Perry Ellis International, Inc. said that based on preliminary estimates for its second quarter ended July 31, 2010 it expects revenue of approximately $162 million, compared to $159 million during the comparable period last year. Revenues grew approximately 9%, excluding the planned exit of $11 million in unprofitable businesses from last year.
Perry Ellis branded wholesale business as well as its owned retail stores were significant contributors to the company's revenue growth and earnings during second quarter fiscal 2011. In addition to its own brands, Perry Ellis makes swimwear under the Nike and Jag brands and golf apparel under the Callaway, TOP-FLITE, PGA TOUR and Champions Tour for golf apparel
Preliminary second quarter results for fiscal 2011 show continued strong gross margin expansion, operating income and loss per fully diluted share improvement over the comparable period last year. Second quarter fiscal 2011 loss per fully diluted share is expected to be in the range of 15 to 17 cents. This is compared to loss per fully diluted share of 42 cents during the same period last year.
“Continuing to execute on our strategy of branded product and reducing our exposure to lower margin businesses is a key for Perry Ellis International’s long-term success,” commented Oscar Feldenkreis, President and COO. “Allocating resources and focusing on our branded growth platforms especially Perry Ellis Collection, Golf, Hispanic, and Swim will better position our company to continue on its path of growth and further solidify its position as an industry leader in the men’s apparel arena.”
The company continued solidifying its financial position throughout second quarter fiscal 2011. Positive operating cash flow provided the company with the ability to re-purchase an additional $25 million of its senior notes, while also ending the quarter with full availability on its senior credit facility.
The company will report its final financial results for the second quarter of fiscal year 2011 on Wednesday, Aug. 25 2010 before the market opens and sponsor a call with management on the same day at 11:00 a.m. EDT to provide a full update on its results.