Perry Ellis International, Inc. reported results for the fourth quarter and fiscal year ended January 31, 2003. For the quarter, the Company reported net income of $2.8 million, or $0.41 per fully diluted share compared to a net income of $954,000 or $0.15 per fully diluted share earned during the fourth quarter last year. For fiscal 2003, the Company reported net income of $10.8 million or $1.65 per fully diluted share, a 64% increase over the fiscal 2002 net income of $6.6 million or per fully diluted share of $1.01.

Net sales for the fourth quarter, driven by strong shipments from the Company’s Jantzen swimwear business, increased 51.3% to $79.0 million, compared to $52.2 million in the year-ago period. Net sales for the full year grew 10.2% to $277.0 million versus $251.3 million last year. In addition to its initial significant shipments of the Jantzen products during the fourth quarter, the Company indicated that it had received a good sell though at retail across entire portfolio of brands. Moreover, sales of men’s non-swimwear apparel remained at consistent levels despite a difficult retail environment.

Royalty income for the fourth quarter was $7.6 million, an increase of 2.7% as compared to the year-ago level of $7.4 million. For the full year, royalty income increased 7.9% to $28.8 million from $26.7 million in fiscal 2002 resulting from the strong results of certain Perry Ellis licensees and the addition of royalty income generated from the Jantzen brands. The Company noted that the quality of its licensing stream had increased due to the strength of its licensing partners.

Operating income for the fourth quarter increased 79.2% to $8.6 million from $4.8 million in the year ago quarter. For the full year, operating income increased 37.5% to $33.4 million versus $24.3 million in fiscal 2002.

“Fiscal 2003 was a landmark year in our company’s history. It is hallmarked by the continued strengthening of the Perry Ellis brand, our integration and execution of the Jantzen business, and the agreement to acquire Salant Corporation to solidify our operating platform. We are pleased with the fourth quarter results. More importantly, we believe we will see our momentum continuing into the new year, despite a challenging market,” said George Feldenkreis, Chairman and CEO, Perry Ellis International. “Not only have we grown due primarily to the Jantzen acquisition during the past year, but we have significantly improved our balance sheet. We remain focused on building our company and are convinced that the industry will come to be increasingly consolidated. We believe our strategy of being a highly diversified company with a strong mix of brands and distribution is very advantageous. We are looking forward to capitalizing on the opportunities for growth this will provide as well as to creating synergies in our organization.”

Perry Ellis International said that although the economic and geo-political outlook for 2003 remains uncertain, it continues to believe that earnings for the fiscal year ended January 31, 2004 will be approximately $2.60 per fully diluted share including an expected contribution from the consolidation of second half results for Salant Corporation. In the first quarter the company expects net sales to range from approximately $90 to $100 million and earnings per fully diluted share in the range of approximately $0.85 to $0.90.

“We continue to execute well on our core business, the introduction of the Jantzen product line and implementation of our strategic plan. We were pleased to both meet our short-term profitability target and position for additional growth, especially given the highly challenging retail environment,” said Oscar Feldenkreis, President and Chief Operating Officer. “The feedback on our product lines from the recently concluded M.A.G.I.C. trade show and market week activity was very encouraging. Our core backlog is increasing at a good pace and we are confidant that, based on current sell-through reports, the Spring selling season will hold continued strong results for us.”


                             Three Months Ended    Twelve Months Ended
                                 January 31            January 31

                               2003       2002      2003       2002
                           ---------- ---------- ---------- ----------
Net sales                    $78,978    $52,178   $277,028   $251,310

Royalty income                 7,574      7,355     28,813     26,681
                           ---------- ---------- ---------- ----------

Total revenue                 86,552     59,533    305,841    277,991

Cost of sales                 58,487     38,336    205,001    191,601
                           ---------- ---------- ---------- ----------

Gross profit                  28,065     21,197    100,840     86,390
                           ---------- ---------- ---------- ----------

SG&A expenses                 18,145     14,693     63,850     55,447

Depreciation & amortization    1,327      1,736      3,583      6,662
                           ---------- ---------- ---------- ----------

Total operating expenses      19,472     16,429     67,433     62,109
                           ---------- ---------- ---------- ----------

Operating income               8,593      4,768     33,407     24,281

Interest expense               3,989      2,963     15,795     13,550
                           ---------- ---------- ---------- ----------

Income Before Minority         4,604      1,805     17,611     10,731
  Interest and Income Taxes

Minority Interest                  -          -        (89)       (83)

Share of income (loss)                     (168)
  from unconsolidated

Income tax provision           1,820        683      6,726      4,040
                           ---------- ---------- ---------- ----------

Net Income                    $2,784       $954    $10,796     $6,608