Maidenform sales drop in Q2

Lingerie and intimate fashion group Maindenform reported second quarter 2012 net

sales of 157.5 million dollars, a decrease of 7.4 percent from the second quarter of 2011.

Maidenform's ceo Maurice Reznik stated: "Sales and earnings were at the top end of our expectations for the second quarter. Gross margin improved 680 basis points since the first quarter of 2012, our inventory levels are down and we are poised for high single digit growth in sales and double digit growth in EPS in the second half. Continued weakness in Europe and a choppy domestic market are placing downward pressure on our outlook, however we continue to execute well against our strategies and we are excited about our upcoming new product launches and branding initiatives."

The company saw only a slight growth in its department store distribution as its Jennifer Lopez brand saw a decline in sales as it underwent a new pricing and merchandising strategy.

Total international net sales, which are included in the wholesale segment, decreased 1.9 million dollars, or 11.4 percent, to 14.8 million dollars. This decrease was driven by lower sales in its major European markets, such as the United Kingdom and the Benelux countries.

For its third quarter outlook, Maidenform expects total net sales in the 155m to 160 million dollars range.