Net loss widened steeply by 63.15 per cent at US apparel marketer Perry Ellis International for the 2015 fiscal ended January 31, 2015.
On a GAAP basis, net loss for fiscal 2015 was $37.2 million, or $2.50 per diluted share compared to GAAP net loss of $22.8 million, or $1.52 per diluted share for fiscal 2014.
“Net loss for fiscal 2015 included $2.88 per diluted share in non-cash income tax valuation reserve as described previously,” the apparel distributor said in a press release.
Fiscal 2015 revenues were down to $890 million as compared to $912 million reported in the prior fiscal.
Adjusted earnings per diluted share for fiscal 2015 reached $0.56 compared to adjusted earnings per diluted share of $0.38 in fiscal 2014.
The gross margin for the reporting fiscal touched 34.0 per cent as against 33.2 per cent in fiscal 2014, which it attributed to reduction in promotional activity in the sportswear collection businesses.
Additionally, a more favourable revenue mix between branded and private label revenues, as well as a stronger contribution from its higher margin international and licensing units, helped gross margin climb.
“These margin improvements were partially offset by liquidation of exited programs in golf and sportswear,” Perry Ellis added.
Selling, general and administrative expenses totaled $268.8 million for fiscal 2015 as compared to $272.7 million in fiscal 2014.
According to Perry Ellis, the decline reflects cost reductions associated with its infrastructure review which were partially offset by investments in international growth strategy.
Earnings before adjusted EBITDA for fiscal 2015 reached $39.8 million or 4.5 per cent of total revenue from adjusted EBITDA of $34.8 million for fiscal 2014.
Year-end cash and investments totaled $63.5 million with no borrowings under the credit facility as against $42.4 million in the prior fiscal and $8.2 million drawn under the credit facility.
It has increased its credit facility to $200 million and plans to redeem $100 million of its senior subordinated notes, which will result in annualised interest savings of around $6 million or $.25 per diluted share.
CEO Oscar Feldenkreis said, "During the quarter and throughout the year, we took actions to support and advance our core global brands, grow margins and generate cost efficiencies.”
“In fiscal 2015, we experienced stronger demand for our products, resulting in improved performance at retail and international business also performed well supporting our margin expansion,” he added.
“Many of the external challenges of the prior year are behind us and we are focused on meaningfully improving results and operations by continued execution of our growth and profitability plan," he noted. (AR)
