Australian undergarment brand Bonds is seeing strong growth across all channels, according to its US-based parent company HanesBrands.
In a trading update overnight (Australia time), HanesBrands reported a drop in net sales in the Australian market as a strong growth in Bonds was more than offset by continued headwinds in the local intimate apparel market.
Over the past few years, lingerie retailing has faced significant challenges due to intense competition and fluctuating consumer sentiment. This is according to research firm IBISWorld.
“While consumer demand for essentials like bras and underwear has remained relatively stable, negative sentiment and the rise of online competition have altered purchasing habits,” IBISWorld shared on its website.
“Online shopping has gained popularity because it offers extensive product ranges, lower prices and the convenience of home delivery.”
IBISWorld added that rising living costs have driven consumers to shop for necessities at discount department stores like Kmart and Target or with online-only retailers to save money.
“That's why industry revenue has contracted at an annualised 2.7 per cent over the past five years. It's expected that revenue will reach approximately $745.3 million this year, with an estimated 0.7 per cent drop due to ongoing cost-of-living pressures.
“Yet, it hasn't all been bad news, with profit margins rising thanks to lower purchase costs and a drop in wages.”
As well as Bonds, HanesBrands also owns and manages Australian brands Sheridan, Berlei and Bras N Things.
International net sales for HanesBrands decreased 8 per cent in the third quarter of 2025 on a reported basis, which included a US$4 million headwind (~A$6.1 million) from unfavourable foreign exchange rates, and 6 per cent on a constant currency basis as compared to the prior year.
International net sales fell to US$204.3 million. This added to a 24.9 per cent drop in operating profit outside of its US market to US$20.7 million.
HanesBrands' overall net sales, including the US, fell by 1 per cent to $891.68 million in the third quarter.