Perry Ellis Sold Off on Q4 Earnings

Well, this little item over at Investors.com offers the clues we need. Looks like sales weren't exactly what Wall Street wanted. And the guidance perhaps could have been better to some eyes.

Perry Ellis, which competes in the same arena as Liz Claiborne (LIZ) and Polo Ralph Lauren (RL), is a major brand in its space; the name has value. That might be little comfort to all the traders out there, however. So, how should the stock be viewed in light of the sell-off just before the weekend?

Going back to the Reuters article, I thought it was interesting that an analyst suggested that it could simply be a case of investors booking profits now that the numbers are known. Completely plausible, in my opinion.

Doesn't mean, though, that I have to buy the stock. Perry Ellis has done well over the last year, but I wouldn't want to get caught in a sudden downturn if the bulls believe it's time to move on to another idea. Probably best to wait on this one, make a determination at a later date on the probable direction of the stock. The quarter was solid, so I don't want to dismiss the thesis entirely; I'm just concerned about the selling I witnessed. We'll see where we go from here, as they say.

Disclosure: I don't own any company mentioned; positions can change without notice.