Perry Ellis 3Q profit slips, gross margins improve

posted: 83 DAYS 18 HOURS AGO

Text SizeAAA

MIAMI -Perry Ellis International Inc. said Wednesday that its profit and revenue dropped in the third quarter, but cost-control efforts and tighter inventory management led to improved gross margins.

The apparel maker also raised its fiscal 2010 profit forecast, citing better-than-expected quarterly results.

Third-quarter earnings fell 18 percent to $4.1 million, or 31 cents per share, from $5 million, or 33 cents per share, during the same period a year earlier.

Analysts surveyed by Thomson Reuters expected profit of 21 cents per share.

The latest quarter included an income tax benefit of $26,000, compared with a tax provision of $2.2 million in the year-ago period. Per-share results were buoyed by a reduction in the number of shares outstanding.

Revenue for the three months ended Oct. 31 declined 20 percent to $178.6 million from $222.8 million. Analysts predicted revenue of $185.2 million.

Gross margins rose to 34.2 percent from 34.1 percent during the quarter as the company lowered inventories by 22.5 percent.

Perry Ellis boosted its fiscal 2010 earnings forecast to a range of 80 cents to 95 cents per share. Its prior guidance was for a profit of 70 cents to 85 cents per share. The apparel maker expects total revenue to decline by a percentage in the low double digits.

Analysts predict fiscal 2010 earnings of 82 cents per share.

2009-11-18 08:42:56