brands within its portfolio, announced Wednesday it had agreed to sell its sportswear brand Champion to another retailer, Authentic Brands, for $1.2 billion. Authentic Brands also owns apparel brands such as Aeropostale, Billabong, Brooks Brothers, Forever 21, Juicy Couture, Lucky Brand, Nine West, Sperry, and Volcom. The sale was unanimously approved by Hanesbrands' board of directors.

Authentic Brands said the purchase of Champion demonstrated the company's "commitment to expanding its portfolio of iconic sports, lifestyle, entertainment and media brands." It expects to increase its system-wide annual retail sales to more than $32 billion worldwide with the addition of Champion to its portfolio.

"The successful completion of this transaction further simplifies our business, deleverages our balance sheet and enhances the company’s operations and financial performance," Hanesbrands CEO Steve Bratspies said.

Total Retail's Take: Hanesbrands reported a 17 percent decrease in sales year-over-year in May, with the Champion brand's global sales dropping 26 percent YoY. The company has in the last two years cut around 30 percent of its SKUs. Hanesbrand is looking to shed the weight of Champion on its balance sheet, and Authentic Brands is willing to take the chance on turning around the brand like it has done for many others in its portfolio. It would appear to be a win-win for both organizations.

Furthermore, Authentic Brands has been growing its portfolio of sportswear brands. It acquired Reebok in March 2022 from Adidas, and also owns Sports Illustrated magazine. The addition of Champion strengthens Authentic Brands' position in the sportswear category.