Shares of Perry Ellis International Inc. lost nearly a quarter of their value on Wednesday after the company projected a third-quarter loss and sharply cut its full-year guidance.
The Miami-based sportswear firm said it expects an adjusted loss per share of 15 cents to 17 cents for the three months ended Nov. 2, versus year-ago earnings of 25 cents a share. Analysts, on average, had expected the just-completed quarter to yield a profit of 13 cents a share.
Revenues for the period are projected to fall 6 percent to about $222 million from $236.2 million in the third quarter of 2012. Earlier, the company said it expected a sales performance ranging from flat to down 2 percent.
The company, with a packed portfolio of owned brands including Rafaella and Laundry by Shelli Segal, cited “reduced shipments primarily due to the reduction of private-label business for the midtier channel as well as reduced sales through its direct retail channel.” Its golf lifestyle apparel and Nike swimwear businesses remained strong, the company said.
Shares ended the day at $15, down $4.47, or 23 percent. At one point in afternoon trading, they sank to $14.91, a 52-week low.
Incorporating the anticipated loss for the third quarter, full-year earnings per share are now expected to land between 95 cents and $1.01, versus a previously projected range of between $1.50 and $1.60. Revenues are seen ending the year between $960 million and $970 million versus prior guidance of between $985 million and $995 million.
The firm will report financial results for the quarter on Nov. 21.