• Home
  • News
  • Business
  • Perry Ellis International Q4 revenues down 4.7 percent, earnings improve

Perry Ellis International Q4 revenues down 4.7 percent, earnings improve

By Prachi Singh

loading...

Scroll down to read more

Business

Total revenue for the fourth quarter of fiscal 2017 was 204 million dollars, a 4.7 percent or 3.3 percent decrease on constant currency compared to 214 million dollars reported in the fourth quarter of fiscal 2016. Fiscal 2017 revenues were 861 million dollars as compared to 900 million dollars in fiscal 2016. As reported under GAAP, fourth quarter net income was 9 million dollars or 0.59 dollar per diluted share, compared to a loss of 17.7 million dollars or 1.18 dollars per diluted share, in the fourth quarter of fiscal 2016.

"Fiscal 2017 saw solid progress on our strategic plan, which led to sales growth in our core global brands, expansion in gross margin and earnings in line with guidance. While 12 million dollars in revenues were held back in the fourth quarter as certain retail partners lowered shipments in a challenging retail environment, the strength of our sell through rates enabled us to recapture the majority of these sales shipments at the start of fiscal 2018,” said Oscar Feldenkreis, CEO and President of the company in a statement.

Q4 comparable sales down 6.2 percent

The company said its fourth quarter reflected a 1.4 percent or 3.2 percent on constant currency increase in men's business including Perry Ellis, Original Penguin, Golf Lifestyle Apparel and Nike, offset by a comparable sales decline of 6.2 percent within the direct-to-consumer business as store traffic dropped by 15 percent and industry softness, which impacted wholesale shipments and replenishment deliveries during the second half of January.

The company said, it managed the assortments and inventory well, which led to the expansion of adjusted gross margin by 150 basis points to 38.7percent from 37.2 percent in fourth quarter of fiscal 2016. Strength in the company's Perry Ellis, Golf Lifestyle Apparel and Nike business led to the margin increase. Adjusted EBITDA margins also expanded to 8.4 percent as compared to 6 percent in the fourth quarter of fiscal 2016.

Adjusted net income totalled 10.1 million dollars or 0.66 dollar per diluted share as compared to 5.4 million dollars or 0.35 dollar per fully diluted share in the fourth quarter of fiscal 2016.

Core brands revenue grows 1.6 percent in FY17

The company's core brands saw revenue growth of 1.6 percent or 3.2 percent on constant currency in the year. This, the company said was offset by planned reductions of 20 million dollars in exited brands and an 11 million dollars reduction in special market programs. The 2017 fiscal year also saw an 11 million dollars negative impact from unfavourable foreign exchange rates, a decline of 15 million dollars in women’s shipments as well wholesale shipments totalling 12 million dollars which shifted to the first quarter of fiscal 2018.

Adjusted earnings per diluted share for fiscal 2017 were 2.04 dollars compared to 1.81 dollars in fiscal 2016. On a GAAP basis, net income was 14.5 million dollars or 0.95 dollar per diluted share, compared to a GAAP net loss of 7.3 million dollars or 0.49 dollar per diluted share, for fiscal 2016. Adjusted EBITDA totalled 57.2 million dollars or 6.6 percent of total revenues compared to 55.3 million dollars or 6.1 percent of total revenues, in fiscal 2016. Adjusted gross margin was 37.2 percent compared to adjusted gross margin of 35.8 percent in fiscal 2016.

"While the global retail landscape continues to be rapidly changing with major foreign currencies largely weakening against the US dollar and unpredictable and volatile global consumer spending, we believe that we have successfully navigated this environment having delivered a year of enhanced margins and profitability,” added George Feldenkreis, Executive Chairman, Perry Ellis International.

For fiscal 2018, the company expects total revenues in the range of 870 to 880 million dollars, taking a conservative view as retail store closures across the industry continue to be a consistent theme. Adjusted diluted earnings per share are expected in a range of 2.07 dollars to 2.17 dollars.

Picture:Facebook/Perry Ellis

Perry Ellis International