Perry Ellis International reports increased sales across core brands

Total revenue of Perry Ellis International was 261 million dollars, a 2 percent decrease compared to 266 million dollars in the first quarter of fiscal 2016. The company witnessed increased sales across the company's core global brands, Perry Ellis and Original Penguin, as well as in its Golf Lifestyle apparel, offset by 3 percent planned business exits as well as 2 percent reductions in off-price revenues. The company also experienced negative currency headwinds of approximately 70 basis points on total revenues.

“We are very pleased with our first quarter results, which were highlighted by solid growth in our core brands, robust gross margin expansion and increased adjusted earnings per share - marking a terrific start to the 2017 fiscal year. Our favorable performance continues to demonstrate the success of our strategy that focuses on increasing sales of our higher margin branded, international, license and direct-to-consumer businesses platforms," said Oscar Feldenkreis, Chief Executive Officer of Perry Ellis International.

Fiscal 2017 first quarter results

Adjusted gross margin expanded 180 basis points to 36.7 percent, reflecting stronger margin in men's sportswear, golf lifestyle and Nike businesses. As reported under GAAP, fiscal 2017 first quarter profit was 14.3 million dollars, or 0.95 dollar per diluted share, as compared to 9.4 million dollars, or 0.62 dollar per diluted share, in the first quarter of fiscal 2016. On an adjusted basis, earnings per diluted share were 1.01 dollars as compared to 0.99 dollar in the first quarter of fiscal 2016.

Adjusted EBITDA totalled 26.1 million dollars as compared to 24.7 million dollars in the comparable period of the prior year. Adjusted EBITDA margin expanded to 10 percent from 9.3 percent in the comparable period of the prior year.

Expects to report rise in FY17 earnings

George Feldenkreis, Executive Chairman, Perry Ellis International, commented, "As we look ahead to the remainder of the year, we now expect to generate adjusted earnings per share in a range of 1.95 dollars to 2 dollars for fiscal 2017, up from our previous guidance of 1.90 dollars to 1.95 dollars. We do believe, however, that the strength of the US dollar and the changing consumer spending patterns for international tourists in the U.S., along with the volatility in the global environment, will remain a headwind."

The company plans to optimise competitive positioning as growth achieved across the company's global growth brands led by Perry Ellis, Original Penguin, and Golf Lifestyle. Collectively, these businesses expanded 5 percent during the first quarter. During the first quarter, engagement across social media for all brands collectively increased 95 percent across multiple platforms.

The company aims to accelerate international expansion through direct investment in North America and Europe as well as strategic partnerships with licensees and other partners. The company realized 27 percent revenue growth in licensing for the quarter. International represented 11.2 percent of total revenues compared to 11 percent in the comparable period of the prior year. Specifically, the company's introductions of Ben Hogan in the United Kingdom, Nike Swim across Europe and Latin America, and Perry Ellis America in Europe further establish our growth platform for the international markets.

picture:perryellis.com