US: Maidenform Q2 net income falls 31%
- Q2 net profit slumps 31% to US$7.9m
- Net sales fall 7.7% to $145.4m
- Wholesale revenues particularly affected
Revenue falls in both wholesale and retail segments sent intimate apparel business Maidenform Brands to a 31% fall in second quarter net profit.
The US company, which announced recently that it is to be acquired by Hanesbrands in a US$575m deal, said wholesale revenues had fallen 8.2% to $129.8m, with retail sales down 3.1% to $15.6m.
Wholesale revenues in department stores and national chain stores fell 11.2%, which the company blamed on softness in bra and shapewear categories, in turn caused by lower replenishment orders and increased competition.
Mass merchant wholesale revenues edged down 1%, thanks to lower strapless bra replenishment orders and lower replenishment orders on new introductions.
Retail same store sales were up 1.5%, while internet sales remained flat at $2.3m.
Maidenform’s international sales were up 3.4% to $15.3m, thanks to growth in Canada, Germany and Mexico, offset by softness in the UK and Russia.
Maidenform CEO Maurice Reznik said the results were “in line with our expectations”.
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