NEW YORK — Driven by robust top-line growth, Perry Ellis International Inc. on Tuesday posted strong first-quarter profits.
For the three months ended April 30, income rose 8.4 percent to $8.9 million, or 89 cents, from $8.2 million, or 89 cents, in the same year-ago quarter. Total revenues increased 14.3 percent to $225.6 million from $197.4 million, which included a 14.7 percent jump in sales to $220.4 million from $192.1 million. The balance of the revenues in both periods came from royalty income.
George Feldenkreis, chairman and chief executive officer, said during a conference call to Wall Street analysts that the company is proceeding with its planned integration of the Tropical Sportswear business. So far, sales, merchandising operations and sourcing have been integrated within the Perry Ellis organization.
Feldenkreis also noted that Perry Ellis is “almost equally divided between tops and bottoms.” More important, he told analysts, the company’s goal is to continue to strengthen its infrastructure. “Many of our brands are very underdeveloped and capable of helping us to achieve our goal of $1 billion in net sales,” he said.
Feldenkreis said the company has strengthened its management group in the technology and sourcing infrastructure sectors to take advantage of the opportunities in those areas.
Oscar Feldenkreis, vice chairman, president and chief operating officer, said, “Inventories are 30 percent below last year’s levels, and we do not expect to incur the significant end-of-season disposal at cost in the second and third quarter of this year.”
The company confirmed its previously announced fiscal 2006 guidance, with total revenues expected to be in the range of $890 million to $910 million, and diluted earnings per share between $2.25 to $2.35.