US: Maidenform lowers FY forecast as Q2 stumbles
- Second-quarter net income fell 1.5% to $11.4m
- Sales declined 7.4% to $157.5m
- Same-store sales fell 3.6%
Lingerie manufacturer Maidenform today (8 August) admitted that continued weakness in Europe and the US are placing downward pressure on its full-year outlook.
The company now expects 1% total sales growth in the year, with EPS in a range of $1.5-1.6 a share, down on previous forecasts of 1.5-3.5% sales growth and EPS of $1.75-1.85 a share.
The announcement came as second-quarter net income fell 1.5% to $11.4m. Sales declined 7.4% to $157.5m as wholesale revenue declined 8.1% and retail sales fell 0.6 to $16.1m. Same-store sales fell 3.6% over the quarter.
First-half net income fell 33.9% to $17.2m, while sales were down 5.6% to $315m.
"Gross margin improved 680 basis points since the first quarter of 2012, our inventory levels are down and we are poised for high single digit growth in sales and double digit growth in EPS in the second half," said CEO Maurice Reznik.
"Continued weakness in Europe and a choppy domestic market are placing downward pressure on our outlook. However we continue to execute well against our strategies and we are excited about our upcoming new product launches and branding initiatives."
Steven Baginski, chief financial officer of The Children's Place, is leaving the company to pursue other interests after just seven months in the role. ...
Intimate apparel maker Maidenform Brands has slashed its full-year guidance despite booking a 5.4% increase in third-quarter net profit....
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