US: Maidenform cuts earnings guidance as 24 jobs axed
Intimate apparel company Maidenform Brands is to cut 9% of its corporate workforce after reducing its earnings guidance for the full fiscal year.
The company will take a charge of US$0.03 per share in the fourth quarter of fiscal 2008 in relation to the 24 job losses among its corporate staff.
Maidenform now expects full-year EPS of $1.02-1.04, including adjustments.
The unadjusted figure of $1.05-1.07 compares to its previous guidance EPS figure of $1.17-1.21.
The company said the reduced forecast was "a direct result" of the global economic downturn, plus costs associated with restructuring.
It now expects full-year sales of about $413m, down 2% on last year, after previously forecasting net sales in the range of flat to down 1%.
"The decision to eliminate positions is always a difficult one, but during these unprecedented economic times, we must take every action now to control those things that are within our power, including our overhead costs, inventories and execution against our strategic initiatives," said Maurice S Reznick, Maidenform CEO.
"Despite the macro-economic pressures, we are focused on growing our market-leading shapewear franchises and continued expansion of our products in the mass merchants channel."
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