Home / Knowledge / News / Apparel/Garments / Gross margin declines due to higher markdowns - Perry Ellis
Gross margin declines due to higher markdowns - Perry Ellis
23
Nov '11
Perry Ellis International Inc. reported results for the third quarter and nine months ended October 29, 2011. For the three months ended October 29, 2011 (third quarter of fiscal 2012), total revenues were $248.4 million a 23% increase compared to $201.3 million reported in the third quarter ended October 30, 2010 (third quarter of fiscal 2011).

Rafaella contributed approximately $38.4 million in revenue while all other businesses delivered core organic growth of 5%. Net income attributable to Perry Ellis International, Inc. for the third quarter was $6.5 million, or $0.40 per fully diluted share (EPS), compared to $7.2 million or $0.51 per share in the third quarter of fiscal 2011.

Strong sales results in the Company's golf, Hispanic, accessories, women's contemporary dress, and direct-to-consumer businesses were offset by approximately $5.0 million of unshipped product associated with Rafaella and the Company's European business due to weather issues.

In addition, unusually high levels of promotional activity in women's better sportswear and product assortment challenges for both Rafaella and Perry Ellis Collection, led to increased markdowns for both businesses during the months of October and into November compared to the third quarter of fiscal 2011 and the first half of fiscal 2012.

SG&A expense increased 21% compared to the third quarter of fiscal 2011, to $66.4 million. As a percent of total revenue SG&A declined 50 basis points to 26.7%. Throughout the third quarter, the Company continued to invest in its brands and businesses such as Perry Ellis and direct-to-consumer, with additional investment in areas such as marketing, full price retail store openings, retail specialists, and the management team.

The Company also incurred additional business development expenditures related to both domestic and international opportunities that impacted the quarter. These investments added approximately 140 basis points of SG&A to total revenue during the quarter.

Oscar Feldenkreis, President & COO commented "Our goal for the Perry Ellis brand has been to expand its domestic focus in product offering, performance, and distribution. We recently hired a president as well as a chief merchant for the brand and both have a proven track record with deep industry experience. We have opened two full-price flagship stores in California to showcase the full product line as well as carry "premium" Perry Ellis Collection apparel that will also be available in select department store doors.

Perry Ellis is at an inflection point and further enhancing the brand's positioning through investments in management, marketing, and retail support will be required in order to expand the brand both domestically as well as on a global scale."

"We are pleased with the Rafaella women's product assortment for next spring and summer. We accelerated their transition onto the Company's enterprise resource planning system at the end of the quarter. We believe the planning and merchandising capabilities of our systems will provide the ability to execute by assortment plans translating from the showroom to the retail floor driving improved results," continued Mr. Feldenkreis.


Must ReadView All

Sri Lanka’s apparel exports rise after EU GSP+ reinstatement

Apparel/Garments | On 18th Nov 2017

Sri Lanka’s apparel exports rise after EU GSP+ reinstatement

Sri Lanka’s apparel exports from January to September 2017 has...

Bangladesh plans 2 leather estates in Rajshahi, Chittagong

Apparel/Garments | On 18th Nov 2017

Bangladesh plans 2 leather estates in Rajshahi, Chittagong

Bangladesh Prime Minister Sheikh Hasina has said two more leather...

ASEAN, Hong Kong sign free trade agreement

Textiles | On 18th Nov 2017

ASEAN, Hong Kong sign free trade agreement

The Association of Southeast Asian Nations (ASEAN) and Hong Kong...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

November 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search