Perry Ellis International reports decline in Q3 revenue

Total revenue for the third quarter of fiscal 2017 at Perry Ellis International was 194 million dollars, down from 205.4 million dollars reported in the third quarter of fiscal 2016. Revenues on a constant currency basis totaled 197.2 million dollars for the quarter. The company maintained it revenue guidance for fiscal 2017, which is expected to be in a range of 885 to 890 million dollars and for adjusted EPS between 1.95 dollars to 2 dollars.

Commenting on the third quarter trading Oscar Feldenkreis, Chief Executive Officer of Perry Ellis International said in a statement, " Revenues declined in total, reflecting the balance of the impact of the exit of non-core brands and negative currency exchange rates. Importantly, we delivered growth in our key lifestyle brands of Perry Ellis and Golf Lifestyle as well as Nike swim, expansion in gross margin and expense discipline, which combined drove a solid increase in adjusted diluted earnings per share over the prior year quarter."

Highlights of the third quarter results

The company said while it reported a 3.5 percent revenue increase in its core global brands, it was offset by the balance of the exit of non-core brands and the negative impact of currency exchange rates. *Gross margin* was 36.7 percent, representing a 100 basis point improvement over the same period last year.

Adjusted gross margin was 36.8 percent and excludes costs associated with the consolidation of sourcing offices in Hong Kong. This expansion, the company said, reflects solid retail performance across the core brands in both the company's wholesale and direct to consumer channels.

As reported under GAAP for the third quarter, net loss was 5.2 million dollars or 0.34 dollar per share compared to net income of 2.3 million dollars or 0.15 dollar per diluted share, in the third quarter of fiscal 2016. On an adjusted basis, earnings per diluted share were 0.23 dollar as compared to 0.16 dollar in the third quarter of fiscal 2016. Adjusted EBITDA totaled 6.9 million dollars against 8.8 million dollars in the comparable period of the prior year.

Picture:Perry Ellis International