US: Perry Ellis holds forecast as Q3 profit halves
- Q3 profit fell 51% to $3.2m from $6.5m
- Revenue slipped 2.4% to $236.2m
- Holds FY EPS guidance of $1.75 to $1.80
Apparel maker Perry Ellis International says it is pleased with the progress being made to reorganise its business, despite a halving of its third quarter profit.
Earlier this year the company, whose brands include Jantzen, C&C California, Savane and Farah, said it was reviewing its portfolio and streamlining its operations.
"The third quarter was highlighted by continued positive momentum in our Golf and direct to consumer platforms, substantial progress on our initiatives to improve our Perry Ellis and Rafaella collection businesses, and the disciplined management of expenses and continued strong cash flow," noted president and COO Oscar Feldenkreis.
"We are very pleased with the growth we are driving across our golf platforms through all channels of distribution.
"Across our direct to consumer business we are generating consistent sales and margin increases fuelled by our unique products and focused merchandising planning by door.
"We are well on our way with our repositioning efforts in our Perry Ellis and Rafaella collection businesses, and expect an improved consumer response to our holiday collections in the fourth quarter and an even greater positive impact in spring 2013."
Third-quarter profit fell 51% to $3.2m, or $0.21 per share, from $6.5m, or $0.40 per share a year earlier. Excluding one-time items, adjusted earnings were $0.25 per share.
Revenue was in line with earlier guidance, slipping 2.4% to $236.2m in the three months to 27 October, down from $242.1m a year ago, which was in line with earlier guidance.
The company noted that continued growth within golf, direct to consumer and women's contemporary was offset by planned decreases in its Perry Ellis and Rafaella collection businesses.
It is maintaining its full-year guidance for earnings per share in a range of $1.75 to $1.80.
Apparel business Perry Ellis International boosted profits in the fourth quarter with a double-digit revenue increase, but still posted substantially lower full-year profits....
Shares in Perry Ellis International fell 13% yesterday (19 February) as the apparel maker lowered its earnings outlook for the year....
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