Maidenform Brands, Inc.

Maidenform Brands, Inc. (MFB) recently announced second-quarter results, which included a sales jump of 5.6% year-over-year thanks to strong demand for the company's bras and shapewear products. Earnings per share of 31 cents topped the Zacks Consensus Estimate by 24%.

Company Description

Maidenform Brands sells intimate apparel at department stores and other retail outlets through a collection of recognizable brands including Maidenform, Lilyette, Control It!, and Sweet Nothings. The company also licenses the Donna Karan and DKNY brands, which it launched in the first quarter.

Solid Results

The company recently announced second-quarter results, which included a sales jump of 5.6% year-over-year thanks to strong demand for the company's bras and shapewear products. Earnings per share of 31 cents topped the Zacks Consensus Estimate by 24%.

Management said Maidenform stands out from the competition with leadership and innovation in bras and shapewear, adding that the company continues to build penetration across all channels of distribution. “While the marketplace and economy remain challenging, we're deeply focused on executing our strategies and investing in our business and infrastructure to further strengthen our company and drive continued market share growth through the balance of this year and forward," stated Chief Executive Officer Maurice S. Reznik.

Higher Projections

The company is bullish about the remainder of the year. Sales for the third quarter are expected to rise 12% to 16% over the year ago period. Earnings per share are expected in the range of 34 to 38 cents in the quarter.

The Zacks Consensus Estimate for the third quarter is currently at 35 cents, up a penny over the past week.

The company also raised its prior full-year EPS guidance to the range of $1.10 to $1.16 from $1.00 to $1.10.

The Zacks Consensus Estimate for 2009 is currently at $1.12, versus last week’s $1.05.

Strong Fundamentals

Maidenform Brands is attractively valued, trading with a forward P/E of 13.8. The company has a solid 1-year return on equity (ROE) of 20%, beating the industry average of 12%. Its net profit margin of 6% tops the industry average of 3%.

Read the full analyst report on MFB