US: Maidenform cuts FY guidance despite Q3 profit rise
- Q3 profit up 5.4% to $10.8m
- Gross margin improves to 32.4%
- Sales climbed 1.3% to $150.2m
Intimate apparel maker Maidenform Brands has lowered its full-year guidance in the face of "global economic challenges and increased competition for the rest of the year."
The company, whose brands include Lilyette, Charmed and Flexees, said net income rose 5.4% to US$10.8m during the three months ended 29 September, compared to $10.2m the prior year. Gross margins improved to 32.4% against 32% last year, mainly due to a more favourable product mix, the company said.
Net sales climbed 1.3% to $150.2m. Wholesale sales edged up 1% to $131.5m, while retail sales rose 3.9% to $18.7m.
"Our third quarter results met our EPS expectations as favourable expenses and higher gross profit more than offset lower than planned revenues," said CEO Maurice Reznik.
However, he added: "Looking forward, we anticipate global economic challenges and increased competition; we are addressing these concerns with a continued focus on product innovation, such as Comfort Devotion, amplified emphasis on leveraging the equity of the Maidenform brand and operational improvements."
Maidenform Brands now expects full-year earnings per share to be in the range of $1.39 to $1.44, compared to its previous guidance of $1.5 to $1.6 per share.
Intimate apparel manufacturer Maidenform Brands said it expects to post a first-quarter loss and will be looking to cut some of its underperforming businesses after a "disappointing" year....
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