UPDATE: Perry Ellis Posts Downbeat Q3 Results

Perry Ellis International

reported weaker-than-expected results for the third quarter. The Miami, Florida-based company posted a quarterly loss of $437,000, or $0.03 per share, versus a year-ago loss of $3 million, or $0.20 per share. Excluding special items, the company posted earnings of $0.03 per share, versus a loss of $0.15 per share. Its sales shrank 5% to $211 million from $222 million. However, analysts were projecting a profit of $0.06 per share on revenue of $215 million. Gross margin widened to 33.3% from 32.1%. Inventories dropped to $156 million versus $166 million at the end of the year-ago quarter. Perry Ellis ended the quarter with $53 million in cash and investments and no borrowings under its credit facility. Oscar Feldenkreis, president and chief operating officer of Perry Ellis International commented, "We are pleased to continue our positive momentum and deliver another consecutive quarter of solid results for our shareholders. The quarter was marked by expansion in gross margin and a significant improvement in operating earnings versus the prior year.” Perry Ellis also backed its forecast for the year. The company expects FY15 sales of $910.0 million to $920.0 million, versus analysts' estimates of $916.70 million. Perry Ellis shares rose 0.13% to $23.99 in pre-market trading.