Perry Ellis International, Inc. reported record total revenue for the first quarter ended April 30, 2005 of $225.6 million, a 14.3% increase of $28.2 million over the $197.4 million reported for the first quarter ended April 30, 2004.
Net income grew to $8.9 million for the quarter, an increase of $686,000 or 8.4% over the same quarter last year. Earnings per fully diluted share for the first quarter were 89 cents, which were equal to diluted earnings per share for the first quarter in the prior year. Earnings per diluted share for the most recent quarter, however, included a 9% increase in weighted average shares outstanding due to the company's stock offering in May 2004.
The company confirmed its previously announced fiscal 2006 guidance with total revenues expected to be in the range of approximately $890 to $910 million and diluted earnings per share to be approximately $2.25 to $2.35.
George Feldenkreis, chairman and chief executive officer, stated: “We are delighted to have delivered the strongest revenue quarter in the history of the company to our shareholders. Our strong portfolio of brands and diverse customer base continues to position the company for growth. The integration of the Tropical Sportswear business is proceeding as planned, making Perry Ellis International even more important to the retail customers in both the tops and bottoms categories. We see tremendous opportunities for several of our brands in the current retail environment.”
Oscar Feldenkreis, president and chief operating officer, commented, “The strength of our brands and our retail diversification strategy continues to provide solid results. Perry Ellis(R) continues to be a solid performer in the department store channel of distribution, and we can now complement Perry Ellis'(R) proficiency in dress bottoms with Savane(R)'s reputation in casual pants. We are also excited about the performance internationally of the Farah(R) and Savanne(R) brands and are looking forward to the opportunities of launching our other brands in Europe and the U.K. through our recently acquired U.K. subsidiary. Original Penguin(R) is one of the hottest young men's brands in the market today, with a celebrity following and a range of new product launches planned this year. Our Cubavera(R) and other Hispanic initiatives continue to perform exceptionally well at all levels of retail distribution. And finally, our stable of golf brands, especially Grand Slam(R) and PGA Tour(R), performed extremely well this quarter, in response to customer and consumer interest in this lifestyle category.”
PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED)
(amounts in 000's, except per share information)
INCOME STATEMENT DATA:
Three Months Ended April 30,
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2005 2004
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Revenues
Net sales $ 220,394 $ 192,104
Royalty income 5,206 5,315
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Total revenues 225,600 197,419
Cost of sales 152,673 134,616
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Gross profit 72,927 62,803
Operating expenses
Selling, general and administrative
expenses 51,088 44,873
Depreciation and amortization 2,240 1,505
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Total operating expenses 53,328 46,378
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Operating income 19,599 16,425
Interest expense 5,370 3,445
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Income before minority interest and
income taxes 14,229 12,980
Minority interest 243 59
Income tax provision 5,095 4,716
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Net income $ 8,891 $ 8,205
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Net income per share
Basic $ 1.05 $ 0.97
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Diluted $ 0.89 $ 0.89
