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Aug 22, 2008
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Perry Ellis swings to Q2 loss on higher costs

By
Reuters
Published
Aug 22, 2008

Aug 22 (Reuters) - Apparel maker Perry Ellis International Inc swung to a second-quarter loss as it was hurt by integration costs and expenses related to retail openings, and trimmed its fiscal 2009 profit outlook.



Original Penguin (Perry Ellis group) spring-summer 2008

The retailer said it took a charge of 4 cents a share related to its acquisition of women's contemporary brands -- Laundry and C&C California -- earlier this year.

Perry Ellis, which has been spending on retail openings, was also hurt by a charge of 11 cents a share associated with management changes and repositioning in its European division.

The company, whose brands include Perry Ellis, Jantzen, Cubavera, Original Penguin and Laundry by Shelli Segal, posted a net loss of $5.4 million, or 36 cents a share, compared with net income of $267,000, or 2 cents a share, a year earlier.

Sales fell nearly 1 percent to $193.7 million for the quarter ended July 31, said the company, which is generally known for its menswear.

Analysts on average had expected the clothing maker to post a loss of 2 cents a share, before special items, on revenue of $200.4 million, according to Reuters Estimates.

For fiscal 2009, the company expects to earn $1.67 a share to $1.72 a share, down from its prior outlook of $1.95 a share to $2.00 a share.

The new forecast includes a non-cash impairment charge of 8 cents a share related to marketable securities it took in the second quarter, the company said.

However, the company maintained its revenue view of $910 million to $925 million for the period.

Analysts on average were expecting earnings of $2 a share, before special items, on revenue of $930.3 million, for the financial year.

Shares of the company closed at $23 Thursday on Nasdaq. (Reporting by Dhanya Skariachan in Bangalore; Editing by Himani Sarkar)

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