Shares of Maidenform Brands Inc. dropped 25.8 percent Wednesday after the company posted a 20.3 percent decline in third-quarter income.
For the three months ended Oct. 1, the company said income was $10.2 million, or 44 cents a diluted share, from $12.8 million, or 55 cents, last year. Sales inched up 1.7 percent to $148.2 million from $145.8 million.
For the nine months, income fell 5.9 percent to $36.3 million, or $1.55 a diluted share, from $38.6 million, or $1.65, last year. Sales fell 10 percent to $481.8 million from $438.1 million.
Maurice Reznick, chief executive officer, said the earnings performance was “below our expectations.” He added that the quarter was impacted by several factors, including a decline in consumer traffic and higher costs to promote and liquidate overstocks.
“We expect these conditions to persist in the fourth quarter and we are taking action to mitigate them. To this end, we have instituted several new initiatives to increase sales, expand our gross margins and control our spending,” Reznik said.
Maidenform shares closed at $17.91, down $6.21, in trading Wednesday on the New York Stock Exchange.