Perry Ellis International, Inc. (PERY) swung to a net profit for the quarter ended Jan. 28, 2017. The company has made a net profit of $9 million, or $ 0.59 a share in the quarter, against a net loss of $17.70 million, or $1.18 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $10.09 million, or $0.66 a share compared with $5.36 million or $0.35 a share, a year ago. Revenue during the quarter dropped 4.75 percent to $204.18 million from $214.36 million in the previous year period. Gross margin for the quarter expanded 125 basis points over the previous year period to 38.44 percent. Operating margin for the quarter period stood at positive 4.23 percent as compared to a negative 8.91 percent for the previous year period.
Operating income for the quarter was $8.63 million, compared with an operating loss of $19.09 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $17.11 million compared with $12.86 million in the prior year period. At the same time, adjusted EBITDA margin improved 238 basis points in the quarter to 8.38 percent from 6 percent in the last year period.
Oscar Feldenkreis, chief executive officer and president commented, "Fiscal 2017 saw solid progress on our strategic plan, which led to sales growth in our core global brands, expansion in gross margin and earnings in line with guidance. While $12 million in revenues were held back in the fourth quarter as certain retail partners lowered shipments in a challenging retail environment, the strength of our sell through rates enabled us to recapture the majority of these sales shipments at the start of fiscal 2018. We believe this is a testament to the power of our lifestyle brands, the strength of our design and marketing, and the disciplined execution of our strategy by our team."
For financial year 2018, Perry Ellis International, Inc. projects revenue to be in the range of $870 million to $880 million. It forecasts diluted earnings per share to be in the range of $2.07 to $2.17 on adjusted basis for the same period.
Working capital increases marginally
Perry Ellis International, Inc. has recorded an increase in the working capital over the last year. It stood at $223.35 million as at Jan. 28, 2017, up 2.10 percent or $4.59 million from $218.76 million on Jan. 30, 2016. Current ratio was at 2.89 as on Jan. 28, 2017, up from 2.48 on Jan. 30, 2016. Debt comes down
Perry Ellis International, Inc. has recorded a decline in total debt over the last one year. It stood at $105.77 million as on Jan. 28, 2017, down 20.24 percent or $26.84 million from $132.60 million on Jan. 30, 2016. Total debt was 17.84 percent of total assets as on Jan. 28, 2017, compared with 21.30 percent on Jan. 30, 2016. Debt to equity ratio was at 0.34 as on Jan. 28, 2017, down from 0.45 as on Jan. 30, 2016.
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