Home / Knowledge / News / Apparel/Garments / Strong sales growth in Sweet Nothings brand – Maidenform
Strong sales growth in Sweet Nothings brand – Maidenform
12
May '10
Retail Segment
Total retail segment net sales increased $0.4 million, or 3.7%, to $11.3 million in the first quarter of 2010 with same store sales, defined as stores that have been open for more than one year, increasing 6.3% at Maidenform's retail outlet stores. This increase was a result of increased customer traffic with solid performances from the Company's bra and shapewear businesses. Internet sales decreased $0.1 million to $1.2 million in the first quarter of 2010. The retail segment operated 75 and 77 outlet stores as of the first quarter of 2010 and 2009, respectively.

Consolidated gross profit increased $15.4 million, or 42.2%, to $51.9 million in the first quarter of 2010. As a percentage of net sales, consolidated gross margins were 36.3% in the first quarter of 2010 versus 32.0% in the first quarter of 2009. The majority of the increase was a result of customer and product mix, lower overall promotional activity and the benefit from product cost reduction efforts.

Consolidated selling, general and administrative expenses (SG&A) increased $5.3 million, or 20.5%, to $31.2 million in the first quarter of 2010 primarily as a result of increased payroll and related benefits associated with incentive compensation, 2010 merit increases, which the Company did not incur in 2009, the filling of new positions to support the Company's initiatives, and the impairment of an intangible asset for which the Company determined had no future benefit. As a percentage of net sales, SG&A declined 90 basis points to 21.8% in the first quarter of 2010 compared to 22.7% in the first quarter of 2009 due to sales leveraging.

Due to all of the factors described above, operating income in the first quarter of 2010 was $20.7 million, or 14.5% of net sales, compared to $10.6 million, or 9.3% of net sales, in the first quarter of 2009.

Net interest expense in the first quarter of 2010 was $0.3 million compared to $0.7 million in the first quarter of 2009 as the Company benefited primarily from lower average interest rates and lower average debt outstanding for the first quarter of 2010 as compared to the same period in 2009.

The Company's effective income tax rate for the first quarter of 2010 was 40.7% compared to 39.4% in the first quarter of 2009. The higher effective income tax rate in the first quarter of 2010 was largely a result of non-deductable expenses in connection with the sale of Maidenform's common stock by one of its stockholders.

Net income for the first quarter of 2010 and 2009 was $12.1 million and $6.0 million, respectively, and EPS was $0.51 and $0.26, respectively.

Financial Performance Guidance for 2010:

Second Quarter Outlook:

• Net sales for the second quarter are expected to increase in the low-to-mid 20 percent range as compared to the prior year
• Gross margin rates are anticipated to be in the mid-30 percent range
• EPS is expected to be in the range of $0.45 to $0.50 versus $0.31 in the second quarter of 2009

Full Year Trend:

• Net sales are expected to increase in the mid-teens percentage range for the year, with mid-single digit percentage increases in the second half that include an estimated $15.0 million reduction in sales in the other channel
• Gross margin rates are anticipated to be in the mid-30 percentage range
• EPS is expected to be in the range of $1.75 - $1.80


Must ReadView All

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Warangal textile park gets environment clearance

The Kakatiya Mega Textile Park, coming up in Warangal district of...

Textiles | On 22nd Jul 2017

Stella McCartney, Bolt Threads partner for eco fashion

Fashion designer Stella McCartney has partnered with Bolt Threads for ...

Interviews View All

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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

July 2017

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

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

Yes No

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

Yes No

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


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



X