Perry Ellis International Q2 revenues up 5 percent, updates FY16 earnings guidance

Perry Ellis International said that its total revenue for the second quarter of fiscal 2016 was 213.3 million dollars, a 5 percent increase compared to 203.5 million dollars reported in the second quarter of fiscal 2015. The company witnessed increases in its core global brands, Perry Ellis, Original Penguin and Rafaella, across international, licensing and direct-to-consumer (DTC) businesses.

“We are pleased with the Company's solid performance this quarter across all key metrics including sales, gross margin and EBITDA. Our performance included powerful organic growth across the full range of our wholesale businesses, led by Perry Ellis, Original Penguin and Rafaella,” said Oscar Feldenkreis, President and Chief Operating Officer of Perry Ellis International.

Gross margin was 35.7 percent on an adjusted basis, up 110 basis points compared with the same quarter last year. The expansion reflects the continuing benefit from the shift of the company’s revenue mix toward higher margin businesses as well as stronger sell-through at retail in the Perry Ellis and Rafaella collection businesses. GAAP gross margin for the period was 35.6 percent as compared to 34.6 percent for the year ago period.

As reported under GAAP, the fiscal 2016 second quarter loss was 1.3 million dollars, or 0.09 dollar per diluted share, as compared to a loss of 1.6 million dollars, or 0.11 dollar per diluted share, in the second quarter of fiscal 2015. On an adjusted basis, earnings per diluted share were 0.31 dollar as compared to an adjusted loss per diluted share of 0.08 dollar in the second quarter of fiscal 2015.

Adjusted EBITDA for the second quarter totalled 8.9 million dollars as compared to 5.2 million dollars in the comparable period of the prior year. Adjusted EBITDA margin expanded to 4.2 percent from 2.6 percent in the prior year.

The company continues to concentrate on the successful implementing of its growth and profitability plan that includes focusing on high performing, high growth brands and businesses, enhancing retail brand positioning in the menswear arena through the wholesale, retail and licensing of its core brands, expanding international and licensing distribution through direct investment in the Western Hemisphere and Europe as well as strategic partnerships with licensees and other partners and expanding the DTC channel.

The company continues to expect total fiscal 2016 revenues to be in a range of 925 dollars to 935 million dollars. Given the stronger performance in the second quarter, the company now expects adjusted earnings per diluted share in a range of 1.78 dollars to 1.85 dollars as compared to the previous guidance range of 1.68 dollars to 1.75 dollars.