PEI Ekes Out a Q3 Net Boost

by MR Magazine Staff

NEW YORK – Perry Ellis International Inc. on Tuesday reported marginally higher earnings on lower sales for the third quarter ended Oct. 31.

Net income during the period rose 1.8% to $8.2 million from $8.1 million in last year’s quarter. Earnings per share were 80 cents in both periods. The most recent EPS figure topped the consensus estimate by 9 cents.

Revenues were down 3.1% to $213.2 million from $220 million in the 2005 period.

Also on Tuesday, PEI said that it would effect a 3-for-2 stock split, payable as a stock dividend, on Dec. 29 to shareholders of record Dec. 12.

“Third quarter results reflect the end of the impact of retail consolidation and other factors that have impacted top-line growth,” said Oscar Feldenkreiss, vice-chairman and chief operating officer. “We are well positioned for records sales and gross margins in our upcoming fourth quarter….”

He also heralded increases in gross margin and EBITDA margin.

Shares of PEI stock fell 79 cents, or 2.1%, to $36.72 in Nasdaq trading Tuesday.

For the nine months, net income declined 19.8% to $11.7 million, or $1.14 a diluted share, from $14.6 million, or $1.45, in the 2005 period. Early extinguishment of debt subtracted 19 cents a share from this year’s net income, adding to the size of the decline. Sales rose 5.6% to $598.3 million from $635.5 million.

The Miami-based company reaffirmed its pro-forma full-year earnings projection of $2.30 to $2.40 a diluted share on sales of between $840 million and $850 million.