v3.25.2
Business Segment Information
 6 Months Ended
Jun. 28, 2025
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
The Company regularly monitors its reportable segments to determine if changes in facts and circumstances would indicate whether changes in the determination or aggregation of operating segments are necessary. In the second quarter of 2024, the Company announced that it reached an agreement to sell the global Champion business as discussed in Note “Assets and Liabilities of Businesses Held for Sale” and as a result, this business was reclassified as held for sale and reflected as discontinued operations for all periods presented. While the global Champion business was reflected within all reportable segments prior to its reclassification to discontinued operations, the U.S. Champion business made up the majority of the Company’s former Activewear segment. Accordingly, the former Activewear segment has been eliminated and the segment information herein excludes the results of the global Champion business for all periods presented. As a result of the strategic shift and resulting reorganization, the chief executive officer, who is the Company’s chief operating decision maker, began reviewing all U.S. innerwear and U.S. activewear operations together as one U.S. operating segment and the Company’s operations are now managed and reported in two operating segments, each of which is a reportable segment for financial reporting purposes: U.S. and International. In December 2024, the Champion Japan business, which was previously reported within the International segment, was classified as held for sale and reflected as discontinued operations for all periods presented. Accordingly, the Champion Japan business has been excluded from the International segment information herein. These changes have been applied to all periods presented. These segments are organized and managed principally by
geographic location. Each segment has its own management team that is responsible for the operations of the segment’s businesses, but the segments share a common supply chain and media and marketing platforms.
Other consists of the Company’s sales related to short-term transition service agreements and support of disposed businesses. The Company’s U.S.-based outlet store business was also reflected in Other prior to its reclassification to discontinued operations in the second quarter of 2024 as discussed in Note “Assets and Liabilities of Businesses Held for Sale”. As a result of this reclassification, the results of the U.S.-based outlet store business are excluded from the segment information herein for all periods presented.
The types of products and services from which each reportable segment derives its revenues are as follows:
•U.S. primarily includes innerwear sales in the United States of basic branded apparel products that are replenishment in nature under the product categories of men’s underwear, women’s panties, children’s underwear and socks, and intimate apparel, which includes bras and shapewear. This segment also includes other apparel sales in the United States of branded products that are primarily seasonal in nature to both retailers and wholesalers.
•International primarily includes sales of the Company’s innerwear and other apparel products outside the United States, primarily in Australia, Latin America, Asia and Canada. 
The Company evaluates the operating performance of its segments based upon segment operating profit, which is defined as operating profit before general corporate expenses, restructuring and other action-related charges and amortization of intangibles. The accounting policies of the segments are consistent with those described in Note “Summary of Significant Accounting Policies” to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 28, 2024.
Quarter Ended
June 28, 2025
U.S.InternationalTotal
Segment net sales$735,483 $225,953 $961,436 
Reconciliation of net sales:
Other net sales29,889 
Total net sales991,325 
Less(1):
Media, advertising and promotion31,821 10,993 42,814 
Distribution43,493 18,487 61,980 
Other segment costs(2)
476,541 172,220 648,761 
Total segment operating profit183,628 24,253 207,881 
Reconciliation of operating profit (loss):
Other profit4,388 
General corporate expenses(55,162)
Restructuring and other action-related charges1,191 
Amortization of intangibles(3,640)
Total operating profit (loss)154,658 
Other expenses(9,023)
Interest expense, net(47,536)
Income (loss) from continuing operations before income taxes$98,099 
(1)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. 
(2)    Other segment costs include cost of sales, marketing, selling and other administrative expenses.
Quarter Ended
June 29, 2024
U.S.InternationalTotal
Segment net sales$740,154 $233,073 $973,227 
Reconciliation of net sales:
Other net sales700 
Total net sales973,927 
Less(1):
Media, advertising and promotion35,265 10,064 45,329 
Distribution44,576 19,346 63,922 
Other segment costs(2)
502,099 173,426 675,525 
Total segment operating profit158,214 30,237 188,451 
Reconciliation of operating profit (loss):
Other loss(130)
General corporate expenses(58,212)
Restructuring and other action-related charges(189,034)
Amortization of intangibles(4,278)
Total operating profit (loss)(63,203)
Other expenses(10,616)
Interest expense, net(50,279)
Income (loss) from continuing operations before income taxes$(124,098)
(1)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. 
(2)    Other segment costs include cost of sales, marketing, selling and other administrative expenses.
Six Months Ended
June 28, 2025
U.S.InternationalTotal
Segment net sales$1,271,708 $421,492 $1,693,200 
Reconciliation of net sales:
Other net sales58,273 
Total net sales1,751,473 
Less(1):
Media, advertising and promotion61,724 19,364 81,088 
Distribution83,641 35,171 118,812 
Other segment costs(2)
830,546 320,211 1,150,757 
Total segment operating profit295,797 46,746 342,543 
Reconciliation of operating profit (loss):
Other profit6,817 
General corporate expenses(107,600)
Restructuring and other action-related charges82 
Amortization of intangibles(7,276)
Total operating profit (loss)234,566 
Other expenses(26,295)
Interest expense, net(90,855)
Income (loss) from continuing operations before income taxes$117,416 
(1)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. 
(2)    Other segment costs include cost of sales, marketing, selling and other administrative expenses.
Six Months Ended
June 29, 2024
U.S.InternationalTotal
Segment net sales$1,284,045 $433,084 $1,717,129 
Reconciliation of net sales:
Other net sales1,473 
Total net sales1,718,602 
Less(1):
Media, advertising and promotion61,875 16,935 78,810 
Distribution85,347 36,306 121,653 
Other segment costs(2)
880,346 332,805 1,213,151 
Total segment operating profit256,477 47,038 303,515 
Reconciliation of operating profit (loss):
Other profit551 
General corporate expenses(118,904)
Restructuring and other action-related charges(204,003)
Amortization of intangibles(8,948)
Total operating profit (loss)(27,789)
Other expenses(19,678)
Interest expense, net(100,862)
Income (loss) from continuing operations before income taxes$(148,329)
(1)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. 
(2)    Other segment costs include cost of sales, marketing, selling and other administrative expenses.

The Company incurred restructuring and other action-related charges that were reported in the following lines in the Condensed Consolidated Statements of Operations:
 Quarters EndedSix Months Ended
June 28,
2025		June 29,
2024		June 28,
2025		June 29,
2024
Cost of sales$(3,475)$88,621 $(3,775)$88,824 
Selling, general and administrative expenses2,284 100,413 3,693 115,179 
Total included in operating profit (loss)(1,191)189,034 (82)204,003 
Other expenses— — 9,979 — 
Total included in income (loss) from continuing operations before income taxes(1,191)189,034 9,897 204,003 
Income tax expense— — — — 
Total restructuring and other action-related charges included in income (loss) from continuing operations$(1,191)$189,034 $9,897 $204,003 
The components of restructuring and other action-related charges were as follows:
Quarters EndedSix Months Ended
June 28,
2025		June 29,
2024		June 28,
2025		June 29,
2024
Restructuring and other action-related charges:
Professional services$2,909 $3,762 $3,366 $4,433 
Headcount actions and related severance(1,028)6,911 (819)19,098 
Supply chain restructuring and consolidation(3,184)156,807 (3,244)158,914 
Corporate asset impairment charges— 20,107 — 20,107 
Other112 1,447 615 1,451 
Total included in operating profit (loss)(1,191)189,034 (82)204,003 
Loss on extinguishment of debt included in other expenses— — 9,979 — 
Total included in income (loss) from continuing operations before income taxes(1,191)189,034 9,897 204,003 
Tax effect on actions— — — — 
Total included in income tax expense— — — — 
Total restructuring and other action-related charges included in income (loss) from continuing operations$(1,191)$189,034 $9,897 $204,003 
As a result of and related to the sale of the global Champion business and the completed exit of the U.S.-based outlet store business, the Company began implementing significant restructuring and consolidation efforts in the second quarter of 2024 within its supply chain network, both manufacturing and distribution, as well as corporate cost and headcount reductions to align the Company’s network and improve its overall cost structure within continuing operations to drive stronger operating performance and margin expansion.
Restructuring and other action-related charges and adjustments within operating profit were $(1,191) and $189,034 in the quarters ended June 28, 2025 and June 29, 2024, respectively, and $(82) and $204,003 in the six months ended June 28, 2025 and June 29, 2024, respectively, as described in more detail below.
•Charges related to professional services primarily include consulting and advisory services related to restructuring activities including the Company’s cost transformation and technology modernization initiatives, which are reflected in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statements of Operations.
•The Company recognized headcount actions and related severance charges, including subsequent adjustments to initial estimates, resulting from restructuring activities and operating model initiatives are primarily reflected in the “Selling, general and administrative expenses” line in the Condensed Consolidated Statements of Operations.
•Supply chain restructuring and consolidation charges primarily attributed to charges and subsequent adjustments to estimates related to headcount actions and related severance pertaining to restructuring and consolidation efforts within the Company’s supply chain network as well as charges for accelerated amortization of right of use assets for the leased facilities that the Company expects to exit before the end of the contractual lease term and depreciation of certain fixed assets.
•Corporate asset impairment charges primarily represent charges during the second quarter of 2024 related to a contract termination of $10,395 and impairment of the Company’s headquarters location that was classified as held for sale of $9,712 which were recorded in the “Cost of sales” and “Selling, general and administrative expenses” lines of the Condensed Consolidated Statements of Operations, respectively.
•The remaining restructuring and other action-related charges within operating profit are primarily associated with charges related to real estate initiatives pertaining to the Company’s corporate headquarters move and other restructuring and action-related charges.
In the six months ended June 28, 2025, the Company recorded charges totaling $9,979 in restructuring and other action-related charges related to the refinancing of the senior secured credit facility and redemption of its 4.875% Senior Notes. The charges, which are recorded in the “Other expenses” line in the Condensed Consolidated Statements of Operations, included a payment of $1,394 for a required make-whole premium related to the redemption of the 4.875% Senior Notes, charges for third party and legal fees of $686 related to the senior secured credit facility refinancing, and non-cash charges of $7,669 for the write-off of the related unamortized debt issuance costs. See Note “Debt” for additional information.
At December 28, 2024, the Company had an accrual of $42,175 for expected benefit payments related to actions taken in prior years. During the six months ended June 28, 2025, the Company approved headcount actions of $330 which were recorded in the “Selling, general and administrative expenses” line, in the Condensed Consolidated Statements of Operations and included in the “Headcount actions and related severance” line in the restructuring and other action-related charges table above. During the six months ended June 28, 2025, the Company made benefit payments and other adjustments of $20,664, resulting in an ending accrual of $21,841 which is included in the “Accrued liabilities” line of the Condensed Consolidated Balance Sheets at June 28, 2025.
The following table presents segment asset information as of June 28, 2025, December 28, 2024, and June 29, 2024:
  
June 28,
2025		December 28,
2024		June 29,
2024
Assets - Inventories:
U.S.$778,866 $711,323 $760,014 
International167,861 146,190 156,669 
The following table presents segment depreciation and amortization expense information for the quarters and six months ended June 28, 2025 and June 29, 2024:
 Quarters EndedSix Months Ended
June 28,
2025		June 29,
2024		June 28,
2025		June 29,
2024
Depreciation and amortization expense:
U.S.$3,503 $14,461 $7,826 $25,071 
International2,457 3,022 5,019 5,637