• Q1 profit soared 92% to $11.2m
  • Total revenues flat at $220.3m
  • 17% revenue rise in men’s apparel and accessories

Apparel maker Perry Ellis International Inc has raised its full-year earnings guidance after nearly doubling its first quarter profit on the back of better margins and strong sales in its men’s apparel and accessories businesses.

“As the economy continues to show signs of a recovery, consumers are responding positively across our brand portfolio,” explained Oscar Feldenkreis, president and COO.

“Our strong performance at retail has driven solid increases in our gross margins and positions us for continued revenue growth in the future.”

For the three months to 1 May, total revenues were flat at $220.3m, although this was slightly ahead of company expectations. Organic growth of $17m in the quarter was offset by the exit of some unprofitable businesses, it said.

The company, whose brands include Laundry by Shelli Segal, Cubavera and Jantzen, also noted 17% revenue increases in the Perry Ellis men’s apparel and accessories businesses.

With the increased mix of branded revenue, gross margins expanded by 420 basis points to 35.7% compared to 31.5% for the comparable period in fiscal 2010.

The Miami-based firm said net income for the quarter soared 92% to $11.2m or $0.81 per share, up from $5.8m or $0.46 per share a year earlier.

Earnings before interest, tax, depreciation, and amortization (EBITDA) grew 56% to $23.1m, from $14.9m last time.

“We continue to see the consumer returning to more normal shopping patterns, which is contributing to increased shipments of our brands at most retailers,” Feldenkreis added.

“In addition, conservative inventory planning at retail combined with a favourable response to our offerings has translated into increased sell through rates at retail and less markdown assistance for our company.”

Looking ahead, the company expects full-year revenues and earnings in a range of $775m - $795m and $1.45 - $1.60 per share, respectively.

This compares to its previous guidance of $770m - $790m and $1.25 - $1.40 per share.

“We expect our trends to continue favourably,” said Feldenkreis.

“The men’s business continues to be strong and for most retailers, performed substantially better than other parts of their businesses.”