Perry Ellis International Inc. slashed its full-year earnings forecast Tuesday, saying it expects weak holiday revenue to drag down fiscal fourth-quarter and full-year results.
The apparel maker said it expects break-even results for the quarter ending Jan. 31 on revenue of $200 million to $210 million. It cut its full-year outlook to a range of 55 cents to 65 cents per share on revenue of $860 million to $870 million.
That's well below the company's previous full-year profit forecast of 90 cents per share to $1.10 per share on revenue of $875 million to $900 million.
Analysts surveyed by Thomson Reuters expect the company to earn 37 cents per share in the fourth quarter on revenue of $214.2 million. Analysts expect a full-year profit of 95 cents per share on revenue of $874.2 million.
“The entire apparel industry was faced with a highly promotional environment to drive customer purchases in December, and we were not immune to this phenomenon,” President and Chief Operations Office Oscar Feldenkreis said in a statement. “Apparel retail sales in dollar terms were down in December, but prices to the consumer were reduced by a higher percentage, thus we believe that the actual number of units sold was higher than last year.”
Perry Ellis also said it was cutting all management bonuses for the 2009 fiscal year.
Perry Ellis said it expects its 2010 profit to exceed Wall Street's current estimate of $1.05 per share.