Maidenform Brands Inc. reported a less-than-expected decline in second-quarter profits and raised full-year guidance Wednesday, boosting shares nearly 7 percent.
For the three months ended July 4, the innerwear vendor said net income fell 6.8 percent to $7.3 million, or 31 cents a diluted share, from $7.8 million, or 33 cents, in the year-ago quarter. Net sales rose 5.9 percent to $114.2 million, from $108.1 million in 2008, aided by a 9.2 percent increase in shapewear sales. Analysts expected earnings per share of 25 cents on revenue of $111.6 million, according to Yahoo.
Sales at department stores decreased 1.7 percent to $56.4 million in the quarter, while mass market revenues declined 7.4 percent to $26.4 million. Retail sales remained unchanged at $14.5 million although same-store sales slid 6.4 percent.
The company said increased promotional activity and strong sales from its lower-margin mass merchant and other channels pulled gross margins down to 36 percent of sales from 38.7 percent in last year’s quarter. Quarterly expenses rose 2.5 percent to $28 million as Maidenform launched licensed programs under the Donna Karan and DKNY brands.
“Building off of our successes and unique product strength, we would expect to grow our branded top line by midsingle digits on our total sales in the low- to midsingle digits in 2010,” chief executive officer Maurice Reznik said on the company call.
For the first half, profit contracted 4.2 percent to $13.3 million, or 57 cents a diluted share, versus $13.8 million, or 59 cents a share, a year earlier. Net sales grew 10.8 percent to $228.4 million from $206.2 million.
Maidenform estimated EPS for the third quarter of 34 to 38 cents, with sales expected to increase 12 to 16 percent. For the year, EPS is anticipated to be in the $1.10 to $1.16 range, up from previous guidance of $1 to $1.10. Revenues are estimated to increase in the high-single to low-double digits. Analysts are looking for third-quarter EPS of 33 cents on sales of $115.5 million, and full-year EPS of $1.05 on sales of $437.9 million.
Analyst Eric Beder, of Brean Murray, Carret & Co., upgraded the stock to “buy” from “hold” and set an $18 price target. He cited “strong core positions in innerwear and shapewear, new product initiatives and the continuing rollout of the Donna Karan line,” as well as material improvements in the company’s balance sheet, in his opinion.
Maidenform shares Wednesday rose 98 cents, or 6.9 percent, to close at $15.23.
“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
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast