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Positive results for Jantzen & Nike during swim season at Perry
29 May '09
5 min read
Net income for the period was $5.8 million compared to $9.1 million during the first quarter of fiscal 2009. Net income was positively impacted by a lower effective tax rate. Earnings at $0.46 per fully diluted share were down $0.14 compared to $0.60 for the same period last year. This compares positively to Thomson One Call estimates of $0.24 for the Company during the first quarter of fiscal 2010.
“We have acted decisively to adjust our cost structure to the new business reality of this year and expect to deliver solid results during fiscal 2010. We also continue to review all of our businesses for profitability and will take the necessary steps on those businesses that we believe cannot be accretive to our business model” Mr. Feldenkreis concluded.
Balance Sheet Update
Disciplined working capital management allowed the Company to strengthen its liquidity and financial position. Proactive retail planning and strong sell-throughs led to a decrease in inventories of $26.3 million or 18.7% compared to April 30, 2008, and at quarter end inventories were $114.5 million. Accounts receivables were reduced to $154.7 million, compared to $172.4 million compared to April 30, 2008. This represents a $17.7 million or 10.2% reduction, in line with the decrease in total revenues of 9.7%.
Cash flow from operations was a source of $17.4 million in working capital as compared to a use of $31.1 million during the prior year period. Disciplined cash management reduced borrowings under the senior credit facility to $38.3 million, compared to $65.3 million at April 30, 2008.
“In a challenging consumer environment, we are managing Perry Ellis International to maintain strong liquidity with a solid balance sheet, thereby operating from a position of strength,” George Feldenkreis, Chairman and CEO, commented.
“As the economy recovers, companies such as ours - that are managed conservatively and focused on efficiency - will emerge stronger positioned to take advantage of multiple opportunities that lay ahead of us.”
Fiscal 2010 Guidance
The Company confirmed its guidance of a total revenue decrease in the high single to low double digits, gross margin improvements towards the second half of the year and expense reductions of approximately $15 million for the entire year.
“We reported a first quarter above analysts' expectations and we are beginning to see positive signs in the consumer environment. Accordingly, we are confirming our perspective for a profitable year, with improvements during the second half of the year,” Mr. Feldenkreis commented. “However, until the uncertainty in the macroeconomic environment subsides and the full performance of our Spring/Summer collection is assessed, we will continue our policy of not providing specific guidance ranges for the remaining of the year,” Mr. Feldenkreis concluded.
“We have acted decisively to adjust our cost structure to the new business reality of this year and expect to deliver solid results during fiscal 2010. We also continue to review all of our businesses for profitability and will take the necessary steps on those businesses that we believe cannot be accretive to our business model” Mr. Feldenkreis concluded.
Balance Sheet Update
Disciplined working capital management allowed the Company to strengthen its liquidity and financial position. Proactive retail planning and strong sell-throughs led to a decrease in inventories of $26.3 million or 18.7% compared to April 30, 2008, and at quarter end inventories were $114.5 million. Accounts receivables were reduced to $154.7 million, compared to $172.4 million compared to April 30, 2008. This represents a $17.7 million or 10.2% reduction, in line with the decrease in total revenues of 9.7%.
Cash flow from operations was a source of $17.4 million in working capital as compared to a use of $31.1 million during the prior year period. Disciplined cash management reduced borrowings under the senior credit facility to $38.3 million, compared to $65.3 million at April 30, 2008.
“In a challenging consumer environment, we are managing Perry Ellis International to maintain strong liquidity with a solid balance sheet, thereby operating from a position of strength,” George Feldenkreis, Chairman and CEO, commented.
“As the economy recovers, companies such as ours - that are managed conservatively and focused on efficiency - will emerge stronger positioned to take advantage of multiple opportunities that lay ahead of us.”
Fiscal 2010 Guidance
The Company confirmed its guidance of a total revenue decrease in the high single to low double digits, gross margin improvements towards the second half of the year and expense reductions of approximately $15 million for the entire year.
“We reported a first quarter above analysts' expectations and we are beginning to see positive signs in the consumer environment. Accordingly, we are confirming our perspective for a profitable year, with improvements during the second half of the year,” Mr. Feldenkreis commented. “However, until the uncertainty in the macroeconomic environment subsides and the full performance of our Spring/Summer collection is assessed, we will continue our policy of not providing specific guidance ranges for the remaining of the year,” Mr. Feldenkreis concluded.
Perry Ellis International
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