Perry Ellis International reported fiscal 2013 fourth quarter revenues total $258 million, an increase of 13 percent from $229 million last year.

Oscar Feldenkreis, president and chief operating officer of Perry Ellis International commented, “We ended fiscal 2013 positively, reporting strong fourth quarter results and achieving progress on our objectives. Most rewarding is the improvement generated within our Perry Ellis and Rafaella sportswear collections. We were also pleased to see continued positive momentum for our Golf lifestyle apparel across all brands and our Direct to Consumer business, which delivered positive comparable store sales in the quarter.”

Fourth Quarter 2013 Results

Total revenue for the fourth quarter of fiscal 2013 was $258 million, a 13 percent increase compared to $229 million reported in the fourth quarter of fiscal 2012. Revenue growth was driven by many of the company’s businesses, including Golf lifestyle apparel, the Perry Ellis brand, Laundry by Shelli Segal, International distribution and Direct to Consumer sales.

Gross margins expanded to 32.6 percent as compared to 31.4 percent in the same period of the prior year, reflecting a lower level of promotions in the collections businesses as well as higher contributions from the businesses discussed above.

As reported under GAAP, fourth quarter earnings per diluted share were $0.28 compared to earnings per diluted share of $0.12 in the fourth quarter of fiscal 2012. On an adjusted basis, fourth quarter earnings per diluted share were $0.50 as compared to adjusted earnings per diluted share of $0.38 in the fourth quarter of fiscal 2012. Adjusted earnings per diluted share exclude certain items as outlined in Table 1 Reconciliation of GAAP diluted earnings per share to adjusted diluted earnings per share.

Fiscal 2013 Results

Fiscal 2013 revenues were $970 million, as compared to $980 million reported in the prior year ended January 28, 2012 (“fiscal 2012). The prior year results include approximately $20 million of revenues associated with businesses exited during fiscal 2013. Revenues rose in many of the company’s businesses, including Golf lifestyle apparel, Laundry by Shelli Segal, International distribution and Direct to Consumer. These increases were partially offset by planned reductions in the Perry Ellis and Rafaella sportswear collections.

On a GAAP basis, net income for fiscal 2013 was $14.8 million, or $0.97 per fully diluted share compared to GAAP net income of $25.5 million or $1.60 per fully diluted GAAP share in fiscal 2012.

Adjusted earnings per diluted share for fiscal 2013 were $1.45 compared to adjusted earnings per diluted share of $1.94 in fiscal 2012 and exclude the costs mentioned above for both fiscal periods.

Gross margin for fiscal 2013 was 32.7 percent and was negatively impacted by 30 basis points due to business exit costs. This compares to gross margin of 33.0 percent in fiscal 2012. Gross margin performance in fiscal 2013 also reflects a higher level of promotional activity in the first half of the year as the company repositioned its collections businesses.

Selling, general and administrative (“SG&A”) expenses were well controlled throughout fiscal 2013 and totaled $280 million compared to $268 million in fiscal 2012. The year over year increase reflects approximately $10 million in costs associated with strategic initiatives and non-cash asset impairment costs. In addition, store openings added incremental store expenses, which were partially offset by expense savings initiatives undertaken by the company.

Earnings before interest, taxes, depreciation, amortization and impairments (“adjusted EBITDA”) for fiscal 2013 totaled $61.4 million, or 6.3 percent of total revenue. This compares to adjusted EBITDA of $75.1 million for fiscal 2012.

Balance Sheet Update

George Feldenkreis, chairman and chief executive officer of Perry Ellis International stated, “Our liquidity and leverage profile remains extremely strong with net debt to capitalization of 24.4 percent and full availability under our credit facility. During the year we made a strategic purchase of the Ben Hogan tradename to enhance our Golf lifestyle portfolio. We also divested tradenames and businesses that were small revenue and low profit contributors.

“As we look to 2014, our strategic focus is driving the elevation of our Perry Ellis and Rafaella collection sportswear businesses as well as on optimizing our Golf lifestyle business. We will continue to invest in these businesses internally to enhance and grow profitability and market share.”

Cash and cash equivalents at year end totaled $55 million. Inventories declined by 8 percent to $183 million as compared to $198 million in the comparable prior year period ended January 28, 2012. The company also increased inventory turnover to 3.9 times from 3.3 times in the prior year.

Fiscal 2014 Guidance

Oscar Feldenkreis concluded, “As we look ahead, we believe it is prudent to remain conservative regarding our business outlook for fiscal 2014. Our focus is direct and unyielding and our priority is on our namesake brand, Perry Ellis. We have augmented our management, creative and merchandising teams for both Perry Ellis and Rafaella and believe we are well positioned for continued progress in fiscal 2014. We also remain optimistic about our core business opportunities and expect to further our growth potential through the expansion of our distribution channels.”

The company is maintaining the guidance it provided on February 19, 2013 for the twelve months ending February 1, 2014 (“fiscal 2014”). The company continues to expect revenue to increase in a range of 3 percent to 5 percent and fully diluted earnings per share on an adjusted basis to be in a range of $1.50 – $1.60. On a GAAP basis, the company expects fully diluted earnings per share to be in a range of $1.60 – $1.70 which includes the sale of the John Henry trademark in Asia which closed in February 2013.

The company, through its wholly owned subsidiaries, owns a portfolio of nationally and internationally recognized brands, including: Perry Ellis(R), Jantzen(R), Laundry by Shelli Segal(R), C&C California(R), Rafaella(R), Cubavera(R), Ben Hogan(R), Centro(R), Solero(R), Munsingwear(R), Savane(R), Original Penguin(R) by Munsingwear(R), Grand Slam(R), Natural Issue(R), Pro Player(R), the Havanera Co.(R), Axis(R), Gotcha(R), Girl Star(R), MCD(R), John Henry(R), Mondo di Marco(R), Redsand(R), Manhattan(R), Axist(R), Farah(R), Anchor Blue(R), Miller’s Outpost(R), Tahoe River Outfitters(R), Original Khaki company(R) and Techworks(R). The company enhances its roster of brands by licensing trademarks from third parties, including: Nike(R) and Jag(R) for swimwear, and Callaway(R), PGA TOUR(R) and Champions Tour(R) for golf apparel.