Perry Ellis Says Margins Expand, Backs 2016 Views
April 12 2016 - 9:10AM
Dow Jones News
Perry Ellis International Inc. said it narrowed its loss in the
fourth quarter, as the company Tuesday backed its outlook for the
year amid expanding margins.
Results were in line with estimates the company provided in
March.
The company said its margins benefited from its domestic
menswear business, where a solid response to product presentations
and stronger merchandising margins led to fewer markdowns.
Shares, which had fallen 8.5% in the past month and 27% from a
year ago, rose 1.6% to $18.13 in light premarket trading.
Operating Chief Oscar Feldenkreis said that a "focus on building
our core brands" would enable the company "to deliver continued
long-term profitable growth."
Perry Ellis, known for its men's dress shirts and slacks, has a
portfolio of dozens of brands that include Callaway Golf and
Original Penguin, in addition to its namesake label. The company
has been under pressure from activist investor Legion Partners
Asset Management LLC, which had first started pushing for changes
in May 2015.
Legion and the California State Teachers' Retirement System, or
Calstrs—which has an investment in Legion—have been concerned with
Perry Ellis's profit margins. The company has said it is targeting
38% by its 2019 fiscal year. In the fourth quarter, its gross
margin expanded to 37.2% from 34.3% a year earlier. For its full
2016 fiscal year that ended in January, the company's margin was a
record 35.8%.
Over all, the company said it lost $17.7 million, or $1.18 a
share, compared with a loss of $42.9 million, or $2.90 a share, in
the year ago quarter.
Excluding items, such as an impairment charge on long-lived
assets, the company reported per-share profit of 35 cents. Revenue
rose 1.5% to $214.4 million. Those results were in-line with the
company's preliminary revenue and adjusted earnings figures
reported a month ago. Excluding effects such as foreign currency
exchange and exited brands, the company said revenue rose 3%.
The company backed its fiscal outlook for 2017, projecting total
revenues to be in a range of $910 to $915 with adjusted profit
coming in between $1.90 and $1.95 a share.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
April 12, 2016 08:55 ET (12:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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