Perry Ellis 3Q16 Earnings Call Notes

Perry Ellis International’s (PERY) CEO Oscar Feldenkreis on Q3 2017 Results

Stretch is becoming important to mens apparel

“I think that we have a lot of new product technology performance fabrics a lot of the bottoms business has changed dramatically. Stretch has become such a strong component to the men’s business where you find it on most of garments today and it’s creating the necessity to go out and replenish your wardrobe as well as we are seeing the evolution of so many different fits available to a man today, which has allowed us to again force us to replenish our inventory.”

Retailers carrying short sleeve much longer than they have in the past

“We sold short sleeve product all the way through, I would say, the end of October, to be honest with you. And we are seeing more and more retailers are looking at carrying short sleeve product much longer than they have in the past.”

George Feldenkreis

Feel good about UK and Europe

“We continue to be very bullish in U.K. and Europe. We feel that as microeconomic conditions stabilize and there is a better view of how Brexit will develop, business in the U.K. will increase considerably. We feel that the Pound is reaching a steady level, which will restore profitability and growth. We expect the United Kingdom to generate higher revenues than last year during the fourth quarter and improve its gross profit.”

Seeing reduction of retail space in US which is a positive development

“We are starting to see the reduction of new retail space in America, which is a positive development as e-com continues to capture sales every year, more or less equivalent to what used to be the standard growth in the apparel industry. It is better to have fewer stores concentrate on your product and get the department store and retail buyers to focus on product and product delivery, which will be a better customer experience through less promotions and better service.”