Home / Knowledge / News / Fashion / Perry Ellis maintains strong balance sheet
Perry Ellis maintains strong balance sheet
21
Nov '08
Perry Ellis International Inc reported results for the third quarter and nine months ended October 31, 2008. For the three months ended October 31, 2008 ("third quarter of fiscal 2009"), total revenues were $222.8 million, a $4.7 million reduction compared to $227.5 million reported in the third quarter of the fiscal year ended October 31, 2007 ("third quarter of fiscal 2008").

Strong results for the Perry Ellis brand, denim, golf and Hispanic categories coupled with better than expected results in international and licensing businesses were offset by (i) a $4.0 million increase in markdowns and sales allowances to retail partners; (ii) a revenue decline during the quarter of $4.5 million related to Chapter 11 filings or liquidation from multiple retailers; and (iii) overall weakness in the specialty store distribution channel.

Oscar Feldenkreis, President and COO commented, "Several of our growth platforms continue to perform according to plan, despite the overall weakness at retail, demonstrating the strength of our brands and the resiliency of our diversified business model. We continue to innovate and deliver newness at retail, which is driving consumer purchases and assisting us to mitigate the downturn in consumer spending. The positive performances posted by our denim, golf and Hispanic products are a testament to this."

Gross margins improved by 25 basis points to 34.1% of net revenues compared to the third quarter of fiscal 2008, primarily driven by continued success in shifting from private label to branded business. Gross profit decreased by $1.0 million to $75.9 million compared to $76.9 million during the third quarter of fiscal 2008, due to increases in markdowns and sales allowances.

"Especially in these highly promotional times, it is essential to have the power of nationally recognized brands and the sophistication of technologically advanced planning systems that allow us to rapidly react to changes in the environment. The continuous improvement of our gross margins is a direct consequence of Perry Ellis International's strategic shift towards branded product and the successful implementation of our planning platform," Mr. Feldenkreis continued.

Compared to the third quarter of fiscal 2008, operating expenditures grew by $3.9 million. This increase includes the continuous investment in the Company's women's contemporary business acquired in February of this year; $0.6 million in one-time expenses related to the strategic review previously announced and a pre-tax impairment of $0.6 million in marketable securities, which were previously classified as available for sale, and deemed to be other than temporarily impaired. As a result EBITDA, as adjusted, was $16.0 million for the third quarter of fiscal 2009, compared to $20.8 million, representing a reduction of $4.8 million over the same period last year.

"We continue to believe that investing in our key growth opportunities -- particularly women's contemporary -- will allow these businesses to contribute strongly in the future. However, in light of the macroeconomic changes we are all experiencing, we need to make adjustments to enhance our profitability. The primary objective of the strategic review launched late third quarter is to determine the correct allocation of resources across our business portfolio, to ensure that we fund those businesses with the most potential," Mr. Feldenkreis concluded.


Must ReadView All

Courtesy: Aditya Birla

Textiles | On 20th Jun 2018

'Growth of VSF yarn industry is difficult'

Growth for the viscose filament yarn (VSF) yarn industry is...

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Apparel/Garments | On 20th Jun 2018

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Italian company Eurojersey Spa will present in 2019 new embossing...

Certification for Philippine garment firms availing GSP

Textiles | On 20th Jun 2018

Certification for Philippine garment firms availing GSP

The Philippines has adopted rules on securing certificate of...

Interviews View All

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Harmeet Singh

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

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Priya Somaiya
Usha Social Services

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

Jay Ramrakhiani
Occasions Elegance Wear

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

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