HanesBrands Speeds up Supply Chain Remake After $100M Hit From Cyberattack

HanesBrands Speeds up Supply Chain Remake

After suffering a cyberattack that cost it $100 million in net sales, HanesBrands is pressing forward with its efforts to remake its supply chain and innovate its products.

“Our second-quarter results fell below our expectations as a result of unexpected events and the difficult global operating environment,” HanesBrands CEO Steve Bratspies said in the company’s Q2 earnings release. “Despite the challenges, we continue to make progress on our Full Potential plan.”

During the cyberevent, which HanesBrands disclosed in a May 31 report to the U.S. Securities and Exchange Commission (SEC), the company was subject to a ransomware attack. The company said in the earnings release that the attack affected its global supply chain network and limited its ability to fulfil orders for about three weeks, costing it about $100 million in net sales.

There have been numerous high-profile digital and ransomware attacks recently, enhanced by the pandemic and the transition to digital means of managing money and business.

Read more: Hacked US Companies Must Report to Government Under New Law

During the quarter, HanesBrands also worked on its Full Potential strategy, which includes consumer-centricity, simplification, increased speed and digital capabilities, according to the release.

On the innovation front, the company rolled out new innerwear products for both men and women and said in the release its innovations around absorbency have created new opportunities and additional use cases for its brands.

To further its ability to offer head-to-toe products, HanesBrands purchased the Champion trademark for footwear in North America during the quarter, the release stated.

As part of its efforts to remake its supply chain, the company began direct shipping products from its Central American manufacturing facilities to certain wholesale customers, is adding automation to improve picking and sorting at several distribution centers and plans to open a West Coast distribution center this month, according to the release.

“We are in the early stages of our strategic supply chain initiatives,” Bratspies said in the release. “Our innovation pipeline is more robust than it has been in years, and we continue to invest in building our global brands.”

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