Investors sent shares of Perry Ellis International Inc. down in morning trading Friday, after the company provided fiscal year 2019 guidance that was lower than Wall Street’s consensus estimates.The firm also said fourth-quarter net income was $39.7 million, or $2.56 a diluted share, up from $9 million, or 59 cents, a year ago. Excluding adjustments for items such as impairment of long-lived assets and costs of exited brands as well as streamlining of operations, net income for the quarter was $13.6 million, or 88 cents a diluted share, which was still up from a year ago.Total revenues for the quarter ended Feb. 3 rose 11.3 percent to $227.3 million from $204.2 million, which includes an 11.3 percent gain in net sales to $217.7 million from $195.6 million. The balance of revenues came from royalty income. The company said results reflected increases in all business segments, with particular strength in men’s sportswear and Nike swim.The results were roughly on target with expectations. But for fiscal 2019, the company projected the total revenue range to be between $855 million to $865 million. It forecasted diluted EPS at a range of $1.80 to $1.90. Wall Street was looking for more with consensus estimates calling for EPS of $2.29 on sales of $896.95 million.Investors sent shares of Perry Ellis down 3.1 percent to $26.20 in Nasdaq GS trading.Oscar Feldenkreis, president and chief executive officer, told analysts during a morning conference call, “Our positive performance continues to demonstrate the success of our strategies focused on growing our powerful global lifestyle brands, Perry Ellis, Nike Swim, Golf and Original Penguin; expanding higher margin businesses and channels of distribution including international, direct-to-consumer and licensing.“At the same time, we continue to maintain stringent controls of expenses and inventory. This strategy has served us well in fiscal 2018 and positions our business favorably as we start fiscal 2019,” the ceo said.For the company’s core Perry Ellis brand, Feldenkreis said, “Our strategy of progressively updating core programs with new fabrication and innovating product led to strong growth in sales and increased turns to the Perry Ellis brand, leading to market share gains.” He noted that sales for the brand were up 9 percent for the quarter and e-commerce penetration rose to 13 percent over the holiday season. The company’s goal is “growing this channel to represent 20 percent of total sales,” the ceo said.Another key brand for the company is Original Penguin. The brand “saw high double-digit sales growth for the quarter, with strong performance in most major department stores,” said Feldenkreis, adding that the company is driving its full-price business by selling to better department stores, e-commerce and special retail doors.“This year, we will roll out store environments and collaborations in an effort to increase brand awareness and visibility,” the ceo said.Jorge Narino, senior vice president and chief financial officer, told analysts that the women’s business rose 10 percent in the quarter, driven by increases in its Rafaella business and the Laundry sportswear categories. The company is currently transitioning its Laundry dress business to a licensing model.Company executives declined to provide any additional information regarding the status of a non-binding buyout offer from former chairman Feldenkreis to take the company public. The offer, made in February, has a transactional value of $430 million.
Supermodel @helenachristensen teamed up with longtime friend and designer @camillastaerk on a joint @paredeyewear collaboration. The lineup features three styles and 11 offerings, all of which embody a vintage feel. Get all the details on how they celebrated the collab on WWD.com. #wwdaccessories #wwdeye (📷: @slovekinpics)
“It’s a hard industry to keep motivated, as well, so finding different subjects and people is what makes it worth it – when you’re like, oh, I’ve met great people, I feel like I’ve done something good, and I feel proud of having done this,” said French actress Stacy Martin on being grateful for the variety of roles she’s take on. Read @ktauer’s full interview with Martin on her her latest film “Godard Mon Amour.” #wwdeye (📷: @danieldorsa)
After showing in front of the Eiffel Tower for his last two women’s ready-to-wear collection, it looks like @anthonyvaccarello may be heading to the Big Apple. Sources say the designer will stage his next @ysl show in NYC on June 6. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion