Champion Jumps to Amazon From Target for Discount C9 Brand

(Bloomberg) -- Champion, the sportswear maker owned by Hanesbrands Inc., has found a new home on Amazon.com Inc. for its C9 apparel line after a longstanding agreement with Target Corp. ended.

Amazon entered in a two-year deal to offer the C9 line, Champion said. Susan Hennike, president of Champion North America, said the shift will mark the first time that C9 is available globally.

In 2018, Hanesbrands Chief Executive Officer Gerald Evans said Target had ended its C9 contract, which had carried the line exclusively since 2004, and the agreement expired this January. Hanesbrands still sells its other brands at the big-box retailer and Target remains an important customer for the company, generating 11% of Hanesbrands’ revenue, according to data compiled by Bloomberg.

Amazon is a smaller retail partner for Champion, but Hennike says she sees potential for growth. Bloomberg data show Amazon represents about 1.5% of Hanesbrands revenue.

The C9 brand’s lower prices differentiate it from Champion, which is now being sold at more upscale stores like Neiman Marcus, Hennike said.

Target, which has started to offer a greater variety of its own house brands, is promoting its own “All in Motion” line of sports apparel.

Hanesbrands is counting on Champion, which has gained popularity with younger shoppers in recent years, for a boost. The company’s revenue declined in the fourth quarter after growth slowed in each of the previous two periods, and Hanesbrands shares have dropped 37% in the last 12 months.

To contact the reporter on this story: Jordyn Holman in New York at jholman19@bloomberg.net

To contact the editors responsible for this story: Anne Cronin at acronin14@bloomberg.net, Jonathan Roeder

©2020 Bloomberg L.P.