PERRY ELLIS BEATS GUIDANCE FOR FIRST QUARTER
Men’s sportswear company Perry Ellis International has reported results for the first quarter of fiscal 2018, which ended April 29, 2017.
Adjusted EBITDA totaled $19.9 million as compared to $26.1 million in the comparable period of the prior year. The company reported GAAP diluted EPS of $0.83, ahead of guidance of $0.70 to $0.75 per diluted share and compared to GAAP diluted EPS of $0.95 per share and adjusted diluted EPS of $1.01 in the first quarter of fiscal 2017.
Total revenue was $242 million, a 7.3 percent decrease, compared to $261 million reported in the first quarter of fiscal 2017. This reflected a planned decrease in shipments given a reduction of customers’ doors and inventory discipline to drive higher margin sales.
“We are pleased to report a solid start to Fiscal 2018 with both our top and bottom line results surpassing guidance, reflecting solid growth in our core brands driven by the earlier shipment of spring merchandise and strong gross margin expansion,” said Oscar Feldenkreis, the company’s CEO and president. “Our razor sharp focus on maximizing the potential of our core global brands by delivering a continuous flow of new innovative products while maintaining tight inventory discipline continued to serve us well in a difficult U.S. retail environment, with particular strength in Golf Lifestyle Apparel and Nike Swim. During the quarter, we also continued to make progress on our speed-to-market initiatives, which position us to bring new innovation to store faster at increasing margins and replenish the most sought after products in season.”
Nonetheless, the company reiterated guidance for fiscal year 2018 including revenues in a range of $870 million to $880 million and adjusted diluted earnings per share in a range of $2.07 to $2.17. Commented George Feldenkreis, executive chairman, Perry Ellis International: “We continue to successfully navigate the changing U.S. retail environment, as demonstrated by our solid first quarter performance. Our investment in talent, marketing and our digital platform is elevating our brands around the world. We are committed to delivering stockholder value and believe our strong balance sheet and cash flow generation along with the continued focus on our strategy will support the long-term growth potential of Perry Ellis International.”