NEW YORK — Higher costs took the wind out of fourth-quarter earnings for Perry Ellis International Inc., but surging sales lifted the company to double-digit gains for the year.
For the three months ended Jan. 31, the Miami-based firm saw earnings retreat 3.2 percent to $8.2 million, or 83 cents a diluted share, compared with $8.5 million, or 93 cents, in the year-ago period. The earnings-per-share decline stemmed from the higher number of shares issued in a secondary stock offering in May, the company said.
Earnings for the year surged 59.4 percent to $21 million, or $2.15 a share, compared with $13.2 million, or $1.59 a share, in the previous year. Total revenues advanced 29.8 percent to $656.6 million from $505.9 million. Sales vaulted 30.9 percent to $633.8 million from $484.2 million, while royalties gained 5 percent to $22.8 million from $21.7 million.
“We remain focused on expense control and continue to improve the synergies related to the Salant and now the Tropical acquisition,” George Feldenkreis, chairman and chief executive officer, said during the company conference call. “We continue to invest in infrastructure to drive down operational costs.”
Total revenues for the fourth quarter rose 18.4 percent to $172.1 million from $145.4 million in the year-ago period. Revenues generated from sales increased 18.2 percent to $165.9 million from $140.3 million, while royalties shot up 21.8 percent to $6.2 million from $5.1 million.
“The increase during the quarter was primarily attributable to our men’s wear business as well as an increase in royalty income,” George Pita, chief financial officer, said during the call.
“The Perry Ellis brand continues to perform well and experienced a strong quarter driven by the sportswear collection, dress shirts and dress pant sales,” Oscar Feldenkreis, president and chief operating officer, said during the call.
The only segment that failed to perform well was swimwear, George Feldenkreis said.
In the coming year, management is depending on new Perry Ellis denim offerings and the continued success of the Original Penguin brand to fuel growth.
“[Original Penguin] has received resounding support from the media, entertainment and celebrities as well as the retailers and consumers,” Oscar Feldenkreis said. The company plans to introduce a premium line of Original Penguin men’s and women’s denim this spring. Two additional Original Penguin stores are slated to open this year, bringing the total up to five locations.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion