Upscale menswear firm Perry Ellis International (NASDAQ: PERY) is the latest firm to hit Wall Street with a bleak outlook on retail sales. This morning, the company unveiled its preliminary third-quarter results and dramatically slashed its earnings guidance for fiscal 2009. Chairman and CEO George Feldenkreis warned, "Our retail partners are expecting an extremely promotional Christmas season, but at this point, we have no visibility on what the Thanksgiving weekend and the Christmas season will bring."

In the third quarter, PERY anticipates diluted earnings per share of 30 to 33 cents per share, compared to 55 cents in the same quarter of 2007. Revenue for the period is expected to decline 2% from last year to $222.8 million. The final results will be released on November 20, ahead of the opening bell.

Looking ahead to 2009, the clothing concern trimmed its fiscal-year earnings guidance from $1.67 to $1.72 per fully diluted share to a range between 90 cents and $1.10 per fully diluted share. The updated forecast accounts for one-time expenses of 10 to 15 cents per share related to a strategic review of the company's brands and businesses. Revenue for 2009 is now projected to fall between $875 million and $900 million, down from a prior forecast of $910 million to $925 million.

Feldenkreis noted that the formal review process should help make PERY "a stronger and more nimble company when the economy turns around."

In light of today's slashed forecast and uncertain outlook from Perry Ellis, the stock could be hit with downgrades or price-target cuts. Zacks reports that 3 out of 5 analysts following the shares maintain a bullish Strong Buy opinion, while Thomson Financial pegs the average 12-month price target at $16.40. This consensus estimate implies an expected upside of 211% from PERY's closing price on Wednesday -- leaving ample opportunity for potential downward revisions.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.

Perry Ellis slashes forecast, warns of 'no visibility' on holiday sales season originally appeared on BloggingStocks on Thu, 13 Nov 2008 10:45:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The stock is up 150% over the last year but with its move into the consumer marker BlackBerry maker Research in Motion Limited (NASDAQ: RIMM) is entering the fickle world of consumer trendiness, reported the Wall Street Journal's "Heard on the Street". Analysts are concerned about how big the consumer market can be for them, and then there's Apple Inc (NASDAQ: AAPL) and Nokia Corporation (NYSE: NOK) beating down the consumer path. Smart products will help, but price is an issue, and the shares could face a hard fall.
• The Wall Street Journal reported that Wachovia Corporation (NYSE: WB) acknowledged it has hired The Goldman Sachs Group Inc (NYSE: GS) to study its troubled portfolios of mortgages, a move which many believe indicates the bank is gauging the market value of the loans in order to eventually sell them.

• Lazard Ltd (NYSE: LAZ) was hired by UBS AG (NYSE: UBS) to undertake a strategic review of the Swiss bank's businesses, the New York Post learned.
• The New York Post also reported some reported turmoil at Live Nation Inc (NYSE: LYV), following the abrupt departure of the concert promoter's chairman, Michael Cohl. Employees in the unit that was led by Cohl fear that the company will lay some of them off, and CEO Michael Rapino is accused of not being strongly committed to the company's mega-deal strategy.
• The Boston Herald reported that its unions were told the newspaper will lay off 130 to 160 workers, under its new plan to outsource printing operations elsewhere in the state.

Newspaper wrap-up: UBS reportedly hires Lazard to conduct strategic review originally appeared on BloggingStocks on Wed, 25 Jun 2008 08:00:00 EST. Please see our terms for use of feeds.

For now, Trump won't sell originally appeared on BloggingStocks on Mon, 02 Jul 2007 16:10:00 EST. Please see our terms for use of feeds.