Jan 13, 2009
Perry Ellis sees strong growth at acquired businesses
Jan 13, 2009
Jan 13 (Reuters) - Perry Ellis (PERY.O) said Tuesday that starting in 2009 it expects its women's contemporary businesses to grow to double of what they were last year, sending its shares up more than 10 percent.
The stock rise comes after the Miami-based company had lost about 30 percent of its value over the last five days, following its announcement last week that it was cutting its fiscal 2009 profit outlook for the second time in two months and would also eliminate more jobs.
The men's and women's clothing maker on Tuesday said it expects sales of about $30 million from the two women's contemporary businesses, half of the $60 million it had earlier expected.
It had bought C&C California and Laundry by Shelli Segal brands from Liz Claiborne Inc (LIZ.N) for $37 million in January 2008.
At a Cowen and Co.'s annual consumer industry conference, Perry Ellis said it lost close to $6 million this fiscal year from its acquisitions.
Shares of the company touched a high of $5.02 before paring some gains to trade at $4.86 Tuesday afternoon on Nasdaq. (Reporting by Mihir Dalal in Bangalore; Editing by Anthony Kurian)
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