Perry Ellis International Reports Third Quarter Fiscal 2014 Results

Perry Ellis International Reports Third Quarter Fiscal 2014 Results

  *Total revenue of $222.1 million in line with Company updated guidance
  *GAAP loss per fully diluted share of $0.20
  *Adjusted loss per fully diluted share of $0.15
  *Company maintains updated full fiscal 2014 adjusted diluted EPS guidance
    in a range of $0.95 to $1.01
  *Company sees full fiscal 2014 GAAP diluted EPS guidance in a range of
    $0.97 to $1.03

MIAMI, Nov. 21, 2013 (GLOBE NEWSWIRE) -- Perry Ellis International, Inc.
(Nasdaq:PERY) today reported results for the third quarter ended November 2,
2013 ("third quarter of fiscal 2014").

Third Quarter Results from Operations

In the third quarter of fiscal 2014, total revenues were $222.1 million
compared to $236.2 million in the quarter ended October 27, 2012 ("third
quarter of fiscal 2013") and in-line with the Company's updated guidance. The
Company noted that continued growth within golf lifestyle apparel, the Nike
Swim and the licensing business was offset by reductions in private and
proprietary branded businesses in the mid-tier channel as well as negative
comparable store sales in its own direct retail channel.

Oscar Feldenkreis, president and chief operating officer, commented, "Our
third quarter was disappointing as difficult performance in our direct to
consumer and mid-tier channel businesses offset improvement in our focus areas
of golf and collection sportswear. To this end, we continued with a positive
momentum across all channels within our golf lifestyle apparel category, and
our Rafaella collection sportswear business experienced a measured improvement
in trend for the fall selling season. We did experience lighter traffic
patterns and reduced consumer enthusiasm for spending during the quarter –
most noticeably in the latter half of the fiscal quarter, which resulted in
negative comparable store sales as compared to the three consecutive years of
cumulative double digit comparable stores sales growth. We are focusing on a
localization strategy for each of our stores in order to return to strong,
positive comparable store selling performance as well as enhancing operational
management where appropriate."

Gross margin for the third quarter of fiscal 2014 was 32.1%, same as the
comparable period last year. The lighter than plan direct to consumer mix
impacted gross margin negatively. In addition, lower closeout margins in
fashion swim also impacted gross margins. On the positive side, Rafaella
collection business posted gross margin improvement over the prior year.

Selling, general and administrative ("SG&A") expenses for the third quarter of
fiscal 2014 increased $4.0 million to $68.4 million compared to $64.4 million
in the third quarter of fiscal 2013.The increase reflects a larger investment
in marketing and ecommerce along with the recently consolidated New York
offices.The increase also reflects approximately $1.1 million of strategic
costs associated principally with streamlining efforts within various business
components, which we anticipate will lead to improved productivity in the
future.

As reported under generally accepted accounting principles ("GAAP"), net loss
for the third quarter of fiscal 2014 was $3.0 million, or a loss per fully
diluted share of $0.20, compared to net income of $3.2 million, or $0.21 per
fully diluted share in the third quarter of fiscal 2013.

After considering the costs associated with strategic initiatives, the sale of
long-lived assets and tax impact, loss per fully diluted share, as adjusted,
for the third quarter of fiscal 2014 was $0.15 compared to earnings per fully
diluted share, as adjusted, of $0.25 in the third quarter of fiscal 2013. (See
attached reconciliation "Table 1")

Adjusted EBITDA for the third quarter of fiscal 2014 totaled $4.0 million, or
1.8% of revenue. (See attached reconciliation "Table 2")

Nine Months Operations Review

For the nine months ended November 2, 2013 total revenues were $696.1 million
compared to $711.2 million for the nine months ended October 27, 2012. The
revenue reduction during the first nine months of the fiscal year, as compared
to last year, was primarily attributable to reduction in private branded
business.

Adjusted EBITDA for the first nine months of fiscal 2014 totaled $26.9
million, or 3.9% of revenue. (See attached reconciliation "Table 2")

Net income for the first nine months of fiscal 2014 was $5.5 million, or $0.36
per fully diluted share, compared to $10.4 million, or $0.68 per fully diluted
share, in the first nine months of fiscal 2013. (See attached reconciliation
"Table 1")

After considering certain costs as outlined in Table 1, earnings per fully
diluted share, as adjusted, for the first nine months of fiscal 2014 was $0.32
as compared to $0.95 earnings per fully diluted share, as adjusted, in the
first nine months of fiscal 2013. (See attached reconciliation "Table 1")

Balance Sheet Update

George Feldenkreis, chairman and chief executive officer of Perry Ellis
International commented, "Despite our disappointing performance, we have an
extremely solid balance sheet.We are committed to taking the necessary
actions to drive our revenues and margins to enhance profitability.We believe
that we have the balance sheet strength to fund growth in our core businesses,
as well as to provide capital for our longer term strategic goals."

Fiscal 2014 Guidance

The Company continues to see updated full year fiscal 2014 revenues in a range
of $960 to $970 million and fully diluted earnings per share, as adjusted, in
a range of $0.95 to $1.01. GAAP fully diluted earnings per share are
forecasted in a range of $0.97 to $1.03.

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®, Solero®, Munsingwear®, Savane®, Original
Penguin® by Munsingwear®, Grand Slam®, Natural Issue®, Pro Player®, the
Havanera Co.®, Axis®, Gotcha®, Girl Star®, MCD®, John Henry®, Mondo di Marco®,
Redsand®, Manhattan®, Axist®, Farah®, Anchor Blue® and Miller's Outpost®. The
Company enhances its roster of brands by licensing trademarks from third
parties, including: Nike® and Jag® for swimwear, and Callaway®, PGA TOUR®,
Champions Tour® and Jack Nicklaus® 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     Nine Months Ended
                              November 2, October 27, November 2, October 27,
                               2013        2012        2013        2012
                                                               
Revenues                                                        
Net sales                      $214,700  $229,330  $674,676  $691,436
Royalty income                 7,421      6,918      21,469     19,772
Total revenues                 222,121    236,248    696,145    711,208
Cost of sales                  150,757    160,453    467,554    478,348
Gross profit                   71,364     75,795     228,591    232,860
Operating expenses                                              
Selling, general and           68,434     64,394     205,624    196,844
administrative expenses
Depreciation and amortization  3,573      3,424      9,375      10,314
Total operating expenses       72,007     67,818     214,999    207,158
(Loss) gain on sale of         (108)      410        6,162      410
long-lived assets
Operating (loss) income       (751)      8,387      19,754     26,112
Interest expense               3,782      3,689      11,307     11,011
                                                               
Net (loss) income before       (4,533)    4,698      8,447      15,101
income taxes
Income tax (benefit) provision (1,511)    1,518      2,979      4,687
Net (loss) income              $(3,022)  $3,180    $5,468    $10,414
                                                               
Net (loss) income, per share                                   
Basic                          $(0.20)   $0.22     $0.36     $0.71
Diluted                        $(0.20)   $0.21     $0.36     $0.68
                                                               
Weighted average number of                                      
shares outstanding
Basic                          14,991     14,662     15,042     14,669
Diluted                        14,991     15,295     15,363     15,275



PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED)
(amounts in 000's)
                                                            
BALANCE SHEET DATA:                                          
                                                            
                                            As of
                                            November 2, 2013 February 2, 2013
                                                            
Assets                                                       
Current assets:                                              
Cash and cash equivalents                    $49,493        $54,957
Accounts receivable, net                     148,982         174,484
Inventories                                  166,491         183,127
Other current assets                         28,707          30,536
Total current assets                         393,673         443,104
                                                            
Property and equipment, net                  61,206          50,749
Intangible assets, net                       245,978         246,681
Goodwill                                     13,794          13,794
Other assets                                 8,429           8,801
                                                            
Total assets                                 $723,080       $763,129
                                                            
Liabilities and stockholders' equity                         
Current liabilities:                                         
Accounts payable                             $76,425        $132,028
Accrued expenses and other liabilities       25,871          28,595
Accrued interest payable                     1,104           4,061
Unearned revenues                            4,630           4,647
Total current liabilities                    108,030         169,331
                                                            
                                                            
Long term liabilities:                                       
Senior subordinated notes payable, net       150,000         150,000
Senior credit facility                       18,826          --
Real estate mortgages                        23,539          24,202
Deferred pension obligation                  12,457          14,686
Unearned revenues and other long-term        34,227          33,670
liabilities
Total long-term liabilities                  239,049         222,558
                                                            
Total liabilities                            347,079         391,889
                                                            
Equity                                                       
                                                            
Total equity                                 376,001         371,240
                                                            
Total liabilities and equity                 $723,080       $763,129



PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES
Table 1
Reconciliation of the three and nine months ended November 2, 2013 and October
27, 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         Nine Months Ended
                       November 2,   October 27,   November 2,   October 27,
                        2013          2012          2013          2012
Net (loss) income       $(3,022)    $3,180      $5,468      $10,414
Plus:                                                          
Costs on exited brands  --          400          --          2,245
Costs of streamlining
and consolidation of    1,057        936          3,922        2,397
operations, and other
strategic initiatives
Costs of voluntary      --          --          --          2,420
retirement
Less:                                                          
(Loss) gain on sale of  108          (410)        (6,162)      (410)
long-lived assets
Tax (benefit )          (445)        (358)        1,682        (2,545)
provision
Net (loss)income, as    $(2,302)    $3,748      $4,910      $14,521
adjusted
                                                              
                                                              
                       Years Ended                 Nine Months Ended
                       November 2,   October 27,   November 2,   October 27,
                        2013          2012          2013          2012
Net (loss) income per   $(0.20)     $0.21       $0.36       $0.68
share, diluted
                                                              
Net per share costs on  --          0.02         --          0.09
exited brands
Net per share costs of
streamlining and
consolidation of        0.05         0.04         0.18         0.10
operations, and other
strategic initiatives
Net per share costs of  --          --          --          0.10
voluntary retirement
Net per share gain on
sale of long-lived      --          (0.02)       (0.22)       (0.02)
assets
Adjusted net (loss)
income per share,       $(0.15)     $0.25       $0.32       $0.95
diluted
                                                              
"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, costs of voluntary retirement 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         Nine Months Ended
                       November 2,   October 27,   November 2,   October 27,
                        2013          2012          2013          2012
                                                              
                                                              
Net (loss) income       $(3,022)    $3,180      $5,468      $10,414
Plus:                                                          
Depreciation and        3,573        3,424        9,375        10,314
amortization
Interest expense        3,782        3,689        11,307       11,011
Income tax (benefit)    (1,511)      1,518        2,979        4,687
provision
EBITDA                  2,822        11,811       29,129       36,426
                                                              
Costs on exited brands  --          400          --          2,245
Costs of streamlining
and consolidation of    1,057        715          3,922        2,176
operations, and other
strategic initiatives
Costs of voluntary      --          --          --          2,420
retirement
Loss (gain) on sale of  108          (410)        (6,162)      (410)
long-lived assets
EBITDA, as adjusted     $3,987      $12,516     $26,889     $42,857
                                                              
                                                              
Gross profit            $71,364     $75,795     $228,591    $232,860
Less:                                                          
Selling, general and
administrative          (68,434)     (64,394)     (205,624)    (196,844)
expenses
Plus:                                                          
Costs on exited brands  --          400          --          2,245
Costs of streamlining
and consolidation of    1,057        715          3,922        2,176
operations, and other
strategic initiatives
Costs of voluntary      --          --          --          2,420
retirement
EBITDA, as adjusted     3,987        12,516       26,889       42,857
                                                              
                                                              
Total revenues          $222,121    $236,248    $696,145    $711,208
                                                              
EBITDA margin           1.8%          5.3%          3.9%          6.0%
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, costs of
voluntary retirement, 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, Inc.
         Anita Britt, 305-873-1210

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