Perry Ellis Tops Q1 Estimates, Raises Earnings Outlook

Perry Ellis International, Inc. PERY reported stronger-than-expected results for the first quarter and lifted its earnings forecast for the full year. The Miami, Florida-based company posted quarterly net income of $9.4 million, or $0.62 per share, compared to$7.8 million, or $0.52 per share, in the year-ago quarter. Excluding items, the company's adjusted earnings surged 80 percent to $0.99 per share from $0.55 per share. Its revenue rose to $266.4 million from $257.3 million. However, analysts were expecting a profit of $0.63 per share on revenue of $264 million. The average estimate among 3 Estimize users was for earnings of $0.62 per share and revenue of $264.08 million. Adjusted EBITDA for the first quarter rose to $24.7 million, versus $18.7million in the year-ago period. Adjusted gross margin widened to 34.9 percent from 34.1 percent, while adjusted EBITDA margin rose to 9.3 percent from 7.3 percent. Selling, general and administrative expenses slipped to $69.6 million in the first quarter, from $69.7 million in the year-ago period. At the close of the quarter, inventories shrank 13 percent to $153 million, compared to $177 million at the end of the year-ago period. Oscar Feldenkreis, President and Chief Operating Officer of Perry Ellis International, commented, "We had a strong start to the year highlighted by growth in net revenues, expansion in gross margin and a significant increase in adjusted earnings per share, as compared to the first quarter last year. Our results reflect the success of our strategy to expand core brands and higher margin businesses." For fiscal 2016, Perry Ellis now projects earnings of $1.68 to $1.75 per share, versus earlier forecast of $1.45 to $1.55 per share. The company continues to project revenue of $925 million to $935 million. Analysts had expected earnings of $1.49 per share on revenue of $931 million. Perry Ellis shares rose 0.71 percent to close at $24.03 yesterday.