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Pure Genius tailored bra, style #7539.
Pure Genius tailored bra, style #7539.

Added: Feb 2011

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current news

Maidenform 3q Profit Down 20%

(Filed Under Financial and General Interest News). Maidenform Brands reported a 20 percent drop in third-quarter earnings due to weaker-than-expected sales and high inventory amounts that led to increased liquidation costs.

The company’s profits came to $10.2 million, or 44 cents a share, down from $12.8 million, or 55 cents a share, in the third quarter of 2010. Net sales increased 1.6 percent to reach $148.2 million, with wholesale segment sales up 1.2 percent and retail segment sales up 4.7 percent.

Maidenform C.E.O. Maurice Reznik noted that sales weakness was most prevalent in mid-tier department stores and that retailers were drastically reducing orders. The company noted that J.C. Penney Co. will stop taking replenishment shipments of Maidenform products and would be placing a smaller order for spring 2012. "We’re clearly not pleased with what has happened and are aggressively addressing the short-term obstacles that we have been faced with," Reznik stated.

The company predicts a full-year range of $1.73 to $1.77 per share on sales growth of 8 percent, down from $1.94 per share in 2010 and its earlier prediction of $2.18 per share on sales growth of 10 percent.

Maidenform Brands designs, sources and markets intimate apparel under a variety of brand names, including Lilyette, Flexees and Maidenform in over 60 countries and territories around the world. The company is based in New York.

more Financial and General Interest News >>

Published 11-09-2011 by Katherine Rautenberg

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