Perry Ellis International Inc. today posted third-quarter results that were impacted by promotions in women’s better sportswear, as well as increased markdowns during the quarter for its Rafaella and Perry Ellis Collection businesses.
For the three months ended Oct. 29, income attributable to Perry Ellis fell 9.3 percent to $6.5 million, or 40 cents a diluted share, from $7.2 million, or 51 cents, last year. Total revenues rose 23.4 percent to $248.4 million from $201.3 million, which included a 24.3 percent gain in sales to $242.1 million from $194.9 million. The balance of revenues was from royalty income.
The company said strong sales results in the firm’s golf, Hispanic, accessories, women’s contemporary dress and direct-to-consumer businesses were offset by approximately $5 million of unshipped product associated with Rafaella and the company’s European business due to weather issues. Perry Ellis also said there were “unusually high levels of promotional activity in women’s better sportswear,” as well as product mix challenges for Rafaella and the Perry Ellis Collection, which led to increased markdowns during the quarter.
Oscar Feldenkreis, president and chief operating officer, said the company’s goal for the “Perry Ellis brand has been to expand its domestic focus in product offering, performance and distribution.”
The firm recently named Carmine Petruzello president and Doug Jakubowski chief merchandising officer of the Perry Ellis division.
George Feldenkreis, chairman and chief executive officer, said the challenges in both Perry Ellis and Rafaella were created by a “lack of execution from the showroom to the retail floor, and we expect to see elevated levels of markdowns driven by this in the fourth quarter.”
For fiscal year 2012, Perry Ellis said it expects total revenue of $1 billion, with diluted earnings per share above $2 compared with prior estimates of between $2.42 and $2.52.