Sara Lee records rise in income

Sare Lee Corp last week posted a rise in earnings of 34.4 percent in the second quarter. Despite a drop in sales of 1.4 percent to $4.45 billion (£2.54 billion), net income rose to $438 million, as opposed to $326 million in the same quarter the year before. Operating income for the branded apparel business rose 10 percent to $169 million, and the UK branded apparel private label division was reported as discontinued during the quarter.

The branded apparel business, which consists of a portfolio of outerwear, innerwear and hosiery sold mainly in America and Asia, will be spun off from Sara Lee between June and September of this year under the new name Hanesbrands Inc.

During the second quarter, the branded apparel business recorded net sales of $1.18 billion, a decline of 5 percent on last year. Sales fell mainly due to the planned exits of certain low-margin fleece and sleepwear businesses and a continued weakness in the hosiery business. Operating income improved thanks to improved inventory management, lower expenses and beneficial cotton costs.

Net income for the six month period dropped 25.6 percent to $505 million. Sales fell 1.4 percent to $8.64 billion.

www.saralee.com
6 February 2006

Sara Lee announces stock delistings

Sara Lee Branded Apparel has announced the board authorization of the delisting of the company's stock from Euronext Amsterdam, Euronext Paris, and the Swiss Exchange.
The global brand-name products company decided on delisting following low trading volumes on those exchanges.

Sara Lee expects to complete the delistings in Amsterdam and Paris on 31 January 2006, and in Switzerland on 21 March 2006. Its stock will remain listed on the Chicago, London, New York and Pacific stock exchanges. This past February, Sara Lee began the multi-year transformation of the company into one focused on food, beverage, house hold and body care businesses around the world. As a result, Sara Lee will push growth through strong brands such as Ball Park, Douwe Egberts, Hillshire Farm, Jimmy Dean, Kiwi, Sanex, Senseo and Sara Lee.

www.saralee.com
22 December 2005

Sara Lee names apparel unit

US manufacturer Sara Lee has found a name for its branded apparel unit, which will be spun off from the company next year. The new unit, which will be called Hanesbrands Inc., will be an independent, publicly traded company and will concentrate on the core Hanes brand. The spin-off is expected to take place between July and September 2006.

Sara Lee Branded Apparel manufactures underwear and sportswear. The business recently took over textile maker National Textiles, a company also based in Winston-Salem , and Asian sourcing company DFK Trading Corp. Sara Lee is spinning off its branded apparel unit in order to focus on its non-clothes businesses.

www.saralee.com
20 October 2005

Sara Lee European Branded Apparel sale

US based Sara Lee has announced that it has entered into an exclusive negotiation period pertaining to the sale of its branded apparel business in Europe with an affiliate of private equity firm Sun Capital Partners Inc. Sara Lee Courtaulds, the UK based division which manufactures private-label apparel for retailers, is not part of the potential sale. The business, which generated sales of $560 million (£319 million) in fiscal 2004/5, still awaits the assessment of its options.

Sara Lee's apparel organisation in Europe includes branded businesses in France, Germany, Italy, Spain, the UK and throughout Eastern Europe. In fiscal 2004/5, the European businesses generated sales of almost $1.2 billion.

On 23 September, the board of directors of Sara Lee gave management permission to negotiate and finalise a definitive agreement to sell the company's European branded apparel business. Five days later, the company entered into exclusive negotiations with an affiliate of Sun Capital Partners Inc.

www.saralee.com
3 October 2005

Sales boost Sara Lee Intimates

Sara Lee Corp’s intimates and underwear business posted a 273 per cent jump in operating income to 209 USD million for the second quarter of fiscal 2003 compared with 56 USD million in the same period last year. Increased promotional spending boosted operating income as well did new product launches including the Hanes Tagless T-shirt and the Playtex gel-strap bra.

Excluding the effects of reorganization and business exit activities, operating income was up 22 per cent for the second quarter ended 28 December 2002 and 38 per cent for the first six months. Intimates and underwear sales increased 1 per cent in both the second quarter and first six months of fiscal 2003.

January 28, 2003
www.saralee.com

Sara Lee competes with Victoria’s Secret

Sara Lee Corp., the company better known for its cheesecakes and hot dogs, is taking its latest plunge into the retail world with a chain of stores called Inner Self. The New Age-inspired concept is designed to make ‘regular’ women feel more comfortable with their bodies while buying bras and underwear.

Creating a spa-like environment with soft music, soothing colors and admiring hand massages, a new lingerie chain is offering women a sanctuary from the super-model imagery of Victoria's Secret and the free-for-all atmosphere at major department stores.

Sara Lee, which aims to have ten Inner Self stores open through June in the United States, sees the chain filling a niche that will serve women ages 25 to 55, with an average dress size of 12. The stores provide an alternative to the often-unattainable, sexy ideal promoted by Victoria's Secret, and declining service at department stores.

Meanwhile, Victoria's Secret has managed to keep up heady expansion, growing to more than 1,000 stores in 2002 from about 670 in 1995.

January 7, 2003
www.saralee.com