Exhibit 99.1
Exhibit 99.1
PERRY ELLIS INTERNATIONAL
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 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, 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.
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AGENDA SCHEDULE
I. Introduction
II. Product Review—A Glimpse into PEI III. Perry Ellis IV. Original Penguin V. PEI Golf VI. Corporate Financial Overview VII. Lunch
4
Oscar
Feldenkreis
Vice Chairman of the Board,
President and Chief Operating Officer
KEY PILLARS OF GROWTH AND PROFITABILITY 5
1 2 3 4 5
Portfolio Retail Expand Direct-to- Operating Optimization Brand International Consumer Efficiencies Enhancement And Licensing Expansion Distribution
PORTFOLIO OPTIMIZATION 6
Exited 30 brands (~ $80M in revenues) since Fiscal 14
87% of Revenues from Core Brands
~$3.26B Global Retail Sales
% Direct
Revenue 24% 12% 20% 16% 15%
Global $930M $385M $510M $375M $435M
Retail Sales
PERRY ELLIS BRAND OVERVIEW 7
$930M Global Retail Sales
16%
14% DTC
32% Intl. Wholesale 52% 86% Licensing Domestic
Perry Ellis is one of the world’s leading designer lifestyle brands
Recent initiatives across the Collection business, have achieved significant improvement in profitability The brand generates nearly $1B in annual retail sales globally, spanning dozens of product categories
ORIGINAL PENGUIN BRAND OVERVIEW 8
$385M Global Retail Sales
20%
40%
DTC
36% Intl.
Wholesale
44% 60%
Licensing Domestic
Iconic Contemporary Sportswear Brand with strong American heritage
Strong global fashion appeal, with 40% of revenue from International
Has grown +13% on average over past three years
PEI GOLF DIVISION OVERVIEW 9
$510M Global Retail Sales
World-Class portfolio of authentic golf brands, with a good, better, best distribution strategy Production and technological innovation key to future growth
VERY PERRY ELLIS
14
BRAND PORTFOLIO 11
Perry Ellis Perry Ellis Perry Ellis Signature Perry Ellis Portfolio Perry Ellis 360 America
The pinnacle of A full lifestyle, Focused on the Perry Ellis 360 is This line is a more our product lines ‘Very Perry’ dressed-up side an exciting casual lifestyle has forward-thinking assortment of of Perry Ellis, athleisure product collection. Your designs that include mix-and-match Portfolio consists of extension. All 360 favorite go-to pieces, shirts, trousers, shirts, trousers, suits, dress shirts, items have reinvigorated with suiting, outerwear knits & sweaters, ties, footwear and performance modern details. and accessories. suit separates accessories. attributes such as and outerwear. moisture wicking and water resistance.
Building upon the Perry Ellis legacy with design excellence
WHOLESALE STRATEGIES 12
Key North American Retail Partners
Increase profitability with retail partners to deepen penetration in existing doors
Reduce inventory levels to control closeouts
Control markdowns at retail by increasing sell-throughs and reducing carryover
+41% &
+13% -45% +350 bps +400 bps
Revenues Inventory Gross Margin margin
Fiscal 2016 Direct EBITDA
1H Update (Collection)
WHOLESALE STRATEGIES 13
E-Commerce
Creating Strategies with leading online retailers and brick-and-mortar partners
WHOLESALE STRATEGIES 14
Shop-in-Shop Investments
Premium floor space at key doors, with enhanced visuals and stronger brand presentations
Since 2014 have rolled out 62 Shop-in-Shops. Sales topping retail average by +14 points
Macy’s Herald Square Concept Store opens in October featuring top-notch technology and
updated product
PRODUCT STRATEGIES 15
Travel Luxe Print & Pattern Offerings Linen Athleisure
Our Easy Care At the forefront of print and Places us squarely in a Perry Ellis 360 performance pattern work development fashion niche that’s meshes beautifully technology sets growing across all levels with the lives of us apart of distribution active consumers
OMNICHANNEL GLOBAL MARKETING & COMMUNICATION 16
Investing in market-leading digital innovation
Digital Partnerships
HypeBeast.com, Refinery29.com and mashable.com
Online influencers and bloggers such as Adam Gallagher (@iamgalla),Kat Irlin (@kat_in nyc) and Patrick Janelle (@guynamedpatrick) to maximize coverage within social media Amplify Fashion Show Coverage in Digital Space Facebook (750% higher); Twitter (500% higher); Instagram (320% higher) Digital Advertising Buys Deliver 14 million online impressions annually Weekly Twitter chat—#GentsChat
Online discussion around men’s fashion, the first of its kind. Resulted in 360% increase in engagement
OMNICHANNEL GLOBAL MARKETING & COMMUNICATION 17
Spring 2016 Fashion Show
Hugely successful runway show during inaugural Men’s
New York Fashion Week in July, with over 400 attendees,
including top editors, influencers and retailers
Fashion show resulted in 140 editorial placements, which
garnered over 1.4B impressions for the brand
Top placements included GQ, Forbes, WWD, Bloomberg TV,
Washington Post, highly-coveted New York Times Style section
In total, editorial coverage for the brand has increased 200%,
compared with last year
DIRECT-TO-CONSUMER 18
Directly-Operated
Retail Stores
45
E-com website
perryellis.com
DIRECT-TO-CONSUMER 19
Strategic Initiatives
Execute localized and climate-right assortment strategies
Maximize Omnichannel experience and stores’ fulfillment of online orders Execute improved inventory management, driving faster turns and higher margins Retail excellence via superior systems and customer shopping experience Expand high-margin businesses, including luggage, footwear, accessories Intensify key-item ownership
FY 2016 YTD Performance Through 1H
Perry Ellis E-Commerce comps +46% Perry Ellis Retail comps up single digits
LICENSING 20
22 Domestic and 19 International Agreements
account for 59% of PEI’s Licensing Sales
Projecting 6.7% growth for the year: H1 FY2016
royalty revenue +9.2%
U.S./Canada +7.1% YTD
82.5% of brand’s total royalty revenue
Growth driven by footwear, luggage, tailored
clothing and a new dress-shirt agreement
3 new agreements in the last 10 months
International +20.2% YTD
17.5% of brand’s total revenue
Organic growth in Latin America
INTERNATIONAL DEVELOPMENT GROWTH OPPORTUNITIES 21
EMEA
Launch Perry Ellis America in the UK and Europe; springboard for new licensing revenues
Confirmed launch for SS 2016 in House of Fraser, Galeries Lafayette and Coin Collection to be available in London, Paris and Milan; expand distribution in AW2016
Target Perry Ellis America launch in Middle East and South Africa in FY-18; brand extensions in FY-19
Canada / Latin America
Opportunistically convert licensed Perry Ellis businesses to direct, to capture market share and increase profitability
Asia
Implement a hybrid licensing and distribution structure to launch Perry Ellis and Perry Ellis America in Greater China, Japan, India and then Asia/Pacific Expand distribution in Korea and store footprint in Southeast Asia
ORIGINAL PENGUIN – BRAND PORTFOLIO 23
Margin Builders Main Line Penguin Blue P55 Vintage Gym
Great product Full collection of Premium Core staples Aesthetically- design and an Original Penguin collection and go-to pieces, pleasing, iconic authentic brand products, with manufactured made with gear designed to feel for consumers emphasis on from the craftsmanship be in sync with a who know that more attention to highest-quality that discerning leisurely lifestyle. is sometimes less. detail. materials. consumers expect.
ORIGINAL PENGUIN – U.S. WHOLESALE STRATEGIES 24
Strengthened Channels of Distribution Key Partners
2012 10 20 53 & ECOM 25 0 0
2015 24 & ECOM 32 116 & ECOM 50 & ECOM 11 11 & ECOM
(ALL DOORS) (ALL DOORS)
Doubled door count with key retail partners
Expanded U.S. partnerships into Canada (Fall 15: 5 doors fixtured including Bloor Street)
Increased SKU profitability
ORIGINAL PENGUIN – A FULL LIFESTYLE COLLECTION 25
ORIGINAL PENGUIN—PRODUCT STRATEGIES 27
appears, you may have to delete the
Anchors Denim Jackets & Accessories Original Penguin
Outerwear Blue
Strengthening Re-introducing Continuing to Heightening Elevated label whose
our collection denim into our build momentum focus on bags, foundation is based
of swim, knits product mix, with seasonally- luggage and on premium fabrics.
and wovens. under the P55 relevant apparel. belts.
umbrella.
ORIGINAL PENGUIN – PRODUCT STRATEGY 28
60th Anniversary Capsule Collection
Women’s Wear Daily Editorial
8.26.2015
ORIGINAL PENGUIN GLOBAL MARKETING & COMMUNICATIONS STRATEGY 29
Original Penguin has developed a unique,
multi-platform omnichannel approach that
utilizes traditional and non-traditional
mediums, including print, digital, mobile,
social media and grassroots marketing.
We’re focused on reaching today’s
consumers, whether they happen to
be shopping online or in a retail setting.
ORIGINAL PENGUIN SENSORY MARKETING MUSIC STRATEGY 30
Partnership with Virgin/EMI
Two iconic brands leveraging assets, creating a unique alliance to reach consumers Stunt event will launch campaign, creating buzz and newsworthy PR Video content will include interviews with key artists talking about their music, and what’s influenced their fashion, over the last six decades Social-media support from all artists, to promote content and events Consumer Activation, to include Gold Penguin Treasure Hunt for tickets in key cities Grand Finale, featuring performances from high-profile artists to close the campaign
ORIGINAL PENGUIN—DIRECT TO CONSUMER 32
Directly-Operated Retail Stores
28
E-com websites
originalpenguin.com originalpenguin.co.uk
ORIGINAL PENGUIN – U.S. DIRECT TO CONSUMER 33
Strategic Initiatives
Optimize Full-Price/Outlet operating model Expand and intensify outerwear and accessories Develop leather bags, footwear, fragrances Balance outlet assortments, develop dress-up collection Maximize Omnichannel experience
FY 2016 YTD Performance Through 1H
U.S. E-com comps +12%
OPG U.S. Retail revenues up single digits
ORIGINAL PENGUIN – EUROPEAN WHOLESALE OVERVIEW 34
Key Partners
2012 15 30 0 0 0 3
2015 45 35 27 25 67 8
Wholesale Revenue growth of 88% from FY-12 (18% CAGR) Significant expansion in Europe (France, Italy and Spain), which now accounts for 15% of FY-16 European Revenues Strategic capital investments, including recent addition of office and showrooms in Germany and Shop-in-Shop installations in all markets
ORIGINAL PENGUIN—EUROPEAN DIRECT-TO-CONSUMER OVERVIEW 35
7 directly-operated OPG stores in Europe; growth of 212% from FY-12 Relocated lead Covent Garden store to Long Acre Street, London’s top boulevard for retail in May 2015 Two new stores (Ashford and York) opening in October
28X growth in e-commerce since FY-12
New Euro denominated site launching in Sep 2015
35
ORIGINAL PENGUIN—LICENSING 36
17 Domestic and 22 International Agreements Account for 22% of PEI’s Licensing Sales
22% of PEI’s licensing revenue
Projecting 18% growth for the year: HI FY2016 royalty revenue +25% U.S./Canada +24%YTD
64% of brand’s total royalty revenue Growth driven by footwear, kids, eyewear and new tailored-clothing license 5 new agreements in last 18 months International +27% YTD
36% of brand’s total royalty revenue Growth driven by business development in Europe and Latin America 9 new agreements in last 18 mo
INTERNATIONAL DEVELOPMENT GROWTH OPPORTUNITIES 37
EMEA
Expand brand footprint outside UK and Western Europe to Eastern Europe, Middle East and Africa
Leverage key retail partnerships (House of Fraser, Galeries Lafayette, El Corte Ingles, Coin) to
expand door count and penetration across all Original Penguin product categories
Balance business model between wholesale and DTC disciplined full price development, solid
outlet store penetration as well as GBP and Euro denominated e-commerce
Latin America
Explore a joint venture structure to launch OPG e-commerce in Mexico to maximize in-
country development
Asia (PEI Owns Brand In Philippines and India Only)
Expand rights and development beyond the Philippines and India to Australia / NZ
PEI GOLF – A TREMENDOUS GROWTH STORY 39
Projected mid-to-high, single-digit
growth through FY19
PEI GOLF Lifestyle Gross Revenues
+12%, $202M
$193M
8-YR $188M
$182M
CAGR
$138M
$109M $116M
$106M
$88M
FY-08 FY-09 FY10 FY-11 FY-012 FY-13 FY-14 FY-15 FY-16E
GLOBAL PORTFOLIO OF GOLF LIFESTYLE BRANDS 40
Each brand has its own identity, style and DNA
GOOD BETTER BEST
Walmart Kohl’s Department Stores International International
International Sporting Goods Department Stores Green Grass
Off Course Green Grass Sporting Goods
International Off Course
Better Department Stores
Corporate
Direct-to-Consumer
��
DOOR GROWTH 41
Exponential
Growth
16,000
7,500
FY-08 FY-16
CHANNEL DIVERSIFICATION EXPANSION WITHIN AUTHENTIC GOLF LANDSCAPE 42
FY-08 (1997) FY-16 (2015)
eComm XX
Green Department Grass 3% Store 42%
Special Wholesale Markets Clubs 4%
10% Department
Store 80% Off Course Wholesale 6%
Clubs Special
10% Corporate Markets
6% 13% Intl
8% Mass 18%
PEI GOLF, LEADING THE EVOLUTION OF GOLF LIFESTYLE APPAREL 43
Golf Lifestyle Performance Gear
On Course Off Course Training
PRODUCT TECHNOLOGY 44
PERFORMANCE GEAR 45
Targeting the athleisure opportunity
WOMEN’S LIFESTYLE: GOLF, ACTIVE, LEISURE (GAL) 46
Function, Fit and Versatility
GOLF ACTIVE LEISURE
MARKETING STRATEGY 47
Key Initiatives
TOUR Player Activation with over 30 high-profile players
PGA TOUR, Web.com TOUR, Champions TOUR,
European TOUR, LPGA TOUR
National and Regional media and blogger outreach
Editorial coverage garnering 6.5M impressions
Social media fan engagement
Promotions have generated a 30% rise in
social media engagement year-over-year
Enhanced in-store visual experience
Localized retail partner initiatives
TOUR PLAYER ACTIVATION
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Patrick Reed
2015 FedEx Cup Rank: 9
2015 Official World Golf Rank: 18
CAREER ACCOMPLISHMENTS
Winner 2015 Hyundai Tournament of Champions
Winner 2014 Humana Challenge
Winner 2014 WGC – Cadillac Championship
Winner 2013 Wyndham Championship
2014 Ryder Cup Team USA Member
2013 Presidents Cup Team USA Member
50
Danny Willett
2015 Race to Dubai Rank: 2 2015 Official World Golf Rank: 25
CAREER ACCOMPLISHMENTS
Winner 2015 Omega European Championship Winner 2015 Nedbank Golf Challenge Winner 2012 BMW International Open
51
Lee Janzen
2015 Charles Schwab Cup Rank: 7 2015 Official World Golf Rank: 1,125
CAREER ACCOMPLISHMENTS
Winner 2015 ACE Group Classic (Champions TOUR) Winner 1998 U.S. Open Championship Winner 1995 THE PLAYERS Championship Winner 1995 Kemper Open Winner 1995 Sprint International Winner 1994 Buick Classic Winner 1993 Phoenix Open Winner 1993 U.S. Open Championship Winner 1992 Northern Telecom Open
52
Tommy Gainey
2015 The 25 Money List Ranking: 65th 2015 Official World Golf Ranking: 577th
CAREER ACCOMPLISHMENTS
Winner 2012 The McGladery Classic
Winner 2010 Melwood Prince George’s County Open (Web.com TOUR) Winner 2010 Chiquita Classic (Web.com TOUR)
53
Sandra Gal
2015 Rolex Rank: 39 2015 CME Rank: 24
CAREER ACCOMPLISHMENTS
Winner 2011 Kia Classic
Member of the 2011 European Solheim Cup team 2007 First Team All-American at the University of Florida Winner of two World Amateur Team Championships
– 2004 and 2006
54
Robert Streb
2015 FedEx Cup Rank: 6
2015 Official World Golf Rank: 40
CAREER ACCOMPLISHMENTS
Winner at the 2015 McGladrey Classic
Winner at the 2012 Mylan Classic (Web.com TOUR)
55
Marc Leishman
2015 FedEx Cup Rank: 75
2015 Official World Golf Rank: 57
CAREER ACCOMPLISHMENTS
Winner 2012 Travelers Championship 2010 – Runner-up Farmers Insurance Open 2009—PGA TOUR Rookie of the Year 2009—Runner-up at BMW Championship Winner of the 2008 WNB Golf Classic 2008 – Runner-up at the Utah Championship
56
D.A. Points
2015 FedEx Cup Rank: 168
2015 Official World Golf Rank: 475
CAREER ACCOMPLISHMENTS
Winner 2013 Shell Houston Open
Winner 2011 AT&T Pebble Beach National Pro Am Winner 2008 Miccosukee Championship (Web.com TOUR) Winner 2004 Northeast Pennsylvania Classic (Web.com TOUR) Winner 2004 Pete Dye West Virginia Classic (Web.com TOUR) Winner 2001 BUY.com Inland Empire Open (Web.com TOUR)
IN-STORE VISUAL EXPERIENCE
JCPenney
FINANCIAL HIGHLIGHTS 62
Anita Britt
Chief Financial Officer
STRONG 1H FISCAL 2016 RESULTS 63
1H REVENUES 1H ADJUSTED EBITDA
+40%
+4% $480M $34M
$24M
$461M 5% 7%
(margin) (margin)
FY15 FY16 FY15 FY16
Revenues increased 4% to $480M, Adjusted EBITDA Grew 40% to $34M and Adj.
due to Company’s core-brand strategy EBITDA margin expanded 180 bps to 7.0%
Gross margin expanded 90bps to 35.2% Earnings Per Share increased 170% to $1.30
CAPITALIZATION SUMMARY 64
Actual Actual
Capitalization Aug 1, 2015 Jan 31, 2015
Cash & Investments $ 40.0 $63.5
Senior Credit Facility $ 58.2 —
Senior Subordinated Notes Payable, Net $ 50.0 $150.0
Real Estate Mortgages $ 21.7 $22.1
Total Net Debt $92 $109
Inventory $ 154.0 $183.7
Accounts Receivable $ 124.3 $137.4
Total Current Assets $ 331.0 $398.9
Total Shareholders’ Equity $ 313.7 $302.1
Summary Credit Statistics
Total Net Debt to Capital 23% 27%
Net Debt / LTM EBITDA as Adjusted 1.9x 2.7x
LTM EBITDA as Adjusted / PF Interest Expense 3.9x 2.8x
Effective 5/6/15, $100 million senior subordinated notes redeemed and financed through expansion of senior credit facility
FINANCIAL OUTLOOK 65
Full Year FY 6M YTD FY 6M YTD FY FY
2015A 2015A 2016A 2016E*
Total Revenue $890.0 $460.8 $479.7 $925M –$935M
(+4%) (+4%—+5%)
Adj. Gross Profit**1 $303.0 $158.1 $169.1 34.7% –
34.0% 34.3% 35.2% 34.8%
Adj. EBITDA** $39.8 $24.0 $33.6 $55M (6.0%) –
4.5% 5.2% 7.0% $58M (6.25%)
Adj. EPS** $0.56 $0.47 $1.30 $1.78 –
$1.85
(1) | | Adjusted for costs associated with exited brands and other strategic initiatives |
*Guidance as of 08/20/2015
**Non-GAAP reconciliations are contained in PERY press release issued on 8/20/15, which was filed as Exhibit 99.1 to a Form 8-k filed with the SEC on 8/20/15.
FINANCIAL OUTLOOK 66
FY 2015 FY 2016 FY 2017—2019
Domestic 74% 72% 67-69%
International 12% 13% 14-16%
DTC 10% 11% 12-13%
Licensing 4% 4% 3-4%
Total 100% 100% 100%
Gross Margin Product performance/pricing-domestic 30-40 bps
Sourcing/buying initiatives 50-70 bps
International 100-200 bps
Licensing 10-20 bps
DTC 70-140 bps
Total 260-450
SG&A 60-80 bps on leverage
EBITDA margin +350 to +400 bps
STRATEGIC COST SAVINGS & OPERATING EFFICIENCIES 67
$12M $5M $6M
Fiscal 2015 1H Fiscal 2016 Q4 FY 2016 into FY 2017
Freight and supply 1H realized savings ($5M) $6M identified chain (+$3M) Enabled PEI to keep SG&A relatively Office consolidations SG&A infrastructure even, and leveraged 90 bps SG&A to (warehousing/corporate) review (+$9M) revenues in 1H
Supply chain synergies (fabric & freight) Reinvested $3M in Europe/Licensing COGS savings: 30-40 bps Realized $2M in FX
SG&A: Target 28% Delivered savings of $4M in real SG&A
Keep capital refinancing — Fiscal 2016 saving $4.5M: Inventory — Reduced WoS in warehouse by 2 weeks ($20M)
Performing Elevating Reaping Yielding
to energize core products, revenue and shareholder value, brands and global marketing and strong financial via cost savings and expansion talent results operational efficiencies
