The financial report, which fell far short of Wall Street expectations, comes a day after Maidenform named Malcolm Robinson as president. Robinson was a former group president at Phillips Van Heusen, overseeing Izod, Arrow, Van Heusen, Timberland and Geoffrey Beene.
In a dismal economy, consumers make items like underwear last a little longer, which hits company's like Maidenform hard. Shares of Maidenform Brands Inc. tumbled $5.37, or 22 percent, to $18.75 in pre-market trading.
The Iselin, N.J. clothing company earned $10.2 million, or 44 cents per share, down from $12.8 million, or 55 cents per share, for the same quarter last year. That was well short of the 55 cents expected by analysts, according to a FactSet poll.
Sales edged up 1.7 percent to $148.2 million from $145.8 million. "While we increased sales and market share in the third quarter, we are disappointed with our earnings performance, which was below our expectations," Reznik said. "The quarter was impacted by several factors, including a decline in consumer traffic in our category, that suppressed sales and drove higher costs to promote and liquidate overstocks. We expect these conditions to persist in the fourth quarter."
Sales to department stores and national chain stores fell less than a percent to $59.9 million, while mass merchant sales rose 15 percent to $45.1 million. Retail sales rose 4.7 percent to $18 million.
The company says it could break even or earn as much as 4 cents per share in the fourth quarter on $115 million to $120 million in sales. That is also well below Wall Street expectations. A poll by FactSet shows that analysts were looking for per-share profits of 32 cents.
For the full year, Maidenform projected a profit of $1.73 to $1.77 per share, excluding a charge of 17 cents per share related to a litigation settlement, on sales growth of about 8 percent.
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