Perry Ellis Q2 Loss Widens; Cuts FY Revenue Growth Outlook

(RTTNews) - Perry Ellis International (PERY) said that its net loss for the second quarter of fiscal 2014 widened to $2.8 million, or $0.19 per share from $2.4 million, or $0.17 per share, in the second quarter of fiscal 2013.

Adjusting for the costs associated with strategic initiatives, the adjusted loss per share was $0.15 for the second quarter of fiscal 2014 and compared to an adjusted profit per share of $0.01 in the second quarter of fiscal 2013.

Total revenue increased 1.1% to $211.7 million compared to $209.4 million lastyear. The company experienced revenue increases in its Rafaella women's sportswear and Perry Ellis menswear collections driven by its product and assortment initiatives. In addition, revenues rose in Nike swim as well as in licensing. These increases were partially offset by a decrease in direct to consumer revenue and the anticipated reduction in men's classification private label bottoms revenue.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.14 per share and revenues of $214.51 million for the quarter. Analysts' estimates typically exclude special items.

The company continues to maintained its outlook for the full fiscal year 2014 expecting earnings per share as adjusted in a range of $1.50 to $1.60.

GAAP earnings per share for full fiscal year 2014 are now anticipated to be in the range of $1.57 to $1.67, compared to prior estimate of earnings of $1.58 - $1.68 per share.

The company updated its revenue outlook to reflect an increase of 2% to 3% as compared to its previous outlook for 3% to 5% growth over fiscal 2013. The reduction in expected revenue growth reflects softer sales in the company's direct to consumer channel and slower sales growth in the mid-tier distribution channel. Disciplined expense management is expected to offset slightly lower revenue growth.

Analysts expect the company to report earnings of $1.52 per share and revenues of $1.00 billion for fiscal 2014.