Perry Ellis International Inc. reported second-quarter results that missed Wall Street’s revenue estimate, but beat on adjusted diluted earnings per share.
For the three months ended Aug. 4, the apparel firm swung into the red with a $3.3 million loss, or 21 cents a diluted share, versus net income of $979,000, or 6 cents, a year ago. Adjusted diluted EPS was 16 cents. Net revenues fell 3.5 percent to $199.3 million from $206.6 million, while net sales decreased 4.6 percent to $189.3 million from $198.4 million. The balance of revenues were from royalty income.
The revenue decline was attributed primarily to the decrease in its women’s business due to the loss of sales connected with the bankruptcy and liquidation of The Bon-Ton Stores Inc., as well as the transfer of the Laundry dress business to a licensing partner.
Wall Street was expecting EPS of 14 cents on revenues of $201.3 million.
Oscar Feldenkreis, chief executive officer and president, said, “While second quarter sales were down in total due primarily to a shift in the first quarter and business exits as expected, of particular strength were our Original Penguin, Golf Sportswear and Nike brands.”
The ceo added that the company’s innovation in fashion and fabrication is resonating with consumers globally, and that the company believes its “brands and business are positioned for success as we enter the fall season.”
Because of the pending transaction in which the company will be sold to former chairman and founder George Feldenkreis, Perry Ellis said it would not be providing guidance for future quarters or the fiscal year. The company also said it plans to issue a proxy statement to all shareholders that would contain a white proxy card for voting purposes in connection with the planned transaction.