UPDATE 3-Maidenform Q1 beats Wall Street; sees strong Q2

* Q1 EPS $0.51 vs est $0.40

* Q1 revenue up 25 pct

* Sees Q2 EPS $0.45-$0.50 vs est. $0.37

* Shares rise 16 pct
(Adds conference call details, updates share movement)

May 11 (BestGrowthStock) – Maidenform Brands Inc’s (MFB.N: ) popular
shapewear products boosted quarterly results, prompting the
intimate apparel maker to forecast a strong second quarter,
sending its shares up 16 percent to their highest ever.

The company also outlined a slate of new ventures,
including shapewear kiosks at high-traffic malls, a new
website, and a new line of innerwear for younger women.

“In 2010, we’re increasing our marketing investment by 20
percent versus last year,” Chief Executive Maurice Reznik said
on a conference call with analysts.

For the second quarter, the company, which sells its
products in a range of chains like Macy’s (M.N: ),
Bloomingdale’s, Target (TGT.N: ) and Wal-Mart (WMT.N: ), expects to
earn between 45 cents a share and 50 cents a share, while
analysts were looking at earnings of 37 cents.

Shapewear — or undergarments that help slim and sculpt a
body by holding it in — makes up more than a third of the
company’s global business, and is also its highest-margin

Maidenform said it currently has over 40 percent of market
share in the category.

During the first quarter, department store sales, which
have been a drag on the company till recently, also grew 32
percent along with sales at national chain stores.

For the first quarter, Maidenform, which competes with
Victoria’s Secret parent Limited Brands Inc (LTD.N: ), earned $12
million, or 51 cents a share, compared with the 40 cents that
analysts were expecting it to post.

Revenue rose 25 percent to $142.9 million, driven by a 27
percent rise in its wholesale business.

International revenues rose 48.6 percent — a result of
higher sales in Russia, Germany and Spain, and favorable
currency exchange rates.

Shares of the Iselin, New Jersey-based company were trading
up $3.25 at $25.05 Tuesday morning on the New York Stock
Exchange. They touched a high of $25.22 earlier.

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(Reporting by Nivedita Bhattacharjee in Bangalore; Editing by
Unnikrishnan Nair, Anne Pallivathuckal)

UPDATE 3-Maidenform Q1 beats Wall Street; sees strong Q2