Clothing retailer Perry Ellis cuts outlook, shares tumble 23 pct
Nov 13 (Reuters) - Perry Ellis International Inc slashed its full-year forecast due to lower sales of its private-label clothing, sending its shares down 23 percent to a near two-year low.
The company's estimated sales for the third-quarter were also lower than analysts' average expectation, hurt by a fall in sales of its products at its own stores as well as at those of its partners, which include Kohl's Corp and Macy's Inc .
Perry Ellis also reported weaker-than-expected sales in the first two quarters of the year. Brean Capital analyst Eric Beder said the outlook indicated no signs of recovery in the near term.
Beder said Kohl's, which was the biggest contributor to Perry Ellis's sales in fiscal 2013, has remained lean on inventories.
The company should aggressively divest its tertiary brands and focus on its more successful business such as its golf franchise and Nike Inc's swimwear line, Beder said.
He cut his rating on the company's stock to "hold" from "buy".
Miami-based Perry Ellis cut its fiscal 2014 earnings forecast to 95 cents to $1.01 per share, from $1.50-$1.60.
The company, which also makes accessories and fragrances, cut its revenue forecast for the year to $960-$970 million, from $985-$995 million.
Analysts on average were expecting earnings of $1.50 per share on revenue of $989.4 million, according to Thomson Reuters I/B/E/S.
Perry Ellis estimated third-quarter revenue of $222 million, short of analysts' average estimate of $235 million. It expects to post an adjusted loss of 15-17 cents a share.
The company's shares were down 22 percent at $15.19 at midday. They touched a low of $14.96. (Reporting by Chris Peters in Bangalore; Editing by Savio D'Souza)
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