Perry Ellis reports double digit sales growth

Fashion brand Perry Ellis (PERY) reported double digit growth in its fourth quarter sales, primarily fueled by high margin core brands and channels which surged 19% year-over-year, along with international sales growth of 33%. Sales jumped 11.3% to $227.3 million. Men’s sportswear and Nike swimming gear showed particular strength in the quarter, which helped in the margin increase.

Earnings more than tripled to $39.6 million or $2.56 per share, driven by a one-time benefit from the recent US tax legislation. Excluding special items, Perry Ellis reported earnings of $0.88 per share, up 33.3% year-over-year.

Outlook

For fiscal 2019, Perry Ellis is seeing sales in the range of $855 million to $865 million, while diluted earnings per share, assuming a tax rate of 25%, is expected in the range of $1.80 to $1.90. The company said it has remodeled fiscal 2018 sales and earnings to remove the sales, income or losses related to the transition of the Laundry dress business to a license model and the elimination of Bon-Ton sales due to its bankruptcy and liquidation.