Perry Ellis expects 13 percent rise in Q4 revenues

Based on its preliminary expectations for the fourth quarter

and full year, Perry Ellis International is providing fourth quarter guidance and updating its expectations for the 2013 fiscal year ended February 2, 2013. For the fourth quarter ended February 2, 2013, The Company currently expects total revenue to increase 13 percent to approximately 258 million dollars versus 229 million dollars in the comparable prior year period ended January 28, 2012 (“fourth quarter of fiscal 2012”). Adjusted diluted earnings per share are currently expected in the range of 0.48 dollars to 0.50 dollars.

For the 2013 fiscal year ended February 2, 2013, Fiscal 2013 revenue is expected to approximate 970 million dollars, as compared to 981 million dollars in fiscal 2012. Adjusted diluted earnings per share (“EPS”) are expected in the range of 1.43 dollars to 1.45 dollars for fiscal year 2013.

“We were quite pleased with our holiday season, despite the headwinds which faced the entire retail industry from numerous factors including Hurricane Sandy, economic and political uncertainties, unseasonal climate, and challenging promotional strategies,” said Oscar Feldenkreis, president and chief operating officer of Perry Ellis International.

Feldenkreis further added, “We executed on our strategies for our core businesses and generated solid results. Our Perry Ellis collection and Rafaella sportswear collection businesses delivered greatly improved product offerings. We experienced reduced promotional sales and stronger gross margins from a year earlier. We believe that these businesses look even stronger for the spring/summer season just beginning.”

During the fourth quarter of fiscal 2013, the Company entered into a sales agreement for its John Henry trademark in international territories in Asia. This sale will result in pre-tax income of approximately 6.3 million dollars or after tax earnings per share of approximately 0.21 dollars. This transaction is expected to close in the first quarter 2014. The Company plans to continue executing on the domestic strategy of the John Henry brand as a modern lifestyle resource to select retailers as well as its licensing relationships in Latin America.

For its initial outlook for fiscal 2014, the Company expects revenues to increase three percent – five percent. Gross margins are expected to expand by over 100 bps from 2013. SG&A as a percent of sales is expected to increase with this ratio expected to improve as revenue growth increases above five percent. Initial adjusted diluted earnings per share are expected to range from 1.50 dollars to 1.60 dollars.