For those who have ever been curious about the investment potential of a company and what makes them a good investment choice, I will be looking into one of the top traded companies in the stock exchange and summarize their annual report. I will comment about their overall investment potential as well as their financial statements, future plans, and potential risks. The company I have chosen to look into is Hanes Brands Inc. They are known for their cotton clothing sold in major stores such as Target and Walmart. They are a familiar brand to us and along with their familiarity, success, and growth potential, they are currently deemed as a good investment choice. I intend to find out why. The following report should give anyone the information …show more content…
They mention that “Hanesbrands was a U.S. Environmental Protection Agency Energy Star Sustained Excellence Award winner every year from 2012-2017 and Partner of the Year winner in 2010 and 2011. (Hanes Brands Inc., 2017)” They also state under product innovation and marketing that “From 2014 to 2016, we spent nearly $196 million on design, research and product development, including the development of new and improved products. (Hanes Brands Inc., 2017)” These products included their tag-less undergarments, comfort flex-fit bra’s, and active wear with X-temp and FreshIQ technology that helps control the wearer’s temperature and odor. When it comes to their concerns about competition, they listed their strengths as “strong brands with leading market positions, industry-leading innovation, our high volume, core products focus, our significant scale of operations, our global supply chain and our strong customer relationships. (Hanes Brands Inc., 2017)” Overall, they report to have been continuously successful as a well known and trusted brand that has continued to innovate and has strength in consumer market availability. However, like any successful company, they face …show more content…
Retail shopping is always changing to new ways to shop as well as new products. Hanes Brands Inc. states in Item 1A. Risk Factors of the report that “If we do not successfully develop and maintain a relevant omni-channel experience for our customers, our businesses and results of operations could be adversely impacted. (Hanes Brands Inc., 2017)” They go on to explain that an increase in competition could lead to the loss of shelf space and visibility within retail stores and that in turn, could cause a loss of profit. They also expressed concerns for data breaches and technological difficulties and how it would affect the integrity of the company. They are aware that they need to be able to properly integrate new technologies and protect their network from data breeches in order to maintain the trust of their consumers and investors. They also deal heavily internationally and expressed that “the extensive nature of our foreign operations, fluctuations in foreign currency exchange rates could negatively impact our results of operations. (Hanes Brands Inc., 2017)” With what they stated on how much they spend on innovation in part one of the report along with their commitment to maintaining themselves as a trusted brand, they seem to be well equipped to handle possible risks and maintain financial stability moving into the future. Currently their financial health looks