ISELIN, N.J. (AP) -- Women's underwear maker Maidenform Brands Inc. said Wednesday its second-quarter net income edged down 1.6 percent on a double-digit drop in sales to warehouse stores and other mass merchants.
The Iselin, N.J.-based company's results came in slightly ahead of Wall Street predictions, but it issued a disappointing guidance for the current quarter and cut its outlook for the full year. Its shares dropped more than 8 percent in morning trading.
Maidenform earned $11.4 million, or 49 cents per share, down from $11.6 million, or 50 cents per share, in the same quarter last year.
Revenue fell 7.4 percent to $157.5 million from $170 million.
Analysts, on average, expected a profit of 48 cents per share on $154.3 million in revenue, according to a FactSet poll.
Maidenform said its sales to department stores and other national chains edged up about 1 percent to $70.4 million, while sales to mass merchants, such as warehouse stores, fell 15 percent to $48.2 million. Retail segment sales edged down less than a percent to $16.1 million on a drop in customer traffic.
The company said that while it expects to post profit and sales growth in the second half of the year, it warned that tough economic conditions both in the U.S. and Europe will pressure its results.
For the current quarter, Maidenform said it expects to post a profit of 40 cents to 45 cents per share on $155 million to $160 million in revenue. Analysts polled by FactSet expect a profit of 64 cents per share on $167.4 million in revenue.
For the full year, Maidenform said it now expects a profit of $1.50 to $1.60 per share, down from its May prediction of $1.75 to $1.85 per share. Sales are now expected to rise about 1 percent, down from the company's previous prediction of 1.5 percent to 3.5 percent growth.
Based on the company's $606.3 million in 2011 sales, the new guidance projects 2012 sales of about $612.4 million.
Analysts expect a profit of $1.78 per share on $617.7 million.
Maidenform shares fell $1.89, or 8.5 percent, to $20.45 in morning trading, after falling as low as $20.01 earlier in the day. Over the past 52 weeks, the company's shares have traded between $17 and $26.34.