Perry Ellis FY 2Q17 Earnings Call Notes

Perry Ellis International’s (PERY) CEO Oscar Feldenkreis on Q2 2017 Results

George Feldenkreis

Things have changed

“On another issue, the fact that some of our great banners like Macy’s and Kohl’s have announced substantial decreases in brick-and-mortar stores validate the fact that things have changed. We’ve to understand that retail manager are finally adopted a new policy of reducing the total number of stores.”

Overstoring of America is a problem

“In my last conference call I mentioned that overstoring of America is a problem that is affecting retailer in a very negative way. At a time when income 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 less stores concentrate on new products, produce a better customer experience through less promotion and better service to customers. We feel that these are the key to the future.”‘

Very confident that the world is not coming to an end

“we feel very strongly that the world is not coming to an end and there is a strong appetite for American brands overseas, which we continue to see and you see all the e-com businesses that are developing overseas around American brands growing very fast. So we’re very confident that internationally as you know the United States has 5x as much store space as Europe. So there is still a lot of opportunity.”

No slowdown in the UK from Brexit

“On the U.K question, frankly on a field currency our sales did not go down. We’ve the loss because of the conversion. Our sales in pound have been the same or what we projected. So there have not been a slowdown. In fact our Penguin retail stores, we have six stores in the U.K. turned positive this year, we were losing money. The U.K has also very high rental charges and we were losing money in a couple of stores. We got off them finally. This year it turn positive. So in that sense we’re very encouraged by the trends in local.”

Tech is needed to be successful

“y. I think the price, quality, innovation and great design are given for success for the apparel company. But I feel very strongly that going forward management capabilities, technology is what to be successful. We are pushing full steam ahead for the future. ”

Anita Britt

Inventories in excellent shape

Turning to the balance sheet, inventories are extremely tight and in amazing shape. “