Perry Ellis International Reports Second Quarter Fiscal 2014 Results

Perry Ellis International Reports Second Quarter Fiscal 2014 Results

  *Total revenue increased by 1.1% to $211.7 million compared to $209.4 in
    prior year
  *GAAP loss per share of $0.19
  *Adjusted loss per share of $0.15, in line with Company guidance
  *Improvements in Rafaella and Perry Ellis collection businesses beginning
    to take hold
  *Company maintains full fiscal 2014 adjusted EPS guidance in a range of
    $1.50 - $1.60. Company expects fiscal 2014 revenue to increase in a range
    of 2%-3% as compared to prior year

MIAMI, Aug. 22, 2013 (GLOBE NEWSWIRE) -- Perry Ellis International
(Nasdaq:PERY) today reported results for the second quarter and first six
months ended August 3, 2013 ("second quarter of fiscal 2014").

Second Quarter Results from Operations

Total revenue increased 1.1% to $211.7 million compared to $209.4 million in
the quarter ended July 28, 2012 ("second quarter of fiscal 2013") and in line
with Company guidance for a low single digit increase. The Company experienced
revenue increases in its Rafaella women's sportswear and Perry Ellis menswear
collections driven by its product and assortment initiatives. In addition,
revenues rose in Nike swim as well as in licensing. These increases were
partially offset by a decrease in direct to consumer revenue and the
anticipated reduction in men's classification private label bottoms revenue.

Oscar Feldenkreis, President and Chief Operating Officer, commented, "We are
seeing solid progress in our Perry Ellis and Rafaella collection businesses,
which is encouraging as we move into the second half of the year. We are
pleased with the strength of our brands and their growing lifestyle appeal,
which is best evidenced by our licensing revenue increase of 14% for the
period. While performance in direct to consumer was disappointing, our
inventory and assortments are well positioned moving into the fall and have
seen a positive improvement for the month to date."

Gross margin decreased by 70 basis points to 32.4% compared to 33.1% last year
primarily due to a mix shift away from higher margin direct to consumer and
mid-tier channel revenues. This impact was partially offset by margin
improvement in the Company's collection businesses driven by improved product
performance at retail.

Selling, general and administrative ("SG&A") expenses totaled $66.5 million
compared to $66.1 million in the second quarter of fiscal 2013. Second quarter
fiscal 2014 included $836,000 of costs associated with the Company's New York
City office consolidation efforts. In the second quarter of fiscal 2013, SG&A
included $3.5 million in costs associated with the Company's strategic
initiatives.

As reported under generally accepted accounting principles ("GAAP"), the net
loss for the second quarter of fiscal 2014 was $2.8 million, or $0.19 per
share. This compares to a net loss of $2.4 million, or $0.17 per share, in the
second quarter of fiscal 2013.

Adjusting for the costs associated with strategic initiatives, the adjusted
loss per share was $0.15 for the second quarter of fiscal 2014 and compared to
an adjusted profit per share of $0.01 in the second quarter of fiscal 2013.
(See attached reconciliation "Table 1")

Adjusted EBITDA for the second quarter totaled $2.9 million or 1.4% of
revenue. (See attached reconciliation "Table 2")

First Half Operations Review

For the six months ended August 3, 2013 ("first half of fiscal 2014") total
revenues were essentially flat at $474.0 million compared to $475.0 million
for the six months ended July 28, 2012 ("first half of fiscal 2012") and in
line with Company guidance. Revenue rose in golf lifestyle apparel, Nike swim
and men's accessories. These increases were offset by declines in the
Company's direct to consumer segment, as well as from the anticipated
reductions in men's classification private label bottoms revenue.

Adjusted EBITDA totaled $22.9 million or 4.8% of revenue. (See attached
reconciliation "Table 2")

Net income was $8.5 million, or $0.55 per fully diluted share, compared to
$7.2 million, or $0.47 per fully diluted share, in the first half of fiscal
2013.

Adjusting for the costs associated with strategic initiatives, adjusted
earnings per fully diluted share for the first half of fiscal 2014 was $0.44
compared to adjusted earnings per fully diluted share of $0.70 in the first
half of fiscal 2013. (See attached reconciliation "Table 1")

Balance Sheet Update

George Feldenkreis, Chairman and CEO of Perry Ellis International commented,
"We believe that our excellent financial position and the strength of our
operating platform provide us with the foundation to capitalize on our
improved sportswear offering and maximize sales opportunities across multiple
distribution channels around the globe. We are confident that the focus and
disciplined management of our balance sheet will provide support for continued
growth in our core competencies."

The Company ended the quarter with $59 million in cash and cash equivalents
and full availability under its senior credit facility. Inventories at quarter
end totaled $178.9 million, as compared to $183.1 million at February 2, 2013
and $164.7 as of July 28, 2012. As a result of the disciplined management of
inventory, the Company ended the period with a net debt to total
capitalization of approximately 23%, which continues to keep it in excellent
shape.

Fiscal 2014 Guidance

The Company continues to maintain its outlook for the full fiscal year
expecting diluted EPS as adjusted in a range of $1.50 to $1.60. Guidance for
GAAP earnings per share should be in the range of $1.57 to $1.67. The Company
is updating its revenue outlook to reflect an increase of 2% to 3% as compared
to its previous outlook for 3% to 5% growth over fiscal 2013. The reduction in
expected revenue growth reflects softer sales in the Company's direct to
consumer channel and slower sales growth in the mid-tier distribution channel.
Disciplined expense management is expected to offset slightly lower revenue
growth.

About Perry Ellis International

Perry Ellis International, Inc. is a leading designer, distributor and
licensor of a broad line of high quality men's and women's apparel,
accessories and fragrances, as well as select children's apparel. The
Company's collection of dress and casual shirts, golf sportswear, sweaters,
dress pants, casual pants and shorts, jeans wear, active wear, dresses and
men's and women's swimwear is available through all major levels of retail
distribution. The Company, through its wholly owned subsidiaries, owns a
portfolio of nationally and internationally recognized brands, including:
Perry Ellis®, Jantzen®, Laundry by Shelli Segal®, C&C California®, Rafaella®,
Cubavera®, Ben Hogan®, Centro®, Munsingwear®, Savane®, Original Penguin® by
Munsingwear®, Grand Slam®, Natural Issue®, Pro Player®, the Havanera Co.®,
Gotcha®, MCD®, John Henry®, Mondo di Marco®, Redsand®, Manhattan®, Axist®,
Farah®, Anchor Blue®, Miller's Outpost®, Tahoe River Outfitters®, Original
Khaki Company® and Techworks®. The Company enhances its roster of brands by
licensing trademarks from third parties, including: Nike® and Jag® for
swimwear, and Callaway®, PGA TOUR® and Champions Tour® for golf apparel.
Additional information on the Company is available at http://www.pery.com.

Safe Harbor Statement

We caution readers that the forward-looking statements (statements which are
not historical facts) in this release are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on current expectations rather than
historical facts and they are indicated by words or phrases such as
"anticipate," "believe," "budget," "contemplate," "continue," "could,"
"estimate," "expect," "guidance," "indicate," "intend," "may," "might,"
"plan," "possibly," "potential," "predict," "probably," "proforma," "project,"
"seek," "should," "target," or "will" and similar words or phrases or
comparable terminology. We have based such forward-looking statements on our
current expectations, assumptions, estimates and projections. While we believe
these expectations, assumptions, estimates and projections are reasonable,
such forward-looking statements are only predictions and involve known and
unknown risks and uncertainties, and other factors that may cause actual
results, performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements, many of which are beyond our control. These
factors include: general economic conditions, a significant decrease in
business from or loss of any of our major customers or programs, anticipated
and unanticipated trends and conditions in our industry, including the impact
of recent or future retail and wholesale consolidation, recent and future
economic conditions, including turmoil in the financial and credit markets,
the effectiveness of our planned advertising, marketing and promotional
campaigns, our ability to contain costs, disruptions in the supply chain, our
future capital needs and our ability to obtain financing, our ability to
protect our trademarks, our ability to integrate acquired businesses,
trademarks, trade names and licenses, our ability to predict consumer
preferences and changes in fashion trends and consumer acceptance of both new
designs and newly introduced products, the termination or non-renewal of any
material license agreements to which we are a party, changes in the costs of
raw materials, labor and advertising, our ability to carry out growth
strategies including expansion in international and direct to consumer retail
markets, the level of consumer spending for apparel and other merchandise, our
ability to compete, exposure to foreign currency risk and interest rate risk,
possible disruption in commercial activities due to terrorist activity and
armed conflict, and other factors set forth in Perry Ellis International's
filings with the Securities and Exchange Commission. Investors are cautioned
that all forward-looking statements involve risks and uncertainties, including
those risks and uncertainties detailed in Perry Ellis' filings with the SEC.
You are cautioned not to place undue reliance on these forward-looking
statements, which are valid only as of the date they were made. We undertake
no obligation to update or revise any forward-looking statements to reflect
new information or the occurrence of unanticipated events or otherwise.


PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED)
(amounts in 000's, except per share information)
                                                             
INCOME STATEMENT DATA:                                        
                        Three Months Ended          Six Months Ended
                        August 3, 2013 July 28, 2012 August 3,  July 28, 2012
                                                      2013
                                                             
Revenues                                                      
Net sales                $204,492     $203,090    $459,976 $462,106
Royalty income           7,213         6,347        14,048    12,854
Total revenues           211,705       209,437      474,024   474,960
Cost of sales            143,159       140,112      316,797   317,895
Gross profit             68,546        69,325       157,227   157,065
Operating expenses                                            
Selling, general and     66,521        66,103       137,190   132,450
administrative expenses
Depreciation and         3,010         3,472        5,802     6,890
amortization
Total operating expenses 69,531        69,575       142,992   139,340
Gain on sale of          --           --          6,270     --
long-lived assets
Operating (loss) income (985)         (250)        20,505    17,725
Interest expense         3,722         3,513        7,525     7,322
                                                             
Net (loss) income before (4,707)       (3,763)      12,980    10,403
income taxes
Income tax (benefit)     (1,877)       (1,321)      4,490     3,169
provision
Net (loss) income        $(2,830)     $(2,442)    $8,490   $7,234
                                                             
Net (loss) income, per                                        
share
Basic                    $(0.19)      $(0.17)     $0.56    $0.49
Diluted                  $(0.19)      $(0.17)     $0.55    $0.47
                                                             
Weighted average number                                       
of shares outstanding
Basic                    15,112        14,703       15,068    14,672
Diluted                  15,112        14,703       15,406    15,265



PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED)
(amounts in 000's)
                                                            
BALANCE SHEET DATA:                                          
                                                            
                                              As of
                                              August 3, 2013 February 2, 2013
                                                            
Assets                                                       
Current assets:                                              
Cash and cash equivalents                      $58,757      $54,957
Accounts receivable, net                       140,498       174,484
Inventories                                    178,872       183,127
Other current assets                           28,861        30,536
Total current assets                           406,988       443,104
                                                            
Property and equipment, net                    59,727        50,749
Intangible assets, net                         246,212       246,681
Goodwill                                       13,794        13,794
Other assets                                   8,362         8,801
                                                            
Total assets                                   $735,083     $763,129
                                                            
Liabilities and stockholders' equity                         
Current liabilities:                                         
Accounts payable                               $98,658      $132,028
Accrued expenses and other liabilities         23,354        28,595
Accrued interest payable                       4,056         4,061
Unearned revenues                              5,224         4,647
Total current liabilities                      131,292       169,331
                                                            
                                                            
Long term liabilities:                                       
Senior subordinated notes payable, net         150,000       150,000
Real estate mortgages                          23,774        24,202
Deferred pension obligation                    13,179        14,686
Unearned revenues and other long-term          35,265        33,670
liabilities
Total long-term liabilities                    222,218       222,558
                                                            
Total liabilities                              353,510       391,889
                                                            
Equity                                                       
                                                            
Total equity                                   381,573       371,240
                                                            
Total liabilities and equity                   $735,083     $763,129



PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES
Table 1
Reconciliation of the three and six months ended August 3, 2013 and July 28,
2012 net (loss) income and diluted (loss) earnings per share to adjusted net
(loss) income and adjusted diluted (loss) earnings per share.
(UNAUDITED)
(amounts in 000's, except per share information)
                                                                 
                           Three Months Ended          Six Months Ended
                           August 3,     July 28, 2012  August 3,   July 28,
                            2013                         2013        2012
Net (loss) income           $(2,830)    $(2,442)     $8,490    $7,234
Plus:                                                             
Costs on exited brands      --          830           --        1,845
Costs of streamlining and
consolidation of            836          970           2,865      1,461
operations, and other
strategic initiatives
Costs of voluntary          --          2,420         --        2,420
retirement
Less:                                                             
Gain on sale of long-lived  --          --           (6,270)    --
assets
Tax benefit                (319)        (1,612)       2,127      (2,187)
Net (loss)income, as        $(2,313)    $166         $7,212    $10,773
adjusted
                                                                 
                                                                 
                           Years Ended                  Years Ended
                           May 4, 2013   April 28, 2012 May 4, 2013 April 28,
                                                                     2012
Net (loss) income per       $(0.19)     $(0.17)      $0.55     $0.47
share, diluted
                                                                 
Net per share impairment on --          --           --        --
long-lived assets
Net per share costs on      --          0.04          --        0.07
exited brands
Net per share costs of
streamlining and
consolidation of            0.04         0.04          0.14       0.06
operations, and other
strategic initiatives
Net per share costs of      --          0.10          --        0.10
voluntaryretirement
Net per share gain on sale  --          --           (0.22)     --
of long-lived assets
Adjustment for using        --          --           --        --
diluted share count (1)
Adjusted net (loss) income  $(0.15)     $0.01        $0.47     $0.70
per share, diluted
                                                                 
(1) The calculation of diluted shares for the purpose of generating GAAP EPS
does not include any antidilutive items (options, SARs and restricted stock)
that would result in a lower loss per share. Since the non-GAAP adjustments
would result in projected adjusted net income, these items would become
dilutive to EPS. This adjustment represents the impact of including these
dilutive items in the calculation of diluted shares for generating the
adjusted EPS.
                                                                 
"Adjusted net (loss) income per share, diluted" consists of "net (loss) income
per share, diluted" adjusted for the impact of the costs on exited
brands,costs of streamlining and consolidation of operations, and other
strategic initiatives, and gain on sale of long-lived assets. These costs and
gain are notindicative of our core operations and thus to get a more
comparable result with the operating performance of the apparel industry, they
have been removed, net of taxes, from the calculation.



PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES
Table 2
RECONCILIATION OF NET (LOSS) INCOME TO EBITDA AND ADJUSTED EBITDA(1)
(UNAUDITED)
(amounts in 000's)
                                                             
                      Three Months Ended            Six Months Ended
                      August 3, 2013  July 28, 2012  August 3,  July 28, 2012
                                                      2013
                                                             
                                                             
Net (loss) income      $(2,830)      $(2,442)     $8,490   $7,234
Plus:                                                         
Depreciation and       3,010          3,472         5,802     6,890
amortization
Interest expense       3,722          3,513         7,525     7,322
Income tax (benefit)   (1,877)        (1,321)       4,490     3,169
provision
EBITDA                 2,025          3,222         26,307    24,615
                                                             
Costs on exited brands --            830           --       1,845
Costs of streamlining
and consolidation of   836            970           2,865     1,461
operations, and other
strategic initiatives
Costs of voluntary     --            2,420         --       2,420
retirement
Gain on sale of        --            --           (6,270)   --
long-lived assets
EBITDA, as adjusted    $2,861        $7,442       $22,902  $30,341
                                                             
                                                             
                                                             
Gross profit           $68,546       $69,325      $157,227 $157,065
Less:                                                         
Selling, general and
administrative         (66,521)       (66,103)      (137,190) (132,450)
expenses
Plus:                                                         
Costs on exited brands --            830           --       1,845
Costs of streamlining
and consolidation of   836            970           2,865     1,461
operations, and other
strategic initiatives
Costs of voluntary     --            2,420         --       2,420
retirement
EBITDA, as adjusted    2,861          7,442         22,902    30,341
                                                             
Total revenues         $211,705      $209,437     $474,024 $474,960
                                                             
EBITDA margin          1.4%            3.6%           4.8%       6.4%
percentage of revenues
                                                             
(1) Adjusted EBITDA consists of (loss) earnings before interest, taxes,
depreciation, amortization, costs on exited brands, costs of streamlining and
consolidation of operations, and other strategic initiatives, as well as the
gain on sale of long-lived assets. Adjusted EBITDA is not a measurement of
financial performance under accounting principles generally accepted in the
United States of America, and does not represent cash flow from operations.
Adjusted EBITDA is presented solely as a supplemental disclosure because
management believes that it is a common measure of operating performance in
the apparel industry. In addition, we present adjusted EBITDA because we
believe it assists investors and analysts in comparing our performance across
periods on a consistent basis by excluding items that we do not believe are
indicators of our core operating performance.

CONTACT: Perry Ellis International
         Anita Britt
         305-592-2830

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