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Perry Ellis International Reports Preliminary Fiscal 2012 Earnings

22.05.12

For fourth quarter fiscal 2012, the Company expects to report an 11% increase in total revenue to $229 million as compared to $207 million last year. Adjusted earnings per share (“EPS”) are expected in the range of $0.35 - $0.38. Fiscal 2012 revenue is expected to approximate $980 million, an increase of 24% from the prior year. Reflecting the factors below, the Company currently expects full fiscal year 2012 adjusted EPS in a range of $1.91 - $1.94. Adjusted earnings per fully diluted share exclude costs related to the early extinguishment of debt. The Company noted that any potential impairment charges or write downs that may arise from its strategic brand review discussed below would reduce the Company’s EPS to be determined and reported under generally accepted accounting principles (“GAAP”).

The Company noted that revenues and gross margin in the fourth quarter were pressured due to retail partners requesting later deliveries of goods, as well as a significant increase in promotional markdowns and sales allowances for the holiday season. On a positive note, the Company saw strength in its golf lifestyle, women’s dresses and swim businesses. In addition, the Company maintained expense discipline and saw a favorable impact from reversing long-term incentive compensation expense. The Company also anticipates a higher effective tax rate for the year due to an increased mix of domestic versus international income.

Source: Business Wire (press release)