Perry Ellis International Signs a New Worldwide Licensing Agreement for Perry Ellis Fragrances
January 29 2007 - 8:15AM
Business Wire
Perry Ellis International Inc. (NASDAQ:PERY): New worldwide
licensing agreement with Falic Fashion Group for fragrances,
lotions, toiletries and cosmetics, effective immediately. Sale of
fragrance inventory and other related assets of fragrance business,
completed in a cash transaction of approximately $63 million.
Transactions expected to be accretive. Increases Annual Fiscal 2008
earnings view by $0.09 per share, to the range of $1.80 - $1.84 per
fully diluted share. Perry Ellis International Inc. (NASDAQ:PERY)
today announced that it has entered into a worldwide licensing
agreement with Falic Fashion Group, LLC, a wholly owned subsidiary
of Duty Free Americas, Inc., to manufacture and distribute
perfumery, fragrances, lotions, toiletries and cosmetics under the
Perry Ellis brand. As well, Perry Ellis International finalized an
agreement to sell to Falic Fashion Group all inventory and other
related assets of the fragrance business. Both agreements are
effective immediately. George Feldenkreis, Chairman and Chief
Executive Officer of Perry Ellis International, commented: �Upon
carefully evaluating all options we have decided to grant this
license to the Falic Fashion Group. We are very excited about this
new direction for our fragrance business given Falic Fashion
Group�s keen understanding of the high-end and luxury markets. They
are strongly committed to positioning our Perry Ellis fragrances in
channels that complement our apparel distribution, which is
essential to further enhancing the cross-category lifestyle concept
of our Perry Ellis brand.� �These agreements will allow Perry Ellis
International not only to recoup significantly all of the invested
capital utilized for the purchase of assets from Parlux Fragrances
Inc., but also to maximize our royalty income from this key product
category. We expect this transaction to be accretive to our
earnings by approximately $0.09 per fully diluted share for Fiscal
2008, increasing our initial guidance from the range of $1.71-$1.75
to the range of $1.80-$1.84 per fully diluted share,� Mr.
Feldenkreis concluded. As part of the transaction, Falic Fashion
Group agreed to purchase all rights, titles, interests, certain
intangible assets and inventory of the fragrance business in a cash
transaction of approximately $63 million, subject to potential
purchase price adjustments for confirmation of inventory levels.
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.
The company's collection of dress and casual shirts, golf
sportswear, sweaters, dress and casual pants and shorts, jeans
wear, active wear 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(R), Jantzen(R), Cubavera(R), Munsingwear(R), Savane(R),
Original Penguin(R), Grand Slam(R), Natural Issue(R), Pro
Player(R), the Havanera Co.(R), Axis(R), Tricots St. Raphael(R),
Gotcha(R), Girl Star(R) and MCD(R). The company enhances its roster
of brands by licensing trademarks from third parties including
Dockers(R) for outerwear, Nike(R) and JAG(R) for swimwear, and
PING(R) and PGA TOUR(R) for golf apparel. Additional information on
the company is available at http://www.pery.com. About Falic
Fashion Group Falic Fashion Group, LLC, is a member of the Falic
Group of companies, which are involved in the retail sale,
manufacture and international distribution of luxury goods. Falic
Fashion Group is a wholly-owned subsidiary of Duty Free Americas,
Inc., the largest duty free retail store operator in North America.
Duty Free Americas operates more than 100 duty free shops located
in major international airports such as Miami, New York, Chicago,
Boston and Washington, as well as international gateways. The Falic
Group has acquired several brands from LVMH Mo�t Hennessy Louis
Vuitton, including the House of Christian Lacroix (which consists
of Haute Couture, ready-to-wear, footwear, accessories, leather
goods and fragrances), and the Urban Decay and Hard Candy cosmetics
brands. The Falic Group also serves as distributor and authorized
retailer of numerous luxury brands, such as Estee Lauder, Lancome,
L�Oreal, Cartier, Ferragamo, Hermes, Audemars Piguet, Jacob &
Co., Victorinox, Lladro and Davidoff. 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," "could," "may," "might,"
"potential," "predict," "should," "estimate," "expect," "project,"
"believe," "plan," "envision," "continue," "intend," "target,"
"contemplate," 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, 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 integrate acquired businesses, trademarks, tradenames
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. (delisted) (NASDAQ:PERY)
Historical Stock Chart
From Jul 2024 to Jul 2024
Perry Ellis International Inc. (delisted) (NASDAQ:PERY)
Historical Stock Chart
From Jul 2023 to Jul 2024