Perry Ellis Posts Upbeat Q2 Results, Lifts Earnings Outlook

Shares of

jumped over 8 percent in pre-market trading after the company reported stronger-than-expected earnings for the second quarter and raised its full-year earnings forecast. The Miami, Florida-based company reported a quarterly loss of $1.3 million, or $0.09 per share, versus a year-ago loss of $1.6 million, or $0.11 per share, in the year-ago quarter. Excluding costs, the company's adjusted profit came in at $0.31 per share. Its revenue rose 4.8 percent to $213.3 million from $203.5 million. However, analysts were projecting earnings of $0.00 per share on revenue of $203.6 million. Adjusted earnings before interest, taxes, depreciation and amortization climbed to $8.9 million from $5.2 million, while adjusted EBITDA margin widened to 4.2 percent from 2.6 percent. Selling, general and administrative expenses increased to $68.3 million from $66.9 million. At the close of the quarter, Perry Ellis' inventories shrank 12 percent to $154.0 million, compared to $174.5 million at the end of the year-ago period. Oscar Feldenkreis, President and Chief Operating Officer of Perry Ellis International commented, "Our second quarter was another strong illustration of the ability of our global, diverse and powerful brands to deliver profitable growth. 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." For the full year, Perry Ellis now expects earnings of $1.78 to $1.85 per share, versus its prior forecast of $1.68 to $1.75 per share. The company reaffirmed fiscal 2016 revenue of $925 to $935 million. Perry Ellis shares climbed 8.60 percent to $25.50 in pre-market trading.