Maidenform net sales decline by 7.4% in Q2

Maidenform posted net sales of $157.5m (£100.7m) for Q2, a decline of 7.4 percent compared to the equivalent period in 2011.

Wholesale segment net sales for the second quarter of 2012 decreased $12.4m (£7.9m), or 8.1 percent, to $141.4m (£90.4m).

Total international net sales, which are included in the brand’s wholesale segment, decreased by $1.9m (£1.2m), or 11.4 percent, to $14.8m (£9.5m). This decrease was reportedly driven by lower sales in Maidenform’s major European markets, such as the United Kingdom and the Benelux countries, along with unfavourable currency exchange rates.

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Retail segment net sales decreased by $0.1m (£60,000), or 0.6 percent, to $16.1m (£10.3m). This was the result of decreased customer store traffic, partially offset by e-commerce growth. Same store sales decreased by 3.6 percent, while internet sales increased by $0.5m (£0.3m), or 27.8 percent, to $2.3m (£1.5m) for the second quarter of 2012.

Maidenform chief executive officer Maurice S. Reznik said: "Sales and earnings were at the top end of our expectations for the second quarter… Gross margin improved 680 basis points since the first quarter of 2012, our inventory levels are down and we are poised for high single digit growth in sales and double digit growth in EPS in the second half. Continued weakness in Europe and a choppy domestic market are placing downward pressure on our outlook, however we continue to execute well against our strategies and we are excited about our upcoming new product launches and branding initiatives."

Net sales for the first six months of 2012 decreased by $18.6m (£11.9m), or 5.6 percent, to $315m (£201.4m). Wholesale segment net sales, on a year-to-date basis, decreased by $19.6m (£12.5m), or 6.4 percent, to $286.2m (£183m). 

Total international net sales in the first half increased by $1.3m (£0.8m), or 4.3 percent, to $31.3m (£20m). This increase was driven by increased sales to major markets, such as the United Kingdom and Canada, in Q1. Partially offsetting these increases were sales decreases in other major markets, such as the Benelux countries, and the impact of an unfavourable currency exchange rate.

Based on the Q2 results, Maidenform has now revised downwards its forecast for the 2012 financial year, to a net sales growth of just one percent over 2011.






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