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Sales down 3.7% at Maidenform in Q1

14
May '12

Maidenform Brands Inc. a global branded marketer of intimate apparel, reported first quarter 2012 net sales of $157.5 million, a decrease of 3.7% below the first quarter of 2011. Reported EPS was $0.25 for the first quarter of 2012 compared to EPS of $0.62 for the first quarter of 2011.

"We modestly beat our sales and earnings expectations for the quarter and our outlook for the year remains on track," stated Maurice S. Reznik, Chief Executive Officer. "Despite a choppy retail environment for women's intimate apparel, we grew domestic share across channels and categories in the first quarter, which reflects the power of our brands and the relevance of our products."

Financial Results for First Quarter 2012 versus First Quarter 2011
Net sales for the first quarter of 2012 decreased $6.1 million, or 3.7%, to $157.5 million. Wholesale segment net sales for the first quarter of 2012 decreased $7.2 million, or 4.7%, to $144.8 million. Retail segment net sales increased $1.1 million, or 9.5%, to $12.7 million.

Wholesale Segment
Department Stores and National Chain Stores
Net sales for the department stores and national chain stores channel decreased $5.1 million, or 8.0%, to $58.6 million for the first quarter of 2012. This decrease was primarily due to sales declines at a mid-tier department store as it transitions to a new pricing and merchandising strategy and an assortment expansion in 2011 at one of the Company's chain store customers that did not repeat in 2012.

Mass Merchants
Mass merchant channel net sales increased $1.0 million, or 1.7%, to $59.0 million for the first quarter of 2012. This increase is a result of increased sales, particularly in the shapewear and bra categories, at a warehouse club, which were partially offset by lower sales with a mass customer. The first quarter of 2011 included a sales increase of 32%, reflecting expanded product distribution at several mass channel customers.

Other
Net sales in the other channel decreased $3.1 million, or 10.2%, to $27.2 million for the first quarter of 2012 primarily from lower sales to a specialty retailer and off-price retailers.

Total international net sales, which are included in the wholesale segment, increases $3.2 million, or 24.1%, to $16.5 million. This increase was driven by increases primarily in Canada and the United Kingdom.

Retail Segment
Total retail segment net sales increased $1.1 million, or 9.5%, to $12.7 million resulting from increased customer traffic and e-commerce growth. Same store sales, defined as outlet stores that have been open for more than one year, increased 5.3%. Internet sales increased $0.8 million, or 53.3%, to $2.3 million for the first quarter of 2012. The retail segment operated 75 outlet stores as of the end of the first quarter of 2012 and 74 outlet stores as of the end of the first quarter of 2011.

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