Perry Ellis International (PERY) 8-K Perry Ellis International, Inc. Reports Record Fiscal 2006 Results

Exhibit 99.1

Perry Ellis International, Inc. Reports Record Fiscal 2006 Results

• Total revenues to record level of $850 million, a 29% increase

• EBITDA to record level of $67 million, a 23% increase

• Diluted earnings per share to record level of $2.26, $0.01 ahead of previous guidance

• FY2007 revenue view at $860-870 million, proforma earnings view at $2.30-2.40 per fully diluted share

Miami – March 21, 2006 – Perry Ellis International, Inc. today reported results for the fiscal year ended January 31, 2006 (“fiscal 2006”) which included record revenues of $849.4 million, a 29.4% increase, or $192.8 million, over the $656.6 million reported for the comparable period a year ago (“fiscal 2005”). The company’s fiscal 2006 revenue includes a 30% increase due primarily to the acquisition of the Tropical Sportswear International business (TSI), a 3% organic increase in core menswear operations, offset by a 4% planned decline in swimwear operations and a slight decline in royalty income.

Fiscal 2006 EBITDA grew to $67.3 million, a 22.8% increase, or $12.5 million, over the $54.8 million reported in fiscal 2005, reflecting the company’s successful integration of TSI. Net income for fiscal 2006 was a record $22.7 million, an 8.1% increase over fiscal 2005’s level of $21 million. Earnings per diluted share were a record $2.26 in fiscal 2006, compared to $2.15, a 5% increase, over fiscal 2005.

For the 4^th quarter ended January 31, 2006, total revenues were $213.9 million, a 24.3% increase over the $172.1 million reported in the 4^th quarter of fiscal 2005. This increase was primarily driven by the TSI acquisition and includes the impact of the previously announced reduction of private label and branded programs at a national mid-tier chain. Net income for the 4^th quarter ended January 31, 2006 was $8.1 million compared to $8.2 million reported in the 4^th quarter ended January 31, 2005.

George Feldenkreis, Chairman and Chief Executive Officer commented, “We are very pleased to report record revenue, EBITDA and earnings per share results for fiscal 2006. We successfully completed the integration of Tropical Sportswear by improving profit margins, reducing expenses and transitioning the sourcing structure. In addition, we completed the strategic acquisition of Gotcha, MCD, and Girl Star, strengthening our brand portfolio and providing an additional growth vehicle in a younger demographic.”

Mr. Feldenkreis continued: “In addition, we generated strong cash flow and debt repayment. During fiscal 2006 we funded approximately $95 million for acquisitions, and yet borrowings under our credit facility at year end only increased by $30 million. Our fiscal 2006 pay down of $65 million of borrowings reflects our ability to generate strong cash flow from operations, inventory control and other working capital management.”

Oscar Feldenkreis, President and Chief Operating Officer, remarked, “The enthusiastic response from retailers at the February 2006 MAGIC show is a testament to the power of our brands and the fashionable, value product they deliver. Our new product offerings have been very well received by our retail customers and our successful mens bottoms operation continues to increase its market share. We continue to have major success in sportswear and bottoms in all channels of distribution. Perry Ellis’ new management and design teams have transformed the Perry Ellis brand into one of the best performing collections in department stores, and we are confident that more efficient planning will continue to improve profit margins in the current year.”

Oscar Feldenkreis concluded: “For fiscal 2007, we anticipate revenues to grow to $860 - $870 million and proforma earnings per share (excluding the net of tax impact of approximately $3.5 million of debt extinguishment costs related to the call and repayment of our $57 million senior secured notes) in the $2.30 - $2.40 range. Fiscal 2007 earnings guidance includes a reduction of approximately $0.08 per share associated with the adoption of FAS 123R requiring the expensing of stock options. Our anticipated revenue level includes the impact of both (i) the reduction of branded and private label programs at a national mid-tier chain and (ii) anticipated disruptions from the closing of Federated/May department stores. We remain poised to take advantage of strategic improvements in the future as retail environment consolidation uncertainties are beginning to settle. All of our divisions will benefit from improved sourcing and planning, while we will continue to expand growth platforms such as our international operations, and domestic expansion of Original Penguin, Mens Bottoms, Hispanic Lifestyle brands and Action sports brands. In addition we are excited about the opportunities to expand both of our direct retail platforms, Perry Ellis Outlets and Original Penguin stores. We remain confident about the growth opportunities that the continued development of all our brands across all levels of distribution provides us.”

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATION OF PROJECTED DILUTED EARNINGS PER SHARE TO PROFORMA DILUTED

EARNINGS PER SHARE (1)

(UNAUDITED)

	For the Year Ending January 31, 2007
Diluted earnings per share view	$	2.07	$	2.17
Plus:
Effect of debt extinguishment costs, net of tax effect		0.23		0.23
Proforma diluted earnings per share view	$	2.30	$	2.40

(1) Proforma diluted earnings per share consists of diluted earnings per share excluding the net tax effect of approximately $3.5 million of debt extinguishment costs related to the call of our $57 million senior secured notes. Proforma diluted earnings per share is not a measurement of financial performance under generally accepted accounting principles. Accordingly, you should not regard this figure as an alternative to actual diluted earnings per share. Proforma diluted earnings per share is presented solely as a supplemental disclosure.

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(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 also licenses trademarks from third parties including Nike(R) for swimwear, and PING(R) and PGA TOUR(R) for golf apparel. Additional information on the company is available athttp://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 current or 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, the ability to integrate businesses, trademarks, trade names and licenses, including the recently completed Gotcha 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.

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME TO EBITDA (1)

(UNAUDITED)

(amounts in 000’s)

	Three Months Ended January 31,				Year Ended January 31,
	2006		2005		2006		2005
Net income as reported	$	8,102	$	8,215	$	22,682	$	20,962
Plus:
Depreciation and amortization		2,662		1,833		9,557		6,557
Interest expense		5,528		3,753		21,930		14,575
Minority interest		43		133		470		467
Income tax provision		4,576		4,715		12,639		12,207
EBITDA	$	20,911	$	18,649	$	67,278	$	54,768

(1) EBITDA consists of earnings before interest, taxes, depreciation, amortization and minority interest. EBITDA is not a measurement of financial performance under generally accepted accounting principles, and does not represent cash flow from operations. Accordingly, you should not regard this figure as an alternative to cash flows as a measure of liquidity. EBITDA is presented solely as a supplemental disclosure because management believes that it is a common measure of operating performance in the apparel industry.

CONTACT:

Rosemary Trudeau

305-873-1294

Rosemary.trudeau@pery.com

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (UNAUDITED)

(amounts in 000’s)

BALANCE SHEET DATA:

	As of
	January 31, 2006		January 31, 2005
Assets
Current assets:
Cash and cash equivalents	$	9,412	$	5,398
Accounts receivable, net		152,529		134,918
Inventories, net		126,413		115,321
Deferred income taxes		9,062		12,564
Prepaid income taxes		646		2,354
Other current assets		6,470		7,748
Total current assets		304,532		278,303
Property and equipment, net		66,591		48,978
Intangible assets, net		183,090		160,885
Deferred income taxes		3,433		10,216
Other assets		12,368		16,578
Total assets	$	570,014	$	514,960
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	51,763	$	47,492
Accrued expenses and other liabilities		16,441		17,032
Accrued interest		6,514		4,800
Current portion of real estate mortgage		229		140
Unearned revenues		1,096		1,036
Total current liabilities		76,043		70,500
Long term liabilities:
Senior subordinated notes payable		148,914		151,518
Senior secured notes payable		56,923		58,828
Senior credit facility		40,391		10,771
Real estate mortgage		12,336		11,393
Lease payable long term		452		381
Deferred pension obligation		13,721		15,617
Total long term liabilities		272,737		248,508
Total liabilities		348,780		319,008
Minority interest		1,854		1,384
Stockholders’ equity
Preferred stock		—		—
Common stock		96		95
Additional paid in capital		90,084		87,544
Retained earnings		128,979		106,297
Accumulated other comprehensive income		221		632
Total stockholders’ equity		219,380		194,568
Total liabilities and stockholders’ equity	$	570,014	$	514,960

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (UNAUDITED)

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

INCOME STATEMENT DATA:

	Three Months Ended January 31,				Year Ended January 31,
	2006		2005		2006		2005
Revenues
Net sales	$	208,147	$	165,905	$	827,504	$	633,774
Royalty income		5,728		6,186		21,910		22,807
Total revenues		213,875		172,091		849,414		656,581
Cost of sales		148,486		117,224		586,900		448,531
Gross profit		65,389		54,867		262,514		208,050
Operating expenses
Selling, general and administrative expenses		44,478		36,218		195,236		153,282
Depreciation and amortization		2,662		1,833		9,557		6,557
Total operating expenses		47,140		38,051		204,793		159,839
Operating income		18,249		16,816		57,721		48,211
Interest expense		5,528		3,753		21,930		14,575
Income before minority interest and income taxes		12,721		13,063		35,791		33,636
Minority interest		43		133		470		467
Income tax provision		4,576		4,715		12,639		12,207
Net income	$	8,102	$	8,215	$	22,682	$	20,962
Net income per share
Basic	$	0.85	$	0.87	$	2.38	$	2.30
Diluted	$	0.81	$	0.83	$	2.26	$	2.15
Weighted average number of shares outstanding
Basic		9,586		9,457		9,534		9,123
Diluted		10,014		9,941		10,033		9,732