First quarter of fiscal 2008 results were in line with management's expectations and included a 108 basis point improvement in gross profit margin and a 50 basis point improvement in EBITDA margin to 10.1% of revenues compared to the first quarter of fiscal 2007.
George Feldenkreis, Chairman and Chief Executive Officer, commented: "We are very satisfied with our results for this quarter. During the quarter, we successfully capitalized on the positive momentum built last year, as evidenced by our strong results across all of our businesses, and especially in our key growth platforms. Perry Ellis, AXIST, Grand Slam, Cubavera, PGA Tour and Swimwear brands remain on track for a record year in fiscal 2008. "
The Company ended the quarter with a strong balance sheet and cash flow. As of April 30, 2007, overall long term debt levels decreased to $244 million, a reduction of approximately $26 million compared to a year ago. Inventory levels at quarter end increased to approximately $152 million reflecting the shift in the retail calendar, along with higher levels of replenishment inventory in core styles to support our up trending business and maintain optimal fulfillment rates.
The Company confirmed its previously announced fiscal 2008 guidance with total revenues expected to be in the range of approximately $900 to $910 million and earnings in the range of $1.81 to $1.84 per fully diluted share.
"Our brand-channel-product diversification strategy remains core to our business philosophy and has proven successful once again. Our ability to balance opportunities across multiple channels allowed us to achieve a record first quarter both in revenues and profitability." "Our branded product continues to perform strongly at retail, gaining doors and floor space across all distribution channels. We remain very optimistic about achieving the goals we set for Perry Ellis International this year," Oscar Feldenkreis, President and Chief Operating Officer concluded.
Perry Ellis International Inc
marketing@alchempro.com
