Perry Ellis International (PERY) 8-K Perry Ellis International Announces Record Revenues for Third Quarter Fiscal 2008

Exhibit 99.1

Perry Ellis International Announces Record Revenues for Third Quarter Fiscal 2008

• Record revenues at $227.5 million for third quarter – 7% increase

• Net income at $8.5 million for third quarter – 4% increase

• Earnings per fully diluted share of $0.55 for third quarter

• Strong organic revenue growth of 9% for nine months of fiscal 2008

• Record earnings of $1.16 per fully diluted share for nine months of fiscal 2008 – 52% increase compared to $0.76 last year

Perry Ellis International, Inc. (NASDAQ:PERY) today reported results for the third quarter ended October 31, 2007 (“third quarter of fiscal 2008”). For the third quarter of fiscal 2008, total revenues increased 6.7% to $227.5 million, compared to $213.2 million in the third quarter ended October 31, 2006 (“third quarter of fiscal 2007”). Revenue increases were driven by several of the Company’s growth initiatives – primarily by an outstanding performance in golf, continuous gains in Perry Ellis, strong growth in action sports and direct retail.

“The successful implementation of our key strategies along with the growing demand for our brands drove the results we expected, including strong organic sales growth and a record quarter for revenues and profitability. We accomplished this in spite of unseasonably warm weather and a challenging retail environment, a strong testament to the power of our business model and execution abilities,” Oscar Feldenkreis, president and chief operating officer remarked.

Gross profit was $76.9 million—an increase of $4.5 million compared to third quarter last year—resulting in gross margins even with last year, at 34.0%. Meanwhile, operating expenses increased 9.0% attributable to further investment in the company’s retail and active sports divisions; start-up expenses for boyswear and other initiatives; and increased costs associated with the implementation of our Oracle Retek system.

Mr. Feldenkreis commented, “Continued funding of both growth opportunities and state-of-the-art systems that better serve our customers are paramount for Perry Ellis International’s long term strategy. We are confident that these investments will bear strong returns for our shareholders in the near future and beyond.”

Net Income for the third quarter of fiscal 2008 was $8.5 million and grew 3.6% compared to the third quarter of fiscal 2007. Earnings per fully diluted share were $0.55 compared to earnings per fully diluted share of $0.53 for the same period last year.

The Company ended third quarter with a strong balance sheet. Robust cash flow allowed the Company to significantly reduce its debt level. As of October 31, 2007, overall long term debt decreased to $198.3 million, a reduction of $38.6 million compared to the beginning of fiscal 2008. As a result, long term debt declined to 34% of total assets as compared to 40% on January 31, 2007.

For the first nine months of fiscal 2008, the company reported record revenues and profits. Revenues increased by 8.9% to $651.5 million from $598.3 million for the first nine months of fiscal 2007 while improving gross profit margin by 33 basis points compared to the same period last year. The Company also improved EBITDA margin by 48 basis points compared to the first nine months of fiscal 2007. A table showing the reconciliation of EBITDA margin to gross margin is attached. Net income increased to $18.3 million from reported net income of $11.7 million and pro forma net income of $13.7 million during the same period last year. Finally, earnings per fully diluted share for the first nine months of fiscal 2008 grew 52.6% to $1.16 compared to reported earnings per fully diluted share of $0.76 for the same period last year, and 30.3% compared to pro forma earnings per fully diluted share of $0.89 for the same period last year. Last year’s pro forma results exclude the impact of $3.0 million in debt extinguishment costs ($1.9 million net of taxes or $0.13 per fully diluted share) incurred as a result of the March 2006 repayment of the Company’s $57 million senior secured notes. Pro forma results are 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 charge incurred during fiscal 2007. A table showing the reconciliation of actual to pro forma results is attached.

George Feldenkreis, chairman and chief executive officer, commented “We are extremely satisfied with our performance for the first nine months of this fiscal year and remain positive about our overall Q4 expectations, especially compared to most of the industry. However we recognize that both the warm October and its impact on retail sales, as well as the general deterioration of consumer confidence—driven by the effect of oil prices and lower real estate values in certain states – have impacted certain replenishment programs, especially on bottoms. Based on those factors, we have decided to update our guidance accordingly.”

However, based on a more conservative outlook for the upcoming Christmas season, the Company has decided to update its previous fiscal 2008 earnings guidance from the range of $1.87 to $1.91 per fully diluted share to $1.78 to $1.82 per fully diluted share and its fiscal 2008 revenue guidance to the range of approximately $870 to $880 million, from $900 to $910 million.

“We are proud of our accomplishments in fiscal 2008. Compared to fiscal 2007, we estimate that Perry Ellis International will be growing earnings between 13% and 15% and revenues between 5% and 6%. We remain committed to delivering outstanding results to our shareholders and feel extremely positive about the opportunities ahead of us with our Perry Ellis brand, swimwear, licensing and retail divisions for fiscal 2009 and beyond,” Mr. Feldenkreis concluded.

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^®, Jantzen^®, Cubavera^®, Savane^®, Munsingwear^®, Original Penguin^® by Munsingwear^®, AXIST^®, Grand Slam^®, John Henry^®, Natural Issue^®, Farah^®, Pro Player^®, Manhattan^®, the Havanera Co.^®, Axis^®, Tricots St. Raphael^®, Mondo di Marco^®, Redsand^®, Gotcha^®, Girl Star^® and MCD^®. The Company enhances its roster of brands by licensing trademarks from third parties including Dockers^® for outerwear, Nike^® and JAG^® 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

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 October 31,				Nine Months Ended October 31,
	2007		2006		2007		2006
Revenues
Net sales	$	220,881	$	207,794	$	632,390	$	581,747
Royalty income		6,582		5,445		19,138		16,512
Total revenues		227,463		213,239		651,528		598,259
Cost of sales		150,541		140,781		435,095		401,506
Gross profit		76,922		72,458		216,433		196,753
Operating expenses
Selling, general and administrative expenses		56,074		51,747		164,067		151,514
Depreciation and amortization		3,492		2,899		9,594		8,350
Total operating expenses		59,566		54,646		173,661		159,864
Operating income		17,356		17,812		42,772		36,889
Costs on early extinguishment of debt		—		—		—		2,963
Interest expense		4,069		5,000		13,890		15,650
Income before minority interest and income taxes		13,287		12,812		28,882		18,276
Minority interest		117		92		372		236
Income tax provision		4,636		4,479		10,197		6,342
Net income	$	8,534	$	8,241	$	18,313	$	11,698
Net income per share
Basic	$	0.58	$	0.57	$	1.25	$	0.81
Diluted	$	0.55	$	0.53	$	1.16	$	0.76
Weighted average number of shares outstanding*
Basic		14,704		14,538		14,685		14,468
Diluted		15,504		15,540		15,817		15,327

* 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 prior year 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
	October 31, 2007		January 31, 2007
Assets
Current assets:
Cash and cash equivalents	$	8,874	$	4,514
Accounts receivable, net		146,659		157,420
Inventories, net		122,573		139,690
Other current assets		19,680		12,972
Total current assets		297,786		314,596
Property and equipment, net		76,070		71,989
Intangible assets, net		192,656		192,656
Other assets		8,533		13,965
Total assets	$	575,045	$	593,206
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	27,954	$	44,295
Accrued expenses and other liabilities		28,304		31,914
Accrued interest		2,041		5,822
Unearned revenues		4,033		2,883
Total current liabilities		62,332		84,914
Long term liabilities:
Senior subordinated notes payable		149,202		149,079
Senior credit facility		22,999		61,347
Real estate mortgage		26,174		26,604
Deferred pension obligation		13,220		13,412
Unearned revenues and other liabilities		30,433		8,854
Total long term liabilities		242,028		259,296
Total liabilities		304,360		344,210
Minority interest		2,734		2,362
Stockholders’ equity
Preferred stock		—		—
Common stock		147		146
Additional paid in capital		95,775		94,252
Retained earnings		169,701		151,388
Accumulated other comprehensive income		2,328		848
Total stockholders’ equity		267,951		246,634
Total liabilities and stockholders’ equity	$	575,045	$	593,206

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

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

(UNAUDITED)

(amounts in 000's)

	Three Months Ended October 31,						Nine Months Ended October 31,
	2007			2006			2007			2006
Net income as reported	$	8,534		$	8,241		$	18,313		$	11,698
Plus:
Depreciation and amortization		3,492			2,899			9,594			8,350
Interest expense		4,069			5,000			13,890			15,650
Costs on early extinguishment of debt		—			—			—			2,963
Minority interest		117			92			372			236
Income tax provision		4,636			4,479			10,197			6,342
EBITDA	$	20,848		$	20,711		$	52,366		$	45,239
Gross profit	$	76,922		$	72,458		$	216,433		$	196,753
Less:
Selling, general and administrative expenses		(56,074	)		(51,747	)		(164,067	)		(151,514	)
EBITDA	$	20,848		$	20,711		$	52,366		$	45,239
Total revenues	$	227,463		$	213,239		$	651,528		$	598,259
EBITDA margin percentage of revenues		9.2	%		9.7	%		8.0	%		7.6	%

(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)

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

(UNAUDITED)

	Three Months Ended October 31,				Nine Months Ended October 31,
	2007		2006		2007		2006
Net income	$	8,534	$	8,241	$	18,313	$	11,698
Plus:
Effect of debt extinguishment costs, net of tax effect		—		—		—		1,953
Proforma net income	$	8,534	$	8,241	$	18,313	$	13,651
Diluted earnings per share	$	0.55	$	0.53	$	1.16	$	0.76
Plus:
Effect of debt extinguishment costs, net of tax effect		—		—		—		0.13
Proforma diluted earnings per share	$	0.55	$	0.53	$	1.16	$	0.89

(2) Proforma net income and proforma diluted earnings per share for the nine months ended October 31, 2006, respectively, consists of net income and diluted earnings per share excluding the effect of approximately $3.0 million ($1.9 million, net of taxes) or $0.13 per share net of taxes, respectively, for debt extinguishment costs related to the call of our $57 million senior secured notes. Neither proforma net income nor proforma diluted earnings per share is 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 net income and/or diluted earnings per share. Proforma net income and proforma diluted earnings per share are 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 charge incurred during Fiscal 2007.