Transcript 4 - Perry Ellis International
Slide 1
Slide 2
2
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“ or "target" or the negative thereof or other variations thereon and similar words or phrases or comparable terminology. Such
forward-looking statements include, but are not limited to, statements regarding Perry Ellis’ strategic operating review, growth initiatives and internal operating improvements
intended to drive revenues and enhance profitability, the implementation of Perry Ellis’ profitability improvement plan and Perry Ellis’ plans to exit underperforming, low growth
brands and businesses. 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 forwardlooking 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 effectiveness of our plans, strategies, objectives, expectations
and intentions which are subject to change at any time at our discretion, potential cyber risk and technology failures which could disrupt operations or result in a data breach, 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, actions of activist investors and the cost and disruption of responding to those actions, and other factors set forth in Perry Ellis'
filings with the Securities and Exchange Commission (SEC). 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, except
as otherwise required by the federal securities laws.
Slide 3
BUSINESS OVERVIEW
Oscar
Feldenkreis
Vice Chairman of the Board,
President and Chief Operating Officer
3
Slide 4
FISCAL 2015 FULL-YEAR PERFORMANCE
Total Revenues of $890 million
Gross Margin expansion of 80 bps to 34%
Cost savings generated were $12 million
Adjusted diluted EPS increased 47% to $0.56
4
Slide 5
FISCAL 2015 STRONG SHAREHOLDER RETURN
Apparel, Accessories
& Luxury Goods
+4%
5
Composite
+14%
PEI delivered outstanding total shareholder
returns in FY15 (+53%)
PERY +53%
Slide 6
STRONG Q1 FISCAL 2016 RESULTS
Q1 REVENUES
$266M
+4%
Q1 ADJUSTED EBITDA
+32%
$25M
$19M
$257M
FY15
6
FY16
7%
(margin)
9%
(margin)
FY15
FY16
Revenues increased 4% to $266M,
due to Company’s core brand strategy
Adjusted EBITDA Grew 32% to $25M and Adj.
EBITDA margin expanded 200 bps to 9.3%
Gross margin expanded 80bps to 34.9%
Earnings Per Share increased 80% to $0.99
Slide 7
7
POWERFUL
ESTABLISHED
RESULTS
YEARLY
Lifestyle Brands
and Diversity
Operations with
Meaningful Scale
Steadily
Improving
Strategy Plans in Place
POSITIONING
ENHANCING
REDUCING
YIELDING
In Attractive Markets
and Supported by
Strong Financials
Direct-to-Consumer
and International
Businesses
Costs and Exposure to
Low-growth Brands
Clear Results and Strong
Shareholder Value
Slide 8
OUR GROWTH AND PROFITABILITY PLAN
8
1 2 3 4 5
Portfolio
Optimization
Retail
Brand
Enhancement
Expand
International
And Licensing
Distribution
Direct-toConsumer
Expansion
Operating
Efficiencies
Slide 9
PORTFOLIO OPTIMIZATION
1
% Direct Revenue
(87%)
Global Retail Sales
($2.6B)
9
Since FY14: Exited 30 brands (~ $80M in revenues)
Today: 87% of Revenues from Core Brands
24%
12%
20%
16%
15%
$930M
$385M
$510M
$375M
$435M
Slide 10
DIVERSE RETAIL RELATIONSHIPS
2
10
25,000+ Door Penetration across Multiple Demographic
Segments, Price Points and Distribution Channels
Luxury
Dept / Mid-Tier
Specialty
Club / Mass
International
Slide 11
RETAIL BRAND ENHANCEMENT
2
Product
Innovation
Visual
Omnichannel
Merchandising
Marketing
Via Shop-in-Shops
11
Slide 12
EXPANDING INTERNATIONAL AND LICENSING DISTRIBUTION
3
12
Licensing 4%
International 12%
Domestic 88%
FY15 International
revenues grew 15% to
represent 12% of revenues
Licensing income
grew 7% to represent
4% of revenues
Direct-to-Consumer 10%
Wholesale 86%
27 new licenses in FY15, extending
8 brands across geographic and
product categories
Slide 13
LEADING
3
DIRECT
LICENSEE
UK
Mexico
Canada
Latin America
Philippines
Vietnam
13
Slide 14
3
INVESTING AND
DEVELOPING
DIRECT
LICENSEE/JV
France
Spain
Italy
Germany
India
China
Middle East
14
Slide 15
DIRECT-TO-CONSUMER PLATFORM
4
Perry Ellis
Original Penguin
Cubavera
Farah
Callaway
Rafaella
Total
15
Owned Retail
Stores
Licensee
Stores
E-commerce
Sites
46
28
2
2
-
30
62
4
2
-
1
1
1
1
1
1
78
98
6
Slide 16
DIRECT-TO-CONSUMER EXPANSION
4
Open
New Stores
Enhanced
Profitability
Accelerate
E-commerce
Continuous
Comp Store Growth
16
Right-door strategies, with a focus on each brand’s geographic and
demographic attributes
Fulfill E-com orders from stores
Increase turns through lower markdowns, inventory management and
localized assortments
Expand high-margin assortments
Build new e-commerce sites and expand international shipping opportunities
Grow ownership of exclusive product
Deploy new e-mail growth strategies and intensify focus on SEO content
Focus on improved conversion
Climate-right assortment strategies
DTC Revenues rose 13% to represent 10% of Total Revenues
Slide 17
OPERATING EFFICIENCIES
5
Restructured Wholesale Business by lifestyle
Unified DTC Division under one leadership umbrella
Realized $12M in cost savings in FY15, $2.3M in Q1 FY16
FY16 capital refinancing to save $4.5M
Working-capital efficiencies
17
Slide 18
FINANCIAL HIGHLIGHTS
Anita Britt
Chief Financial Officer
18
Slide 19
STRONG STOCK RETURN COMPARED TO PEERS
19
PERY Peer Group
1 Year*
3 Year**
6 Year**
APP
COLM
CRI
CROX
DECK
DLA
GES
GIII
OXM
SHOO
ZQK
-55%
44%
56%
-1%
-15%
-3%
-30%
79%
32%
23%
-84%
20%
81%
92%
-46%
-21%
-40%
-41%
317%
9%
25%
-58%
-56%
196%
380%
783%
279%
146%
17%
1667%
740%
567%
-11%
Average
High
Low
S&P Apparel, Accessories and Luxury Goods
4%
79%
-84%
13%
31%
317%
-58%
33%
428%
1667%
-56%
274%
44%
51%
523%
PERY
* For the trailing 12 months (07/08/14 – 07/07/15)
** For the fiscal year ending 1/31/15
Slide 20
20
LICENSING AND INTERNATIONAL DEVELOPMENT
$31M+
Royalty Income
YTD Fiscal
2016
Strategic
Initiatives
150+
Licensing
Agreements
98
LicenseeOperated
Retail Stores
Royalty revenue increased 10%
Eight new agreements, first agreement in India for Original Penguin
Add $10M to royalty revenues from Fiscal 2015
Expand international penetration from 25% to 40% of licensing income
Concentrate resources on globalizing core brands/product categories
Focus on underpenetrated markets, categories and channels
Continue to upgrade licensees
Pursue additional revenue models in addition to classic licensing
(JV, Equity Participation) for non-core brands
Slide 21
FINANCIAL SUMMARY
21
Full Year FY
2015A
3M YTD FY
2015A
3M YTD FY
2016A
FY
2016E*
Total Revenue
$890.0
$257.3
$266.4
(+4%)
$925M –$935M
(+4% - +5%)
Adj. Gross Profit**1
$303.0
34.0%
$87.7
34.1%
$93.0
34.9%
34.6% –
34.7%
Adj. EBITDA**
$39.8
4.5%
$18.7
7.3%
$24.7
9.3%
$55M (6.0%) –
$58M (6.25%)
Adj. EPS**
$0.56
$0.55
0.99
$1.68 –
$1.75
(1) Adjusted for costs associated with exited brands and other strategic initiatives
*Guidance as of 05/14/2015
**Non-GAAP reconciliations are contained in PERY press release issued on 5/14/15, which was filed as Exhibit 99.1 to a Form 8-k filed with the SEC on 5/14/15.
Slide 22
CAPITALIZATION SUMMARY
22
Actual
Actual
Capitalization
May 2, 2015
May 3, 2014
Cash & Investments
Senior Credit Facility
Senior Subordinated Notes Payable, Net
Real Estate Mortgages
$32.7
$9.7
$150.0
$21.9
$47.8
$64.6
$150.0
$22.7
Total Net Debt
$139
$189
Inventory
Accounts Receivable
Total Current Assets
Total Shareholders’ Equity
$153.5
$181.0
$379.8
$313.4
$177.2
$183.1
$434.2
$357.1
31%
3.0x
3.2x
35%
5.7x
2.2x
Summary Credit Statistics
Total Net Debt to Capital
Net Debt / LTM EBITDA as Adjusted
LTM EBITDA as Adjusted / PF Interest Expense
Effective 5/6/15, $100 million senior subordinated notes redeemed and financed through expansion of senior credit facility
Slide 23
23
BOARD AND
MANAGEMENT TEAM
Slide 24
BOARD AND MANAGEMENT TEAM
George
Feldenkreis
Chairman of the Board and
Chief Executive Officer
24
Slide 25
ALIGNMENT OF BOARD, MANAGEMENT AND SHAREHOLDER PRIORITIES
Leadership includes highly-qualified, experienced and
engaged apparel and retail veterans
Perry Ellis International’s Board and management own approximately 25%
of the outstanding shares of the Company’s common stock
Stock ownership requirements for directors/executives
Operational and Profitability Goals
25
Slide 26
PERRY ELLIS INTERNATIONAL BOARD OF DIRECTORS
George Feldenkreis
Chairman
Founded and built Perry Ellis International into a global lifestyle-apparel company
Visionary in creating and developing international apparel sourcing networks
Grew PEI sales from $33M at initial IPO, to $890M in Fiscal 2015
26
Slide 27
PERRY ELLIS INTERNATIONAL BOARD OF DIRECTORS
Oscar Feldenkreis
Vice-Chairman
35 years of leadership experience at Perry Ellis International
Implemented a successful brand-acquisition strategy, transforming PEI into a global lifestyle apparel company
Will assume role of Perry Ellis' Chief Executive Officer at the beginning of next fiscal year
27
Slide 28
PERRY ELLIS INTERNATIONAL BOARD OF DIRECTORS
Jane DeFlorio
Lead Independent Director
Added as an Independent Director in 2014
16 years of experience advising retail-industry sector at Deutsche Bank, UBS and Morgan Stanley
Focus on retail, E-commerce, finance for retail groups
Vice Chairman of Board of Trustees, and Chairman of the Audit and Risk Committee, at The New School University
28
Slide 29
PERRY ELLIS INTERNATIONAL BOARD OF DIRECTORS
J. David Scheiner
Added as an Independent Director in 2014
35 years of experience in senior leadership at major retailers
Former President and COO of Macy’s Florida and Puerto Rico
Retail, wholesale and private-equity management consultant
29
Slide 30
PERRY ELLIS INTERNATIONAL BOARD OF DIRECTORS
Alexandra Wilson
Added as an Independent Director in 2014
15 years of international experience in luxury goods, e-commerce, retail and finance
Founder of online retailers Gilt Groupe and GLAMSQUAD
Entrepreneurial advisor to fashion, retail and tech companies
30
Slide 31
PERRY ELLIS INTERNATIONAL BOARD OF DIRECTORS
31
Michael Rayden
Added as an Independent Director in 2015
Former Chairman and CEO of Tween Brands, currently a subsidiary of Ascena Retail Group.
Led Tween Brands as CEO beginning in 1996, and took the Company public in 1999
Former Chairman and CEO of Pacific Sunwear of California. Held chief executive positions at
The Stride Rite Corporation and Eddie Bauer
Served as a director at David's Bridal, Dress Barn and Strottman International
Slide 32
PERRY ELLIS INTERNATIONAL BOARD OF DIRECTORS
32
Bruce J. Klatsky
Added as an Independent Director in 2015
Former Chairman and CEO of PVH Corporation, transforming the apparel company into
one of the largest in the world
Co-founded private equity company, LKN Partners and is on the Board of Gazal Corporation,
a leading Australian clothing company
Previously served on President Clinton's White House Apparel Task Force
Slide 33
@peicorp
pery.com
Slide 2
2
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“ or "target" or the negative thereof or other variations thereon and similar words or phrases or comparable terminology. Such
forward-looking statements include, but are not limited to, statements regarding Perry Ellis’ strategic operating review, growth initiatives and internal operating improvements
intended to drive revenues and enhance profitability, the implementation of Perry Ellis’ profitability improvement plan and Perry Ellis’ plans to exit underperforming, low growth
brands and businesses. 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 forwardlooking 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 effectiveness of our plans, strategies, objectives, expectations
and intentions which are subject to change at any time at our discretion, potential cyber risk and technology failures which could disrupt operations or result in a data breach, 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, actions of activist investors and the cost and disruption of responding to those actions, and other factors set forth in Perry Ellis'
filings with the Securities and Exchange Commission (SEC). 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, except
as otherwise required by the federal securities laws.
Slide 3
BUSINESS OVERVIEW
Oscar
Feldenkreis
Vice Chairman of the Board,
President and Chief Operating Officer
3
Slide 4
FISCAL 2015 FULL-YEAR PERFORMANCE
Total Revenues of $890 million
Gross Margin expansion of 80 bps to 34%
Cost savings generated were $12 million
Adjusted diluted EPS increased 47% to $0.56
4
Slide 5
FISCAL 2015 STRONG SHAREHOLDER RETURN
Apparel, Accessories
& Luxury Goods
+4%
5
Composite
+14%
PEI delivered outstanding total shareholder
returns in FY15 (+53%)
PERY +53%
Slide 6
STRONG Q1 FISCAL 2016 RESULTS
Q1 REVENUES
$266M
+4%
Q1 ADJUSTED EBITDA
+32%
$25M
$19M
$257M
FY15
6
FY16
7%
(margin)
9%
(margin)
FY15
FY16
Revenues increased 4% to $266M,
due to Company’s core brand strategy
Adjusted EBITDA Grew 32% to $25M and Adj.
EBITDA margin expanded 200 bps to 9.3%
Gross margin expanded 80bps to 34.9%
Earnings Per Share increased 80% to $0.99
Slide 7
7
POWERFUL
ESTABLISHED
RESULTS
YEARLY
Lifestyle Brands
and Diversity
Operations with
Meaningful Scale
Steadily
Improving
Strategy Plans in Place
POSITIONING
ENHANCING
REDUCING
YIELDING
In Attractive Markets
and Supported by
Strong Financials
Direct-to-Consumer
and International
Businesses
Costs and Exposure to
Low-growth Brands
Clear Results and Strong
Shareholder Value
Slide 8
OUR GROWTH AND PROFITABILITY PLAN
8
1 2 3 4 5
Portfolio
Optimization
Retail
Brand
Enhancement
Expand
International
And Licensing
Distribution
Direct-toConsumer
Expansion
Operating
Efficiencies
Slide 9
PORTFOLIO OPTIMIZATION
1
% Direct Revenue
(87%)
Global Retail Sales
($2.6B)
9
Since FY14: Exited 30 brands (~ $80M in revenues)
Today: 87% of Revenues from Core Brands
24%
12%
20%
16%
15%
$930M
$385M
$510M
$375M
$435M
Slide 10
DIVERSE RETAIL RELATIONSHIPS
2
10
25,000+ Door Penetration across Multiple Demographic
Segments, Price Points and Distribution Channels
Luxury
Dept / Mid-Tier
Specialty
Club / Mass
International
Slide 11
RETAIL BRAND ENHANCEMENT
2
Product
Innovation
Visual
Omnichannel
Merchandising
Marketing
Via Shop-in-Shops
11
Slide 12
EXPANDING INTERNATIONAL AND LICENSING DISTRIBUTION
3
12
Licensing 4%
International 12%
Domestic 88%
FY15 International
revenues grew 15% to
represent 12% of revenues
Licensing income
grew 7% to represent
4% of revenues
Direct-to-Consumer 10%
Wholesale 86%
27 new licenses in FY15, extending
8 brands across geographic and
product categories
Slide 13
LEADING
3
DIRECT
LICENSEE
UK
Mexico
Canada
Latin America
Philippines
Vietnam
13
Slide 14
3
INVESTING AND
DEVELOPING
DIRECT
LICENSEE/JV
France
Spain
Italy
Germany
India
China
Middle East
14
Slide 15
DIRECT-TO-CONSUMER PLATFORM
4
Perry Ellis
Original Penguin
Cubavera
Farah
Callaway
Rafaella
Total
15
Owned Retail
Stores
Licensee
Stores
E-commerce
Sites
46
28
2
2
-
30
62
4
2
-
1
1
1
1
1
1
78
98
6
Slide 16
DIRECT-TO-CONSUMER EXPANSION
4
Open
New Stores
Enhanced
Profitability
Accelerate
E-commerce
Continuous
Comp Store Growth
16
Right-door strategies, with a focus on each brand’s geographic and
demographic attributes
Fulfill E-com orders from stores
Increase turns through lower markdowns, inventory management and
localized assortments
Expand high-margin assortments
Build new e-commerce sites and expand international shipping opportunities
Grow ownership of exclusive product
Deploy new e-mail growth strategies and intensify focus on SEO content
Focus on improved conversion
Climate-right assortment strategies
DTC Revenues rose 13% to represent 10% of Total Revenues
Slide 17
OPERATING EFFICIENCIES
5
Restructured Wholesale Business by lifestyle
Unified DTC Division under one leadership umbrella
Realized $12M in cost savings in FY15, $2.3M in Q1 FY16
FY16 capital refinancing to save $4.5M
Working-capital efficiencies
17
Slide 18
FINANCIAL HIGHLIGHTS
Anita Britt
Chief Financial Officer
18
Slide 19
STRONG STOCK RETURN COMPARED TO PEERS
19
PERY Peer Group
1 Year*
3 Year**
6 Year**
APP
COLM
CRI
CROX
DECK
DLA
GES
GIII
OXM
SHOO
ZQK
-55%
44%
56%
-1%
-15%
-3%
-30%
79%
32%
23%
-84%
20%
81%
92%
-46%
-21%
-40%
-41%
317%
9%
25%
-58%
-56%
196%
380%
783%
279%
146%
17%
1667%
740%
567%
-11%
Average
High
Low
S&P Apparel, Accessories and Luxury Goods
4%
79%
-84%
13%
31%
317%
-58%
33%
428%
1667%
-56%
274%
44%
51%
523%
PERY
* For the trailing 12 months (07/08/14 – 07/07/15)
** For the fiscal year ending 1/31/15
Slide 20
20
LICENSING AND INTERNATIONAL DEVELOPMENT
$31M+
Royalty Income
YTD Fiscal
2016
Strategic
Initiatives
150+
Licensing
Agreements
98
LicenseeOperated
Retail Stores
Royalty revenue increased 10%
Eight new agreements, first agreement in India for Original Penguin
Add $10M to royalty revenues from Fiscal 2015
Expand international penetration from 25% to 40% of licensing income
Concentrate resources on globalizing core brands/product categories
Focus on underpenetrated markets, categories and channels
Continue to upgrade licensees
Pursue additional revenue models in addition to classic licensing
(JV, Equity Participation) for non-core brands
Slide 21
FINANCIAL SUMMARY
21
Full Year FY
2015A
3M YTD FY
2015A
3M YTD FY
2016A
FY
2016E*
Total Revenue
$890.0
$257.3
$266.4
(+4%)
$925M –$935M
(+4% - +5%)
Adj. Gross Profit**1
$303.0
34.0%
$87.7
34.1%
$93.0
34.9%
34.6% –
34.7%
Adj. EBITDA**
$39.8
4.5%
$18.7
7.3%
$24.7
9.3%
$55M (6.0%) –
$58M (6.25%)
Adj. EPS**
$0.56
$0.55
0.99
$1.68 –
$1.75
(1) Adjusted for costs associated with exited brands and other strategic initiatives
*Guidance as of 05/14/2015
**Non-GAAP reconciliations are contained in PERY press release issued on 5/14/15, which was filed as Exhibit 99.1 to a Form 8-k filed with the SEC on 5/14/15.
Slide 22
CAPITALIZATION SUMMARY
22
Actual
Actual
Capitalization
May 2, 2015
May 3, 2014
Cash & Investments
Senior Credit Facility
Senior Subordinated Notes Payable, Net
Real Estate Mortgages
$32.7
$9.7
$150.0
$21.9
$47.8
$64.6
$150.0
$22.7
Total Net Debt
$139
$189
Inventory
Accounts Receivable
Total Current Assets
Total Shareholders’ Equity
$153.5
$181.0
$379.8
$313.4
$177.2
$183.1
$434.2
$357.1
31%
3.0x
3.2x
35%
5.7x
2.2x
Summary Credit Statistics
Total Net Debt to Capital
Net Debt / LTM EBITDA as Adjusted
LTM EBITDA as Adjusted / PF Interest Expense
Effective 5/6/15, $100 million senior subordinated notes redeemed and financed through expansion of senior credit facility
Slide 23
23
BOARD AND
MANAGEMENT TEAM
Slide 24
BOARD AND MANAGEMENT TEAM
George
Feldenkreis
Chairman of the Board and
Chief Executive Officer
24
Slide 25
ALIGNMENT OF BOARD, MANAGEMENT AND SHAREHOLDER PRIORITIES
Leadership includes highly-qualified, experienced and
engaged apparel and retail veterans
Perry Ellis International’s Board and management own approximately 25%
of the outstanding shares of the Company’s common stock
Stock ownership requirements for directors/executives
Operational and Profitability Goals
25
Slide 26
PERRY ELLIS INTERNATIONAL BOARD OF DIRECTORS
George Feldenkreis
Chairman
Founded and built Perry Ellis International into a global lifestyle-apparel company
Visionary in creating and developing international apparel sourcing networks
Grew PEI sales from $33M at initial IPO, to $890M in Fiscal 2015
26
Slide 27
PERRY ELLIS INTERNATIONAL BOARD OF DIRECTORS
Oscar Feldenkreis
Vice-Chairman
35 years of leadership experience at Perry Ellis International
Implemented a successful brand-acquisition strategy, transforming PEI into a global lifestyle apparel company
Will assume role of Perry Ellis' Chief Executive Officer at the beginning of next fiscal year
27
Slide 28
PERRY ELLIS INTERNATIONAL BOARD OF DIRECTORS
Jane DeFlorio
Lead Independent Director
Added as an Independent Director in 2014
16 years of experience advising retail-industry sector at Deutsche Bank, UBS and Morgan Stanley
Focus on retail, E-commerce, finance for retail groups
Vice Chairman of Board of Trustees, and Chairman of the Audit and Risk Committee, at The New School University
28
Slide 29
PERRY ELLIS INTERNATIONAL BOARD OF DIRECTORS
J. David Scheiner
Added as an Independent Director in 2014
35 years of experience in senior leadership at major retailers
Former President and COO of Macy’s Florida and Puerto Rico
Retail, wholesale and private-equity management consultant
29
Slide 30
PERRY ELLIS INTERNATIONAL BOARD OF DIRECTORS
Alexandra Wilson
Added as an Independent Director in 2014
15 years of international experience in luxury goods, e-commerce, retail and finance
Founder of online retailers Gilt Groupe and GLAMSQUAD
Entrepreneurial advisor to fashion, retail and tech companies
30
Slide 31
PERRY ELLIS INTERNATIONAL BOARD OF DIRECTORS
31
Michael Rayden
Added as an Independent Director in 2015
Former Chairman and CEO of Tween Brands, currently a subsidiary of Ascena Retail Group.
Led Tween Brands as CEO beginning in 1996, and took the Company public in 1999
Former Chairman and CEO of Pacific Sunwear of California. Held chief executive positions at
The Stride Rite Corporation and Eddie Bauer
Served as a director at David's Bridal, Dress Barn and Strottman International
Slide 32
PERRY ELLIS INTERNATIONAL BOARD OF DIRECTORS
32
Bruce J. Klatsky
Added as an Independent Director in 2015
Former Chairman and CEO of PVH Corporation, transforming the apparel company into
one of the largest in the world
Co-founded private equity company, LKN Partners and is on the Board of Gazal Corporation,
a leading Australian clothing company
Previously served on President Clinton's White House Apparel Task Force
Slide 33
@peicorp
pery.com