Apparel marketer Perry Ellis posts 5% rise in Q2FY16 sales
Perry Ellis International, a marketer of branded apparels like Perry Ellis, Original Penguin and Rafaella posted a 5 per cent year over year increase in the second fiscal quarter ended August 1, 2015.
For the three months to August 1, 2015, Perry Ellis in a press release said its revenue rose 5 per cent from a fiscal ago period to $213.3 million.
“The Company realised increases in its core global brands like Perry Ellis, Original Penguin and Rafaella, across international, licensing and direct-to-consumer (DTC) businesses,” it added.
Gross margin as a percentage of sales for the reporting quarter stood at 35.7 per cent on an adjusted basis, up 110 basis points compared with the same quarter last fiscal.
According to Perry Ellis, the gross margin expansion reflects the continuing benefit from the shift of its revenue mix toward higher margin businesses as well as stronger sell-through at retail.
GAAP gross margin for the period under review was 35.6 per cent as against 34.6 per cent for the fiscal ago period.
Selling, general and administrative expenses totaled $68.3 million in the fiscal 2016 second-quarter vis-à-vis $66.9 million in the comparable period of the prior fiscal.
Excluding costs associated with streamlining and consolidation of operations, expenses totaled $67.1 million, or 31.5 per cent of revenues as compared to $65.2 million, or 32.0 per cent in second quarter of fiscal 2015.
GAAP second quarter of fiscal 2016 loss was down to $1.3 million, or $0.09 per diluted share as against loss of $1.6 million, or $0.11 per diluted share, in the corresponding quarter of earlier fiscal.
“These results benefited from improved operating results as well as a lower effective tax rate for fiscal 2016,” the apparel marketer explained.
Adjusted EBITDA for the reporting period reached $8.9 million, up from $5.2 million in the comparable period of the previous fiscal, while adjusted EBITDA margin expanded to 4.2 per cent from 2.6 per cent.
At the end of August 1, 2015, inventories decreased 12 per cent year on year to $154.0 million due to continued emphasis on increasing turnaround.
The company had previously announced that it had expanded its credit facility from $125 million to $200 million and utilised this to redeem $100 million of its senior subordinated notes on May 6, 2015.
As a result, the company nearly halved its interest expense to $1.9 million from $3.6 million in the prior fiscal's second quarter.
CEO George Feldenkreis said, "We are continuing to demonstrate our ability to simultaneously drive organic sales growth, further diversify our business, and enhance our profitability.”
“In fact, based on our results to date, we feel confident in raising our 2016 expectations for earnings per share," Feldenkreis observed.
Given the strong performance in the second quarter, Perry Ellis now expects adjusted earnings per diluted share for fiscal 2016 in a range of $1.78 to $1.85 up from the previous guidance range of $1.68 to $1.75. (AR)
Fibre2Fashion News Desk – India