Intimate apparel maker Maidenform Brands has built a business on getting its little somethings into the hands and on the bodies of its customers. The company makes bras, panties, sleepwear, and increasingly popular shapewear. Maidenform sells its products worldwide, primarily through US discount chain stores (such as Wal-Mart and Target), department stores (Kohl's and Macy's), and warehouse stores (Costco). The company also sells its well-known brands (such as Maidenform, Flexees, and Lilyette) through about 75 company-owned outlets and its websites. Overachieving underthings maker Hanesbrands acquired Maidenform in 2013 for about $583 million.
Change in Company Type
Hanesbrands, which purchased the company in 2013, is looking to boost earnings and bring onboard popular brands that will allow the company to better compete with rivals Victoria's Secret and Spanx, who are changing the landscape of the bra and underwear niche of the apparel industry. Hanesbrands expects to realize the full benefits of the acquisition within three years. As part of the purchase, Maidenform has access to Hanesbrands' company-owned manufacturing, which is supplemented by third-party manufacturers.
Maidenform generates 90% of its sales through its wholesale segment, which includes both domestic and international markets. The rest comes from its retail operations consisting of company-operated outlet stores and Maidenform's websites.
Maidenform has maintained the same product mix for several years. Its new parent doesn't break out sales but historically bras bring in 55% of sales, with shapewear and panties generating 38% and 7%, respectively. Maidenform's extensive line of intimate apparel includes underwire, soft-cup, strapless, and minimizing bras; panties; and firm-control and light-control shapewear. It also makes little somethings under license for Donna Karan.
Maidenform's business is centered in the US, which accounts for 90% of its revenue. The apparel company also operates in the UK, Canada, and Mexico.
Maidenform contributed about $98 million to its parent's 2013 revenue. After a full year on the books, the bra maker is expected to account for about $500 million of Hanesbrands' annual $5.1 billion.
The company was established when founders Ida and William Rosenthal invented the cup-style bra in the 1920s. The company's name became iconic through its "I dreamed" Maidenform ads ("I dreamed I stopped traffic in my Maidenform bra").