NEW YORK — Perry Ellis International Inc. on Tuesday reported a narrower second-quarter loss, helped by a 50.3 percent jump in revenues, which were partly generated by the company’s new Tropical Sportswear International business.
In the three months ended July 31, Perry Ellis posted a loss of $2.4 million, or 25 cents a diluted share, compared with a loss of $2.6 million, or 29 cents, in the same year-ago period. Analysts anticipated a loss of 33 cents in the latest quarter.
The company said in a statement that second-quarter financial performance usually results in a net loss because of the seasonal nature of its business.
Total revenues increased to $190 million from $126.4 million last year, which included a 52.3 percent boost in sales to $184.3 million. The balance of revenues were royalty income.
The company said its $85 million acquisition of Tropical Sportswear, which closed during the first quarter, added $50 million to second-quarter revenues.
In the six months, Perry Ellis earned $6.5 million, or 65 cents a diluted share, compared with $5.6 million, or 59 cents, a year ago. Total revenues increased 28.4 percent to $415.6 million.
“The TSI integration is progressing extremely well,” George Feldenkreis, chief executive officer of the company, said in a statement. “We are receiving a positive retail reaction to our offerings and have retained all major TSI programs. We have consolidated our sales forces, achieved significant overhead reduction and will complete the transition of all sourcing to a full-package model during our third quarter.”
The firm said it had strong sales growth during the quarter in its Perry Ellis brand, as well as strong organic sales growth of 12 percent in the company’s men’s wholesale operations. Other well-performing brands were Original Penguin and Cubavera.
Oscar Feldenkreis, president and chief operating officer of Perry Ellis, added in the statement that the company plans to distribute Original Penguin in the European market in spring 2006.
“The retail landscape continues to be very uncertain on an industrywide basis because of geographic changes in distribution of the last 12 months and the acceleration that will occur in the next 12,” George Feldenkreis said in a conference call with analysts.
This story first appeared in the August 24, 2005 issue of WWD. Subscribe Today.