Perry Ellis revenue up, but FY19 guidance lower than expected
It’s been a strong year for Perry Ellis. Following several consecutive strong quarters, the clothing retailer reported on Thursday a jump in revenue of 2 percent to $875 million, for the fiscal year ended February 3, 2018.
The revenue growth was primarily driven by growth in the company’s core brands, specifically Men's Sportswear and Nike swim.
Perry Ellis International, which owns the likes of Perry Ellis, Jantzen and Original Penguin, and holds licensing deals with brands such as Nike, reported net income for fiscal 2018 of $56.7 million, or $3.68 per diluted share.
“We are pleased to continue the positive momentum for our brands and businesses in the final quarter of the year, delivering a double digit increase in total revenue, a 50 basis point expansion in gross margin and continued leverage in expenses which contributed to an almost doubling of GAAP pre- tax earnings compared to the fourth quarter of last year,” said CEO and President Oscar Feldenkreis.
“Our ongoing strength continues to validate the success of our strategy and the strong execution of our initiatives by our team with continuous innovation across our powerful global brands leading to strong acceptance of our product offerings around the world.”
In the fourth quarter, the company reported revenue of $227 million, an 11.3 percent increase. Meanwhile, fourth-quarter net income was $39.7 million, or $2.56 a diluted share.
Feldenkreis noted that sales for the brand were up 9 percent during the quarter with international growth of 33 percent.
Though results were close to market expectations, fiscal 2019 guidance was lower than expected.
For fiscal 2019, the company currently expects total revenue to be in the range of $855 million to $865 million. Diluted earnings per share are currently expected in the range of $1.80 to $1.90.
“We remain excited about our outlook as we begin fiscal 2019 and expect the execution of our strategy along with the disciplined management of expenses and our balance sheet to result in another strong year for Perry Ellis International and its shareholders", said Feldenkreis.
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