Perry Ellis achieves profit increase in Q1, updates guidance
Perry Ellis International, Inc. on Thursday reported its financial results for the first quarter ended April 30, 2016. The company is very pleased with its first quarter performance, and as a result, it updated its fiscal year guidance.
Total revenue for the quarter was $261 million compared to $266 million in the first quarter of fiscal 2016. Adjusted gross margin expanded 180 basis points to 36.7%, selling, general and administrative expenses were $69.9 million and first quarter profit increased to $14.3 million, or $0.95 per diluted share, from $9.4 million, or $0.62 per diluted share.
The company had stronger margin in its Men’s Sportswear, Golf Lifestyle and Nike businesses, and they have all benefitted from licensing contribution. Perry Ellis also experienced negative currency headwinds of 70 total basis points on total revenues.
"We are very pleased with our first quarter results, which were highlighted by solid growth in our core brands, robust gross margin expansion and increased adjusted earnings per share - marking a terrific start to the 2017 fiscal year," said Oscar Feldenkreis, Chief Executive Officer of Perry Ellis International. "Our increased guidance for the fiscal year incorporates our positive outlook and an appropriately cautious view of the global retail landscape."
For fiscal 2017, the company expects its adjusted earnings per share to range from $1.95 to $2.00, an increase from the previous guidance of $1.90 to $1.95.
George Feldenkreis, Executive Chairman, Perry Ellis International, commented, "We do believe, however, that the strength of the U.S. dollar and the changing consumer spending patterns for international tourists in the U.S., along with the volatility in the global environment, will remain a headwind. Nonetheless, we remain focused on the strategic growth opportunities ahead of us. We believe that the sound execution of our business strategies and investment in our world-class brands, together with our strong balance sheet and the dedicated efforts of our talented associates will position us to deliver strong results in fiscal 2017."
Perry Ellis plans to continue optimizing competitive positioning for its namesake brand as well as its Original Penguin and Golf Lifestyle brands, all of which expanded 5% in the first quarter. In addition, the company will continue accelerating international expansion through direct investment in North America and Europe as well as partnerships with licenses and other partners.
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