International News

Perry Ellis Announces Solid Earnings in Q1


June 9, 2017

Perry Ellis announced its first quarter 2018 results which seems to be a “solid start” to the fiscal year, following a hit-and-miss fiscal 2017 that fell short of full year revenue expectations but met its earnings guidance. First-quarter revenue decreased 7.3% to $242 million but surpassed the guidance range of $230 million to $235 million. SG&A expenses were $71.2 million compared to $69.9 million in the prior year, and EBITDA was $19.9 million versus $25.2 million in the previous year. The company reported that it will successfully navigate the changing U.S. retail environment. Perry Ellis extended its license agreement with Callaway Golf in November 2016 and entered into a distribution deal for Nike Swim at the beginning of 2017. The parent company of Original Penguin also said in March that it would focus on its licensing, menswear and direct-to-consumer businesses in fiscal 2018, and in the following month entered a new licensing agreement with Sector Apparel Group to expand Original Penguin to new markets in southern Africa. Following the start to fiscal 2018, Perry Ellis reiterated its fiscal year 2018 guidance and expects revenues to be in range of $870 million to $880 million.