Perry Ellis International revenues slide 2 percent in Q1

REPORT_ Perry Ellis International, in its first quarter results said that its

total revenues for the first quarter of fiscal 2015 were 257 million dollars, a 2 percent decrease compared to 262 million dollars reported in the first quarter of fiscal 2014. As anticipated, revenues were impacted by planned exits of certain private and retailer exclusive branded programs. These exits were almost entirely offset by increases in golf lifestyle apparel, Nike swim and Original Penguin as well as stronger direct-to-consumer revenue results.

Commenting on the results, Oscar Feldenkreis, President and Chief Operating Officer of Perry Ellis International said, “We were encouraged by the results of the quarter which were ahead of our expectations. Despite a slow start to the spring season, we experienced positive momentum beginning in April with particular strength in golf lifestyle apparel, Original Penguin as well as our Nike swim businesses. We were also encouraged by the expansion in gross margin, which increased to 34.1 percent from 33.8 percent in the prior year.”

During the first quarter of fiscal 2015, Miami-based company’s gross margin expanded to 34.1 percent as compared to 33.8 percent in the same period of the prior year. The expansion reflected a favorable business mix as well as better sell-through at retail in our Perry Ellis and Rafaella collection businesses. The margin expansion also reflected reduced freight costs as a result of the infrastructure rationalization program initiated last year.

As reported under GAAP, the fiscal 2015 first quarter profit was 7.8 million dollars, or 0.52 dollars per diluted share, compared to 11.3 million dollars, or 0.74 dollars per diluted share, in the first quarter of fiscal 2014 which included 3.4 million dollars or 0.22 dollars per share for the gain on the sale of the John Henry trademark in certain international territories in Asia. On an adjusted basis, the fiscal 2015 first quarter earnings per diluted share were 0.55 dollars as compared to adjusted earnings per diluted share of 0.62 dollars in the first quarter of fiscal 2014.

The company continues to expect total revenues to be in a range of 910 to 920 million dollars. Given the stronger performance in the first quarter, the company now expects adjusted earnings per diluted share for fiscal 2015 in a range of 0.80 dollars to 0.95 dollars as compared to the previous guidance range of 0.75 dollars to 0.90 dollars.