The value of micro cap stock for Perry Ellis International Inc. (NASDAQ:PERY) swung sharply on Thursday after the clothing company reported a second-quarter loss due to lower earnings and higher expenses, sending shares lower.
According to The Wall Street Journal, Perry Ellis slashed its 2012 earnings forecast to as low as $1.75 per share from a high estimate of $2.00 per share. The lower estimates highlight the company’s transition to use new distribution centers – part of its recent Callaway agreement – as well as expenses related to higher promotional activity for the coming fall fashion season.
In the quarter ended July 28, Perry Ellis reported a loss of $2.4 million, or 17 cents per share, compared with the $1.8 million profit, or 11 cents per share, the company reported in the same period last year. Total revenue declined 2.3 percent to $209.4 million, which came as demand fell for golf and women’s contemporary apparel, offsetting the gains that were made in the company’s Perry Ellis and Rafaella collection business.
As of 11:13 am on Thursday, August 16, Perry Ellis shares were down 17 percent to $18.49 each.