Maidenform affirms guidance for 2011
Maidenform Brands Inc, a global branded marketer of intimate apparel, reported fourth quarter 2010 net sales of $118.6 million, an increase of 8.6% over the fourth quarter of 2009. Full year 2010 net sales were $556.7 million, a 19.4% increase over the same period last year.
Reported EPS was $0.29 for the fourth quarter of 2010 compared to EPS of $0.32 for the fourth quarter of 2009. Full year 2010 reported EPS was $1.94 compared to EPS of $1.56 for the same period last year. In 2009, the Company recorded a non-cash, one-time benefit of $6.1 million, or $0.26 per share, primarily associated with the recognition of additional net deferred tax assets. EPS of $1.94 for the full year 2010 was up 49% from EPS of $1.30 for 2009, excluding the one-time tax benefit.
"We have significantly exceeded our long range plan goals for the second year in a row. I am so proud of the Maidenform team's commitment and execution. Our people, our brands and our products position our company for meaningful growth in 2011 and beyond," stated Maurice S. Reznik, Chief Executive Officer.
Financial Results for Fourth Quarter 2010 versus Fourth Quarter 2009
Net sales for the fourth quarter of 2010 increased $9.4 million, or 8.6%, to $118.6 million. Wholesale segment net sales for the fourth quarter of 2010 increased $9.6 million, or 10.0%, to $105.2 million. Retail segment net sales decreased $0.2 million, or 1.5%, to $13.4 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 increased $6.1 million, or 14.2%, to $49.1 million for the fourth quarter of 2010. This increase was due to the solid performance across the shapewear and bra businesses resulting from replenishment orders to support consumer spending and new product introductions.
Mass merchant channel net sales increased $6.6 million, or 26.6%, to $31.4 million for the fourth quarter of 2010. This increase is a result of increased sales, particularly in shapewear at all of the Company's major mass customers, including a warehouse club.
Net sales in the other channel decreased $3.1 million, or 11.2%, to $24.7 million for the fourth quarter of 2010 primarily from decreased sales to a specialty retailer, partially offset by higher sales to off-price retailers.
Total international net sales, which are included in the wholesale segment, increased $1.3 million, or 12.6%, to $11.6 million resulting from increases primarily in Mexico, Spain and Russia, partially offset by a decrease in Canadian sales.
Total retail segment net sales decreased $0.2 million, or 1.5%, to $13.4 million. Same store sales, defined as outlet stores that have been open for more than one year, decreased 2.5%. Internet sales were unchanged at $1.2 million for the fourth quarter of 2010. The retail segment operated 73 outlet stores and eight shapewear kiosks and carts as of the end of the fourth quarter of 2010 and 73 outlet stores and one kiosk as of the end of the fourth quarter of 2009.