UPDATE: Benchmark Lowers PT on Perry Ellis International on Initiated FY14 Guidance

In a report published Wednesday, Benchmark reiterated its Buy rating on Perry Ellis International

, but lowered its price target from $26.00 to $22.00. Benchmark noted, “We lowered our Q4 EPS estimate to $0.49, from $0.86 on a sales shift to 1Q14, from 4Q13, and soft traffic due to superstorm Sandy and warm weather. We lowered our FY14 EPS estimate to $1.60, from $2.20, excluding one time events. Management gave initial FY14 EPS guidance of $1.50 to $1.60, versus consensus of $2.16. The Company guided revenue up 3% to 5%, similar to our 5.2% increase and the consensus expectation of up 6%, and gross margin up 100 bp, ahead of our 60 bp estimate and likely ahead of consensus expectations. The surprise seemed to be on SG&A with guidance interpreting to up 70 bp to 100 bp. This surprised us after management had been focused on controlling costs and should benefit from the consolidation of a warehouse next year. We had been looking for a 30 bp decline. At the investor meeting at MAGIC, management explained that they expect to increase marketing to support the new Perry Ellis line and the golf lines. We wonder if they are just being very conservative.” Perry Ellis International closed on Tuesday at $16.79.