Perry Ellis International (PERY) 8-K Increase In Second Quarter Revenue

Exhibits 99.1

PERRY ELLIS INTERNATIONAL, INC. REPORTS A RECORD 50.3%

INCREASE IN SECOND QUARTER REVENUE

-Second Quarter results exceed analyst consensus-

-Company reaffirms annual earnings per share guidance-

Miami – August 23, 2005 – Perry Ellis International, Inc. (NASDAQ: PERY) today reported record total revenues for the second quarter ended July 31, 2005 of $190 million compared to $126 million during the second quarter ended July 31, 2004. This represents an increase of $63.6 million, or 50.3%, compared to the second quarter of fiscal 2005. For the six months ended July 31, 2005, total revenue was $416 million compared to $324 million in the prior year, an increase of $92 million, or 28.4%, over the prior year period.

The Company’s second quarter revenue increase was driven by strong organic sales growth of 12% in the Company’s men’s wholesale operations, as well as an increase of approximately $50 million due to the acquisition of the Tropical Sportswear International (TSI) business completed during the first quarter.

Due to seasonality, second quarter operations typically result in losses. The Company reported improved results in the second quarter of this year, reporting a net loss of $2.4 million, or $0.25 per share, compared to a net loss of $2.6 million, or $0.29 per share for the comparable quarter of last year. For the first half ended July 31, 2005, Perry Ellis’ net income was $6.5 million compared to $5.6 million in the prior year, a 16% increase over the same period last year. Earnings per diluted share for the six months ended July 31, 2005 were $0.65 compared to $0.59 per share during the first six months of last year, an improvement of 10%.

“Our improved second quarter results reflect the continued success of our brands and product offerings.” said George Feldenkreis, chairman and chief executive officer. “The TSI integration is progressing extremely well,” he continued. “We are receiving a positive retail reaction to our offerings and have retained all major TSI programs. We have consolidated our sales forces, achieved significant overhead reduction, and will complete the transition of all sourcing to a full package model during our third quarter. “

Mr. Feldenkreis added, “We are pleased that second quarter results showed improved operating margins, despite slightly lower margins in our menswear division as a result of increased end of spring season markdown settlements and higher interest costs. Although our first half results are slightly ahead of expectations, we continue to plan the balance of the year conservatively at $2.25—$2.35 per share.”

Oscar Feldenkreis, vice-chairman, president, and COO of Perry Ellis International, commented on the Company’s multi-brand, multi-channel, multi-product category strategy. “Our brand portfolio continues to show strength across all distribution channels and with the success of the TSI acquisition we have solidified our position as a leading pants supplier. During the second quarter we showed strong sales growth in multiple categories, including Perry Ellis, Original Penguin and Cubavera, at luxury and department stores, Axist and PGA Tour in the mid-tier channel, and private label increases in the mass channel. Our bottoms business also showed strength across all channels, reflecting our increasing importance as a bottoms provider.”

He concluded: “We continue to be excited by the long-term growth potential for multiple brands and categories including the potential for our international operations. In the spring of 2006 we will begin international distribution of Original Penguin^® into the European market.”

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, including dress and casual shirts, golf sportswear, sweaters, dress and casual pants and shorts, jeans wear, active wear and men’s and women’s swimwear to all major levels of retail distribution. The Company, through its wholly owned subsidiaries, owns a portfolio of highly recognized brands including Perry Ellis^®, Jantzen^®, Cubavera^®, Munsingwear^®, Savane^®, Original Penguin^®, Grand Slam^®, Natural Issue^®, Pro Player^®, the Havanera Co.^®, Axis^®, and Tricots St. Raphael^®. The company also licenses trademarks from third parties including Nike^® for swimwear, and PING^® and PGA TOUR^® for golf apparel. Additional information on the company is available at http://www.pery.com.

Safe Harbor Statement

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. The actual results of Perry Ellis could differ materially from those expressed or indicated by forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, general economic conditions, a significant decrease in business from or loss of any of Perry Ellis’ major customers, anticipated and unanticipated trends and conditions in the apparel industry, including future retail and wholesale consolidation, the effectiveness of Perry Ellis’ planned advertising, marketing and promotional campaigns, the seasonality and performance of Perry Ellis’ swimwear business, the ability of Perry Ellis to contain costs, disruption in the supply chain, Perry Ellis’ future capital needs and ability to obtain financing, ability to integrate businesses, trademarks, trade names and licenses, including the recently completed Tropical acquisition, the ability to predict consumer preferences and changes in fashion trends and consumer acceptance of both new designs and newly introduced products, changes in the costs of raw materials, labor and advertising, the ability to carry out growth strategies, the level of consumer spending for apparel and other merchandise, the ability to compete, termination or non-renewal of any material license agreements to which Perry Ellis is a party, exposure to foreign currency and interest rate risk, possible disruption in commercial activities due to terrorist activity and armed conflict and other factors, including those set forth in Perry Ellis’ 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. Any forward-looking statements speak only as of the day hereof and Perry Ellis disclaims any intent or obligation to update the same.

CONTACT:

Rosemary Trudeau, 305-873-1294

Rosemary.trudeau@pery.com

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (UNAUDITED)

(amounts in 000’s, except per share information)

INCOME STATEMENT DATA:

	Three Months Ended July 31,						Six Months Ended July 31,
	2005			2004			2005		2004
Revenues
Net sales	$	184,298		$	121,049		$	404,692	$	313,153
Royalty income		5,686			5,317			10,892		10,632
Total revenues		189,984			126,366			415,584		323,785
Cost of sales		136,146			88,499			288,819		223,115
Gross profit		53,838			37,867			126,765		100,670
Operating expenses
Selling, general and administrative expenses		50,017			36,528			101,106		81,401
Depreciation and amortization		2,223			1,534			4,463		3,039
Total operating expenses		52,240			38,062			105,569		84,440
Operating income (loss)		1,598			(195	)		21,196		16,230
Interest expense		5,411			3,756			10,781		7,201
Income (loss) before minority interest and income taxes		(3,813	)		(3,951	)		10,415		9,029
Minority interest		125			95			368		154
Income tax provision (benefit)		(1,534	)		(1,403	)		3,560		3,313
Net income (loss)	$	(2,404	)	$	(2,643	)	$	6,487	$	5,562
Net income (loss) per share
Basic	$	(0.25	)	$	(0.29	)	$	0.68	$	0.63
Diluted	$	(0.25	)	$	(0.29	)	$	0.65	$	0.59
Weighted average number of shares outstanding
Basic		9,512			9,126			9,489		8,787
Diluted		9,512			9,126			10,013		9,466

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (UNAUDITED)

(amounts in 000’s)

BALANCE SHEET DATA:

	As of
	July 31, 2005			January 31, 2005
Assets
Current assets:
Cash and cash equivalents	$	9,819		$	5,398
Accounts receivable, net		122,006			134,918
Inventories, net		166,278			115,321
Deferred income taxes		11,577			12,564
Prepaid income taxes		1,300			2,354
Other current assets		8,642			7,748
Total current assets		319,622			278,303
Property and equipment, net		60,333			48,978
Intangible assets, net		171,612			160,885
Deferred income taxes		8,068			10,216
Other assets		13,206			16,578
Total assets	$	572,841		$	514,960
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	45,498		$	47,492
Accrued expenses and other liabilities		20,836			17,032
Accrued interest		6,314			4,800
Current portion of real estate mortgage		145			140
Unearned revenues		1,029			1,036
Total current liabilities		73,822			70,500
Long term liabilities:
Senior subordinated notes payable		148,831			151,518
Senior secured notes payable		57,685			58,828
Senior credit facility		61,589			10,771
Real estate mortgage		11,320			11,393
Lease payable long term		613			381
Deferred pension obligation		15,572			15,617
Total long term liabilities		295,610			248,508
Total liabilities		369,432			319,008
Minority interest		1,752			1,384
Stockholders’ equity
Preferred stock		—			—
Common stock		96			95
Additional paid in capital		88,980			87,544
Retained earnings		112,784			106,297
Accumulated other comprehensive income (loss)		(203	)		632
Total stockholders’ equity		201,657			194,568
Total liabilities and stockholders’ equity	$	572,841		$	514,960