Shares of Maidenform Brands Inc. rose nearly 11 percent Wednesday after the intimate apparel manufacturer posted fourth-quarter profits that, aided by higher sales to value retailers, tripled from a year ago.
For the three months ended Jan. 2, net income was $7.7 million, or 32 cents a diluted share, 12 cents higher than the 20-cent consensus estimate reported by Yahoo Finance, and up from $2.4 million, or 10 cents, in the year-ago quarter.
Sales rose 15.1 percent to $109.1 million from $94.8 million. The company said sales in the wholesale segment, which sells to department stores and national chain stores, fell 4.5 percent to $44.5 million, while sales to the mass channel gained 17.6 percent to $24.7 million. Sales to specialty stores and off-pricers more than doubled to $26.4 million from $12.3 million. Retail sales decreased 8.1 percent to $13.6 million, with same-store sales declining 12 percent at Maidenform’s outlet units.
For the year, earnings jumped 49.6 percent to $37 million, or $1.56 a diluted share, as sales climbed 12.7 percent to $466.3 million.
Shares closed at $19.85, up $1.95, or 10.9 percent, in Wednesday’s New York Stock Exchange session and reached a new 52-week high of $19.99 in intraday trading.
Maurice Reznik, chief executive officer, said on a conference call that the firm recently completed a five-year strategic plan, which includes targeting “annual sales growth of 10 percent for our brand and wholesale business and a plus-15 percent in EPS over the life of the plan.”
Among the goals of the so-called “5-10-5 plan,” according to Reznik, are “continued exposure of the shapewear globally; continued expansion of our business in the mass channel; materially growing our international sales; leveraging and driving growth for Donna Karan and DKNY, and developing new businesses and investing for the future.”
The company said it expects first-quarter earnings per share in the range of 30 cents to 41 cents, compared with 26 cents in the first quarter of 2009.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews