• Q1 net income fell 59.7% to $5.8m
  • Net sales down 3.7% to $157.5m
  • FY EPS guidance of $1.75 and $1.85 per share confirmed 

Intimate apparel company Maidenform Brands said its outlook for the year "remains on track", despite posting a 59.7% decline in net first-quarter net profits.

For the three months ended 31 March, the company today (9 May) reported net income of US$5.8m, down from $14.5m the same period last year. Operating income plummeted 58.2% to $9.8m.

"We modestly beat our sales and earnings expectations for the quarter and our outlook for the year remains on track," said CEO Maurice Reznik. "Despite a choppy retail environment for women's intimate apparel, we grew domestic share across channels and categories in the first quarter, which reflects the power of our brands and the relevance of our products."

Net sales were down 3.7% to $157.5m, while wholesale segment net sales fell 4.7% to $144.8m.

Retail segment sales jumped 9.5% to $12.7m on the back of increased customer traffic and e-commerce growth. Same store sales, defined as outlet stores that have been open for more than one year, increased 5.3%. Donna Karan net sales increased 20.7%.

Department stores and national chain stores channel net sales decreased 8.0%. The company said this was primarily due to sales declines at a mid-tier department store as it transitions to a new pricing and merchandising strategy. An assortment expansion in 2011 at one of the company's chain store customers that did not repeat itself this year also contributed to the decline.

Maidenform Brands has confirmed its EPS guidance for the full-year of between $1.75 and $1.85 per share.