Clarification: Maidenform Brands-Job Cuts story

ISELIN, N.J. - In a story on Jan. 15, The Associated Press reported that Maidenform Brands Inc. has about $48 million in debt. The story should have specified that the company ended its 2008 fiscal year on Jan. 3 with $48 million in net debt, which represents debt less cash.

A corrected version appears below:

ISELIN, N.J. (AP) — Intimate apparel maker Maidenform Brands Inc. said Thursday that it plans to cut 24 jobs — representing 9 percent of its corporate staff — and lowered its 2008 earnings estimate, as weak consumer spending continues to batter retailers.

Maidenform said it expects to book a fourth-quarter charge of 3 cents per share as a result of the job cuts. The company is providing severance payments and outplacement assistance to the affected employees.

Maidenform shares dropped 44 cents, or 4.7 percent, to $9 in aftermarket trading, after gaining 39 cents, or 4.3 percent, to $9.44 during the regular session. The stock has traded between $6.25 and $17.59 during the past 52 weeks.

The company now expects to report full-year earnings of $1.02 to $1.04 per share. The projected results include about 6 cents per share for Maidenform's investment in its Donna Karan and DKNY businesses, 3 cents per share for the job cuts, and 2 cents per share for one-time costs related to the retirement of the company's previous chief executive, Thomas Ward.

Excluding the restructuring charge, Maidenform's revised guidance of $1.05 to $1.07 per share falls short of the company's previous guidance of $1.17 to $1.21 per share.

Maidenform expects to report that 2008 sales fell 2 percent to $413 million, from $422 million in 2007. The company has previously predicted that sales would be flat or slide about 1 percent from the prior year's results.

Analysts surveyed by Thomson Reuters, who generally exclude one-time items, forecast earnings of $1.16 per share on sales of $418.4 million.

Maidenform said its sales and gross margin rates were hurt late in the fourth quarter of 2008 by weakening consumer demand and increased promotional activity.

Maidenform noted that it ended the 2008 fiscal year with about $40 million of cash. The company said it ended its 2008 fiscal year on Jan. 3 with about $48 million in net debt, or debt less cash, with no significant maturities until 2014.

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