Why Perry Ellis International, Inc. Shares Plummeted

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of clothing company Perry Ellis International (NASDAQ: PERY  ) plunged 23% today after it cut its guidance for the second half of 2014.

So what: The stock has been sluggish over the past few months on concerns over weak demand, and today's third-quarter warning -- Perry Ellis expects a loss of $0.15 to $0.17 -- coupled with downbeat full-year guidance only reinforces that worry. On a positive note, the company continues to see strong performance in its golf lifestyle apparel and Nike swim business, giving shareholders some hope that growth will be restored sooner rather than later. 

Now what: Management now sees full-year adjusted EPS of $0.95-$1.01 on revenue of $960 million-$970 million, well below its prior view of $1.50-$1.60 and $985 million-$995 million. "The reduction reflects the impact of third quarter of fiscal 2014 along with the private label reduction for the mid-tier channel as well as direct retail sales for the remainder of the year," said the company in a statement. When you couple those demand headwinds with Perry Ellis' still-hefty debt load, I'd wait for an even wider margin of safety before jumping in. 

A more reliable way to wealth
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2725034, ~/Articles/ArticleHandler.aspx, 9/26/2016 6:32:27 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
PERY $20.03 Down -0.06 -0.30%
Perry Ellis CAPS Rating: ***