Fiscal 2011 - outstanding year for Perry Ellis

19 Mar '11

5 min read

Perry Ellis International Inc reported results for the fourth quarter and the fiscal year ended January 29, 2011.

Fiscal 2011 Results

Fiscal 2011 revenues were $790.3 million, which was in line with Company guidance, compared to $754.2 million reported in the prior year ended January 30, 2010 ("fiscal 2010"). This represents a 5% revenue increase over fiscal 2010. Excluding planned exited businesses associated with mass market programs and an exited license agreement totaling $36 million in fiscal 2010, fiscal 2011 revenues increased by 10% over fiscal 2010.

The Company reported an 83% increase in net income attributed to Perry Ellis International, Inc. for fiscal 2011 of $24.1 million, or $1.70 per fully diluted share compared to net income attributed to Perry Ellis International, Inc. of $13.2 million, or $1.01 per fully diluted share, for fiscal 2010.

Net income attributed to Perry Ellis International, Inc. per share ("EPS"), diluted, as adjusted for fiscal 2011 was $1.85 compared to EPS, diluted, as adjusted of $1.02 in fiscal 2010. EPS, as adjusted excludes costs associated with the recent acquisition of certain assets of Rafaella Apparel Group, Inc. ("Rafaella") and impairment charges of certain retail store leaseholds for fiscal 2011 and 2010.

"Fiscal 2011 was an outstanding year for Perry Ellis International. The results we delivered and our current positioning in the market place remains a testament to the strength of our brand portfolio and business model," commented Oscar Feldenkreis, President and COO.

"Our key growth platforms led by women's and contemporary with the recent acquisition of Rafaella, as well as Perry Ellis Collection, Golf, Hispanic, and direct to consumer, are all very well positioned to show strong organic growth and capture additional market share in fiscal 2012," continued Mr. Feldenkreis.

Overall gross margin for fiscal 2011 improved to 35.7% compared to 33.0% in fiscal 2010, an increase of 270 basis points. Improved profitability within the Company's direct-to-consumer businesses, increased full price sell-throughs at retail, and a continued mix of higher margin branded product all contributed to the significant expansion in gross margin over fiscal 2010.

Earnings before interest, tax, Rafaella acquisition costs, impairments, depreciation, and amortization for fiscal 2011 was $64.7 million, or 8.2% of total revenues. This represents a 33% increase over fiscal 2010 adjusted EBITDA of $48.7 million..

Fourth Quarter 2011 Results

Total revenue for the fourth quarter of fiscal 2011 was $206.9 million, a 5% increase compared to $196.4 million reported in the fourth quarter of fiscal 2010. The increase is attributable to strong performance within Perry Ellis Collection at department stores, as well as the direct to consumer and women's and contemporary businesses.

As reported under GAAP, fourth quarter fullydiluted EPS was $0.54 compared to $0.64 in the fourth quarter of fiscal 2010. Excluding the above mentioned costs associated with the Rafaella acquisition and impairment charges of certain leaseholds for fiscal 2011 and 2010, fully diluted EPS, as adjusted, for the fourth quarter was $0.69 compared to $0.65 in the prior year period.

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