Perry Ellis International (PERY) 8-K Perry Ellis International, Inc. Reports Record Fourth Quarter Fiscal 2007 Results

Exhibit 99.1

Perry Ellis International, Inc. Reports Record Fourth Quarter Fiscal 2007 Results

• Record Level Fourth Quarter—Revenues Increase 8.3%

• Fourth Quarter Earnings per Fully Diluted Share—Increase 26.3%

• Fiscal 2007 EBITDA Margin Improvement to 8.5% of Revenues

• Confirms Fiscal 2008 Guidance, a 14-16% Increase in Earnings per Fully Diluted Share

MIAMI, March 20, 2007 — Perry Ellis International, Inc. (NASDAQ:PERY) today reported results for the fourth quarter (“fourth quarter of fiscal 2007”) and fiscal year ended January 31, 2007 (“fiscal 2007”).

Fourth quarter of fiscal 2007 total revenues grew to a record level of $231.6 million, an 8.3% increase compared to $213.9 million reported in the fourth quarter of the fiscal year ended January 31, 2006 (“fourth quarter of fiscal 2006”). Fourth quarter of fiscal 2007 revenue increases were balanced across a number of the company’s business units including Perry Ellis, swimwear /action sports, direct retail and international. Fourth quarter of fiscal 2007 EBITDA grew to $25.7 million, a $4.8 million or 23% increase over the same period last year. A table showing the reconciliation of EBITDA to net income is attached. Net income was $10.7 million, a 32% increase compared to $8.1 million reported in the fourth quarter of fiscal 2006, and fourth quarter of fiscal 2007 earnings per share were $0.68 per fully diluted share, a 26% increase from $0.54 per fully diluted share reported in the fourth quarter of fiscal 2006.

Overall fourth quarter of fiscal 2007 results were in line with management’s expectations and included a 356 basis point improvement in gross profit margin and a 131 basis point improvement in EBITDA margin to 11.1% of revenues compared to fourth quarter of fiscal 2006. Gross profit and EBITDA margin improvements were driven by increased revenues in higher margin businesses such as swimwear, direct retail, Perry Ellis and international, as well as the strong retail sell through performance of the company’s men’s wholesale divisions.

George Feldenkreis, chairman and chief executive officer, commented, “We are very proud of our numerous fourth quarter accomplishments, with record revenues, EBITDA, earnings and the purchase and successful re-licensing of Perry Ellis fragrance operations. During the quarter, we also declared and paid a 3-for-2 stock dividend—a strong indication of our confidence in our future growth potential. During fiscal 2007 we have exhibited significant gross profit margin expansion as a result of improved production planning, sourcing and, most importantly, our products’ continued exceptional performance at retail. This led to strong cash flow generation which enabled us to reduce overall debt levels by over $21 million and lower our overall cost of capital with the retirement of high cost $57 million senior secured notes. We are excited about our position in the market today and look forward to strong results in fiscal 2008.”

Fiscal 2007 total revenues were $829.8 million, a 2.3% decline compared to $849.4 million reported in the year ended January 31, 2006 (“fiscal 2006”), reflecting the impact of retail consolidation and elimination of certain private label sportswear programs during the first half of the year. Fiscal 2007 EBITDA grew to a record $70.9 million, a $3.6 million or 5.4% increase over fiscal 2006 levels, and EBITDA margins improved 63 basis points to 8.5% of revenues.

Fiscal 2007 earnings were $22.4 million or $1.45 per fully diluted share compared to $22.7 million or $1.51 per fully diluted share in fiscal 2006. On a proforma basis, which the company believes provides a more meaningful comparison of financial performance, fiscal 2007 earnings were $1.58 per fully diluted share compared to $1.51 per fully diluted share last year, a 4.6% increase. Proforma results exclude the impact of $3.0 million in debt extinguishment costs ($0.13 per fully diluted share) incurred as a result of the March 2006 repayment of the company’s $57 million senior secured notes. A table showing the reconciliation of actual to proforma results is attached.

Additionally, both proforma and reported results include expenses of approximately $0.05 per share related to the adoption of SFAS 123R, requiring the expensing of stock-related compensation. These costs are not reflected in fiscal 2006 results.

Oscar Feldenkreis, president and chief operating officer, remarked, “More than ever, this year was a testament to the power of our brands. The sell throughs of Perry Ellis, the best performing neo-traditional men’s collection at department stores, helped us increase door penetration and floor space; our golf performance products for Grand Slam, PING and PGA TOUR are doing extremely well across all distribution channels; Original Penguin continues its wholesale expansion with concepts such as Black Label; Cubavera is increasingly reaching new demographics beyond Hispanics; and our re-launched Jantzen and recently-added JAG brand are performing extraordinarily well in the department store channel during the current swim season.”

Oscar Feldenkreis concluded: “We believe the feedback from the MAGIC show in February and our results in fiscal 2007, especially our fourth quarter, put us on track for a record year in fiscal 2008. We expect strong growth coming from our Perry Ellis brand, golf and Hispanic lifestyles, swimwear/action sports, international and direct retail operations. We remain poised to continue leveraging the sourcing and planning platforms we have built to deliver efficiencies across all of our businesses. For fiscal 2008, we anticipate revenue growth in the 8-10% range to $900—$910 million and earnings to increase in the range of 14%—16% to $1.81—$1.84 per fully diluted share.”

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 athttp://www.pery.com.

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.

CONTACT:

Perry Ellis International Investor Relations

Francisco G. Hoffmann, 305-873-1365

SOURCE: Perry Ellis International

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,
	2007		2006		2007		2006
Revenues
Net sales	$	225,869	$	208,147	$	807,616	$	827,504
Royalty income		5,714		5,728		22,226		21,910
Total revenues		231,583		213,875		829,842		849,414
Cost of sales		152,540		148,486		554,046		586,900
Gross profit		79,043		65,389		275,796		262,514
Operating expenses
Selling, general and administrative expenses		53,369		44,482		204,883		195,236
Depreciation and amortization		3,258		2,658		11,608		9,557
Total operating expenses		56,627		47,140		216,491		204,793
Operating income		22,416		18,249		59,305		57,721
Costs on early extinguishment of debt		—		—		2,963		—
Interest expense		5,464		5,528		21,114		21,930
Income before minority interest and income taxes		16,952		12,721		35,228		35,791
Minority interest		272		43		508		470
Income tax provision		5,969		4,576		12,311		12,639
Net income	$	10,711	$	8,102	$	22,409	$	22,682
Net income per share
Basic	$	0.73	$	0.56	$	1.55	$	1.59
Diluted	$	0.68	$	0.54	$	1.45	$	1.51
Weighted average number of shares outstanding*
Basic		14,610		14,379		14,504		14,301
Diluted		15,824		15,021		15,455		15,050

* On November 21, 2006, the Company announced a 3-for-2 stock split effected in the form of a stock dividend payable on December 29, 2006 to stockholders of record as of December 12, 2006. All earnings per share references in this press release have been restated to include the impact of the stock dividend.

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

SELECTED FINANCIAL DATA (UNAUDITED)

(amounts in 000’s)

BALANCE SHEET DATA:

	As of
	January 31, 2007		January 31, 2006
Assets
Current assets:
Cash and cash equivalents	$	4,514	$	9,412
Accounts receivable, net		157,420		152,529
Inventories, net		139,690		126,413
Other current assets		12,972		16,239
Total current assets		314,596		304,593
Property and equipment, net		71,989		66,592
Intangible assets, net		192,656		183,090
Other assets		13,965		15,739
Total assets	$	593,206	$	570,014
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	44,295	$	51,763
Accrued expenses and other liabilities		31,605		16,441
Accrued interest		5,822		6,743
Unearned revenues		2,883		1,096
Total current liabilities		84,605		76,043
Long term liabilities:
Senior subordinated notes payable		149,079		148,914
Senior secured notes payable		—		56,923
Senior credit facility		61,347		40,391
Real estate mortgage		26,604		12,336
Deferred pension obligation		13,721		13,721
Other liabilities		8,854		452
Total long term liabilities		259,605		272,737
Total liabilities		344,210		348,780
Minority interest		2,362		1,854
Stockholders’ equity
Preferred stock		—		—
Common stock		146		144
Additional paid in capital		94,252		90,036
Retained earnings		151,388		128,979
Accumulated other comprehensive income		848		221
Total stockholders’ equity		246,634		219,380
Total liabilities and stockholders’ equity	$	593,206	$	570,014

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME AND GROSS PROFIT TO EBITDA(1)

(UNAUDITED)

(amounts in 000’s)

	Three Months Ended January 31,						Year Ended January 31,
	2007			2006			2007			2006
Net income as reported	$	10,711		$	8,102		$	22,409		$	22,682
Plus:
Depreciation and amortization		3,258			2,658			11,608			9,557
Interest expense		5,464			5,528			21,114			21,930
Costs on early extinguishment of debt		—			—			2,963			—
Minority interest		272			43			508			470
Income tax provision		5,969			4,576			12,311			12,639
EBITDA	$	25,674		$	20,907		$	70,913		$	67,278
Gross profit	$	79,043		$	65,389		$	275,796		$	262,514
Less:
Selling, general and administrative expenses		(53,369	)		(44,482	)		(204,883	)		(195,236	)
EBITDA	$	25,674		$	20,907		$	70,913		$	67,278
Total revenues	$	231,583		$	213,875		$	829,842		$	849,414
EBITDA margin percentage of revenues		11.1	%		9.8	%		8.5	%		7.9	%

(1) EBITDA consists of earnings before interest, costs on early extinguishment of debt, taxes, depreciation, amortization and minority interest. EBITDA is not a measurement of financial performance under accounting principles generally accepted in the United States of America, and does not represent cash flow from operations. EBITDA is presented solely as a supplemental disclosure because management believes that it is a common measure of operating performance in the apparel industry.

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATION OF DILUTED EARNINGS PER SHARE TO PROFORMA DILUTED EARNINGS PER SHARE (2)

(UNAUDITED)

	Three Months Ended January 31,				Year Ended January 31,
	2006		2005		2006		2005
Diluted earnings per share view	$	0.68	$	0.54	$	1.45	$	1.51
Plus:
Effect of debt extinguishment costs, net of tax effect	$	—	$	—	$	0.13	$	—
Proforma diluted earnings per share view	$	0.68	$	0.54	$	1.58	$	1.51

(2) Proforma diluted earnings per share for the year ended January 31, 2007, consists of diluted earnings per share excluding the effect of approximately $3.0 million ($1.9 million, net of taxes) for 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 accounting principles generally accepted in the United States of America. 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, because management believes it is useful to compare the Company’s current results to the prior year results without the one-time charge incurred during Fiscal 2007.

Additionally, proforma diluted earnings per share and diluted earnings per share for the three and twelve months ended January 31, 2007 include expenses of $0.01 and $0.05 per share, respectively related to the adoption of SFAS 123R, which requires the expensing of stock options. Such expense was not recognized in the prior period as SFAS 123R was implemented on February 1, 2006.