Perry Ellis sales buoyed by Nike Swim as earnings sink

By

Robin Driver

Published
May 31, 2018

Miami-based apparel group Perry Ellis International, Inc. announced its first quarter 2019 financial results on Thursday, reporting a 5.4% rise in sales revenue (4.5% in constant currencies), driven by the company’s golf brands and Nike Swim, while net income declined. 

In the first quarter ended May 5, 2018, the company’s net sales rose to $255 million, compared to the $242 million reported in Q1 201. Along with progress in Nike Swim and the Perry Ellis’ golf brands, this growth was also pushed by a high-single digit increase in sales through the company’s direct-to-consumer channel. Progress was, however, partially offset by declines in the group’s women’s business.
 
Despite this positive sales performance, the company’s pre-tax income for the quarter came to $13.1 million, compared to $14.5 million in the prior year period, with overall net income totaling $10.2 million, a 20% decline compared to Q1 2018’s $12.8 million.

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“We are very pleased with our start to fiscal 2019, which continued our momentum from last year,” stated Perry Ellis International CEO and President Oscar Feldenkreis. “During the quarter, our innovative products and high impact marketing led to stronger than expected shipments, especially in Nike Swim and across our golf brands.  We ended the quarter with a strong balance sheet, which enabled us to retire $50 million of outstanding notes.  We remain optimistic about our business prospects as we enter the second quarter, and we conservatively plan to hold the full year guidance.”
 
The company’s 2019 guidance for sales revenue is still in the range of $855 million to $865 million, with earnings per share expected to be between $1.80 and $1.90.