US-based fashion retailer Perry Ellis International, Inc. has unveiled its financial results for the second quarter of fiscal 2018. The company reported a solid quarter with a commendable rise in revenues and gross margin.
At the start of fiscal, the company set revenue target of US $ 202 million to US $ 205 million but the total revenues of the company increased by 2.5 per cent on Y-o-Y basis to US $ 207 million, exceeding expectations. The growth in core brand sales and strong sell on the maximum rates throughout the spring season propelled the revenue surge.
Gross margin of Perry Ellis surged 37 per cent to 40 basis points versus 36.6 per cent hike in the corresponding period last year. “The increase in gross margin was a result of our disciplined inventory management as well as we marked growing sales of the higher margin core clothing brands..,” claims Perry Ellis.
The company tapped 116 per cent growth income to US $ 3.2 million on the yearly note in the adjusted pre-tax. On a GAAP-basis, pre-tax income was US $ 2.7 million when compared with pre-tax loss of US $ 4.4 million in the same quarter of fiscal 2017.
Furthermore, the Q2 of fiscal 2018 was positive in GAAP-basis net income as it rose to US $ 1 million as against the loss of US $ 3.6 million in the prior year period.
On the other hand, the company witnessed a net income of US $ 2.5 million on an adjusted basis as compared to adjusted net income of US $ 2.3 million in second quarter of fiscal 2017.
Adjusted diluted EPS was US $ 0.16 that exceeded guidance of US $ 0.07 to US $ 0.10 per diluted share. Again, the company beat the financial result of fiscal 2017 in this segment as the adjusted diluted EPS was US $ 0.15 last year.
Perry Ellis also projected revenues guidance for fiscal year 2018 and set to have achieved in between US $ 870 million to US $ 880 million. The retailer also predicted to have earned diluted US $ 2.07 to US $ 2.17 per share in the year ahead.
Oscar Feldenkreis, President and CEO, Perry Ellis, commented, “Particularly, our PERRY ELLIS, Original Penguin, Golf Sportswear and Nike brands have tapped growth for us in Q2. Our brands and business are positioned for success as we enter the fall season and as such have reiterated our guidance.”
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