Maidenform Brands, Inc. Earnings: Increased Costs Strain Margins as Profit Drops

Rising costs hurt Maidenform Brands, Inc. (NYSE:MFB) in the second quarter as profit dropped from a year earlier. Maidenform Brands, Inc. is a global intimate apparel Company with a portfolio of established and well-known brands, top-selling products and an iconic heritage. It designs, sources and markets intimate apparel products.

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Maidenform Brands Earnings Cheat Sheet for the Second Quarter

Results: Net income for Maidenform Brands, Inc. fell to $11.6 million (50 cents per share) vs. $13.7 million (59 cents per share) a year earlier. This is a decline of 15.3% from the year earlier quarter.

Revenue: Rose 13.8% to $170 million from the year earlier quarter.

Actual vs. Wall St. Expectations: MFB reported adjusted net income of 67 cents per share. By that measure, the company beat the mean estimate of 63 cents per share. It beat the average revenue estimate of $165.5 million.

Quoting Management: “We delivered another strong quarter of sales, market share and profit growth by leveraging the Maidenform brand and our innovative products across channels, product categories and geographies. The team continues to execute our long range organic growth strategies with solid success,” stated Maurice S. Reznik, Chief Executive Officer.

Key Stats:

Gross margin shrank 1.4 percentage points to 34.8%. The contraction appeared to be driven by increased costs, which rose 16.3% from the year earlier quarter while revenue rose 13.8%.

Revenue has risen the past four quarters. Revenue increased 14.4% to $163.6 million in the first quarter. The figure rose 8.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 13.3% in the third quarter of the last fiscal year from the year-ago quarter.

Net income has increased 11.9% year over year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 87.7% from the year earlier quarter.

Competitors to Watch: Hanesbrands Inc. (NYSE:HBI), Polo Ralph Lauren Corp. (NYSE:RL), Liz Claiborne (NYSE:LIZ), Jones Apparel Group (NYSE:JNY), Guess? (NYSE:GES), Coach (NYSE:COH), V.F. Corporation (NYSE:VFC), J. Crew Group (NYSE:JCG), Wet Seal (NASDAQ:WTSLA), Express (NYSE:EXPR), Limited Brands (NYSE:LTD), bebe stores inc (NASDAQ:BEBE), Gap (NYSE:GPS), Urban Outfitters (NASDAQ:URBN), Abercrombie & Fitch (NYSE:ANF), The Buckle (NYSE:BKE), American Eagle Outfitters (NYSE:AEO), Aeropostale (NYSE:ARO), Wacoal Hldgs. Corp. (NASDAQ:WACLY), The Warnaco Group, Inc. (NYSE:WRC), and Phillips-Van Heusen Corp. (NYSE:PVH)

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(Source: Xignite Financials)