Maidenform Brands'
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
Related Foolishness:
Costco is a Motley Fool Stock Advisor selection. Limited Brands is a Motley Fool Income Investor recommendation. Check out either service free for 30 days.
Fool contributor Larry Rothman is happy to receive feedback, and he promises to read it when he's not being wrestled by his three children. Feel free to email him at [email protected]. He doesn't have any positions in the companies mentioned.