Perry Ellis International Inc.'s (PERY) fiscal third-quarter
profit surged 73% on rebounding margins and sales.
As earnings smashed analysts' expectations, the clothing maker
boosted its profit target for the year a third time, to $1.72 to
$1.80 a share from $1.53 to $1.68, as revenue is seen at the higher
end of prior expectations.
Perry Ellis has seen its bottom line helped in recent quarters
by stronger sales and margins following last year's deep drop in
consumer spending. Retail sales rose for the fourth-straight month
in October, according to the Commerce Department, and retailers
such as Macy's Inc. (M) and Kohl's Corp. (KSS) have seen recent
results improve even as persistent unemployment and housing market
woes pressure consumers.
For the quarter ended Oct. 30, Perry Ellis reported a profit of
$7.2 million, or 51 cents a share, up from $4.1 million, or 31
cents a share, a year earlier. Total revenue climbed 13% to $201.3
million following last year's 20% drop.
Analysts polled by Thomson Reuters most recently forecast
earnings of 35 cents on $193 million in revenue.
Gross margin climbed to 35.6% from 34.2% on fewer markdowns and
increased sales rates.
Shares closed Tuesday at $21.35 and were inactive premarket.
-By Matt Jarzemsky and Kevin Kingsbury, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com