What is driving the momentum in the apparel maker's activewear business?

The industry is experiencing changes due to tariffs and economic conditions, leading customers to seek stable suppliers. The apparel maker's vertically integrated manufacturing provides this stability, giving it a competitive advantage.

How is the apparel maker capitalizing on the industry shifts?

The company is gaining market share in key categories like ringspun and Comfort Colors. Its US-based cotton and yarn content offer a competitive advantage against tariffs, and it is adding capacity in Central America to capitalize on future opportunities.

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Apparel Maker Boosts Activewear Sales Amid Shifting Retail Landscape

Q: What challenges did the apparel maker's underwear and hosiery segment face?

The underwear and hosiery segment faced headwinds like delayed store sets and market softness, but the company anticipates improvement throughout the remainder of 2025.

1 Aug

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Summary

Activewear sales up 12% year-over-year in Q2 2025
Vertically integrated manufacturing provides stability against industry changes
Firm gains market share in key categories, adds capacity in Central America

Apparel Maker Boosts Activewear Sales Amid Shifting Retail Landscape

As of August 1st, 2025, the apparel maker has navigated the shifting retail landscape with success, reporting a 12% year-over-year increase in activewear sales during the second quarter. The company's vertically integrated manufacturing model has provided stability against industry changes, such as tariffs and economic conditions, allowing it to gain market share in key categories like ringspun and Comfort Colors.

The firm's US-based cotton and yarn content have given it a competitive advantage against tariffs, and it is now expanding production capacity in Central America to capitalize on future opportunities. The underwear and hosiery segment faced some headwinds in the past, including delayed store sets and market softness, but the company anticipates improvement throughout the remainder of the year.

While the second quarter saw some sales shift from Q3 to Q4 due to pricing actions, the CFO expects mid-single-digit growth when combining Q2 and Q3 results. The shifts are not considered structural and are expected to resolve over time.

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