US: Maidenform shares slump on "disappointing" Q3
- Q2 net income dropped 20.5% to US$10.2m
- Sales increased 1.6% to $148.2m
- Same-store sales were up 2.4%
Intimate apparel maker Maidenform Brands Inc lost almost a quarter of its share value today (9 November) as it recorded a sharp decline in third-quarter earnings and cut its full-year forecasts.
Net income dropped 20.5% to US$10.2m for the three months to 1 October, despite sales increasing 1.6% over the period to $148.2m.
CEO Maurice Reznik said he was "disappointed" with the results, attributing the declines to a fall in consumer traffic, which "suppressed sales and drove higher costs to promote and liquidate overstocks."
The firm warned these conditions are likely to persist in the fourth-quarter and is taking steps to mitigate them.
It also lowered its full-year forecast down to 8% sales growth from earlier expectations of 10-12%. And EPS guidance was cut to a range of $1.73 -1.77 per share, against an initial forecast of $2.18.
Retail sales were up 4.7% over the quarter to $18m, with same-store sales up 2.4% Meanwhile, department store sales were down 0.8% to $59.9% while mass merchant sales fell 15.1% to $45.1m.
The company's share price was down 24.71% to $18.16 a share at 12:02 ET today.
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