Home / Knowledge / News / Fashion / Growth Platforms drives gross margin of Perry Ellis
Growth Platforms drives gross margin of Perry Ellis
22
May '08
Perry Ellis International Inc reported results for the first quarter ended April 30, 2008 (first quarter of fiscal 2009). For the first quarter of fiscal 2009, total revenues grew to $243.5 million, a $14.8 million increase compared to $228.8 million reported in the first quarter of the fiscal year ended April 30, 2007 (first quarter of fiscal 2008).

Revenue increases were driven by the Company's growth platforms - Perry Ellis collection, swimwear/action sports, Hispanic & golf lifestyles, direct retail plus initial shipments of the recently acquired women's contemporary brands - Laundry and C&C California.

Gross profit increased by $6.8 million to $84.6 million compared to $77.8 million during the first quarter of fiscal 2008 with gross margin rising 72 basis points to 34.7% of net revenues. This improvement was driven by growth initiatives that focus on higher margin platforms such as the Perry Ellis retail division and the branded business - particularly Perry Ellis, Nike Swim, Hispanic, golf lifestyle brands, women's contemporary - and the reduction in bottoms private label programs, particularly at the mass distribution channel.

"Our diversification strategy has proven its validity once again, as we delivered increased revenues and gross profit while exceeding analysts' expectations despite a difficult domestic retail environment. We attribute our continued strength to the advantages of our business model," said Oscar Feldenkreis, President and Chief Operating Officer. "Our brands continue to perform strongly at retail, and we remain very optimistic about achieving the goals we set for Perry Ellis International this year," Mr. Feldenkreis continued.

First quarter of fiscal 2009 operating expenditures grew by $7.7 million due to expenses related to the integration of women's contemporary brands - Laundry and C&C California in February of 2008 and the closing of the Company's distribution facility in Winnsboro, S.C. The Company also incurred incremental costs related to the Perry Ellis retail expansion strategy, with two new stores, and investment in the European and boys wear divisions.


Must ReadView All

Courtesy: Nine West

Fashion | On 17th Jun 2018

ABG wins bid in Nine West Holdings auction

Authentic Brands Group (ABG), owner of a global portfolio of...

Courtesy: Kreussler

Textiles | On 17th Jun 2018

USDA certifies Kreussler's solvent as biobased

The US Department of Agriculture (USDA) has certified Kreussler's...

Courtesy: ITUC

Textiles | On 17th Jun 2018

Democratic space shrink & corporate greed are rising: ITUC

Shrinking democratic space for working people and unchecked corporate ...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Urs Stalder
Sanitized AG

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search