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

Textiles | On 28th Apr 2017

Fix 5% GST rate for textile goods: Textile bodies

Uniform levy of 5 per cent Goods and Services Tax (GST) on all...

Textiles | On 28th Apr 2017

India lifts CVD imposed on Nepali Jute goods

The countervailing duty (CVD) that was imposed on Nepali jute...

Courtesy: Williamsburg Garment Company

Fashion | On 28th Apr 2017

'We have grown by staying small & maximising efforts'

The easiest way to go out of business is to be too big or expand too...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Prathyusha Garimella
Prathyusha Garimella

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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



X