(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.
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