Estimates are sinking on
Maidenform Brands Inc.
) ahead of its first quarter earnings report on May 8 after it
warned in March that 2013 would be a "transitional" year. This
intimate apparel maker is now a Zacks Rank #5 (Strong Sell).
Maidenform Brands makes intimate apparel products, including bras,
panties and shapewear, under many well known brands including
Maidenform, Control It!, Lilyette, Self Expressions and Sweet
Nothings, among others.
Maidenform has been riding the hot trend in shapewear for years but
reliance on that one hot product finally caught up with the company
in 2012 as it saw increased competition in the shapewear category
from both department and chain stores. The secret is out and there
little no barrier to entry for competitors.
In March, the company reported that full year fiscal 2012 sales
declined 1% to $600.3 million.
2013 a Transitional Year
The outlook for 2013 doesn't look that much better. The company
isn't expecting a turnaround until 2014.
"2013 will be a transition year for us as we take additional
and more substantial steps to invest in our iconic brand, processes
and infrastructure," said Maurice Reznik, CEO.
"Additionally, we will be pruning underperforming businesses
and slow moving products, while improving gross margins and
carefully investing in infrastructure," he added.
2013 Estimates Decline
Not surprisingly, the analysts have turned bearish on Maidenform
for 2013. 2 estimates have been lowered for 2013 in the last 60
The 2013 Zacks Consensus has fallen to $1.24 from $1.62 in the last
2 months. Earnings are expected to fall 14.5% compared to fiscal
Shares sold off after the warning in March.
But even with the sell-off, they're still trading with a forward
P/E of 14. That's not exactly dirt cheap.
If you're interested in investing in the intimate apparel space,
you might want to consider
). It just recently beat the Zacks Consensus for the first quarter
by a penny. It is a Zacks Rank #2 (Buy).
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