Perry Ellis International, Inc. announced that, based on preliminary results from its holiday season and estimates for initial deliveries of Spring 2009 merchandise, the company anticipates revenues for the fourth quarter ending Jan. 31, 2009  at the $200 to $210 million range.


This represents a decrease from total revenues of $212.3 million for the same period last year.


The company said the declines are primarily related to retail partners requesting later deliveries of goods-which delayed spring deliveries by 30 to 60 days-and a significant increase in markdowns and sales allowances for the holiday season, which was more promotional than originally anticipated.

Compared to the company’s latest guidance, the company reported results for fourth quarter fiscal 2009 were negatively affected by:


Deceleration in sales at the department and specialty store channels- primarily for luxury brands-, reduction of private label replenishment bottoms business and weakness in the international markets – Europe and Canada.


Based on current projected results, the company indicated that it expects diluted earnings per share for the fourth quarter fiscal 2009 to be approximately break-even, as compared to diluted earnings per share of 65 cents during the same period last year.

 

This expectation includes all the currently identified one-time costs associated with the implementation of the strategic review actions such as severance payments.

Update on Strategic Review of Underperforming Businesses


The company also announced that it has eliminated all management bonuses for fiscal 2009 and identified an extra $5 million in annual savings, primarily driven by reductions in headcount and corporate overhead expenses. These savings are on top of the previously announced $15 million in annual savings from the strategic review process.


Updated Fiscal 2009 Guidance and Fiscal 2010 Perspective


Accordingly, the company updated its fiscal 2009 earnings guidance to the range of 55 cents to 65 cents per fully diluted share from the previously announced range of 90 cents to 10 cents per fully diluted share. The company also revised its revenue guidance for the twelve months ending Jan. 31, 2009 from the $875-$900 million to the $860-$870 million range.