Revenue during the quarter dropped 7.35 percent to $242.09 million from $261.29 million in the previous year period. Gross margin for the quarter expanded 124 basis points over the previous year period to 37.63 percent. Total expenses were 93.22 percent of quarterly revenues, up from 91.70 percent for the same period last year. That has resulted in a contraction of 152 basis points in operating margin to 6.78 percent.

Operating income for the quarter was $16.42 million, compared with $21.68 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $19.89 million compared with $26.07 million in the prior year period. At the same time, adjusted EBITDA margin contracted 176 basis points in the quarter to 8.22 percent from 9.98 percent in the last year period.

Oscar Feldenkreis, chief executive officer and president, commented, “We are pleased to report a solid start to Fiscal 2018 with both our top and bottom line results surpassing guidance, reflecting solid growth in our core brands driven by the earlier shipment of Spring merchandise and strong gross margin expansion. Our razor sharp focus on maximizing the potential of our core global brands by delivering a continuous flow of new innovative products while maintaining tight inventory discipline continued to serve us well in a difficult U.S. retail environment, with particular strength in Golf Lifestyle Apparel and Nike Swim. During the quarter, we also continued to make progress on our speed-to-market initiatives, which position us to bring new innovation to store faster at increasing margins and replenish the most sought after products in season.”

Perry Ellis International expects revenue to be in the range of $870 million to $880 million for financial year 2018. For financial year 2018, the company projects diluted earnings per share to be in the range of $2.07 to $2.17 on adjusted basis.