Perry Ellis International Inc. reaffirmed its guidance in a statement that said the company is also nearing completion of a licensing agreement for its fragrance business.
George Feldenkreis, Chairman and Chief Executive Officer of Perry Ellis, commented: “I am pleased to announce that we are working closely with several parties to finalize a new licensing agreement for our fragrance business and the sale of related assets acquired from Parlux Fragrances Inc. We expect these new agreements will enable Perry Ellis International to recoup significantly all of the invested capital utilized for the purchase of assets from Parlux Fragrances Inc., and also to generate royalty income in line with industry standards.” Mr. Feldenkreis also noted that, “Although we cannot further discuss details until agreements are signed, we anticipate these transactions will be accretive for fiscal 2008 and beyond.”
As for the fiscal year ending January 31, 2007, Mr. Feldenkreis further noted: “Our brands are enjoying unprecedented sell-throughs across all distribution channels. We are on target for a record fourth quarter and we remain confident of achieving the higher end of our previously announced earnings target range of $1.53 – $1.60 per fully diluted share, as adjusted for the effect of the Company's December 29, 2006 3-for-2 stock split ($2.30 to $2.40 per fully diluted share pre-stock split).”
