Perry Ellis (PERY) Cuts FY09 Guidance

January 6, 2009 4:41 PM EST

Perry Ellis International, Inc. (NASDAQ: PERY) announced today that, based on preliminary results from its holiday season and estimates for initial deliveries of Spring 2009 merchandise, the Company sees Q4 sales in the range of $200-$210 million, versus the consensus of $214.18 million.

Perry Ellis said the guidance was based on:

• Deceleration in sales at the department and specialty store channels, primarily for luxury brands;
  
• Reduction of private label replenishment bottoms business; and
  
• Weakness in the international markets – Europe and Canada

As a result, Perry Ellis cuts its FY09 EPS guidance from $0.90-$1.10 to $0.55-$0.65, versus the Street estimate of $0.95. Sales for the year move from $875-$900 million to $860-$870 million, versus the consensus of $874.23 million.

The Company also announced that it has eliminated all management bonuses for fiscal 2009 and identified an extra $5 million in annual savings, primarily driven by reductions in headcount and corporate overhead expenses. These savings are on top of the previously announced $15 million in annual savings from the strategic review process.

Perry Ellis International, Inc., together with its subsidiaries, engages in designing, sourcing, marketing, and licensing men and women apparel products in the United States and internationally.

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