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Sales down 3.7% at Maidenform in Q1
14 May '12
5 min read
Consolidated gross profit decreased $12.8 million, or 23.0%, to $42.9 million for the first quarter of 2012. As a percentage of net sales, consolidated gross margins were 27.2% for the first quarter of 2012 versus 34.1% for the first quarter of 2011. The decrease in gross margin was a result of increased promotional and liquidation activity to drive inventory productivity. Partially offsetting this decrease was a favorable mix of product and channel sales during the quarter.
Consolidated selling, general and administrative expenses (SG&A) increased $0.9 million, or 2.8%, to $33.1 million for the first quarter of 2012. This increase was due to increased payroll and related benefits resulting from strategic headcount additions to support the Company's initiatives which were not included in the first quarter 2011 results, as well as merit increases.
In addition, the Company increased its retail operating expenses, including cost associated with e-commerce strategies, as well as store lease renewals. Partially offsetting these increases were savings from select headcount reductions at the end of 2011 and a reduction in professional fees. As a percentage of net sales, SG&A increased to 21.0% for the first quarter of 2012 compared to 19.7% for the first quarter of 2011.
Due to all of the factors described above, operating income for the first quarter of 2012 was $9.8 million, or 6.2% of net sales, compared to $23.5 million, or 14.4% of net sales, for the first quarter of 2011.
Net interest expense for the first quarter of 2012 was $0.3 million compared to $0.2 million for the first quarter of 2011.
The Company's effective income tax rate for the first quarter of 2012 was 39.0% compared to 37.7% for the first quarter of 2011.
Net income for the first quarter of 2012 and 2011 was $5.8 million and $14.5 million, respectively, and EPS was $0.25 and $0.62, respectively.
Total cash and cash equivalents as of March 31, 2012 were $29.8 million compared to $29.9 million as of April 2, 2011. The Company's outstanding debt was $68.8 million as of March 31, 2012 versus $69.9 million as of April 2, 2011.
Financial Performance Guidance for 2012:
2012 Second Quarter Outlook:
• Total net sales in the $150 to $155 million range
• EPS in a range of 45 to 50 cents per share
2012 Full Year Trend:
• Total Company net sales growth of 1.5% to 3.5% over 2011
• A decline in the other channel of $15 to $25 million as a bra program with a specialty retailer matures
• Total Company net sales growth of 5% to 7% excluding the private label decline
• EPS in a range of $1.75 to $1.85 per share
Maidenform Brands, Inc. is a global intimate apparel company with a portfolio of established, well-known brands, top-selling products and an iconic heritage. Maidenform designs, sources and markets anextensive range of intimate apparel products, including bras, panties and shapewear.
Consolidated selling, general and administrative expenses (SG&A) increased $0.9 million, or 2.8%, to $33.1 million for the first quarter of 2012. This increase was due to increased payroll and related benefits resulting from strategic headcount additions to support the Company's initiatives which were not included in the first quarter 2011 results, as well as merit increases.
In addition, the Company increased its retail operating expenses, including cost associated with e-commerce strategies, as well as store lease renewals. Partially offsetting these increases were savings from select headcount reductions at the end of 2011 and a reduction in professional fees. As a percentage of net sales, SG&A increased to 21.0% for the first quarter of 2012 compared to 19.7% for the first quarter of 2011.
Due to all of the factors described above, operating income for the first quarter of 2012 was $9.8 million, or 6.2% of net sales, compared to $23.5 million, or 14.4% of net sales, for the first quarter of 2011.
Net interest expense for the first quarter of 2012 was $0.3 million compared to $0.2 million for the first quarter of 2011.
The Company's effective income tax rate for the first quarter of 2012 was 39.0% compared to 37.7% for the first quarter of 2011.
Net income for the first quarter of 2012 and 2011 was $5.8 million and $14.5 million, respectively, and EPS was $0.25 and $0.62, respectively.
Total cash and cash equivalents as of March 31, 2012 were $29.8 million compared to $29.9 million as of April 2, 2011. The Company's outstanding debt was $68.8 million as of March 31, 2012 versus $69.9 million as of April 2, 2011.
Financial Performance Guidance for 2012:
2012 Second Quarter Outlook:
• Total net sales in the $150 to $155 million range
• EPS in a range of 45 to 50 cents per share
2012 Full Year Trend:
• Total Company net sales growth of 1.5% to 3.5% over 2011
• A decline in the other channel of $15 to $25 million as a bra program with a specialty retailer matures
• Total Company net sales growth of 5% to 7% excluding the private label decline
• EPS in a range of $1.75 to $1.85 per share
Maidenform Brands, Inc. is a global intimate apparel company with a portfolio of established, well-known brands, top-selling products and an iconic heritage. Maidenform designs, sources and markets anextensive range of intimate apparel products, including bras, panties and shapewear.
Maidenform Brands Inc
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