• Q2 loss of $1.6m versus $2.8m
  • Revenue down 4% to $204m from $212m 
  • Company to continue to exit low-growth brands

Perry Ellis has said it will continue to exit its low-growth brands as part of a strategic review to enhance profitability, after narrowing its net loss in the second quarter.

The apparel business has exited 23 private and exclusive brands since implementing the initiative in fiscal 2014, and completed the sale of its Jantzen brand for certain territories in Australasia to its Australian licensee.

During the three months to 2 August, Perry Ellis completed the consolidation of its domestic direct-to-consumer retail operations as well as the strategic review of its supply chain operations.

It also expects to expand its bricks and mortar presence and enhance the Original Penguin and Perry Ellis brands by leveraging the competency of its retail teams in the US and Europe, and through third party licensees.

Net losses amounted to US$1.6m in the second quarter, compared to a losses of $2.8m in the same period of last year.

Revenues, meanwhile, were impacted by planned exits of certain private and retailer exclusive branded programmes. Increases in golf lifestyle apparel and Original Penguin offset reductions in women's sportswear.

Nonetheless, president and COO Oscar Feldenkreis said: "There is positive momentum in our businesses as the team is focused on driving higher margin sales, adding licensing agreements and expanding our geographic reach and categories served."

He added that the company continued to make "solid" progress in its international expansion across its direct operations in Canada, Mexico and Europe.

"We see international growth and direct-to-consumer expansion as important drivers of the business going forward."

The group now expects full-year adjusted earnings per diluted share to range from $0.85-0.95, up on the $0.80-0.95 previously forecast.