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Shapewear @ Maidenform performs well
13 Aug '09
5 min read
Total international net sales, which are included in the wholesale segment, decreased $2.1 million, or 19.8%, to $8.5 million. International sales were adversely affected by currency exchange rates and lower sales in Russia.
Retail Segment
Total retail segment net sales were unchanged at $14.5 million in the second quarter of 2009 with same store sales down 6.4% at Maidenform's retail outlet stores. Internet sales remained unchanged at $1.2 million in the second quarter of 2009. Maidenform had 75 retail outlet stores as of the end of the second quarter of 2009 compared to 77 retail outlet stores in the same period of 2008.
As a percentage of net sales, consolidated gross margins were 36.0% versus 38.7% in the second quarter of 2008. The majority of the decrease was a result of increased promotional activity to drive inventory productivity, and the mix of customers and products, including a higher percentage of net sales from the Company's lower margin other channel.
Consolidated selling, general and administrative expenses (SG&A) increased $0.7 million, or 2.6%, to $28.0 million in the second quarter of 2009 largely due to expenses associated with the Company's licensed brands Donna Karan and DKNY , which were launched in early 2009, as well as higher compensation costs. These additional expenses were partially offset by managed cost reductions across most operating departments. As a percentage of net sales, SG&A declined 80 basis points to 24.5% in the second quarter of 2009 compared to 25.3% in the second quarter of 2008.
Due to all of the factors described above, operating income in the second quarter of 2009 was $13.1 million, or 11.5% of net sales, compared to $14.5 million, or 13.4% of net sales, in the second quarter of 2008.
Net interest expense in the second quarter of 2009 was $0.6 million compared to $1.1 million in the second quarter of 2008 as we benefited primarily from a lower average interest rate for the second quarter of 2009 when compared to the same period in 2008.
The Company's effective income tax rate for the second quarter of 2009 was 41.9% compared to 41.7% in the second quarter of 2008.
Net income for the second quarter of 2009 and 2008 was $7.3 million and $7.8 million, respectively, and EPS was $0.31 and $0.33, respectively.
For Financial Results for Year-To-Date 2009 versus Year-To-Date 2008 click here.
Retail Segment
Total retail segment net sales were unchanged at $14.5 million in the second quarter of 2009 with same store sales down 6.4% at Maidenform's retail outlet stores. Internet sales remained unchanged at $1.2 million in the second quarter of 2009. Maidenform had 75 retail outlet stores as of the end of the second quarter of 2009 compared to 77 retail outlet stores in the same period of 2008.
As a percentage of net sales, consolidated gross margins were 36.0% versus 38.7% in the second quarter of 2008. The majority of the decrease was a result of increased promotional activity to drive inventory productivity, and the mix of customers and products, including a higher percentage of net sales from the Company's lower margin other channel.
Consolidated selling, general and administrative expenses (SG&A) increased $0.7 million, or 2.6%, to $28.0 million in the second quarter of 2009 largely due to expenses associated with the Company's licensed brands Donna Karan and DKNY , which were launched in early 2009, as well as higher compensation costs. These additional expenses were partially offset by managed cost reductions across most operating departments. As a percentage of net sales, SG&A declined 80 basis points to 24.5% in the second quarter of 2009 compared to 25.3% in the second quarter of 2008.
Due to all of the factors described above, operating income in the second quarter of 2009 was $13.1 million, or 11.5% of net sales, compared to $14.5 million, or 13.4% of net sales, in the second quarter of 2008.
Net interest expense in the second quarter of 2009 was $0.6 million compared to $1.1 million in the second quarter of 2008 as we benefited primarily from a lower average interest rate for the second quarter of 2009 when compared to the same period in 2008.
The Company's effective income tax rate for the second quarter of 2009 was 41.9% compared to 41.7% in the second quarter of 2008.
Net income for the second quarter of 2009 and 2008 was $7.3 million and $7.8 million, respectively, and EPS was $0.31 and $0.33, respectively.
For Financial Results for Year-To-Date 2009 versus Year-To-Date 2008 click here.
Maidenform Brands Inc
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