Perry Ellis has revealed that it will liquidate and close a number of brands before the end of fiscal 2013 as part of restructuring plans.

Company CFO Anita Britt told analysts yesterday (22 March) that it would look to shutter a number of businesses which have averaged US$30-40m in revenue over the past two years, but have "not contributed substantially in profitability".

The company expects to liquidate and close these businesses by the end of the year. Britt said that the company would reveal which businesses it will dispose of over the course of the year.

The Perry Ellis CFO said the company has seen interest in some of its other brands following the announcement of the strategic review in February. The company will "continue to evaluate the potential sale of any of these if the valuation works".

She said the move provides the company with an "opportunity to clarify on our business model, and to provide a sharper focus to our teams".

As a result of the changes, the company will also be eliminating some staff and direct expenses later this year. It has also looked at its infrastructure in an effort to further drive efficiencies, and expects that it will be able to achieve US$5.5m in annual cost savings. The company expects to begin seeing the benefits of these efforts from fall, and see them fully implemented by spring 2014.

Britt expects many of the savings to come from reduced headcount through attrition, early retirement and job elimination, review of its product processes and development costs, as well as through the review and consolidation of its distribution facilities.

Britt said the company will focus its efforts on its core competencies of golf, men's and women's sportswear and swim.

She said the company has "excelled at creating differentiation for our wholesale partners by providing a quality product that fulfils a significant customer need and carries a unique brand identity," which prevents cannibalisation in a "very competitive retail landscape".

The comments came as the company reported a slide in fourth-quarter net profit, which fell to US$1.1m against $7.7m in the same quarter of the previous year. Revenue rose 11% to $22.9m. Gross margins declined to 33% from 35.7% as it was hit by retailers asking for later deliveries and a significant increase in promotional mark downs and sales allowances in the holiday season.