Perry Ellis International (PERY) swung to a net loss for the quarter ended Oct. 29, 2016. The company has made a net loss of $5.16 million, or $ 0.34 a share in the quarter, against a net profit of $2.27 million, or $0.15 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $3.50 million, or $0.23 a share compared with $2.50 million or $0.16 a share, a year ago.

Revenue during the quarter dropped 5.59 percent to $193.96 million from $205.44 million in the previous year period. Gross margin for the quarter expanded 98 basis points over the previous year period to 36.66 percent. Operating margin for the quarter stood at negative 2.72 percent as compared to a positive 2.45 percent for the previous year period.

Operating loss for the quarter was $5.28 million, compared with an operating income of $5.04 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $6.92 million compared with $8.79 million in the prior year period. At the same time, adjusted EBITDA margin contracted 71 basis points in the quarter to 3.57 percent from 4.28 percent in the last year period.

Oscar Feldenkreis, chief executive officer of Perry Ellis International, commented: "We are pleased with our third quarter results, which were ahead of our expectations, continuing our positive momentum from the first half of the year. Revenues declined in total, reflecting the balance of the impact of the exit of non-core brands and negative currency exchange rates. Importantly, we delivered growth in our key lifestyle brands of Perry Ellis and Golf Lifestyle as well as Nike swim, expansion in gross margin and expense discipline, which combined drove a solid increase in adjusted diluted earnings per share over the prior year quarter. We attribute our consistent positive performance to the intense focus on what we do best "bringing relevant, innovative product to the marketplace, intensifying our relationships with consumers and driving operational excellence across all areas of our business. We ended the quarter with extremely clean inventory levels and brands and businesses well positioned for the final quarter of the year."

For financial year 2017, Perry Ellis International projects revenue to be in the range of $885 million to $890 million.  The company forecasts diluted earnings per share to be in the range of $1.95 to $2 on adjusted basis.

Cash conversion cycle (CCC) has decreased to 57 days for the quarter from 112 days for the last year period. Days sales outstanding went up to 59 days for the quarter compared with 56 days for the same period last year.

Days inventory outstanding has decreased to 42 days for the quarter compared with 103 days for the previous year period. At the same time, days payable outstanding went down to 44 days for the quarter from 47 for the same period last year.