US: Perry Ellis shares slide on weak FY view
Shares in Perry Ellis International fell 13% yesterday (19 February) as the apparel maker lowered its earnings outlook for the year.
The company, whose brands include Jantzen, C&C California, Savane and Farah, also said $14.5m in wholesale shipments has shifted from the fourth quarter to the first quarter of its next fiscal year. But it said the delay would not impact its spring selling season.
For the three months to 2 February it expects total revenue to increase 13% to $258m, with earnings per share in the range of $0.48 to $0.50.
But for the full year period, earnings are now seen in the range of $1.43 to $1.45 per share - down from $1.75 to $1.80 per share forecast in November - with sales of $970m coming in 1.1% below last year's $981m.
"We were quite pleased with our holiday season, despite the headwinds which faced the entire retail industry from numerous factors including Hurricane Sandy, economic and political uncertainties, unseasonal climate, and challenging promotional strategies," said Oscar Feldenkreis, president and chief operating officer of Perry Ellis International.
"We executed on our strategies for our core businesses and generated solid results. Our Perry Ellis collection and Rafaella sportswear collection businesses delivered greatly improved product offerings.
"We experienced reduced promotional sales and stronger gross margins from a year earlier. We believe that these businesses look even stronger for the spring/summer season just beginning."
Shares dropped $2.54, or 13%, to $16.79 at the market's close.
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