Sales rise 8.5% at Maidenform Brands in Q4

Net income (loss) for the fourth quarter of 2012 and 2011 was $5.5 million and $(3.1) million, respectively, and EPS was $0.24 and loss per share of $(0.13), respectively. 

Financial Results for Fiscal 2012 versus Fiscal 2011 

Net sales for 2012 decreased $6.0 million, or 1.0%, to $600.3 million.  Wholesale segment net sales for 2012 decreased $7.3 million, or 1.3%, to $538.5 million.

Department stores and national chain stores net sales increased $1.9 million, or 0.8%, to $247.1 million for 2012.  This increase was led by growth in the bra and pant categories, which included the introduction of the Comfort Devotion collection and a private label brand that shipped for the first time during 2012.  

Partially offsetting this increase was an assortment expansion in 2011 at one of the Company's chain store customers that did not repeat in 2012, a sales decline at a mid-tier department store customer as it transitions to a new pricing and merchandising strategy and sales declines in the shapewear category from increased competition.

The Company's mass merchant channel net sales decreased $5.5 million, or 2.8%, to $190.7 million from varying results with our mass merchant customers.  Some of the factors that drove this decrease were decreased doors at retail and program sales that did not repeat in 2012.  Partially offsetting this decrease was a strong performance in full figure and shapewear sales at one of our mass customers.

The other channel decreased $3.7 million, or 3.5%, to $100.7 million due to lower sales to a specialty retailer that was partially offset by increased program sales to off-price retailers.

Total international net sales increased $2.5 million, or 4.3%, to $60.9 million, driven by growth in major markets, such as Canada, the United Kingdom and Mexico.  Partially offsetting these increases were sales decreases in other major markets, such as the Benelux countries, Sweden and Germany, including the impact of unfavorable currency exchange rates on sales.

Retail segment net sales for 2012 increased $1.3 million, or 2.1%, to $61.8 million.  Same store sales for Maidenform's retail outlet stores decreased 1.2%.  Internet sales increased $2.3 million, or 34.3%, to $9.0 million, resulting primarily from promotional events that more than offset the sales declines at our stores. 

Consolidated gross margins for 2012 were 30.9% versus 31.6% for the same period in 2011.  Changes in channel and product mix favorably impacted gross margin but were more than offset by unfavorable off-price retailer activity to drive inventory productivity, additional promotional activities and inventory related clearing costs.