Strong sales growth in Sweet Nothings brand – Maidenform

12 May '10

6 min read

Maidenform Brands, Inc., a global branded marketer of intimate apparel, reported first quarter 2010 net sales of $142.9 million, an increase of 25.1% over the first quarter of 2009, driven by continued strength in its core bra and shapewear businesses across channels and geographies. Reported EPS of $0.51 for the first quarter of 2010 was up from EPS of $0.26 in the first quarter of 2009.

Net sales increased 25.1%Reported earnings per share (EPS) nearly doubled to $0.51Shapewear net sales increased 48.5%Bra net sales increased 21.0%Department stores and national chain stores channel net sales increased 32.3% Mass merchant channel net sales increased 14.9% Updates guidance for 2010 full year net sales to increase in the mid-teens percentage range over full year 2009

"Our first quarter net sales marked the highest quarterly sales in our history and continue the strong momentum we experienced in 2009," stated Maurice S. Reznik, Chief Executive Officer. "We are very pleased with our share gains in bras and shapewear and with the success of new innovative product offerings. We believe we are well positioned for continued growth in 2010 and beyond."

Financial Results for First Quarter 2010 versus First Quarter 2009

Net sales for the first quarter of 2010 increased $28.7 million, or 25.1%, to $142.9 million. Wholesale segment net sales in the first quarter of 2010 increased $28.3 million, or 27.4%, to $131.6 million. Retail segment net sales increased $0.4 million, or 3.7%, to $11.3 million in the first quarter of 2010.

The Company's net sales performance by channel of distribution is highlighted in Exhibit 1 to this press release.

Wholesale Segment
Department Stores and National Chain Stores
Net sales for the department stores and national chain stores channel increased $14.0 million, or 32.3%, to $57.3 million in the first quarter of 2010. This increase was due to the solid performance of the Company's bra and shapewear businesses resulting from replenishment orders to support consumer spending and new product introductions.

Mass Merchants
Mass merchant channel net sales increased $5.9 million, or 14.9%, to $45.4 million in the first quarter of 2010. Key drivers of this increase included strong sales growth in the Sweet Nothings brand shapewear and bra categories, and the introduction of shapewear products in the Self Expressions(R) brand. Partially offsetting this increase was a reduction in sales of the Bodymates(R) brand resulting from a 2009 program that did not repeat in 2010.

Other
Net sales in the other channel increased $8.4 million, or 41.0%, to $28.9 million in the first quarter of 2010 primarily from increased program business with off-price retailers, partially offset by lower sales to a specialty retailer.

Total international net sales, which are included in the wholesale segment, increased $3.4 million, or 48.6%, to $10.4 million. This increase was driven by increased sales in Russia, Germany and Spain, and favorable currency exchange rates.

Maidenform Brands Inc

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