PERRY ELLIS TO CLOSE 15 UNDERPERFORMING RETAIL DOORS OVER 18 MONTHS
Perry Ellis International announced plans to close 15 underperforming doors over the next 18 months as part of its continuing plan to bolster long-term growth. The statement was made as part of the company’s second quarter report last week.
Overall, the company had mixed financial results for the quarter. Its adjusted diluted EPS totaled $0.15, which was above guidance and compared to $0.31 per diluted share in the comparable period of the prior year. Moreover, the company upgraded its fiscal 2017 adjusted EPS guidance in a range of $1.95 to $2.00.
Total revenue was $202 million, a 5 percent decrease compared to $213 million in the second quarter of fiscal 2016. Increased sales across the company’s core global brands were offset by 3 percent planned business exits as well as 2 percent reductions in special market revenues.
“We believe our first half performance demonstrates that our focused strategy is providing us with the right formula to drive our business forward in a challenging retail environment,” said Oscar Feldenkreis, Chief Executive Officer of Perry Ellis International. “We remain confident in our highly desirable portfolio of lifestyle brands – Perry Ellis, Original Penguin and Golf Lifestyle. This combined with the continued traction of our strategy and our strong balance sheet positions us well to deliver on our objectives for fiscal 2017 to drive sustained long term growth and increased value for our shareholders.”
Added George Feldenkreis, executive chairman, Perry Ellis International: “While we feel confident with our business, we do believe that the strength of the U.S. dollar and the changing consumer spending patterns for international tourists in the U.S., along with the volatility in the global environment, remain headwinds. We believe that the sound execution of our business strategies and investment in our world-class brands, together with our strong balance sheet will position us to deliver strong results in fiscal 2017.”
