Aug 12, 2009
Maidenform second quarter profit beats Street; ups full-year view
Aug 12, 2009
Aug 12 (Reuters) - Underwear maker Maidenform Brands Inc (MFB.N) posted a second-quarter profit that beat market estimates, driven primarily by strong sales of its shapewear products, and raised its full-year outlook.
For the full-year, the Iselin, New Jersey-based company now sees earnings of $1.10 a share to $1.16 a share, up from its prior outlook of $1.00 a share to $1.10 a share on a mid-single-digit percentage increase in net sales.
For the latest quarter, Maidenform, which in January said it would cut 9 percent of its workforce, posted a net profit of $7.3 million, or 31 cents a share, as compared with $7.8 million, or 33 cents, a year ago.
Net sales for the quarter rose about 6 percent to $114.2 million, helped by a 9.2 percent increase in shapewear sales.
Gross margins were down to 36 percent of net sales as compared with 38.7 percent last year due to increased promotional activity, and strong sales from its lower margin mass merchant and other channels.
Analysts on average were expecting the company to earn 25 cents, before items, on revenue of $111.6 million, according to Reuters Estimates.
Shares of the company, whose brands include its namesake brand, Flexees and Lilyette, closed at $14.25 Tuesday 11 August on the New York Stock Exchange. (Reporting by Abhishek Takle in Bangalore; Editing by Maju Samuel)
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