UPDATE: Perry Ellis Posts Narrower-Than-Expected Q2 Loss, Revenue Misses Estimates

Perry Ellis International PERY reported a narrower-than-expected second-quarter loss. However, the company's revenue missed analysts' estimates. The Miami, Florida-based company posted a quarterly loss of $1.6 million, or $0.11 per share, versus a year-ago loss of $2.8 million, or $0.19 per share. Excluding special items, Perry Ellis posted a loss of $0.08 per share, versus a year-earlier loss of $0.15 per share. Its revenue dropped 3.9% to $203.5 million. However, analysts were estimating a loss of $0.12 per share on revenue of $209 million. Gross margin widened to 34.6% from 32.4%, while selling, general and administrative expenses increased to $66.9 million from $66.5 million. Inventories declined to $175 million from $179 million at the end of the prior year period. Oscar Feldenkreis, president and chief operating officer of Perry Ellis International commented, "There is positive momentum in our businesses as the team is focused on driving higher margin sales, adding licensing agreements and expanding our geographic reach and categories served. During the quarter we continued to make solid progress in our international expansion across our direct operations in Canada, Mexico and Europe.” The company also announced its plans to exit noncore, low-growth brands and businesses. The executive continued, “As we look ahead, we are announcing strategic priorities that will enable us to maximize shareholder value by remaining focused on the strategic review of our portfolio and optimizing the positioning of our brands while continuing to reduce costs.” For fiscal 2015, Perry Ellis now projects adjusted earnings of $0.85 to $0.95 per share, versus its prior forecast of $0.80 to $0.95 per share. Perry Ellis shares gained 2.33% to close at $19.29 yesterday.