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Nov 18, 2009
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Perry Ellis third quarter profit tops Street, ups EPS view

By
Reuters
Published
Nov 18, 2009

Nov 18 (Reuters) - Perry Ellis International Inc (PERY.O) posted a quarterly profit that blew past market estimates, benefiting from tighter cost controls, and the clothing maker raised its fiscal 2010 earnings forecast. The company has cut jobs, exited unprofitable businesses and reduced its inventory as weak consumer spending weighs on sales.


www.perryellis.com

For fiscal 2010, the company sees earnings of 80 cents to 95 cents a share, up from its prior view of 70 cents to 85 cents.

"Initial readings point to a solid holiday season and a strong first quarter for fiscal 2011," Chief Operating Officer Oscar Feldenkreis said in a statement.

However, the company, whose brands include Perry Ellis, Laundry by Shelli Segal, Cubavera and Jantzen, said it still expects total revenue to fall in the low double digit range for fiscal 2010.

Perry Ellis, which distributes apparel, accessories and fragrances, earned $4.1 million, or 31 cents a share, in the third quarter ended Oct. 31, compared with $5.0 million, or 33 cents a share, a year earlier.

Analysts on average expected earnings of 21 cents a share, before items, according to Thomson Reuters I/B/E/S.

Revenue fell 20 percent to $178.6 million, missing analysts' consensus view of $185.2 million.

"Based on current trends, we are confident that the third quarter marks the final quarter of revenue declines for our company," COO Feldenkreis said.

Operating expenses fell 18 percent to $52 million, while inventory was down 23 percent in the quarter.

Shares of the Miami-based closed at $14.88 Tuesday 17 November on Nasdaq.

For the alerts, double click (Reporting by Renju Jose; Editing by Deepak Kannan)

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