Golf & Hispanic lifestyles drive Perry Ellis Q2 revenue
21 Aug '07
4 min read
Perry Ellis International Inc reported results for the second quarter ended July 31, 2007 (second quarter of fiscal 2008). For the second quarter of fiscal 2008, total revenues grew to $195.3 million, a 14.2% increase compared to $171.0 million in the second quarter ended July 31, 2006 (second quarter of fiscal 2007).
Revenue increases were driven by several of the Company's growth platforms - Perry Ellis, golf and Hispanic lifestyles, direct retail and international. As anticipated, the shift in the retail calendar moved some of the shipments from April into May, thus positively impacting revenue growth during the second quarter of fiscal 2008. Additionally, the Company experienced a favorable shift in sales from August into July.
"We are very satisfied with the 14% organic growth achieved this quarter. The power of our brands and the validity of our multi-brand, multi-channel, multi-product strategy, are clearly evidenced in our record second quarter and first half results. During the first half of fiscal 2008, we achieved solid growth across all platforms and excellent sell-throughs," Oscar Feldenkreis, President and Chief Operating Officer commented.
"Our unique ability to interpret different lifestyles and position them in specific channels is a core competency of Perry Ellis International."
Strong revenue growth along with gross profit margin expansion and a 185 basis point reduction in operating expenses as a percent of sales fueled a significant increase in operating income to $5.1 million compared to $1.1 million for the same period last year.
EBITDA for the second quarter of fiscal 2008 grew 113% to $8.3 million, a $4.4 million increase over the same period last year. A table showing the reconciliation of EBITDA to net income is attached. Net income was $267,000 compared to a net loss of $2.5 million for the same period last year. Earnings per share were $0.02 per fully diluted share, compared to a loss per share of $0.17 for the same period last year.
The Company ended the quarter with a strong balance sheet. Strong cash flow allowed the Company to significantly reduce its debt level. As of July 31, 2007, overall long term debt decreased to $175.6 million, a reduction of $61.4 million compared to the beginning of fiscal 2008. As a result, long term debt declined to 32% of total assets as compared to 40% on January 31, 2007.
marketing@alchempro.com
