Perry Ellis 4Q16 Earnings Call Notes

Oscar Feldenkreis – President & CEO

George Feldenkreis

Reduced retail space is a positive

“Generally speaking, we believe that the new reduced retail space in America is a positive development in the long run, especially in light of the way which retail is moving these days and the demographic implication of generation Z, generation Y versus generation X. This alphabets of generations are really creating a no-paradigm which manufactures [indiscernible] have to learn to navigate if they want to succeed.”

C&D malls are going to close

” But in the final analysis, depending on what is the traffic in the center as some of the centers also are closing the big anchored tenant, it will act like everybody in that center. We have to be very careful now in omitting in retail, especially with some of the — the trend is now that A&B super centers are going to be open and the CMDs are not. If you happen to be in a center that’s not A&B, you have a very large percentage of probability that you will not be making money and if you’re in A&B, the more developers are trying to balance their loss of income by increasing their rents on the A&B. That’s why so many specialty store business are going out of business”

Customers are getting more and more used to buying digitally

“you see what Amazon is doing by not showing a sample of anything they sell, the consumer is now getting more and more used but on a digital way.”