Perry Ellis hits Q1 revenues of $ 265.5 mln

Perry Ellis reported revenue of $265.5 million (Rs 1,456 crores)

ahead of consensus estimates of $261 million (Rs 1,431 crores) for first quarter of fiscal 2013. Adjusted net income and EBITDA totaled $10.7 million (Rs 58 crores) and $22.9 million (Rs 125 crores).

For the first quarter of fiscal 2013, total revenues were $265.5 millioncompared to $288.3 million (Rs 1,581 crores) reported in the first quarter of fiscal 2012. Revenues were ahead of guidance with increases in several of the company’s core businesses, including the golf platform distributed through department and mid-tier stores; the direct-to-consumer channel; and Laundry by Shelli Segal dresses. As expected, total revenues for the quarter trailed the prior year, driven by conservative sportswear purchases by department stores following a challenging fall and holiday season.

Gross margin for the first quarter of fiscal 2013 was 33% compared to 33.6% in the comparable prior year period. For the quarter gross margin was impacted by 30 basis points due to inventory associated with exited businesses throughout fiscal 2013.

Selling, general, and administrative (SG&A) expenses for the first quarter of fiscal 2013 increased $2.9 million (Rs 15 crore) to $66.3 million (Rs 363 crores) compared to $63.4 million (Rs 347 crores) in the comparable prior year period. The increase was primarily associated with the expansion of the company’s direct to consumer business in the second half of fiscal 2012 and expenses totaling approximately $800 thousand dollars (Rs 4 crore) for costs related to exited brands and business process improvements in the first quarter of fiscal 2013.

Net income for the first quarter of fiscal 2013 was $9.7 million (Rs 53 crore), or $0.64 (Rs 35) per fully diluted share (EPS), compared to $15.4 million (Rs 84 crores), or $0.99 (Rs 54) per fully diluted share in the comparable prior year period.

Diluted EPS, as adjusted for the first quarter of fiscal 2013, was $0.71 (Rs 38.9) compared to EPS per fully diluted share as adjusted of $1.08 (Rs 59.2) in the comparable prior year period. EPS as adjusted excludes costs for exited brands and distribution center relocation totaling $1.5 million (Rs 8 crore) during the first quarter of fiscal 2013.

Earnings before interest, taxes, depreciation, amortization, costs on early extinguishment of debt and costs on exited brands and distribution center relocation (Adjusted EBITDA) for the first quarter of fiscal 2013 totaled $22.9 million (Rs 125 crores), or 8.6% of total revenue compared to EBITDA of $33.6 million (Rs 184 crores) in the comparable prior year period.

Perry Ellis International, based in Miami, is a designer, distributor and licensor of a broad line of high quality men's and women's apparel, accessories and fragrances as well as select children's apparel. The company, through its wholly owned subsidiaries, owns a portfolio of nationally and internationally recognized brands including Perry Ellis, Original Penguin by Munsingwear ,Jantzen, Laundry by Shelli Segal, C&C California, Rafaella, Ben Hogan etc.

The company enhances its roster of brands by licensing trademarks from third parties, including Nike and Jag for swimwear, and Callaway, PGA TOUR and Champions Tour(R) for golf apparel.