• Q1 net income fell 37% to $9.7m from $15.4m
  • Total revenues fell 7.9% to $265.5m
  • Gross margin slipped to 33.0% from 33.6% 

Apparel firm Perry Ellis International Inc today (17 May) said it was "pleased" with its first quarter, after efforts to overhaul its brands "made progress", and falling earnings and sales both came in ahead of expectations.

Net income in the three months to 28 April fell 37% to $9.7m, down from $15.4m a year earlier. Earnings slipped to $0.64 per share from $0.99 per share last time - but adjusted to exclude costs for exiting brands and relocating a distribution centre came in at $0.71 per share, the company said.

Total revenues fell 7.9% to $265.5m, from $288.3m the year before. Conservative sportswear purchases by department stores following a challenging autumn and holiday season offset gains in the firm's golf business, direct-to-consumer sales, and Laundry by Shelli Segal dresses.

"During the quarter, we made considerable progress toward revitalising our core brand performance," said president and COO Oscar Feldenkreis.

"We have positioned our Perry Ellis and Rafaella sportswear collections for improved performance in the fall and holiday seasons. While we will maintain a conservative approach to our business, we believe our actions are moving our business in the right direction."

Looking ahead, the firm reaffirmed its forecast for full-year revenues in the range of $990m to $1.0bn, and earnings per share of $1.95 to $2.00.

Earlier this year the company, whose brands include Jantzen, C&C California, Savane and Farah, said it was reviewing its brand portfolio and streamlining its operations.