Perry Ellis International's Q1 revenue up 5.4 percent

Total revenue for the first quarter of fiscal 2019 at Perry Ellis International was 255 million dollars, a 5.4 percent or 4.5 percent constant currency increase. The increase in revenue includes a 1.5 million dollars increase due to the adoption of the new revenue recognition standard, offset by declines in the women’s business.

Commenting on the first quarter, Oscar Feldenkreis, the company’s Chief Executive Officer and President, said in a statement: "We are very pleased with our start to fiscal 2019, which continued our momentum from last year. We ended the quarter with a strong balance sheet, which enabled us to retire 50 million dollars of outstanding notes. We remain optimistic about our business prospects as we enter the second quarter, and we conservatively plan to hold the full year guidance.”

Highlights of Perry Ellis International’s Q1 results

GAAP gross margin was 36.8 percent in the first quarter compared to 37.6 percent in the first quarter of fiscal 2018, driven by changes in product mix and the change in the accounting standard for revenue recognition which shifts licensing revenues to the fourth quarter rather than spreading revenues evenly throughout the year. Adjusted gross margin was 36.8 percent compared with adjusted gross margin of 37.6 percent in the first quarter of fiscal 2018.

Adjusted EBITDA totalled 20.8 million dollars compared to 19.9 million dollars in the first quarter of fiscal 2018. As reported under GAAP, net income was 10.2 million dollars or 0.66 dollar per diluted share, compared to 12.8 million dollars or 0.83 dollar per diluted share, in the first quarter of fiscal 2018. Adjusted net income for the first quarter of fiscal 2019 totalled 12.1 million dollars or 0.78 dollar per diluted share compared to 12.8 million dollars or 0.83 dollar per diluted share, in the first quarter of fiscal 2018.

FY18 revenue expected to range between 855 to 865 million dollars

For fiscal 2019, the company currently expects total revenue to be in the range of 855 million dollars to 865 million dollars, which compares to core business sales of 844 million dollars in fiscal 2018. Diluted earnings per share are currently expected in the range of 1.80 dollars to 1.90 dollars, which compares to “core business” adjusted diluted earnings per share of 1.70 dollars in fiscal 2018.

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