Perry Ellis International, Inc. (NASDAQ:PERY) today provided an
update on fiscal year 2010 earnings and issued initial guidance for
fiscal year 2011.
Based on preliminary results, the Company announced it expects
to deliver results at or above the top end of its previously
announced guidance range for the year ended January 30, 2010
(“fiscal 2010”) of $0.80 - $0.95 per fully diluted share. The
Company will report full year fiscal 2010 results on or about March
19, 2010. Preliminary fourth quarter results noted a return to
revenue growth and strong gross and operating margin increases over
prior year.
The Company ended fiscal year 2010 in an outstanding financial
position. Focused inventory management throughout the year resulted
in a reduction of approximately 19% compared to prior year.
Positive operating cash flow provided the Company the ability to
repurchase $21 million of its senior notes. As a result of this
working capital and cash flow management, Perry Ellis International
ended the year with full availability on its revolving credit
facility and a total net debt to capitalization ratio of 34% as
compared to 47% for the prior year.
“Strong performance across our product lines most notably within
Perry Ellis Collection allowed us to significantly reduce our
markdown allowances. This reduction coupled with inventory
management and cost controls drove increased gross and operating
margins for the quarter,” noted George Feldenkreis, Chairman and
Chief Executive Officer. “I am extremely pleased with the strength
of our balance sheet and the reduction in our debt ratio
exemplifies our fortitude in navigating during challenging economic
times.”
Fiscal 2011 Initial Guidance
The Company announced that for the twelve months ending January
29, 2011 (“fiscal 2011”) it anticipates earnings per shares in the
range of $1.25 to $1.40 and revenues to be in the range of $770 -
$790 million for the year which represents a low to mid-single
digit increase.
As the Company has exited certain underperforming businesses
during fiscal 2010, it is expected that the improvement in gross
margins, noted during the third quarter of fiscal 2010, will
continue throughout fiscal 2011, as compared to the same periods in
fiscal 2010. Besides these margin improvements, the Company also
expects to maintain solid operating leverage derived from the cost
reduction activities undertaken during fiscal 2010.
“After two challenging but transformational years and the most
severe global economic recession since the 1930s, Perry Ellis
International has emerged as a strong financial leader. We remain
confident that the decisive actions we have taken will complement
the strength of our brand portfolio and diversified business
strategy to drive improvements in operating metrics.
“We are extremely excited regarding prospects for our new
business initiatives including the launches of Callaway Golf,
Pierre Cardin, as well as the Collegiate golf program as we begin
the new fiscal year. Our business platforms are strategically
positioned to meet the needs of numerous consumers and these
platforms provide us with expansion into new opportunities,”
commented George Feldenkreis.
About Perry Ellis International
Perry Ellis International, Inc. is a leading designer,
distributor and licensor of a broad line of high quality men's and
women's apparel, accessories, and fragrances. The Company's
collection of dress and casual shirts, golf sportswear, sweaters,
dress and casual pants and shorts, jeans wear, active wear and
men's and women's swimwear is available through all major levels of
retail distribution. The Company, through its wholly owned
subsidiaries, owns a portfolio of nationally and internationally
recognized brands including Perry Ellis®, Jantzen®, Laundry by
Shelli Segal®, C&C California®, Cubavera®, Munsingwear®,
Savane®, Original Penguin® by Munsingwear®, Grand Slam®, Natural
Issue®, Pro Player®, the Havanera Co.®, Axis®, Tricots St.
Raphael®, Gotcha®, Girl Star®, MCD® John Henry®, Mondo di Marco®,
Redsand®, Manhattan®, Axist® and Farah®. The Company enhances its
roster of brands by licensing trademarks from third parties
including Pierre Cardin® for men’s sportswear, Nike® and Jag® for
swimwear, and Callaway® and PGA TOUR® for golf apparel. Additional
information on the Company is available at http://www.pery.com.
Safe Harbor Statement
We caution readers that the forward-looking statements
(statements which are not historical facts) in this release are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are based on current expectations rather than historical
facts and they are indicated by words or phrases such as
"anticipate," "could," "may," "might," "potential," "predict,"
"should," "estimate," "expect," "project," "believe," "plan,"
"envision," "continue," "intend," "target," "contemplate," or
"will" and similar words or phrases or comparable terminology. We
have based such forward-looking statements on our current
expectations, assumptions, estimates and projections. While we
believe these expectations, assumptions, estimates and projections
are reasonable, such forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
and other factors that may cause actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements, many of which are beyond our control.
These factors include: general economic conditions, a significant
decrease in business from or loss of any of our major customers or
programs, anticipated and unanticipated trends and conditions in
our industry, including the impact of recent or future retail and
wholesale consolidation, the effectiveness of our planned
advertising, marketing and promotional campaigns, our ability to
contain costs, disruptions in the supply chain, our future capital
needs and our ability to obtain financing, our ability to integrate
acquired businesses, trademarks, trade names and licenses, our
ability to predict consumer preferences and changes in fashion
trends and consumer acceptance of both new designs and newly
introduced products, the termination or non-renewal of any material
license agreements to which we are a party, changes in the costs of
raw materials, labor and advertising, our ability to carry out
growth strategies including expansion in international and direct
to consumer retail markets, the level of consumer spending for
apparel and other merchandise, our ability to compete, exposure to
foreign currency risk and interest rate risk, possible disruption
in commercial activities due to terrorist activity and armed
conflict, and other factors set forth in Perry Ellis
International's filings with the Securities and Exchange
Commission. Investors are cautioned that all forward-looking
statements involve risks and uncertainties, including those risks
and uncertainties detailed in Perry Ellis' filings with the SEC.
You are cautioned not to place undue reliance on these
forward-looking statements, which are valid only as of the date
they were made. We undertake no obligation to update or revise any
forward-looking statements to reflect new information or the
occurrence of unanticipated events or otherwise.
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