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