For the first half ended July 31, 2006, earnings were $0.34 per fully diluted share compared to earnings of $0.65 per fully diluted share for the comparable period last year.
Proforma earnings for the first half of fiscal 2007 were $0.53 per fully diluted share. Proforma results exclude the impact of $3.0 million in debt extinguishment costs ($0.19 per fully diluted share) incurred as a result of the March 2006 repayment of the Company's $57 million senior secured notes.
The Company believes that proforma results provide a more meaningful comparison of financial performance. A table showing the reconciliation of actual to proforma results is attached.
Additionally, first half fiscal 2007 proforma and reported first half of fiscal 2007 earnings per share include expenses of $0.04 per share related to the adoption of SFAS 123R, requiring the expensing of stock options. These costs are not reflected in prior year results.
George Feldenkreis, Chairman and Chief Executive Officer commented: "We continue to perform on plan despite the impact of retailer consolidation. We are pleased with the significant improvement of our gross profit margins, which is a result of great products performing exceptionally well at retail, as well as improved production planning and sourcing."
Perry Ellis International Inc is a leading designer, distributor andlicensor of a broad line of high quality men's and women's apparel, accessories, and fragrances.
The company's collection of dress and casual shirts, golf sportswear, sweaters, dress and casual pants and shorts, jeans wear, active wear and men's and women's swimwear is available through all major levels of retail distribution.
Perry Ellis International Inc
marketing@alchempro.com
