Perry Ellis Q3 Loss Narrower Than Estimates; Affirms Guidance For 2014

(RTTNews) - Clothing company Perry Ellis International Thursday Inc. (PERY) Thursday reported loss for the third quarter over profit in the corresponding period last year primarily due to higher operating expenses and a decline in revenue. However, loss came in narrower than Street view. Further, the company reiterated its earnings and revenue guidance for 2014.

Oscar Feldenkreis, COO, said, "Our third quarter was disappointing as difficult performance in our direct to consumer and mid-tier channel businesses offset improvement in our focus areas of golf and collection sportswear."

Perry Ellis registered a loss of $3.02 million, or $0.20 per share, for the third quarter, compared with a profit of $3.18 million, or $0.21 per share, a year ago. The operating expenses of the company rose to $72.01 million from $67.82 million a year earlier.

After excluding certain items, loss was $2.30 million, or $0.15 per share, compared with profit of $3.75 million, or $0.25 per share, a year ago. Six analysts polled by Thomson Reuters estimated the company's loss to be $0.16 for the quarter. Analysts' estimates typically exclude one-time items.

For the three months to November, EBITDA went down to $2.82 million from $11.81 million a year ago. Adjusted EBITDA declined to $3.99 million from $12.52 million a year ago.

Third quarter revenue of the company declined to $222.12 million from $236.25 million a year ago. Analysts had estimated revenue of $223.35 million for the period.

The company affirmed its 2014 forecast for revenue of $960 million to $970 million and adjusted earnings per share of $0.95-$1.01. Street view for revenue is $968.14 million and adjusted earnings per share is $0.98.

Further, the company projects GAAp-earnings per share to be $0.97-$1.03.

Wenesday, the stock closed at $15.09 on the Nasdaq.