Maidenform — a maker of bras — has just reported an ugly quarter.”While we increased sales and market share in the third quarter, we are disappointed with our earnings performance, which was below our expectations. The quarter was impacted by several factors, including a decline in consumer traffic in our category, that suppressed sales and drove 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, and we look forward to growing Maidenform’s profits in 2012 and beyond,” stated Maurice S. Reznik, Chief Executive Officer.
Its guidance was well below expectations:
2011 Fourth Quarter Outlook:
- Total net sales in the $115 to $120 million range
- Gross margins of 28% to 29%
- EPS in a range of flat to 4 cents per share, versus 29 cents in 2010
2011 Full Year Trend:
- Total company sales growth around 8% over 2010
- EPS in a range of $1.73 to $1.77 per share versus $1.94 per share in 2010 (excluding $0.17 per share second quarter 2011 litigation settlement)
Thanks to Bloomberg’s Julie Hyman for the headline idea.
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