Top Performer for Tues: Perry Ellis (PERY)

Retail sales were better than expected in August, whether you count the Cash for Clunkers program or not, which likely helped Perry Ellis International, Inc. (PERY - Snapshot Report) with its more than 8% gain this afternoon.

However, apart from the macroeconomic news, this apparel company also recently reported it's fiscal second-quarter numbers and signed a deal with Pierre Cardin.

Earnings estimates for this top-performing Zacks #1 Rank company have moved sharply higher in the past month with strong analyst agreement.

In addition to PERY, there are 5 other names from the Textile-Apparel industry on today's Zacks #1 Rank List, which includes 225 names. Those other companies are G-III Apparel Group Ltd. (GIII - Snapshot Report), Guess?, Inc. (GES - Analyst Report), Maidenform Brands, Inc. (MFB - Snapshot Report), Phillips-Van Heusen Corporation (PVH - Snapshot Report) and Polo Ralph Lauren Corporation (RL - Snapshot Report).

Volume today is at 145,000 shares, compared to the daily average of 175,000.

Retail Sales Jump by the Most in 3 Years

August retail sales advanced by 2.7%. Perhaps even more impressive, though, is that sales gained more than 1% when removing benefits from the Cash for Clunkers program. Both results were better than expected.

Zacks' Chief Equity Analyst, Dirk van Dijk, provided a detailed look in our Analyst Blog. Read Retail Recovery?

Earnings Estimates

The past month has been very lucrative for PERY when it comes to upward revisions. The Zacks Consensus Estimate for this fiscal year, ending January 2010, is at 87 cents per share, marking a 16% gain from 75 cents in 30 days.

Meanwhile, the Zacks Consensus Estimate for next year, ending January 2011, advanced 15% in that time to $1.07 from 93 cents. Furthermore, at the moment, it looks like year-over-year profit growth is pegged at about 23%.

Both periods have enjoyed upward revisions from 5 of 6 covering analysts. It's always nice to have such strong agreement among the analysts.

Fiscal Second Quarter

In mid-August, PERY announced it's fiscal second-quarter performance, which reflected both the difficult operating environment and the success of its cost-cutting efforts.

The company lost 42 cents per share in the quarter, which was a wider loss than a year earlier. Nevertheless, the result narrowed the Zacks Consensus Estimate of a loss at 57 cents by more than 26%.

Total sales slipped 17.8% to $159.2 million, compared to $193.7 million a year earlier. However, the company mentioned that some of its core businesses improved year over year.

"Our branded swim brands, denim platform, golf brands, Hispanic lifestyle brands and, overall, our brands distributed to mid-tier stores, are beginning to return to more normal levels," stated President/COO Oscar Feldenkreis.

Looking toward the full fiscal year, PERY expects earnings per share between 70 cents and 85 cents, with a revenue decline in the low double digits.

Hanging with Pierre

A little after its quarterly report, PERY announced a licensing agreement with S.A.R.L. de Gestion Pierre Cardin. The company will source, sell and distribute the Pierre Cardin brand for men's sportswear in the U.S., Puerto Rico and the U.S. Virgin Islands. (It does not include woven shirts.)

It's a 5-year deal that starts in 2010.