Maurice Reznik is returning to the intimate apparel industry just days after he’s contractually allowed to do so.
This story first appeared in the November 5, 2014 issue of WWD. Subscribe Today.
Reznik, the former chief executive officer of Maidenform Brands Inc. and the architect of both its turnaround and sale to Hanesbrands Inc. in 2013, will join Delta Galil Industries Ltd. in the new post of ceo of intimate apparel for the U.S. and U.K. and president of the company’s U.S. segment.
The appointment is effective Jan. 5, four days after the expiration of his non-compete clause with Hanesbrands Inc., which acquired Maidenform for $583 million in October 2013 and kept Reznik on board for the first stage of the integration process.
Reznik will report to Isaac Dabah, ceo of Tel Aviv-based Delta Galil. The two have had a relationship since about the time of Reznik’s promotion to ceo of Maidenform in 2009, when the firm began sourcing much of its shapewear through Delta Galil’s facilities in Israel and adjacent Middle Eastern markets.
“The bra and panties and shapewear businesses are extremely technical and there are very few people anywhere who understand them as well as Maurice does,” Dabah told WWD. “He’ll be focused on our women’s and kids’ intimates businesses and, besides his contributions in merchandising, sales and marketing, we expect he will be an excellent catalyst as we aim to grow through acquisitions, licenses and organic growth.”
In addition to a stable of licensed brands including Lacoste, Tommy Hilfiger, Original Penguin and Kenneth Cole, Delta Galil has in recent years expanded through the acquisitions of Schiesser, a German underwear marketer; LittleMissMatched and Karen Neuburger. Dabah said Delta still has the appetite and, with $147.7 million in cash and cash equivalents on its books, the liquidity to make additional acquisitions as it begins the final quarter of the first fiscal year in which it expects to break the $1 billion sales mark.
Following positions with VF Corp. and Sara Lee, Reznik was president of Warnaco’s intimate apparel group before departing in 1997 to join Maidenform as president. The company emerged from bankruptcy in 1999 and conducted an initial public offering in 2005. Reznik was promoted to ceo in 2009.
In 2012, its final full year prior to the acquisition, Maidenform’s sales were $600.3 million, up from $410.5 million in 2009, his first year as ceo.
Delta Galil disclosed Reznik’s appointment as it reported results for the third quarter ended Sept. 30.
In the period, net income rose 8.9 percent to $13.8 million, or 54 cents a diluted share, from $12.7 million, or 50 cents, in the year-ago period. Revenues increased 3.9 percent to $267.2 million from $257.2 million a year ago and gross margin grew to 30.9 percent of sales from 30.4 percent as the company’s mix shifted towards higher-margin retail and branded sales.
Still, that represented a slower pace of growth than the year-to-date results. For the nine months, net income was up 16.8 percent to $32.9 million, or $1.26, a diluted share, from $28.2 million, or $1.11, while revenues rose 5 percent to $754.5 million from $718.8 million.
“That looks like a bit of deceleration, but it’s really a very good result relative to market conditions in Israel, Europe and the U.S.,” Dabah said. “Our retail stores in Israel and Germany outperformed the market in general, and all experienced difficult conditions.”
Delta Galil now has 150 stores in Israel and 80 in Germany and the rest of Europe. Schiesser generates almost 20 percent of its business through its own e-commerce operations and those of its wholesale customers.