NEW YORK — Perry Ellis International Inc. on Tuesday reported a 33.5 percent drop in first-quarter income, a decline that was expected because of the retail merger of Federated Department Stores and May Department Stores as well as the company’s planned reduction in private label and branded programs at one of its accounts.
For the three months ended April 30, Perry Ellis’ income was $5.9 million, or 59 cents a diluted share, down from $8.9 million, or 89 cents, in the same quarter last year. Total revenues fell by 5.1 percent to $214 million from $225.6 million, which included a 5.5 percent decrease in sales to $208.3 million from $220.4 million. The balance in total revenues came from licensing income.
George Feldenkreis, chairman and chief executive officer, said during a conference call to Wall Street that in the quarter the company saw the affects of the Federated/May merger. Oscar Feldenkreis, vice chairman, president and chief operating officer, said during the call that one of the planned program reductions was in the private label men’s sportswear business.
The company confirmed fiscal 2007 revenue projections of $860 million to $870 million, with estimated earnings per diluted share standing at $2.30 to $2.40.
Monday, Perry Ellis said it entered into a licensing agreement with JAG Licensing to manufacture and distribute JAG men’s and women’s swimwear and cover-ups in the U.S., Canada and Mexico.