Perry Ellis shares soar on upbeat 2010, 2011 profit view

(Reuters) - Shares of Perry Ellis International Inc (PERY.O) soared 18 percent to touch a 17-month high, a day after the clothing maker said it expects 2010 profit to be at or above the top end of its current view and forecast a solid 2011 profit.

Perry Ellis, whose brands include Laundry by Shelli Segal, Cubavera and Jantzen among others, sees 2011 earnings of $1.25 to $1.40 a share, compared with analyst expectations of $1.25 a share, according to Thomson Reuters I/B/E/S. The company, which sells its brands in department stores such as Macy's Inc (M.N) and Kohl's Corp (KSS.N), said on Tuesday that strong performance across its product lines, and specifically at its Perry Ellis Collection had helped cut markdown allowances.

"This reduction coupled with inventory management and cost controls drove increased gross and operating margins for the (fourth) quarter," Chief Executive George Feldenkreis said.

In November last year, the clothing maker raised its earnings outlook for the fiscal year ended January 30, 2010 to between 80 cents and 95 cents a share, and said it expects a strong first quarter.

Shares of the Miami-based company touched a high of $19.28, but shed some of their gains later and were trading up $2.60 at $19.00 Wednesday morning on Nasdaq.

(Reporting by Shradhha Sharma in Bangalore; Editing by Aradhana Aravindan)