Perry Ellis: 4% growth in sales in first quarter
With turnover up 4% at 266 million dollars and improved margins, the management of Perry Ellis Group is pleased to have focused more on developing its brands than developing its "private label" business.
"A company strengthens when it generates cash flow from its own brand," said company CEO George Feldenkreis at a recent exchange with financial analysts. The company’s private label business has been reduced by 11.4% to less than 7% between 2012 and 2015. The company opted instead to develop its Perry Ellis and Original Penguin brands as well as its Golf labels.
For its first quarter ending on May 2, the group saw its net sales increase from 250 to 258 million dollars and its licenses bring in more than 8.1 million as compared to last year's 7.4 million, or an increase of 10%. The group also saw its e-commerce sales jump by 44%.
At Original Penguin, growth has been announced at close to 10% in the US and 4% in local currencies in Europe. The brand is also going to launch a euro currency denominated site in the second quarter. The brand is clearly aiming at international development, having announced the signature of a new agreement in India.
For its golf division, the company announced sales growth of around 5%, noting in particular that Callaway’s business in Europe has increased by 60%. The Ben Hogan brand, meanwhile, posted an overall increase of 20%.
The group’s strong point has especially been its sales growth, which has been accompanied by growth in earnings. During the quarter, its operating profit increased from 15 million to 16.5 million dollars. Its net result was 9.4 million as compared to 7.8 last year.
For the entirety of its financial year, the company expects an operating profit of between 925 and 935 million dollars.
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