Shares in underwear maker Pacific Brands are on a tear

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Pacific Brands has narrowed its losses and expects to get back to paying dividends in 2016 after reporting strong sales growth in its Bonds and Sheriden brands.

A short time ago, the shares were up more than 17% to $0.452.

The company posted a 5.4% rise in full year sales to $789.7 million. The loss was $97.7 million compared to a loss of $224.5 the year before.

Sales of Bonds brands were up 13% and Sheridan sheets 15%. And the company is debt free for the first time in its history.

The company, which has been simplifying its product range, plans to reinstate dividends in the first half of 2016 depending on the financial position.

This is where Pacific Brands revenue comes from:

CEO David Bortolussi says he company now has a strong balance sheet.

“Brand and product innovation continues to be a strength,” he says. “In particular, Bonds is celebrating its 100 year anniversary in 2015 with a great range and marketing campaign.”

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