Target Corp.’s years-long exclusive deal to sell C9 by Champion activewear will be ending after next year.
Winston-Salem, N.C.-based Hanesbrands, which owns the Champion line, said in its quarterly earnings announcement on Tuesday that its deal with Minneapolis-based Target (NYSE: TGT) expires in early 2020 and wouldn’t be renewed. Target later said the last C9 apparel would be off its shelves by July 2020.
The C9 line included women’s and men’s activewear, shoes and other fitness-related products, and it accounted for about $380 million in sales for Hanes last year.
C9’s departure from Target’s shelves come as the Minneapolis-based retailer launched over a dozen of its own in-house brands in the last year. One of those, JoyLab, is an activewear product line that overlapped with C9, but it’s only for women; C9 was Target’s chief athletic line for men.
Target said it was proud of the partnership with Hanes and that it would announce the addition of a new portfolio of performance clothing in the future.
“Looking ahead, our guests can continue to count on Target when shopping for activewear and sporting goods, and we look forward to sharing more information about the addition of a new portfolio of performance brands soon,” Target said in a statement.
Hanesbrands chief executive officer Gerald Evans Jr. said in a news release on their second quarter earnings that C9 was a “mature program” and that “Target is a great retail partner, and we look forward to continuing to drive mutual growth with our leading national apparel brands across multiple product categories.”
The company said it doesn’t expect the contract’s end to affect its 2019 outlook or $2 billion-plus global sales goal by 2022, but shares of Hanesbrands are down by nearly 20 percent on the news. Shares of Target are down about 2 percent