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Maidenform Brands Inc. slashed its full-year earnings outlook Wednesday, citing weakness in its European business, “suppressed sales” due to Hurricane Sandy and more competition in the shapewear arena.
Despite that, the innerwear maker posted a 5.4 percent increase in third-quarter profit, and it topped analysts’ predictions by a penny.
For the period ended Sept. 29, Maidenform reported net income of $10.7 million, or 46 cents a diluted share, compared with year-ago income of $10.2 million, or 44 cents.
Net sales for the quarter rose 1.3 percent to $150.1 million versus sales of $148.2 million in the prior-year period.
Analysts were looking for earnings per share of 45 cents on sales of $158.3 million.
“Our third-quarter results met our EPS expectations as favorable expenses and higher gross profit more than offset lower-than-planned revenues. Looking forward, we anticipate global economic challenges and increased competition,” said chief executive officer Maurice Reznik, who added that the company is “addressing” economic concerns and will continue to focus on product innovation.
Maidenform cut its earnings estimate for the year to between $1.39 a share and $1.44 a share from between $1.50 and $1.60. Analysts predicted annual EPS of $1.53.