Home / Knowledge / News / Apparel/Garments / Perry Ellis finishes fiscal 2010 in outstanding liquidity position
Perry Ellis finishes fiscal 2010 in outstanding liquidity position
22
Mar '10
Perry Ellis International, Inc reported results for the fourth quarter and the fiscal year ended January 31, 2010.

Fiscal 2010 Results

Fiscal 2010 revenues were in line with company guidance at $754.2 million versus $851.3 million reported in the prior year ended January 31, 2009 ("fiscal 2009"). The company reported net income of $13.2 million or $1.01 per fully diluted share, compared to a net loss of $12.9 million or $.89 per fully diluted share, for the comparable period last year.

"Fiscal 2010 was a turnaround year for Perry Ellis International," commented Oscar Feldenkreis, President and Chief Operating Officer. "We delivered earnings ahead of expectations during a very challenging economic downturn. We also took the initiative to seek out new business opportunities such as the Callaway & Pierre Cardin license agreements. We expect to see 2011 as a breakout year to capitalize on these opportunities as well as our core growth platforms."

Overall gross margins for fiscal 2010 improved 30 bps to 33.0% compared to 32.7% in fiscal 2009. The margin expansion was mainly driven by a mix of higher margin branded product, the exiting of several low profit private label programs, the exit of some underperforming businesses, the introduction of Callaway Golf direct sales and reduced sales and operational allowances resulting from strong product performance and improved operational efficiencies.

Cost reduction initiatives and strict expense controls throughout fiscal 2010 resulted in selling, general and administrative expense reductions of $36 million. Selling, general and administrative expenses at $200.4 million represented a 15% reduction compared to $236.8 million for fiscal 2009. As a result of these cost reductions, the company achieved fiscal 2010 earnings before interest, tax, impairments, depreciation and amortization ("adjusted EBITDA") of $48.7 million, a $3.2 million or 7% increase over fiscal 2009. A table showing the reconciliation of EBITDA to net income is attached.

Fourth Quarter Fiscal 2010 Results

Overall, fourth quarter results were ahead of internal plans and above analyst consensus in adjusted EBITDA and EPS. Total revenue for the quarter was $196.4 million, a 3% increase compared to $191.2 million reported in the fourth quarter of fiscal 2009. The increase is attributable to a turnaround of Perry Ellis Collection at department stores, initial shipments of Callaway and TOP-FLITE(R) spring product, as well as improved performance in direct to consumer businesses, primarily the Perry Ellis and Original Penguin retail stores. These increases were slightly offset by the planned exit of certain mass merchant programs and the exit of licenses in outerwear and green grass golf.

Reduced levels of markdown support coupled with strong performance of branded businesses at retail positively impacted gross margins, improving them to 35.5% during the quarter compared to 29.0% for the comparable quarter last year, representing a 650 bps improvement. Fourth quarter adjusted EBITDA was $20.1 million compared to $2.4 million, a $17.7 million dollar improvement, over the same period last year. A table showing the reconciliation of adjusted EBITDA to net income is attached. Net income was $8.5 million, or $.64 per fully diluted share, compared to a loss of $21.6 million or $1.58 per fully diluted share during the forth quarter of fiscal 2009.


Must ReadView All

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Erik Sy

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

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

January 2018

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
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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