Aug 11, 2022 - Economy

Ransomware attack costs HanesBrands $100 million in net sales

Nathan Bomey

Giant letters h, b and i are illuminated in front of a corporate building — A HanesBrands corporate facility. Photo courtesy of HanesBrands

HanesBrands suffered a $100 million blow from a ransomware attack that temporarily devastated its supply chain and orders, the company said Thursday.

Why it matters: These cyber attacks pose a serious financial threat to companies in which bad actors seize control of their target's systems and then threaten to delete data, release information or refuse to relinquish control until payment is received.

Quick take: The event came during an already bruising quarter for the apparel company as its sales from continuing operations declined by 14% to $1.51 billion.

Between the lines: Hanes had disclosed the ransomware attack in an SEC filing in late May but had not previously discussed the breadth of its impact.

In today's earnings report, the company said the attack crippled its "global supply chain network and limited its ability to fulfill customer orders for approximately three weeks."

The impact: The company estimated that the attack resulted in a $100 million reduction in net sales and a $35 million hit to adjusted operating profit.

HanesBrands stock fell 6.2% to $10.84 at 2:20pm Thursday.

Of note: It's unclear whether Hanes paid a ransom to free up its systems.

Hanes declined to comment.

Threat level: The company said in a statement that it "believes the cyber event has been contained" and "there is no ongoing operational impact."

Add Axios on Google

Ransomware attack costs HanesBrands $100 million in net sales

What to read next