Perry Ellis International flat despite Q2 profit
Shares of Perry Ellis International, Inc. (Nasdaq: PERY) are flat despite news after Monday’s close that the apparel maker swung to a second-quarter profit and raised its fiscal 2008 guidance.
Net income for the three months ended July 31 was $0.27 million, or $0.02 per share, compared with a net loss of $2.5 million, or $0.17 per share, during the same period of 2006. That result surprised three analysts polled by Thomson Financial, who were expecting the Miami-based company to report a net loss of $0.14 per share.
Similarly, total revenues grew 14.2% for the second quarter of fiscal 2008 to $195.3 million, compared with $171.0 million a year earlier.
“We are very satisfied with the 14% organic growth achieved this quarter,” said company President and CEO Oscar Feldenkreis. “The power of our brands and the validity of our multi-brand, multi-channel, multi-product strategy, are clearly evidenced in our record second quarter.”
The quarter’s strong results allowed Perry Ellis to reduce its long-term debt by $61.4 million, or 25.9%, to $175.6 million as of July 31, compared with $237 million at the start of fiscal 2008 on January 31.
The company also lifted its previously announced fiscal 2008 earnings guidance to a range between $1.87 per share and $1.91 per share, compared with a previous forecast of a profit between $1.81 per share and $1.84 per share. The new guidance is above Wall Street’s projected net income of $1.85 per share.
Perry Ellis anticipates total yearly revenues between $900 million and $910 million, inline with analysts’ projected revenues of $903 million.
At 12:36 p.m. ET the stock had shed $0.21, or 1%, to $29.76.
