- Revenue of $262.3 million in line with guidance
- GAAP net income and EBITDA totaled $11.3 million and $24.3 million, respectively
- Adjusted net income and EBITDA totaled $9.5 million and $20.0 million, respectively
- Diluted GAAP EPS of $0.74 and adjusted EPS of $0.62 per share
- Inventory totaled $168 million, as compared to $167 million last year
- Company reaffirms guidance for 2014 revenue and adjusted diluted EPS in the range of $1.50 to $1.60, respectively
Results from Operations
For the first quarter of fiscal 2014, total revenues were $262.3 million compared to $265.5 million reported in the first quarter of fiscal 2013. Revenues were in line with guidance and included increases across several of the Company's core businesses, including golf lifestyle apparel, men's accessories and Nike performance swim. These increases were offset by anticipated reductions in men's classification private label pants, as well as softness in its direct-to-consumer channel.
Oscar Feldenkreis, President & Chief Operating Officer of Perry Ellis International, commented, "We had a solid start to the year and are pleased with our first quarter results. Our results were delivered even as we faced challenges created by unseasonal weather and economic budgetary measures that impacted consumer spending.
"During the quarter, we made strong progress on our Perry Ellis and Rafaella collections and managed our inventory tightly to maximize profitability. We expanded gross margin as a total Company and in our retail stores reflecting the strong acceptance of our products despite reduced store traffic that impacted overall transactions and total sales. We were also pleased with the strength of our business in Mexico and Canada, which benefited from a favorable response to our golf apparel and Perry Ellis collection businesses."
Gross margin expanded to 33.8% as compared to 33.0% in the first quarter last year. The expansion was driven by improved performance in the Company's collection sportswear businesses, as well as higher gross margins in the golf apparel and direct-to-consumer which favorably impacted the mix for the quarter.
Selling, general, and administrative ("SG&A") expenses were $70.7 million, compared to $66.3 million in the first quarter last year and included $2.0 million and $0.8 million of strategic initiatives costs, respectively. The remaining increase in SG&A versus the prior year reflects incremental investment in marketing and employee expenses.
Operating income of $21.5 million included the sale of the John Henry trademark in certain international territories in Asia resulting in a gain of $6.3 million or $0.22 per share. Mr. Feldenkreis commented, "This transaction highlights the strength our brands carry internationally as well as domestically. We will continue to review our portfolio and take advantage of strategic opportunities."
Net income was $11.3 million, or $0.74 fully diluted earnings per share ("EPS"), compared to $9.7 million, or $0.64 EPS in the comparable prior year period.
Perry Ellis International
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