Nov 13 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
Beder said Kohl's, which was the biggest contributor to
Perry Ellis's sales in fiscal 2013, has remained lean on
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
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
Analysts on average were expecting earnings of $1.50 per
share on revenue of $989.4 million, according to Thomson Reuters
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