Flagging sales, pared margins and restructuring charges helped shrink Maidenform Brands Inc.’s fourth-quarter earnings by almost 62 percent, but the innerwear maker’s adjusted results beat analysts’ predictions.
The Iselin, N.J.-based firm said Wednesday that first-quarter and full-year earnings would match or top the Wall Street estimates. The better-than-expected performance and positive guidance helped to lift Maidenform shares 15 cents, or 1.8 percent, to $8.73.
For the period ended Jan. 3, profits tumbled 61.8 percent to $2.4 million, or 10 cents a diluted share, versus net income of $6.4 million, or 27 cents a share, in the year-ago quarter. Excluding restructuring charges and other items, adjusted earnings were 16 cents a share, 4 cents above analysts’ expectations..
Revenue slid 1 percent to $94.8 million from $95.8 million last year with wholesale revenue down 2 percent to $79.9 million, hurt by a 17.3 percent drop in international sales to $9.1 million. Sales to department stores and national chains dropped 7.9 percent to $46.6 million while revenue at mass merchants fell 2.8 percent to $21 million.
Retail net sales rose 3.5 percent to $14.8 million with comparable-store sales up 0.8 percent. Excluding the extra week in the most recent quarter, comps slid 9.6 percent on reduced traffic and economic instability.
Gross margin contracted to 34.7 percent of sales from 40.7 percent.
“We made a conscious decision to support our retail partners with promotional and markdown assistance as they became more aggressive in their pricing and inventories strategies,” Maurice Reznik, chief executive officer, said on the company earnings call. In order to offset this “pressure,” Reznik said the company relied on the strength of new launches and product diversification.
For the year, earnings dipped 27.7 percent to $24.7 million, or $1.05 a share, from $34.2 million, or $1.43 a share, a year ago. Adjusted profit was $1.16 a share, and annual sales fell 2 percent, to $413.5 million.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia