Perry Ellis International Inc. swung to a profit in the fourth quarter, topping analysts’ estimates by 5 cents a share.
For the three months ended Jan. 30, net income was $8.5 million, or 64 cents a diluted share, versus the consensus of 59 cents. In the year-ago quarter, the Miami-based apparel supplier weathered a loss of $21.6 million, or $1.58 a diluted share.
Total revenues rose 2.7 percent to $196.4 million from $191.2 million, as sales gained 3 percent to $190 million from $184.5 million. The remainder of revenues was derived from royalty income.
Last year, net income was $13.2 million, or $1.01 a diluted share, against a loss of $12.9 million, or 89 cents a diluted share, in 2008. Total revenues were down 11.4 percent to $754.2 million from $851.3 million.
George Feldenkreis, chairman and chief executive officer, told Wall Street analysts on a conference call, “We are on track to resume our growth as we have been able to substantially reduce our expense structure and improve all of our operations. We believe we are leaner and stronger and more focused than we have ever been.”
He said the firm believes the economy has hit “rock bottom, and the fact that over 140 million Americans were able to keep their jobs and are returning to a normal lifestyle will have dramatic results in the performance of the retail industry.”
He also noted the women’s business, including brands such as Jantzen and Laundry by Shelli Segal, is doing better and the company is optimistic for the year about that division’s operations, which were a “considerable drag on our profits last year.”
The apparel firm expects diluted earnings per share of between $1.25 and $1.40 for the current year, with revenues in the range of $770 million to $790 million.
While shares fell 9 percent on Friday following the disclosure of quarterly results, to $20.90, they’ve since rallied 10.6 percent, closing Tuesday at $23.12.
Alberta Ferretti's "Rainbow Week" sweaters are back. The designer closed her #MFW show with a few day-of-the-week sweaters, which first debuted on the catwalk last January as part of the pre-fall 2017 collection. #wwdfashion (📷: @delphineachard)