Perry Ellis International Reports Fourth Quarter Preliminary Fiscal 2013
oFiscal fourth quarter revenues expected to increase 13% to approximately
$258 million vs. $229 million last year
oExpects fiscal 2013 total revenue to approximate $970 million
oFiscal fourth quarter diluted adjusted EPS expected to be in the range of
$.48 - $.50
oExpects adjusted fiscal 2013 EPS guidance in a range of $1.43 to $1.45
MIAMI, Feb. 19, 2013 (GLOBE NEWSWIRE) -- Perry Ellis International, Inc.
(Nasdaq:PERY) announced today, that based on its preliminary expectations for
the fourth quarter and full year, the Company is providing fourth quarter
guidance and updating its expectations for the 2013 fiscal year ended February
2, 2013. The Company noted that the calendar included 53 weeks for fiscal 2013
compared to a 52 week in fiscal 2012 with the additional week occurring in the
fourth quarter. The Company noted that the 53rd week was not material to its
fiscal 2013 results. The Company expects to report actual fourth quarter and
fiscal year 2013 results the week of March 18, 2013.
For the fourth quarter ended February 2, 2013:
*The Company currently expects total revenue to increase 13% to
approximately $258 million versus $229 million in the comparable prior
year period ended January 28, 2012 ("fourth quarter of fiscal 2012").
*Adjusted diluted earnings per share are currently expected in the range of
$0.48 to $0.50.
For the 2013 fiscal year ended February 2, 2013:
*Fiscal 2013 revenue is expected to approximate $970 million, as compared
to $981 million in fiscal 2012.
*Adjusted diluted earnings per share ("EPS") are expected in the range of
$1.43 to $1.45 for fiscal year 2013.
*Adjusted earnings per fully diluted share exclude costs associated with;
(i) the exit of underperforming brands and businesses; (ii) the voluntary
retirement program; (iii) the streamlining and consolidating of
operations; (iv) strategic initiatives and gains from assets sales; and
(v) impairment on long lived assets and certain leasehold improvements.
The Company noted approximately $14.5 million in planned wholesale shipments
shifted from the fourth quarter of fiscal 2013 to the first quarter of fiscal
2014 thus impacting both fourth quarter and fiscal 2013 revenue.These
shipments were completed during the first 10 days of fiscal 2014 and resulted
from retailers delaying receipts until the following fiscal quarter, as well
as late receipts of production.The Company does not believe this delay will
impact its spring selling season.This shift is expected to continue and is
therefore planned in our fiscal quarters for 2014.
"We were quite pleased with our holiday season, despite the headwinds which
faced the entire retail industry from numerous factors including Hurricane
Sandy, economic and political uncertainties, unseasonal climate, and
challenging promotional strategies," said Oscar Feldenkreis, president and
chief operating officer of Perry Ellis International."We executed on our
strategies for our core businesses and generated solid results.Our Perry
Ellis collection and Rafaella sportswear collection businesses delivered
greatly improved product offerings.We experienced reduced promotional sales
and stronger gross margins from a year earlier.We believe that these
businesses look even stronger for the spring/summer season just beginning."
Other Fourth Quarter 2013 Highlights:
oRevenue growth was driven by increases in Golf apparel, Perry Ellis
branded products, Laundry by Shelli Segal, Direct to Consumerand
oGross margins are expected to expand, as a result of improved product
performance within its men's and women's sportswear collections; and
oThe Company maintained its disciplined management of expenses.
In addition at year end the Company expects:
oCash to approximate $55 million; and
oTotal inventory to approximate $183 million, an 8% decrease, compared to
$198 million in the comparable prior year period despite carrying
inventory that shifted into the first quarter of fiscal 2014.
During the fourth quarter of fiscal 2013, the Company entered into a sales
agreement for its John Henry trademark in international territories in Asia.
This sale will result in pre-tax income of approximately $6.3 million or after
tax earnings per share of approximately $0.21.This transaction is expected to
close in the first quarter 2014.The Company plans to continue executing on
the domestic strategy of the John Henry brand as a modern lifestyle resource
to select retailers as well as its licensing relationships in Latin America.
Fiscal 2014 Outlook
George Feldenkreis, chairman and chief executive officer of Perry Ellis
International, commented: "We are very optimistic as the steps we took during
fiscal 2013 to strengthen our management and creative teams delivered solid
product offerings in Perry Ellis and Rafaella sportswear collections during
the holiday period.We feel that we have the platforms in place to continue
our improvement and build even stronger collections in forward seasons.As a
result, we expect continued expansion in gross margin in future years."
Mr. Feldenkreis continued, "I believe that our core business competencies will
benefit from our solid balance sheet to support future growth as we pursue
expansion opportunities domestically and internationally."
For its initial outlook for fiscal 2014, the Company expects revenues to
increase 3% - 5%.Gross margins are expected to expand by over 100 bps from
2013. SG&A as a percent of sales is expected to increase with this ratio
expected to improve as revenue growth increases above 5%. Initial adjusted
diluted earnings per share are expected to range from $1.50 to $1.60. This
guidance range excludes costs associated with the exit of underperforming
brands and businesses, the streamlining and consolidating of operations and
strategic initiatives and impact from assets sales.
About Perry Ellis International
Perry Ellis International, Inc. is a leading designer, distributor and
licensor of a broad line of high quality men's and women's apparel,
accessories and fragrances, as well as select children's apparel. The
Company's collection of dress and casual shirts, golf sportswear, sweaters,
dress pants, casual pants and shorts, jeans wear, active wear, dresses and
men's and women's swimwear is available through all major levels of retail
distribution. The Company, through its wholly owned subsidiaries, owns a
portfolio of nationally and internationally recognized brands, including:
Perry Ellis®, Jantzen®, Laundry by Shelli Segal®, C&C California®, Rafaella®,
Cubavera®, Ben Hogan®, Centro®, Solero®, Munsingwear®, Savane®, Original
Penguin® by Munsingwear®, Grand Slam®, Natural Issue®, Pro Player®, the
Havanera Co.®, Axis®, Gotcha®, Girl Star®, MCD®, John Henry®, Mondo di Marco®,
Redsand®, Manhattan®, Axist®, Farah®, Anchor Blue® and Miller's Outpost®. The
Company enhances its roster of brands by licensing trademarks from third
parties, including: Nike® and Jag® for swimwear, and Callaway®, PGA TOUR® and
Champions Tour® for golf apparel. Additional information on the Company is
Safe Harbor Statement
We caution readers that the forward-looking statements (statements which are
not historical facts) in this release are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on current expectations rather than
historical facts and they are indicated by words or phrases such as
"anticipate," "could," "may," "might," "potential," "predict," "should,"
"estimate," "expect," "project," "believe," "plan," "envision," "continue,"
"intend," "target," "contemplate," or "will" and similar words or phrases or
comparable terminology. We have based such forward-looking statements on our
current expectations, assumptions, estimates and projections. While we believe
these expectations, assumptions, estimates and projections are reasonable,
such forward-looking statements are only predictions and involve known and
unknown risks and uncertainties, and other factors that may cause actual
results, performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements, many of which are beyond our control. These
factors include: general economic conditions, a significant decrease in
business from or loss of any of our major customers or programs, anticipated
and unanticipated trends and conditions in our industry, including the impact
of recent or future retail and wholesale consolidation, the effectiveness of
our planned advertising, marketing and promotional campaigns, our ability to
contain costs, disruptions in the supply chain, our future capital needs and
our ability to obtain financing, our ability to integrate acquired businesses,
trademarks, trade names and licenses, our ability to predict consumer
preferences and changes in fashion trends and consumer acceptance of both new
designs and newly introduced products, the termination or non-renewal of any
material license agreements to which we are a party, changes in the costs of
raw materials, labor and advertising, our ability to carry out growth
strategies including expansion in international and direct to consumer retail
markets, the level of consumer spending for apparel and other merchandise, our
ability to compete, exposure to foreign currency risk and interest rate risk,
possible disruption in commercial activities due to terrorist activity and
armed conflict, and other factors set forth in Perry Ellis International's
filings with the Securities and Exchange Commission. Investors are cautioned
that all forward-looking statements involve risks and uncertainties, including
those risks and uncertainties detailed in Perry Ellis' filings with the SEC.
You are cautioned not to place undue reliance on these forward-looking
statements, which are valid only as of the date they were made. We undertake
no obligation to update or revise any forward-looking statements to reflect
new information or the occurrence of unanticipated events or otherwise.
CONTACT: Perry Ellis International, Inc.
Anita Britt, 305-873-1488
Perry Ellis International, Inc. logo
Press spacebar to pause and continue. Press esc to stop.