Perry signs licensing agreement with Falic Fashion for fragrances
30 Jan '07
2 min read
Perry Ellis International Inc announced that it has entered into a worldwide licensing agreement with Falic Fashion Group LLC, a wholly owned subsidiary of Duty Free Americas Inc, to manufacture and distribute perfumery, fragrances, lotions, toiletries and cosmetics under the Perry Ellis brand.
As well, Perry Ellis International finalized an agreement to sell to Falic Fashion Group all inventory and other related assets of the fragrance business. Both agreements are effective immediately.
George Feldenkreis, Chairman and Chief Executive Officer of Perry Ellis International, commented: "Upon carefully evaluating all options we have decided to grant this license to the Falic Fashion Group. We are very excited about this new direction for our fragrance business given Falic Fashion Group's keen understanding of the high-end and luxury markets.
They are strongly committed to positioning our Perry Ellis fragrances in channels that complement our apparel distribution, which is essential to further enhancing the cross-category lifestyle concept of our Perry Ellis brand."
"These agreements will allow Perry Ellis International not only to recoup significantly all of the invested capital utilized for the purchase of assets from Parlux Fragrances Inc, but also to maximize our royalty income from this key product category.
We expect this transaction to be accretive to our earnings by approximately $0.09 per fully diluted share for Fiscal 2008, increasing our initial guidance from the range of $1.71-$1.75 to the range of $1.80-$1.84 per fully diluted share," Mr. Feldenkreis concluded.
marketing@alchempro.com
