Perry Ellis International Inc. adjusted its outlook Thursday as it reported better-than-expected earnings but revenue missed on the sale of one of its brands and some exclusive label transitions.

Chief Executive Oscar Feldenkreis pointed to growth across the company's key lifestyle brands of Perry Ellis, Rafaella and Golf Lifestyle, as well as expansion in gross margin and expense discipline, which drove a more than fivefold increase in adjusted diluted earnings per share.

The company lifted its 2016 adjusted earnings per share guidance to the range of $1.81 to $1.88, from its previous guidance of $1.78 to $1.85. But it slashed its expectations for revenue—estimated to come in between $910 million to $920 million, compared with earlier guidance of $925 million to $935 million.

The Miami company, known for its men's dress shirts and slacks, has a portfolio of dozens of brands that include Callaway Golf and Original Penguin, in addition to its namesake label. The company has been under pressure from activist investor Legion Partners Asset Management LLC, which has been pushing publicly for changes since last summer.

Legion and the California State Teachers' Retirement System, or Calstrs—which has an investment in Legion—have been particularly concerned with Perry Ellis's profit margins. The company has said it is targeting 38% by its 2019 fiscal year. In the third quarter, its gross margin expanded to 35.7% from 33.3% a year earlier.

For the third quarter, Perry Ellis reported a profit of $2.3 million, or 15 cents a share, compared with a loss of $437 million, or three cents a share, a year earlier. Adjusted earnings were 16 cents a share.

Revenue shrank 2.8% to $205.4 million, driven by the sale of C&C California and the transition of certain exclusive labels to the company's national lifestyle brands.

Analysts expected the company to report adjusted earnings of four cents a share and break-even on revenue.

Shares, down 31% this year, were inactive premarket.

Write to Anne Steele at Anne.Steele@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

November 19, 2015 08:55 ET (13:55 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
Callaway Golf (NYSE:ELY)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Callaway Golf Charts.
Callaway Golf (NYSE:ELY)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Callaway Golf Charts.