Interviews
News Flash
Combined growth in golf lifestyle brands - Perry Ellis
20 Aug '09
5 min read
Our branded swim brands, denim platform, golf brands, Hispanic lifestyle brands and, overall, our brands distributed to mid-tier stores, are beginning to return to more normal levels,” Mr. Feldenkreis commented.
These increases were offset by a reduction in the following business segments:
(i) Weakness at the department store channel for swimwear product, affected by unusually cold weather, and for Perry Ellis brand accounting for $11 million;
(ii) Door count reduction for Perry Ellis Collection by the exiting of 127 unprofitable doors at the department store distribution channel, accounting for $3.5 million;
(iii) Planned exit of mass merchant private label business accounting for approximately $7 million;
(iv) Anticipated deceleration of PING golf business at the corporate channel of $5 million;
(v) Departure of multiple retailers which filed for Chapter 11 during fiscal 2009, accounting for revenues of approximately $5 million;
(vi) Exit of the Dockers outerwear license and men's specialty store business and the planned licensing of Perry Ellis dress shirt of approximately $3 million.
“We are optimistic about holiday and spring orders for the fourth quarter. Second half bookings point to strong results and we believe there will be a return to a normalized replenishment business,” Mr. Feldenkreis concluded.
First Half Operations Review
For the six months ended on August 1, 2009 (“first half of fiscal 2010”), total revenues decreased by 13.3% to $379.2 million from $437.2 million during the six months ended on July 31, 2008 (“first half of fiscal 2009”). These decreases include lost revenues of approximately $44.3 million due to retailers filing for bankruptcy protection during fiscal 2009, the exit of the PING and Dockers licenses and the men's specialty store distribution channel, the planned licensing out of the Perry Ellis dress shirts business and the exit of multiple private label bottoms programs, primarily at Wal-Mart. Due to the highly promotional environment pervasive in the consumer goods industry during the first half of fiscal 2010, the Company also reported a decrease in gross profit margins of 234 basis points compared to the same period last year.
Revenue and gross profit declines have been partially offset by the continued cost reduction process initiated last year. Compared to the first half of fiscal 2009, the Company reduced its operating expenses by $20.9 million, or 16%, to $109.1 million. Lower utilization of the Company's senior credit facility led to an interest expense reduction of $195,000 compared to the comparable period last year.
Balance Sheet Update
The Company also reported its strongest financial condition ...Click here for more details.
These increases were offset by a reduction in the following business segments:
(i) Weakness at the department store channel for swimwear product, affected by unusually cold weather, and for Perry Ellis brand accounting for $11 million;
(ii) Door count reduction for Perry Ellis Collection by the exiting of 127 unprofitable doors at the department store distribution channel, accounting for $3.5 million;
(iii) Planned exit of mass merchant private label business accounting for approximately $7 million;
(iv) Anticipated deceleration of PING golf business at the corporate channel of $5 million;
(v) Departure of multiple retailers which filed for Chapter 11 during fiscal 2009, accounting for revenues of approximately $5 million;
(vi) Exit of the Dockers outerwear license and men's specialty store business and the planned licensing of Perry Ellis dress shirt of approximately $3 million.
“We are optimistic about holiday and spring orders for the fourth quarter. Second half bookings point to strong results and we believe there will be a return to a normalized replenishment business,” Mr. Feldenkreis concluded.
First Half Operations Review
For the six months ended on August 1, 2009 (“first half of fiscal 2010”), total revenues decreased by 13.3% to $379.2 million from $437.2 million during the six months ended on July 31, 2008 (“first half of fiscal 2009”). These decreases include lost revenues of approximately $44.3 million due to retailers filing for bankruptcy protection during fiscal 2009, the exit of the PING and Dockers licenses and the men's specialty store distribution channel, the planned licensing out of the Perry Ellis dress shirts business and the exit of multiple private label bottoms programs, primarily at Wal-Mart. Due to the highly promotional environment pervasive in the consumer goods industry during the first half of fiscal 2010, the Company also reported a decrease in gross profit margins of 234 basis points compared to the same period last year.
Revenue and gross profit declines have been partially offset by the continued cost reduction process initiated last year. Compared to the first half of fiscal 2009, the Company reduced its operating expenses by $20.9 million, or 16%, to $109.1 million. Lower utilization of the Company's senior credit facility led to an interest expense reduction of $195,000 compared to the comparable period last year.
Balance Sheet Update
The Company also reported its strongest financial condition ...Click here for more details.
Perry Ellis International Inc
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
