UPDATE 2-Maidenform Q1 beats Street, ups '09 profit view

* Q1 EPS 26 cents vs est of 18 cents

* Q1 revenue up 16 pct to $114.2 mln

* Wholesale revenue up 19 pct

* Shapewear sales up 21 pct

* Shares rise as much as 19 pct (Adds conference call details, background, updates share movement)

May 13 (Reuters) - Maidenform Brands Inc (MFB.N) posted a quarterly profit that easily beat market estimates, helped by cost-cutting measures and a spike in demand for its shapewear products, prompting the lingerie-maker to raise its earnings outlook for the full year.

The company's shares touched a high of $14.36 in Wednesday morning trade on the New York Stock Exchange.

Maidenform, which said in January it would cut 9 percent of its workforce, has been working to reduce costs by tightening inventory, lowering overhead costs and slashing capital expenditures.

For 2009, the company sees capital spending of less than $5 million, Chief Executive Maurice Reznik said on a conference call with analysts.

Despite the weak economic situation, the company, which currently sells its products in about 40 countries, remains focused on growing its presence globally, Reznik said.

International sales at the company were mixed during the quarter, with growth in Mexico, UK, Belgium, the Netherlands and Luxemburg offset by a decline in Russia and unfavorable foreign exchange rates, the CEO said.

Maidenform expects full-year earnings of $1.00 a share to $1.10 a share, up from its prior outlook of 90 cents a share to $1.00 a share.

PRESSURE ON MARGINS

In the first quarter, more promotional activity and increased sales of its low-margin products ate into gross margins. As a percentage of net sales, consolidated gross margins decreased 670 basis points to 32 percent.

Chief Financial Officer Chris Vieth said margins will remain under pressure in the second quarter, but are expected to improve in the latter half of the year.

Bankruptcies at retailers like Mervyn's will affect 2009 sales by $10 million, Vieth added.

The company forecast 2009 net sales to increase in the mid-single-digit percentage range.

First-quarter net income remained flat at $6.0 million, or 26 cents a share.

Sales at Maidenform, which competes with Warnaco Group Inc (WRC.N), rose 16 percent to $114.2 million, riding on the success of its wholesale business and a 21 percent rise in shapewear sales.

Analysts on average were expecting the company, famous for its namesake lingerie, to earn 18 cents a share, on revenue of $104.8 million, according to Reuters Estimates.

Maidenform's shares pared some of their early gains to trade up 11 percent at $13.45 in afternoon trade. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Anne Pallivathuckal)