Perry Ellis International (PERY -21.9%) plunges after the company announced preliminary Q3 revenue of $222M, down 6% Y/Y vs. previous guidance of -2% to flat, (and vs. consensus of $235M) and EPS of -$0.17 to -$0.15 (vs. consensus of $0.13).
The company also cut full-year guidance to revenue of $960M-$970M from $985M-$995M and EPS of $0.95-$1.01 from $1.50-$1.60.
Q3 results were dragged by reduced shipments as a result of the reduction of private label business in the mid-tier channel and reduced sales in its direct retail ops. Perry continued to see "strong performance" in its golf lifestyle apparel and Nike swim lines.
Not helping the stock: Brean Capital downgraded shares to Hold from Buy and pulled its PT, with analyst Eric Beder calling the stock "dead money" in the near term. "The tough economic environment and dependence on weaker mid tier players has obviated any current positives," the analyst concludes.