Perry Ellis International posts 2 percent revenue growth in FY18

Total revenue for the fourth quarter of fiscal 2018 at Perry Ellis International Inc was 227 million dollars, an 11.3 percent or 10.1 percent constant currency increase reflecting increases across all segments, with particular strength in men's sportswear and Nike swim. The company’s revenue for fiscal 2018 was 875 million dollars, a 2 percent increase at current and constant exchange compared to last year. Adjusted earnings per diluted share for the year were 2.13 dollars compared to 2.04 dollars in fiscal 2017.

Commenting on the company’s performance, Oscar Feldenkreis, CEO and President said in a statement: "We are pleased to continue the positive momentum for our brands and businesses in the final quarter of the year, delivering a double digit increase in total revenue, a 50 basis point expansion in gross margin and continued leverage in expenses which contributed to an almost doubling of GAAP pre-tax earnings compared to the fourth quarter of last year. We remain excited about our outlook as we begin fiscal 2019."

Review of Perry Ellis International’s Q4 and FY18 results

The company said, disciplined management of inventory along with increased sales of higher margin core brands led to a 50 basis point expansion in GAAP gross margin to 38.9 percent in the fourth quarter. Strength in the company's Perry Ellis, golf lifestyle apparel and Nike swim business led to the margin increase. Adjusted gross margin was 38.9 percent compared with 38.7 percent in the prior year.

Adjusted EBITDA totalled 21.2 million dollars compared to 17.1 million dollars in the comparable period of the prior year. Adjusted pre-tax income for the quarter was 15.8 million dollars, increasing 36.9 percent from 11.5 million dollars in the fourth quarter of fiscal 2017. GAAP pre-tax income was 12.8 million dollars compared to 6.7 million dollars in the comparable period of prior year.

As reported under GAAP, the fourth quarter net income was 39.7 million dollars or 2.56 dollars per diluted share compared to 9 million dollars or 0.59 dollar per diluted share, in the fourth quarter of fiscal 2017. Adjusted net income for the quarter was 13.6 million dollars or 0.88 dollar per diluted share compared to 10.1 million dollars or 0.66 dollar per diluted share in the fourth quarter of fiscal 2017.

On a GAAP basis, net income for fiscal 2018 was 56.7 million dollars or 3.68 dollars per diluted share compared to 14.5 million dollars or 0.95 dollar per diluted share, for fiscal 2017. Adjusted EBITDA for the year totalled 59.2 million dollars or 6.8 percent of total revenues compared to 57.2 million dollars or 6.6 percent of total revenues, in fiscal 2017. Adjusted gross margin was 37.8 percent compared to 37.2 percent in fiscal 2017.

Perry Ellis International reveals FY19 revenue outlook

For fiscal 2019, the company currently expects total revenue to be in the range of 855 million dollars to 865 million dollars from core sales of 843.6 million dollars in fiscal 2018.

Excluding any potential expenses to be incurred by the company in connection with the board of director's exploration and evaluation of potential strategic alternatives and the related February 9, 2018 proposal to acquire the company, diluted earnings per share are currently expected in the range of 1.80 dollars to 1.90 dollars assuming a tax rate of 25 percent, which compares to core adjusted diluted earnings per share of 1.70 dollars in fiscal 2018.

Picture:Perry Ellis International website