• Q4 profit down 9.1% to $7.7m
  • Revenues rose 5% to $206.9m
  • Sees FY 2012 earnings up 27% 

Costs associated with its recent acquisition of Rafaella Apparel Group have dented fourth quarter profit at fashion giant Perry Ellis International Inc.

But the company, whose brands include Perry Ellis, Jantzen, C&C California and Farah, reaffirmed guidance for revenues to reach $1bn dollars in the year ahead.

“Fiscal 2011 was an outstanding year for Perry Ellis International,” noted Oscar Feldenkreis, President and COO.

“Our key growth platforms led by women’s and contemporary with the recent acquisition of Rafaella, as well as Perry Ellis Collection, Golf, Hispanic, and direct to consumer, are all very well positioned to show strong organic growth and capture additional market share in fiscal 2012.”

Net income in the three months to 29 January fell 9.1% to $7.7m or $0.54 per share, from $8.5m or $0.64 per share, a year earlier. Excluding costs and other charges, earning were $0.69 per share.

Revenues rose 5% to $206.9m thanks to Perry Ellis Collection’s strong performance at department stores, as well as the direct to consumer and women’s and contemporary businesses. Sales in last year’s quarter were $196.4m.

For the full year the company booked an 83% increase in profit to $24.1m or $1.70 per share, up from $13.2m or $1.01 per share, the year before. Annual revenues were $790.3 million, a rise of 5% in last year’s $754.2m.

Improved profitability in its direct-to-consumer businesses, increased full price retail sales, and a mix of higher margin branded product helped lift gross margin for the year by 270 basis points – up to 35.7% from 33.0% last time.

For the year ahead the company expects earnings per share in the range of $2.30 to $2.40 – a rise of around 27% on the year just ended.