The ratings on Renfro reflect the company's participation in the highly competitive apparel manufacturing industry, its narrow product portfolio, customer concentration, and highly leveraged financial profile. Renfro benefits from the strength of its well-known Fruit of the Loom brand, which makes up a significant portion of the company's revenues. Although Renfro does not own the brand, it does have a long-term license to sell Fruit of the Loom socks until 2026. Standard&Poor's assigns a high degree of business risk to the apparel manufacturing industry because of intense competition, low barriers to entry, and the commodity-like nature of certain apparel items, such as socks. Renfro designs, manufactures, and markets men's, women's, and children's socks, selling primarily to mass merchandisers.
