The wholesale segment, which sells to department stores and mass merchants such as Costco
The less important retail segment, accounting for just 12% of sales, reported a 4.8% drop in the top line, with same-store sales declining 6.1%. The company has therefore lowered its sales growth expectations for the year to 5%-7%, from 6%-7%. Should macroeconomic factors such as high gas prices abate, there could be a pleasant surprise on this front, but for now, management says it wants to take a more cautious approach to the overall retail environment.
The company also met another key goal -- expanding gross margins by 220 basis points, to 39.9% -- by way of offering more favorable products and sourcing initiatives that lowered costs.
Maidenform has advantages over competitor Victoria's Secret, owned by Limited Brands
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