No surprises for Maidenform Brands’ Q2 results

ISELIN, N.J. — Maidenform Brands’ reported total net sales of $145.4 million for the second quarter ended June 29, a 7.7% decrease from $157.5 million for the same quarter last year, were in line with the company’s expectations.

The numbers come on the heels of Maidenform’s announcement July 23 that it had entered into a definitive agreement with Hanesbrands Inc. which would enable Hanesbrands to acquire all outstanding shares of Maidenform for $23.50 per share in cash, representing a transaction value of approximately $575 million.

Wholesale segment net sales for the second quarter of 2013 decreased 8.2% to $129.8 million compared to the year-ago quarter. Retail segment net sales decreased 3.1% to $15.6 million.

Net sales for the department stores and national chain stores channel decreased 11.2% to $62.5 million for the quarter because of softness in the bra and shapewear categories resulting from lower replenishment orders, increased shapewear competition at a chain customer as well as a decrease resulting from the initial shipments for the Jennifer Lopez brand which occurred in 2012. Somewhat offsetting this decline was improved replenishment at a mid-tier department store customer.

Mass merchant channel net sales decreased 1% to $47.7 million for the quarter resulting from lower strapless bra replenishment orders and lower replenishment orders on new introductions. The decrease was predominately offset by increased sales in the bra and shapewear categories at its other mass customers, including shapewear rebranding initiatives at a warehouse club customer.

Total retail segment net sales decreased 3.1% to $15.6 million. Same-store sales, defined as outlet stores that have been open for more than one year, increased 1.5%. Internet sales remained unchanged at $2.3 million for the quarter. The retail segment operated 68 outlet stores as of the end of the second quarter 2013 and 75 outlet stores as of the end of the second quarter of 2012.