Shapewear & DKNY business do well – Maidenform

11 Nov '11

4 min read

Consolidated gross profit decreased $5.4 million, or 10.2%, to $47.4 million for the third quarter of 2011. As a percentage of net sales, consolidated gross margins were 32.0% for the third quarter of 2011 versus 36.2% for the third quarter of 2010. The decrease in the gross margin is a result of increased promotional activity to drive inventory productivity, increased product costs associated with new introductions, and changes in channel and product mix, including a higher percentage of net sales to the mass channel and off-price retailers.

Consolidated selling, general and administrative expenses (SG&A) decreased $0.2 million, or 0.6%, to $31.5 million for the third quarter of 2011. As a percentage of net sales, SG&A decreased to 21.3% for the third quarter of 2011 compared to 21.7% for the third quarter of 2010.

Due to all of the factors described above, operating income for the third quarter of 2011 was $15.9 million, or 10.7% of net sales, compared to $21.1 million, or 14.5% of net sales, for the third quarter of 2010.

Net interest expense for the third quarter of 2011 was unchanged at $0.2 million compared to the third quarter of 2010.

The Company's effective income tax rate for the third quarter of 2011 was 35.0% compared to 38.9% for the third quarter of 2010. The lower effective income tax rate in the third quarter of 2011 was primarily due to the utilization of research and development credits.

Net income for the third quarter of 2011 and 2010 was $10.2 million and $12.8 million, respectively, and EPS was $0.44 and $0.55, respectively.

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Maidenform Brands Inc

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