Perry Ellis expects 3Q results below expectations

Apparel maker Perry Ellis International Inc. on Thursday said it 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 the fiscal 2009.

Perry Ellis expects to report earnings per share between 30 cents and 33 cents for the three months ended Oct. 31, down from 55 cents last year.

Sales are expected at $222.8 million, down 2 percent 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 chief operating officer.

It plans to report final results for the quarter on Nov. 20.

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 are now expected between $875 million and $900 million, down from the $910 million to $925 million previously expected.

Analysts polled by Thomson Reuters expect $1.45 for the year and sales of $893.3 million.

"We have taken decisive action to rationalize our cost structure and manage our businesses according to the new economic environment," Feldenkreis said. "However, given the costs that these actions will have during the remainder of our fiscal 2009 and the uncertainty with consumer spending ahead of the holiday season, we have updated our guidance to reflect this new reality."

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