Perry Ellis International, Inc., citing the prolonged cold weather and difficult holiday season, said it expects fiscal fourth quarter revenues to tumble 16 percent to approximately $216 million from $258 million last year.
Adjusted diluted EPS are expected in the range of 2 cents to 5 cents a share. Wall Street’s consensus estimate was 65 cents with revenue of $268.1 million.
On Tuesday when the updated guidance came out, share of Perry Ellis fell $2.75 to $12.93 in over-the-counter trading.
The company said that its fourth-quarter performance was impacted by inclement weather across major parts of the country coupled with challenges across its channels of distribution. Lower mall traffic contributed to a comparable store sales decline of 4.8 percent.
For the full year, Perry Ellis now expects to report adjusted earnings of 34 cents to 37 cents a share and revenue of $912 million, well below its prior forecast for adjusted earnings of 95 cents to $1.01 a share and revenue of $960 million to $970 million.
For the current year, Perry Ellis forecast full-year revenue of $910 million to $920 million, below analysts' expectations for revenue of $1 billion.
“We are extremely disappointed with our fourth quarter and full year results. We experienced a very difficult environment, which required our customers to become more aggressive with promotions and limit new orders. This contributed to much lower sales versus our projections,” said Oscar Feldenkreis, president and chief operating officer of Perry Ellis International. “We expect our customers to remain cautious and have adjusted our expectations for initial delivery and replenishment orders in fiscal 2015.”
