Perry Ellis rises after results beat consensus expectation

Shares of apparel maker Perry Ellis (PERY) are higher this morning after the company's fourth quarter results beat analysts' estimates. The company reported Q4 adjusted EPS of 50c against estimates for 48c on revenue of $258.35M against estimates for $258.29M. The company's results were also at the high end of its preliminary Q4 estimates, provided on February 19, for adjusted EPS of 48c-50c and revenue of approximately $258M. President and COO Oscar Feldenkreis commented that the company saw continued positive momentum for its Golf lifestyle apparel across all brands and its Direct to Consumer business, which delivered positive comparable store sales in the quarter. Looking ahead, the company said it would remain conservative regarding its FY14 outlook. It forecast FY14 EPS of $1.50-$1.60, against estimates for $1.60, and revenue up 3%-5%, against estimates for $1.03B. On its earnings conference call, Perry Ellis said its goal is to expand the business to achieve a 10% EBITDA. The company expects to generate approximately $7M of cost savings related to its initiatives, of which $2M was realized in FY13. The company said the full incremental impact of approximately 2% of overhead is expected to be realized in FY14. Pery Ellis sees its FY14 adjusted gross margin expanding by approximately 100 basis points for the year, executives added. Pery Ellis is trading up $1.22, or 7.01%, to $18.62 in mid-morning trading.