Perry Ellis International Inc. expects to report third quarter results below Wall Street expectations as the company marked down merchandise amid sluggish consumer spending. The company also cut its profit and sales outlook for fiscal 2009.
Perry Ellis expects to report earnings per share between 30 and 33 cents for the third quarter ended Oct. 31, down 40% to 45.5% from the 55 cents earnings per share reported last year.
Sales are expected to reach $222.8 million, down 2% from $227.5 million last year, hurt by $4 million in markdowns.
Analysts polled by Thomson Reuters expect 55 cents in earnings and sales of $233.5 million.
“As we all know, we are experiencing the most significant economic slowdown that we have ever witnessed or have been a part of,” said Oscar Feldenkreis, president and COO.
Perry Ellis expects fiscal 2009 profit between 90 cents and $1.10 per share, down from prior expectations of $1.67 per share and $1.72 per share. Results include one-time costs between 10 cents and 15 cents per share for a strategic review.
Sales for fiscal 2009 are now expected to be between $875 million and $900 million, down from the $910 million to $925 million range previously expected.
Analysts polled by Thomson Reuters expected $1.45 earnings per share for the year and sales of $893.3 million.