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ICR JANUARY 2016
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S FE H RBOR
ST TEMENT
We caution readers that the forward-looking statements (statements which are not historical facts) in this release are made pursuant to the safe harbor prLitigation Reform Act of 1995. Forward-looking statements are based on current expectations rather than historical facts and they are indicated by words o"believe," "budget," "contemplate," "continue," "could," "estimate," "expect," "guidance," "indicate," "intend," "may," "might," "plan," "possibly," "potentia"proforma," "project," "seek," "should“ or "target" or the negative thereof or other variations thereon and similar words or phrases or comparable terminostatements include, but are not limited to, statements regarding Perry Ellis’ strategic operating review, growth initiatives and internal operating improvemand enhance profitability, the implementation of Perry Ellis’ profitability improvement plan and Perry Ellis’ plans to exit underperforming, low growth branbased such forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumare reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, and other factors that may
performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-lookbeyond our control.
These factors include: general economic conditions, a significant decrease in business from or loss of any of our major customers or punanticipated trends and conditions in our industry, including the impact of recent or future retail and wholesale consolidation, recent and future economicthe financial and credit markets, the effectiveness of our planned advertising, marketing and promotional campaigns, our ability to contain costs, disruptiocapital needs and our ability to obtain financing, our ability to protect our trademarks, our ability to integrate acquired businesses, trademarks, trade nampredict consumer preferences and changes in fashion trends and consumer acceptance of both new designs and newly introduced products, the terminatiolicense agreements to which we are a party, changes in the costs of raw materials, labor and advertising, our ability to carry out growth strategies includindirect-to-consumer retail markets, the effectiveness of our plans, strategies, objectives, expectations and intentions which are subject to change at any timcyber risk and technology failures which could disrupt operations or result in a data breach, the level of consumer spending for apparel and other merchanexposure to foreign currency risk and interest rate risk, possible disruption in commercial activities due to terrorist activity and armed conflict, actions of adisruption of responding to those actions, and other factors set forth in Perry Ellis' filings with the Securities and Exchange Commission (SEC). Investors alooking statements involve risks and uncertainties, including those risks and uncertainties detailed in Perry Ellis' filings with the SEC. You are cautioned nthese forward-looking statements, which are valid only as of the date they were made. We undertake no obligation to update or revise any forward-lookinginformation or the occurrence of unanticipated events or otherwise, except as otherwise required by the federal securities laws.
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25,000+POINTS OF SALE
60,000,000+UNITS SHIPPED
ANNUALLY
GENERATE $3.3BIN GLOBAL RETAIL SALES
24 GLOBDISTRIBU
15 COUNTRIESSOURCING OPERATIONS
US
CaMe
Eu
Ch
Bang
Includes 3 ded
PERRY ELLIS INTERNATIONAL IS ONE OF THE LAR
BRANDED LIFESTYLE APPAREL COMPANIES IN TH
(NASDAQ: PERY)
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24%
$930M
12%
$385M
20%
$510M
16%
$375M
% DirectRevenue(fiscal 2015)
GlobalRetailSales
~$3.3B Global Retail Sales
PORTFOLIO OPTIMI ZATION
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LUXURY DEPT/MID-TIER SPECIALTY INTE
Multiple Demographic Segments, Price Points an
Distribution Channels
DIVERSE RETAIL RE LATIONSHIPS
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PRODUCTINNOVATION
VISUAL MERCHANDISINGVIA SHOP-IN-SHOPS
OMNMA
RETAIL BRAND ENHANCEMENT
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FY15 International revenuesgrew 15% to represent 12%of revenues
FY15 Licensing incomegrew 7% to represent 4%of revenues
27 new licenses8 brands acrossproduct categor
LICENSING 4%
WHOLESALE 86%
DTC 10%
DOMESTIC 88%
INTERNATIONAL 12%
EXPANDING INTERNATIONAL AND LICENSING DISTRIBUTIO
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Perry EllisOriginal PenguinCubaveraFarah
CallawayRafaella
TOTAL
4629
22
--
79
3062
42
--
98
1111
11
6
OWNED RETAILSTORES
LICENSEESTORES
E-COMMERCESITES
DIRECT-TO-CONSUMER PLATFORM
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ENHANCEDPROFITABILITY
ACCELERATEE-COMMERCE
CONTINUOUS COMPSTORE GROWTH
OPEN NEWSTORES
• Right-door strategies, with a focus on localized assortme
• Fulfill E-com orders from stores where appropriate
•
Increase turns through lower markdowns, inventory man
• Expand high-margin assortments
• Grow ownership of exclusive product
• Deploy new e-mail growth strategies and intensify focus
• Focus on improved conversion
• Climate-right assortment strategies
FY-15 DTC Revenues rose 13% to represent 10% of total reven
FY-16 ECOM Comps up double digits; Retail Store comps up si
DIRECT TO CONSUMER EXPANSION
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OVERVIEW
Core Brand Portfolio
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$930M Global Retail Sales
52%LICENSING
16%DTC
32%WHOLESALE
86%DOMESTIC
14%INTL.
AGE
18-45(sweet spot
32-40)
INCOM
$100K+
PERRY ELLIS BRAND OVERVIEW
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TRAVEL LUXE PRINT & PATTERN OFFERINGS ATHLELINEN
Our Easy Careperformancetechnologysets us apart
At the forefront of print andpattern work development
Perry Ebeautifof activ
Places us squarely ina fashion niche that’sgrowing across alllevels of distribution
PERRY ELLIS PRODUCT STRATEGIES & OPPORTUNITIES
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• Speed to market
•
Improved product design and inventory management
KEY NORTH AMERICANRETAIL PARTNERS
Strengthen profitability with retail partners and increase penetration within
Fiscal 2016 9M YTD
Update (Collection)+8%
REVENUES
+350 bpsGROSS MARGIN
+300 bDIRE
PERRY ELLIS WHOLESA LE STRATEGIES
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22 Domestic and 19 International Agreements
Launching Perry Ellis America in Europe(Spring 2016)
North America Licensing: 83% of brand’s royalty revenue• 82.5% of brand’s total royalty revenue
• Growth driven by footwear, luggage, tailoredclothing and a new dress-shirt agreement
• 3 new agreements in the last 10 months
International Licensing: 17% of brand’s royalty revenue• Strong Organic Growth in Latin America
Expect direct International expansion opportunities
following launch of Perry Ellis America in Europe
PERRY ELLIS INTERNATIONAL & LICENSING BUSINESSES
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ORIGINAL PENGUIN BRAND OVERVIEW
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44%LICENSING
20%DTC
36%WHOLESALE
60%DOMESTIC
40%INTL.
ORIGINAL PENGUIN BRAND OVERVIEW
$385M Global Retail Sales
AGE
18-45(sweet spot
25-35)
INCOM
$75K-125K
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ORIGINAL PENGUIN U S KEY RETAIL PARTNERS
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U.S. PARTNERS
10
24 & ECOM
20
32
53 & ECOM
116 & ECOM
25
50 & ECOM
2012
2015
EUROPEAN
PARTNERS
15
45
30
35
0
27
0
25
2012
2015
ORIGINAL PENGUIN – U.S. KEY RETAIL PARTNERS
ORIGINAL PENGUIN INTERNATIONAL & LICENSING BUSINE
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17 Domestic and
22 International AgreementsNorth America Licensing: 64% of brand’s royalty revenue
• Licensing growth driven by footwear, kids, eyewearand a new tailored-clothing license
• 5 new agreements in last 18 months
International Licensing: 36% of brand’s royalty revenue
Growth driven by business development in Europe andLatin America
Growth opportunities with direct expansion acrossWestern Europe, Eastern Europe, Middle East & Africa
ORIGINAL PENGUIN INTERNATIONAL & LICENSING BUSINE
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PEI GOLF: AUTHENTIC GLOBAL PORTFOLIO OF GOLF LIFESTY
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$510M Global Retail Sales
• Walmart• International
• Kohl’s • Department Stores• Sporting Goods•
Off Course• Western Hemisphere
• Department Stores• Green Grass•
International
•
•
•
•
•
•
•
GOOD BETTER
Pioneered evolution of performancecasual lifestyle apparel
Revenue growth +12%(8-Year CAGR through FY-15)
Projectdigit gro
PEI GOLF: AUTHENTIC, GLOBAL PORTFOLIO OF GOLF LIFESTY
PEI GOLF STRATEGIC INITI ATIVES
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Athleisure and Performance Training expansionsacross golf lifestyle portfolio
International expansion underway across Europe,Africa, Middle East & Asia
Licensing expansion for Ben Hogan brand
DTC opportunities via launch of callawayapparel.comand retail partners’ websites
Launch product extensions (Big & Tall, Lady GAL)
PEI GOLF STRATEGIC INITI ATIVES
TM
GOLFOn Course
LOf
PEI GOLF TOUR PLAYERS
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ROBERT STREBOfficial World Ranking: 392 total TOUR victories
MARC LEISHMANOfficial World Ranking: 2510 total TOUR victories
PATRICK REEDOfficial World Ranking: 105 total TOUR victories
DANNY WILLETTOfficial World Ranking: 195 total TOUR victories
PEI GOLF TOUR PLAYERS
NIKE SWIM BRAND OVERVIEW
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$180M North America Retail Sales
Key license and strategic partnership spanning
over 10 years
Renewed licensing agreement, including expanded
territories across Europe, Central and South America,
effective June 2016
Leverage PEI European infrastructure to drive growth
NIKE SWIM BRAND OVERVIEW
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FINANCIAL HIGHLIGHTS
STRONG 9M FI SCAL 2016 RESU LTS
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9M REVENUES
Revenues increased 2% to $685M, due to Company’score brand strategy
Adjusted gross margin expanded 140bps to 34.9%
Adjusted EBITDA grew 36% tEBITDA margin expanded 16
Earnings Per Share increase
FY15 FY16 FY15
$672M
$685M
$31M
$+2%+36%
4.6%
(margin) (m
9M ADJUSTED E
STRONG 9M FI SCAL 2016 RESU LTS
CAPITALIZATION SUMMAR Y
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CAPITALIZATIONCash & InvestmentsSenior Credit FacilitySenior Subordinated Notes Payable, NetReal Estate Mortgages
TOTAL NET DEBTInventoryAccounts Receivable
Total Current AssetsTotal Shareholders’ Equity
SUMMARY CREDIT STATISTICSTotal Net Debt to CapitalNet Debt / LTM EBITDA as AdjustedLTM EBITDA as Adjusted / PF Interest Expense
Oct 31, 2015$36.3$60.6$50.0$22.3
$97 $145.3$130.5
$323.4$317.1
23%1.9x4.7x
ACTUAL
Jan$63—$15$22
$1$18$13
$39$30
27%2.7x2.8x
AC
CAPITALIZATION SUMMAR Y
CAPITALIZATION SUMMAR Y
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TOTAL REVENUE
FULL YEARFY 2015A
9M YTDFY 2015A
9M YTDFY 2016A
ADJ. GROSS PROFIT**1
ADJ. EBITDA**
ADJ. EPS**
$890.0
$303.034.0%
$39.84.5%
$0.56
$672.3
$228.634.0%
$31.14.6%
$0.49
$685.2(+2%)
$242.435.4%
$42.46.2%
$1.46
$
3
$$
$
(1) Adjusted for costs associated with exited brands and other strategic initiatives* Guidance as of 11/19/2015** Non-GAAP reconciliations are contained in PERY press release issued on 11/19/15, which was filed as Exhibit 99.1 to a Form 8-k filed
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