By  on November 14, 2008

Shares of Perry Ellis Inter­national Inc. fell more than 30 percent Thursday after the company revealed lower third-quarter earnings, slashed the full-year forecast and started a review of its underperforming businesses.Earnings for the third quarter ended Oct. 31 are now expected to be 30 to 33 cents a diluted share, below the 55 cents in last year’s quarter and the identical consensus estimate for the just completed period. Revenues are expected to drop 2 percent to $222.8 million from $227.5 million.Full-year earnings are projected to drop to between 90 cents and $1.10 a diluted share versus the previous projection of $1.67 to $1.72 and the final tally of $1.80 last year. Revenues are expected to fall to between $875 million and $900 million, ahead of last year’s $863.9 million but below the earlier forecast of $910 million and $925 million.Shares of Perry Ellis closed at $3.65, down $1.62, or 30.7 percent.Looking to save $5 million to $6 million in selling, general and administrative costs beginning in its next fiscal year, the firm will centralize its New York office space, consolidate the bottoms production department in Tampa into its Miami headquarters and reduce head count in specialty store businesses and shared services. A formal review will investigate more cost savings in its men’s specialty store business for all brands, real estate, Perry Ellis Retail, distribution and shared services. The trimming of expectations for the third quarter, final results for which will be released next Thursday, was tied to a number of factors, including about $4.5 million in sales lost to customers who filed to reorganize or liquidate under Chapter 11. Markdowns and sales allowances are up $4 million in the quarter, and the company said that there was a $5.2 million increase in costs attributable to the two women’s contemporary divisions, Laundry by Design and C&C California, acquired from Liz Claiborne Inc. in February. A $600,000 noncash impairment charge related to marketable securities also pulled down results.

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