Maidenform Brands Inc., on Tuesday posted third-quarter results that were expectedly below year-ago figures due to an initiative to intensify branded sales instead of private label with two customer accounts.
For the three months ended Sept. 29, income fell by 12.3 percent to $7.8 million, or 32 cents a diluted share, from $8.9 million, or 37 cents, in the same year-ago quarter. Sales also declined by 12 percent to $100.2 million from $113.8 million.
For the nine months, income rose 13.5 percent to $27.9 million, or $1.15 a diluted share, from $24.5 million, or $1.01, last year. Sales dipped by 1.6 percent to $326.4 million from $331.8 million.
The company said the third quarter included an “anticipated transition period related to a strategic shift to reintensify the company’s branded sales from private label sales with one mass customer and a specialty retailer.”
“Our financial performance overall for the third quarter does not reflect the high standards that our organization has been able to achieve historically or plans to accomplish in the fourth quarter of this year and 2008,” said Thomas J. Ward, chief executive officer.
“We have implemented initiatives that we expect will successfully drive the business long-term by focusing on our branded sales opportunities, which have increased 5.5 percent year-to-date,” Ward added, noting that while 2007 has been a transitional year and the retail environment disappointing, the company has been able to introduce new product innovation to help contribute to the firm’s future performance.