North Carolina-based Hanesbrands (asi/59528) reported improved revenue and earnings in the first quarter ended on March 30, continuing positive recent trends for the apparel maker. Net sales increased by 8% to $1.59 billion and adjusted EPS were up by 4% to $0.27. The figures exceeded the forecasts of analysts.

“We’re delighted to continue our business momentum with a very strong first quarter,” said Hanes CEO Gerald W. Evans Jr. “We’re generating broad-based growth across businesses and geographies. Our brands are strong, and growth-related investment is delivering results.”

“Our brands are strong, and growth-related investment is delivering results.” — Gerald Evans, CEO of Hanesbrands

Hanes said its total company consumer-direct sales, which factor in brand retail stores and all online business, increased by 16% in Q1. While the company’s U.S. innerwear segment revenue decreased by 3%, dragged down by slowing demand for intimates, activewear sales rose by 17%. International segment sales jumped by 13%, while operating profit improved by 20%, Hanes said. E-commerce sales were up across all three segments. The increasingly-popular Champion label also gave Hanes a boost as revenue related to the brand outside the mass channel increased by 70% in Q1.

In its earnings statement, Hanes announced it incurred a bad debt charge of $4 million in the first quarter because of the insolvency of Top 40 supplier Heritage Sportswear (asi/60582). The charge lowered GAAP and adjusted EPS by approximately $0.01. Notably, the troubles at Heritage, which is being liquidated, also impacted the earnings of other firms, including Top 40 supplier Gildan (asi/56842).

Hanes has reiterated its full-year 2019 guidance. The company expects 2019 net sales of $6.885 billion to $6.985 billion, adjusted operating profit of $955 million to $985 million, and net cash from operations of $700 million to $800 million. For Q2, Hanes is forecasting net sales between $1.735 billion and $1.765 billion.

“Our cash generation is on plan, our debt leverage is coming down, and our diversified business portfolio is paying dividends,” said Evans. “We feel confident in achieving our long-term goals and enhancing value creation with our business model.”