Maidenform 2nd-quarter net income falls

Maidenform 2nd quarter net income falls on weaker sales to department stores

Associated Press

ISELIN, N.J. (AP) -- Bra maker Maidenform Brands Inc. said Wednesday that its second-quarter net income fell 30 percent, hurt by lower sales to department stores and chain stores.

Bra makers are facing tough competition as fewer people buy underwear at department stores and the mall, where their products are traditionally sold, and turn increasingly to online retailers and discount stores.

In late July, Maidenform reached a deal to be acquired by underwear maker Hanesbrands for about $547.6 million. The buyout is expected to close in the fourth quarter.

Net income for the three months ended June 29 fell to $8 million, or 34 cents per share. That compares with net income of $11.4 million, or 49 cents per share, in the 2012 second quarter. Analysts expected net income of 40 cents per share, according to FactSet.

Revenue fell 8 percent to $145.5 million from $157.5 million a year ago. Analysts expected revenue of $148.9 million.

Wholesale sales to department stores and national chain stores fell 11.2 percent to $62.5 million, hurt by weakness in the bra and shapewear categories and increased competition in the shapewear category. Sales to mass merchants fell 1 percent to $47.7 million.

At Maidenform's own stores, revenue fell 3.1 percent to $15.6 million. Revenue in stores open at least one year, a key retail metric, rose 1.5 percent.

In late morning trading, Maidenform shares added 2 cents to $23.40 as the broader markets fell.

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