Costs connected to its January acquisition of Rafaella pulled Perry Ellis International Inc. to a drop in fourth-quarter profit despite an increase in revenues.
For the three months ended Jan. 29, income declined 9.2 percent to $7.7 million, or 54 cents a diluted share, from $8.5 million, or 64 cents, a year ago. Excluding costs associated with its Rafaella purchase and impairment charges for certain retail leaseholds, adjusted EPS was 69 cents versus 64 cents last year.
Analysts, on average, expected EPS of 67 cents.
Total revenues rose 5.3 percent to $206.9 million from $196.4 million. Sales gained 4.8 percent to $199.2 million from $190 million. The balance of the revenues was from royalty income.
“Our key growth platforms, led by women’s and contemporary, with the recent acquisition of Rafaella, as well as Perry Ellis Collection, Golf, Hispanic and direct-to-consumer, are all very well positioned to show strong organic growth and capture additional market share in fiscal 2012,” said Oscar Feldenkreis, president and chief operating officer.
For the year, income jumped 83 percent to $24.1 million, or $1.70 a diluted share, from $13.2 million, or $1.01, in 2009. Total revenues rose 4.8 percent to $790.3 million from $754.2 million, while sales increased 4.8 percent to $763.9 million from $729.2 million.
For the current fiscal year, Perry Ellis said diluted EPS is expected in the range of $2.30 to $2.40.
The firm completed two transactions to strengthen in financial condition on March 8. It completed the offering of 2 million shares of its common stock and a $150 million offering of senior subordinated notes due 2019.
George Feldenkreis, chairman and chief executive officer, said, “We are extremely pleased with our two recent capital market transactions, which serve as an integral part of our overall growth strategy and strong financial condition.”
Shares Friday declined 60 cents, or 2.3 percent, to $25.70.