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Perry Ellis International Reports Fourth Quarter And Full Fiscal 2016 Results And Reiterates Full Year Guidance For Fiscal 2017

The following excerpt is from the company's SEC filing.

MIAMI, April 12, 2016 (GLOBE NEWSWIRE) Perry Ellis International, Inc. (Nasdaq:PERY) today reported results for the fourth quarter (fourth quarter of fiscal 2016) and the fiscal year ended January 30, 2016 (fiscal 2016).

Key Fiscal 2016 Financial Accomplishments and Operational Highlights:

Adjusted diluted EPS increased 225% to $1.81 as compared to $0.56 in prior year.

Gross margin expanded 170 basis points to a record 35.8%.

Total revenues up 1% to $900 million as compared to $890 million in the prior year period; this includes a negative 1% impact from foreign currency and 2% related to exited brands and businesses.

GAAP net loss of $0.49 diluted per share includes a $26.6 million, or $1.37 per diluted share, non-cash impairment charge recorded to reduce the carrying value of intangible assets related to brands and businesses as part of our strategic portfolio rationalization.

International revenues increased 9% representing 13% of total revenues, up from 12% in fiscal 2015.

Direct-to-consumer revenues increased 5% representing 11% of total revenues, up from 10% in fiscal 2015.

Licensing revenues increased 9% with 26 new licenses signed in fiscal 2016.

Generated cost savings of $7.8 million.

Company expanded its credit facility from $125 to $200 million redeeming $100 million of its 7 7/8% senior subordinated notes reducing interest costs by approximately $4.5 million during the year.

Oscar Feldenkreis, President and Chief Operating Officer commented, During the quarter and throughout the year we focused on our strategic plan to support and advance our core global brands, to expand gross margin and to generate cost efficiencies. The successful implementation of our strategy culminated in our adjusted earnings per share increasing by more than 225% in the fiscal 2016 year. During the year, we recorded growth in core brands, in licensing, and our international business, underscoring the global appeal of our brands and supporting our margin expansion. As previously discussed, while fiscal 2016 presented the industry with challenges driven by a soft consumer spending environment and a stronger US dollar, we adapted to meet the changing landscape and ended the year positioned to generate higher margin revenues in the year ahead. I firmly believe that our focus on building our core brands, discipline and agility along with our powerful brands and proven growth initiatives will enable Perry Ellis International to deliver continued long-term profitable growth and value creation for our shareholders.

Fiscal 2016 Fourth Quarter Results

Total revenue for the fourth quarter of fiscal 2016 was $214 million, a 1.5% decrease compared to $218 million reported in the fourth quarter of fiscal 2015. As previously disclosed, revenues were impacted by 1% by foreign exchange as well as from the reduction of revenues associated with exited brands, including C&C California, as well as a migration of two non-core brands to licensed arrangements during Fiscal 2017. Excluding these effects, revenue increased 3% for the fourth quarter.

During the fourth quarter of fiscal 2016, overall gross margins expanded 290 bps to 37.2% compared to the fourth quarter of the prior year (fiscal 2015). Margin expansion was generated in the Companys domestic menswear business driven by reduced markdowns as a result of strong consumer response to our product presentations and stronger merchandising margins. On an adjusted basis, fiscal 2016 fourth quarter earnings per diluted share increased over 390% to $0.35 as compared to adjusted earnings per diluted share of $0.07 in the fourth quarter of fiscal 2015. Adjusted earnings per diluted share exclude certain items as outlined in the attached Table 1 Reconciliation of GAAP diluted loss per share to adjusted diluted earnings per share.

As reported under GAAP, the fiscal 2016 fourth quarter loss was $17.7 million or $1.18 per diluted share, compared to a loss of $42.9 million, or $2.90 per diluted share, in the fourth quarter of fiscal 2015. The Companys fourth quarter 2016 results included a $26.6 million, or $1.37 per diluted share, non-cash impairment charge recorded to reduce the carrying value of intangible assets related to brands which are part of our strategic portfolio rationalization. In addition, foreign currency negatively impacted profitability by $700,000, or $0.04 per share.

Fiscal 2016 Results

Fiscal 2016 revenues were $900 million as compared to $890 million reported in fiscal 2015. Revenue growth resulted from growth in core brands. Excluding the impact of exited brands and foreign...


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