NEW YORK – Perry Ellis International’s fourth-quarter results met analysts’ expectations and pulled full-year results close to year-ago levels.
For the three months ended Jan. 31, the Miami-based sportswear marketer and licensor recorded net income of US$10.7 million, or $0.68 a diluted share, 32.2% ahead of the $8.1 million, or $0.54, netted during the comparable 2005 quarter.
Total revenues increased 8.3% to $231.6 million from $213.9 million as net sales rose 8.5%, to $225.9 million, and royalty income slumped 0.2%, to $5.7 million.
EBITDA (earnings before interest, taxes, depreciation and amortization) as a percentage of revenues jumped to 11.1% from the year-ago level of 9.8%.
The firm pointed out that higher gross and EBITDA margins were driven by a shift to higher margin businesses, including swimwear, direct marketing, Perry Ellis and international.
George Feldenkreis, chairman and chief executive officer, also attributed the higher margins to “improved production planning, sourcing and, most importantly, our products’ continued exceptional performance at retail.”
The vigorous fourth quarter pulled full-year results close to 2005 levels, compensating for lower sales and profits in the first nine months of the year due to retail consolidation and the elimination of numerous lower-margin private label programs.
Net income for the year was down 1.2%, to $22.4 million, or $1.45 a diluted share, from $22.7 million, or $1.51. Stripping out the effects of early elimination of debt in 2006, EPS would have been $1.58 a diluted share. Revenues fell 2.3% to $829.9 million from $849.4 million.
Oscar Feldenkreis, president and chief operating officer, set 2007 EPS forecasts between $1.81 and $1.84, up 14% to 16%. Revenues are expected to grow 8% to 10% to between $900 million and $910 million.
“We expect strong growth coming from our Perry Ellis brand, golf and Hispanic lifestyles, swimwear/action sports, international and direct retail operations,” Oscar Feldenkreis said.