Perry Ellis International reported results for the first quarter ended May 2, 2015. Total revenue was $266 million, a 4% increase compared to $257 million reported in Q1 2015.
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The company realized increases in its core global brands, Perry Ellis and Original Penguin as well as in its golf lifestyle apparel business. Revenues in international, licensing and direct-to- consumer (DTC) platforms all moved ahead as well.
During the first quarter of fiscal 2016, adjusted gross margin expanded to 34.9% as compared to 34.1% in the same period of the prior year. Gross profit totaled $90.1 million inclusive of $2.9 million of costs related to exited businesses and the consolidation of the Beijing office.
The expansion reflected a favorable business mix, better sell-through at retail in the Perry Ellis and Rafaella collection businesses, and savings realized from continued freight cost reductions.GAAP gross margin for the period was 33.8%.
Selling, general and administrative expenses totaled $69.6 million as compared to $69.7 million in the comparable period of the prior year. Excluding costs associated with streamlining and consolidation of operations, expenses totaled $68.3 million, or 25.6% of revenues, as compared to $68.9 million or 26.8% in prior year.
As reported under GAAP, fiscal 2016 first quarter profit was $9.4 million, or $0.62 per diluted share, as compared to $7.8 million, or $0.52 per diluted share, in the first quarter of fiscal 2015. On an adjusted basis, fiscal 2016 first quarter earnings per diluted share were $0.99 as compared to adjusted earnings per diluted share of $0.55 in the first quarter of fiscal 2015.
These results benefited from improved operating results as well as a lower effective tax rate for fiscal 2016
Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) for the first quarter of fiscal 2016 totaled $24.7 million as compared to $18.7million in the comparable period of the prior year. Adjusted EBITDA margin expanded to 9.3% from 7.3% in the prior year.
At the close of the quarter, the company's financial position was solid. Inventories decreased 13% to $153 million from $177 million at the end of the comparable period in the prior year with continued emphasis on increasing turn.
As previously reported, the company expanded its credit facility from $125 million to $200 million and utilized this to redeem $100 million if its senior subordinated notes on May 6, 2015. ■