Perry Ellis International's Q1 sales decline 7.3 percent

Perry Ellis International said that the company’s total revenues of 242 million dollars were ahead of its guidance of 230 to 235 million dollars and compared to 261 million dollars reported in the first quarter of fiscal 2017, a 7.3 percent or 6.5 percent decrease on constant currency. GAAP diluted EPS of 0.83 dollars was also ahead of guidance of 0.70 dollars to 0.75 dollar per diluted share and compared to GAAP diluted EPS of 0.95 dollar per share and adjusted diluted EPS of 1.01 dollars in the first quarter of fiscal 2017.

Commenting on the first quarter results, Oscar Feldenkreis, CEO and President, said in a media statement, "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. 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 US retail environment, with particular strength in Golf Lifestyle Apparel and Nike Swim.”

Review of the first quarter results

The company said, disciplined management of inventory across channels along with increased sales of higher margin core brands led to a 120 basis point expansion in GAAP gross margin to 37.6 percent in the first quarter from 36.4 percent in first quarter of fiscal 2017. Adjusted gross margin was 37.6 percent compared with adjusted gross margin of 36.7 percent in the comparable period of the prior year.

EBITDA totalled 19.9 million dollars compared to 25.2 million dollars in the comparable period of the prior year. Adjusted EBITDA was 19.9 million dollars compared to 26.1 million dollars in the comparable period of the prior year. As reported under GAAP, net income was 12.8 million dollars or 0.83 dollar per diluted share, compared to 14.3 million dollars or 0.95 dollar per diluted share and adjusted net income of 15.2 million dollars or 1.01 dollars per diluted share, in the first quarter of fiscal 2017.

Picture:Perry Ellis International website