Perry Ellis International, Inc. second quarter
revenues decreased 10.0% to $171.0 million
from $190.0 million last year. The decline in
total revenues during the quarter was anticipated
in management’s fiscal 2007 plan, and
was said to be primarily a result of previously
announced reductions of private label and
branded programs at a national mid-tier
chain, the impact of Federated Department
Store door closures due to the May Company
merger integration, and a reduction in offprice
sales. Sales revenues decreased 10.1%
to $165.7 million, while licensing revenues
decreased 6.4% to $5.3 million.
Gross margins for PERY improved 320 basis
points for the second quarter to 31.5% of net
revenues, up from 28.3% last year. This improvement
was partially offset by a 260 basis
point increase in SG&A expenses to 28.9% of
net revenues.
Due to the seasonality of the company’s business,
it generally reports a net loss for the
second quarter, this time around slightly expanding
on last years loss with a net loss of
$2.5 million, down from $2.3 million last year.
Diluter earnings per share were flat at a loss
of 25 cents per share.
In regards to the swim division, it was said to
have experienced strong market share gains
with Nike up over 30% compared to last year
in the first half. Management expects Nike to
continue in a high double-digit growth pattern.
In addition, management sees the JAG
business selling in excess of $10 million in its
first formal year with the company. The Penguin
business was said to be “doing extremely
well,” showing double-digit growth.
