Home / Knowledge / News / Apparel/Garments / Intimate apparel marketer Maidenform to cut 24 jobs
Intimate apparel marketer Maidenform to cut 24 jobs
19
Jan '09
Maidenform Brands Inc announced that it will take a charge of $0.03 per share in the fourth quarter of 2008 for a strategic workforce restructuring of 9% of corporate staff. In connection with this announcement, the Company provided an update on sales and earnings guidance for 2008.

Revised earnings guidance: Maidenform expects to report full year earnings per share (EPS) of $1.02 to $1.04. Reported EPS is expected to include $0.06 per share for the start-up investment in the Company's Donna Karan and DKNY businesses, $0.03 per share for the workforce restructuring announced, and $0.02 per share for one-time costs associated with the voluntary retirement of Maidenform's previous CEO.

Excluding the fourth quarter 2008 restructuring charge of $0.03, the Company's revised full year EPS guidance range of $1.05 to $1.07 compares to its previous guidance of $1.17 to $1.21 per share. The reduced earnings forecast is a direct result of the global economic slowdown and costs associated with the workforce restructuring. The Company is providing severance payments and outplacement assistance to 24 affected employees.

Maidenform expects to report net sales for 2008 of approximately $413 million, down 2% from $422 million in 2007.

The Company had previously estimated net sales in the range of flat to down 1% from 2007 but these projections and the Company's gross margin rates were impacted late in the fourth quarter of 2008 by overall weakening consumer demand, and a greater emphasis by our customers to reduce inventories and increase promotional activity in the face of the global economic crisis and challenging market conditions. Notwithstanding these expected results, the Company ended the 2008 fiscal year with approximately $40 million of cash and net debt of $48 million with no material maturities until 2014.

Maurice S. Reznik, Chief Executive Officer, stated, "The decision to eliminate positions is always a difficult one, but during these unprecedented economic times, we must take every action now to control those things that are within our power, including our overhead costs, inventories and execution against our strategic initiatives.”

“Despite the macro-economic pressures, we are focused on growing our market-leading shapewear franchises and continued expansion of our products in the mass merchants channel. We believe these actions, along with our upcoming department and specialty store launches of Donna Karan and DKNY and our major, patent pending launch of Total Solution products in the first quarter of 2009 leave us well positioned to grow our business and weather this storm."

Maidenform Brands Inc


Must ReadView All

Courtesy: Ministry of Trade and Industry, Singapore

Textiles | On 22nd Feb 2018

Final version of CPTPP pact released; to be signed in March

The final version of the Comprehensive and Progressive Agreement for...

Amazon India crosses 3 lakh seller base in less than 5 yrs

Apparel/Garments | On 22nd Feb 2018

Amazon India crosses 3 lakh seller base in less than 5 yrs

Amazon recently claimed to have crossed the three-lakh seller base in ...

Indian e-retail market may see 250% growth in 3 yrs: Crisil

Apparel/Garments | On 22nd Feb 2018

Indian e-retail market may see 250% growth in 3 yrs: Crisil

India’s e-retail market may rise by 250 per cent in the next three...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search