Shares of Maidenform Brands Inc. took a hit after the company wrapped up a “disappointing” 2012 and turned in weaker-than-expected projections for this year, when it plans to prune its weaker businesses.
Shares of the intimate apparel firm dropped 10 percent to $16.76 in early trading on Wall Street.
The Iselin, N.J.-based firm’s fourth-quarter net profits of $5.5 million, or 24 cents a share, compared favorably with its year-ago losses of $3.1 million, or 13 cents a share.
Adjusted earnings of 22 cents a share met Wall Street projections.
Sales for the quarter ended Dec. 29 rose 8.5 percent to $135.1 million from $124.5 million.
“We met our fourth-quarter expectations in sales and earnings, but 2012 was a disappointing year overall, with weak category, customer and consumer trends in our key markets, and increased shapewear competition in department and chain stores,” said Maurice Reznik, chief executive officer.
Reznik described 2013 as “a transition year.”
“We will be pruning underperforming businesses and slow moving products, while improving gross margins and carefully investing in infrastructure,” he said.
For this year, Maidenform projected earnings of $1.20 to $1.30 a share, well below the $1.62 analysts anticipated.