Perry Ellis posts 'hit-and-miss' results for fiscal 2017
Perry Ellis narrowly missed its full year revenue for fiscal 2016, but it did manage to exceed its adjusted EPS guidance.
Revenue for the year fell to $861 million from $900 million, which missed the reaffirmed expectation of $885 million to $890 million that was announced in November.
The company’s core brands posted a 1.6% increase in revenue, but this was offset by planned reductions of $20 million in exited brands and an $11 million reduction in special market programs.The year was also impacted by unfavorable foreign exchange rates, a decline in women’s shipments, and a shift in wholesale shipments all totaling in $38 million.
Adjusted earnings per diluted share were $2.04, exceeding the guidance range of $1.95 to $2.00, and net income on a GAAP basis increased to $14.5 million from $7.3 million. In addition, licensing revenues and favorable product performances contributed to the adjusted gross margin increase of 37.2%.
Fourth quarter total revenue fell 4.7% to $204 million, reflecting a 1.4% increase in men’s business and a 6.2% comparable sales decline. The men’s business, namely Perry Ellis, Golf Lifestyle Apparel and Nike, drove the 150 basis point increase in gross margin.
GAAP net income for the quarter increased to $9.0 million from a loss of $17.7 million and adjusted net income per diluted share was $0.66 compared to $0.35 in the prior year’s comparable period.
For fiscal 2018, Perry Ellis plans to increase its focus on high growth brands such as Perry Ellis, Original Penguin, Golf Lifestyle and Nike Swim licensed business; strengthen its menswear business through wholesale, retail and licensing; continue its international distribution expansion; and enhance its direct-to-consumer channel that grew 18% during fiscal 2017.
The company is expecting its fiscal 2018 total revenues to range from $870 million to $880 million and the adjusted diluted earnings per share to be in range of $2.07 to $2.17.
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