Apparel manufacturer Hanesbrands (HBI, Financial) subtracted 13 basis points from the Fund’s return, as its stock slipped from $19.67 to $18.67, for a total return of negative 4.4%. Despite strong innerwear and activewear sales during the first quarter, management tempered its earnings expectations for the remainder of the year, reflecting higher incremental brand investments and the exit of its European innerwear business. Management also provided more details on its new strategy, which is directed toward a more streamlined and performance-driven company. This includes reducing product assortment, exiting underperforming businesses and embracing a more consumer-centric approach.
From the Parnassus Endeavor Fund (Trades, Portfolio)'s second-quarter 2021 commentary.
