Mar 19, 2009
Perry Ellis posts surprise Q4 loss, shares fall
Mar 19, 2009
March 19 (Reuters) - Clothing manufacturer Perry Ellis International Inc (PERY.O) posted a surprise fourth-quarter loss on falling sales and declining margins, and said it suspended giving annual earnings forecast, sending its shares down as much as 21 percent.
© Perry Ellis
Perry Ellis, whose brands include Perry Ellis, Laundry by Shelli Segal, Cubavera and Jantzen, expects a high-single to low-double digit decline in revenue for 2009.
Sales were hit by lower consumer spending, while margins fell from 35.4 percent to 29 percent, hurt by discounting and bankruptcies at retailers.
For the fourth quarter ended Jan. 31, net loss was $21.6 million, or $1.58 a share, compared with net income of $9.9 million, or 65 cents a share, a year ago.
Excluding charges to reduce the reported value of certain trademarks and leasehold improvements, impairments and restructuring costs, the company posted a loss of 34 cents a share.
Analysts on average expected earnings of 6 cents a share, excluding items, on revenue of $206.8 million, according to Reuters Estimates.
Separately, the Miami-based company said it reached an agreement with Callaway Golf Co (ELY.N) to design, manufacture and distribute Callaway golf and sportswear apparel in the U.S., Canada, Latin America and the Caribbean.
Perry Ellis shares were down 74 cents at $3.89 in afternoon trade Thursday on Nasdaq. They touched a low of $3.65 earlier. (Reporting by Isheeta Sanghi in Bangalore; Editing by Ratul Ray Chaudhuri)
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