Perry Ellis International, Inc. indicated that a shipment delay and challengung retail climate would cause fourth-quarter results to come in below expectations.
The company, whose sports-focused brands include Nike Swim as well as Callaway, PGA TOUR and Champions Tour golf apparel, now estimates revenues for its full year ended Feb. 2 will reach approximately $970 million, as compared to $981 million in the prior year. Adjusted diluted EPS is expected in the range of $1.43 to $1.45, down from $1.94 a year ago.
When reporting third-quarter results in mid-November, Perry Ellis targeted revenues in the range of $990 million to $1 billion and EPS between $1.75 to $1.80 for the year.
For the fourth quarter, revenues are now projected to increase 13 percent to $258 million with EPS in the range of 48 to 50 cents a share, up from 38 cetns a year ago. Management had not provided Q4 guidance but Wall Street on average was expecting 84 cents per share on $280 million in revenue.
Approximately $14.5 million in planned wholesale shipments shifted from the fourth quarter to the first as a result of retailers delaying receipts, as well as late deliveries. The delays are not expected to impact its spring season.
Revenue growth in the fourth quarter was driven by increases in golf apparel, Perry Ellis branded products, Laundry by Shelli Segal, direct to consumer and international sales. Gross margins are expected to expand, as a result of improved product performance within its men’s and women’s sportswear collections. Total inventory at year end was down 8 percent.
“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,” added Oscar Feldenkreis, president and COO of Perry Ellis International.
For its initial outlook for fiscal 2014, the company expects revenues to increase in the range of 3 to 5 percent. Gross margins are expected to expand by over 100 base points. EPS is expected to range from $1.50 to $1.60.
