"First quarter results were as expected. We remain focused on growing our business and our outlook for the year remains on track," stated Maurice Reznik, Chief Executive Officer.
"During the quarter we made progress on our transition strategies. Our new products are performing very well in the marketplace and I am excited about the opportunities we are creating in our full figure, Donna Karan, international and shapewear businesses. The Maidenform team is building momentum in 2013 and I am confident that our execution will return us to sustained top and bottom line growth," concluded Mr. Reznik.
Financial Results for First Quarter 2013 versus First Quarter 2012
Net sales for the first quarter of 2013 decreased $26.3 million, or 16.7%, to $131.2 million. The sales decline in the quarter is attributed to a non-recurring warehouse club program, declines from discontinued businesses and in private label, and current competitive pressures in shapewear. Wholesale segment net sales for the first quarter of 2013 decreased $26.1 million, or 18.0%, to $118.7 million. Retail segment net sales decreased $0.2 million, or 1.6%, to $12.5 million.
The Company's net sales performance by channel of distribution is highlighted in Exhibit 1 to this press release.
Department Stores and National Chain Stores
Net sales for the department stores and national chain stores channel decreased $4.9 million, or 8.4%, to $53.7 million for the first quarter of 2013, primarily attributable to increased shapewear competition at a chain customer.
Mass merchant channel net sales decreased $15.5 million, or 26.3%, to $43.5 million for the first quarter of 2013 from decreased shipments in the bra and shapewear categories, including lower sales to a global warehouse club as a shapewear event in the first quarter of 2012 did not repeat in the first quarter of 2013.
Net sales in the other channel decreased $5.7 million, or 21.0%, to $21.5 million for the first quarter of 2013 primarily from sales declines to a specialty retailer and from decreased program sales to off-price retailers, which were somewhat offset by higher liquidation sales.
Total international net sales, which are included in the wholesale segment, decreased $1.0 million, or 6.1%, to $15.5 million. This sales decline was driven by the elimination of the aforementioned warehouse club program and a decline in the United Kingdom, which were partially offset by sales increases in Mexico and South Korea.
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