• Q3 profit fell 20% to $12.8m
  • Net sales increased 13.3%
  • Gross margins up 150 basis points to 36.2% 

Intimate apparel maker Maidenform Brands Inc today (10 November) raised its full year outlook on the back of strong sales of its core bra and shapewear businesses around the world, and replenishment of products under its licensed DKNY brand.

But it said profit for the quarter fell 20% to $12.8m due to tough comparisons with the year-ago period which was lifted by a one-time tax benefit to $16.0m.

Net sales were up 13.3% to $145.8m, with a rise of 14.9% in its wholesale sales to department stores and national chain stores. In its retail segment, which consists of 73 outlet stores and four shapewear kiosk and carts, revenues increased 2.4%, with same-store sales up 2.2%.

Product mix and cost reduction efforts helped lift gross margins by 150 basis points to 36.2% of sales, up from 34.7% a year ago.

"Our passion for innovation combined with our brand and product strength is resonating with consumers and we are well poised to deliver a third consecutive year of growth in 2011," said CEO Maurice Reznik.

For the fourth quarter, net sales are expected to increase in the mid-to-upper single digits percentage range, with full year net sales up in the upper-teens percentage range. Full-year earnings have been lifted from $1.88 - $1.93 per share to the range of $1.90 - $1.94 per share.