(RTTNews) - Apparel retailer Perry Ellis International, Inc. (PERY: News ) reported Wednesday a decline in third-quarter profit, reflecting a decrease in revenues, but said results were slightly ahead of plan. On a per-share basis, earnings came in above analysts' estimate by 10 cents. The company also raised its earnings outlook for the full year.

For the third quarter, net income attributed to Perry Ellis decreased to $4.14 million or $0.31 per share from $5.00 million or $0.33 per share in the previous year. The results of the prior-year quarter included impairment on marketable securities of $580 thousand.

On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.21 per share in the third quarter. Analysts' estimate typically excludes special items.

The company noted that earnings per share were augmented by a decrease in the number of shares outstanding and a tax benefit attributable to the reduction in unrecognized tax benefits related to its foreign operations. Weighted average number of shares outstanding decreased year-over-year to 13.23 million from 15.17 million.

Net income for the three-month period dipped to $4.31 million from $5.24 million in the past year.

Total revenues for the period decreased to $178.55 million from $222.82 million, reflecting overall weakness in the department store and luxury distribution channel, especially for the swim category. Four analysts were expecting revenue of $185.17 million in the third quarter.
Net sales for the quarter declined to $172.15 million from $216.23 million, while royalty income dipped to $6.39 million from $6.58 million.

Operating income reduced year-over-year to $8.99 million from $12.42 million. Perry Ellis said that the cost cutting measures launched at the end of the previous year and strict expense controls during the latest quarter resulted in an 18% decline in operating expenses to $52.0 million from $63.5 million for the year-ago quarter.

For the nine-month period, net income attributed to Perry Ellis dropped to $4.68 million or $0.36 per share from $8.73 million or $0.57 per share in fiscal 2009. Revenue slid 15.5% to $557.76 million from $660.06 million.

Looking ahead, for fiscal 2010, the company raised its earnings guidance to a range of $0.80 to $0.95 per share, from the earlier announced $0.70 to $0.85 per share range. The company also confirmed that it sees revenue for the full year to decrease in the low double-digit range, but forecasts revenue growth and gross margin improvements for the remainder of the current year. Analysts expect the company to earn $0.82 per share for the year.

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