Dallas, Texas 09/06/2013 (Financialstrend) – Maidenform Brands, Inc. (NYSE:MFB) was acquired by Hanesbrands very recently. The latter has always been on the lookout for profitable acquisitions and mergers to bolster growth. With the MFB acquisition it added brands such as Flexees, Maidenform and Self Expressions to an already impressive portfolio. Hanesbrands had done well for itself in the most recent quarter but did not want to lose momentum.
In the latest quarter, MFB managed to deliver a profit but could not meet analysts’ estimates on the revenue and the earnings front. As far as analyst projections are concerned, they have a neutral outlook on the company for the next quarter. The company faced challenges from cheaper rivals in the women’s underwear segment.
MFB had to eventually resort to heavy advertising and heftier discounts in order to keep the upper hand. However, now that the company has been acquired by Hanesbrands, the synergies will result in lower costs which will contribute to the company’s earnings. Currently, Maidenform outsources all it’s manufacturing to 3rd parties while Hanesbrands manufactures around 2/3rds of its own women’s lingerie. With Maidenform on board, Hanesbrands will also be able to axe its manufacturing costs.
Maidenform Brands, Inc. (NYSE:MFB) rose 0.04% in Thursday’s trading. The opening price of $23.49 rose to an intraday high of $23.49 and closed at $23.47. More than 0.811 million shares were traded on Thursday while the average volume of shares traded over 30 days was 0.346 million. The company has a market cap of $546.88 million.
MFB is a global intimate-apparel company. It is involved in designing, sourcing and marketing a range of various intimate apparel products. It sells its products via various distribution channels such as national chain stores, department stores, mass merchants and others. It also sells its products via websites and company operated stores and off-price retailers.