PERY Jan 2016 Investor Presentation

8/20/2019 PERY Jan 2016 Investor Presentation

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ICR JANUARY 2016


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S FE H RBOR

ST TEMENT

We caution readers that the forward-looking statements (statements which are not historical facts) in this release are made pursuant to the safe harbor prLitigation Reform Act of 1995. Forward-looking statements are based on current expectations rather than historical facts and they are indicated by words o"believe," "budget," "contemplate," "continue," "could," "estimate," "expect," "guidance," "indicate," "intend," "may," "might," "plan," "possibly," "potentia"proforma," "project," "seek," "should“ or "target" or the negative thereof or other variations thereon and similar words or phrases or comparable terminostatements include, but are not limited to, statements regarding Perry Ellis’ strategic operating review, growth initiatives and internal operating improvemand enhance profitability, the implementation of Perry Ellis’ profitability improvement plan and Perry Ellis’ plans to exit underperforming, low growth branbased such forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumare reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, and other factors that may

performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-lookbeyond our control.

These factors include: general economic conditions, a significant decrease in business from or loss of any of our major customers or punanticipated trends and conditions in our industry, including the impact of recent or future retail and wholesale consolidation, recent and future economicthe financial and credit markets, the effectiveness of our planned advertising, marketing and promotional campaigns, our ability to contain costs, disruptiocapital needs and our ability to obtain financing, our ability to protect our trademarks, our ability to integrate acquired businesses, trademarks, trade nampredict consumer preferences and changes in fashion trends and consumer acceptance of both new designs and newly introduced products, the terminatiolicense agreements to which we are a party, changes in the costs of raw materials, labor and advertising, our ability to carry out growth strategies includindirect-to-consumer retail markets, the effectiveness of our plans, strategies, objectives, expectations and intentions which are subject to change at any timcyber risk and technology failures which could disrupt operations or result in a data breach, the level of consumer spending for apparel and other merchanexposure to foreign currency risk and interest rate risk, possible disruption in commercial activities due to terrorist activity and armed conflict, actions of adisruption of responding to those actions, and other factors set forth in Perry Ellis' filings with the Securities and Exchange Commission (SEC). Investors alooking statements involve risks and uncertainties, including those risks and uncertainties detailed in Perry Ellis' filings with the SEC. You are cautioned nthese forward-looking statements, which are valid only as of the date they were made. We undertake no obligation to update or revise any forward-lookinginformation or the occurrence of unanticipated events or otherwise, except as otherwise required by the federal securities laws.


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25,000+POINTS OF SALE

60,000,000+UNITS SHIPPED

ANNUALLY

GENERATE $3.3BIN GLOBAL RETAIL SALES

24 GLOBDISTRIBU

15 COUNTRIESSOURCING OPERATIONS

US

CaMe

Eu

Ch

Bang

Includes 3 ded

PERRY ELLIS INTERNATIONAL IS ONE OF THE LAR

BRANDED LIFESTYLE APPAREL COMPANIES IN TH

(NASDAQ: PERY)


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24%

$930M

12%

$385M

20%

$510M

16%

$375M

% DirectRevenue(fiscal 2015)

GlobalRetailSales

~$3.3B Global Retail Sales

PORTFOLIO OPTIMI ZATION


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LUXURY DEPT/MID-TIER SPECIALTY INTE

Multiple Demographic Segments, Price Points an

Distribution Channels

DIVERSE RETAIL RE LATIONSHIPS


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PRODUCTINNOVATION

VISUAL MERCHANDISINGVIA SHOP-IN-SHOPS

OMNMA

RETAIL BRAND ENHANCEMENT


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FY15 International revenuesgrew 15% to represent 12%of revenues

FY15 Licensing incomegrew 7% to represent 4%of revenues

27 new licenses8 brands acrossproduct categor

LICENSING 4%

WHOLESALE 86%

DTC 10%

DOMESTIC 88%

INTERNATIONAL 12%

EXPANDING INTERNATIONAL AND LICENSING DISTRIBUTIO


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Perry EllisOriginal PenguinCubaveraFarah

CallawayRafaella

TOTAL

4629

22

--

79

3062

42

--

98

1111

11

6

OWNED RETAILSTORES

LICENSEESTORES

E-COMMERCESITES

DIRECT-TO-CONSUMER PLATFORM


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ENHANCEDPROFITABILITY

ACCELERATEE-COMMERCE

CONTINUOUS COMPSTORE GROWTH

OPEN NEWSTORES

• Right-door strategies, with a focus on localized assortme

• Fulfill E-com orders from stores where appropriate

•

Increase turns through lower markdowns, inventory man

• Expand high-margin assortments

• Grow ownership of exclusive product

• Deploy new e-mail growth strategies and intensify focus

• Focus on improved conversion

• Climate-right assortment strategies

FY-15 DTC Revenues rose 13% to represent 10% of total reven

FY-16 ECOM Comps up double digits; Retail Store comps up si

DIRECT TO CONSUMER EXPANSION


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OVERVIEW

Core Brand Portfolio


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$930M Global Retail Sales

52%LICENSING

16%DTC

32%WHOLESALE

86%DOMESTIC

14%INTL.

AGE

18-45(sweet spot

32-40)

INCOM

$100K+

PERRY ELLIS BRAND OVERVIEW


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TRAVEL LUXE PRINT & PATTERN OFFERINGS ATHLELINEN

Our Easy Careperformancetechnologysets us apart

At the forefront of print andpattern work development

Perry Ebeautifof activ

Places us squarely ina fashion niche that’sgrowing across alllevels of distribution

PERRY ELLIS PRODUCT STRATEGIES & OPPORTUNITIES


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• Speed to market

•

Improved product design and inventory management

KEY NORTH AMERICANRETAIL PARTNERS

Strengthen profitability with retail partners and increase penetration within

Fiscal 2016 9M YTD

Update (Collection)+8%

REVENUES

+350 bpsGROSS MARGIN

+300 bDIRE

PERRY ELLIS WHOLESA LE STRATEGIES


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22 Domestic and 19 International Agreements

Launching Perry Ellis America in Europe(Spring 2016)

North America Licensing: 83% of brand’s royalty revenue• 82.5% of brand’s total royalty revenue

• Growth driven by footwear, luggage, tailoredclothing and a new dress-shirt agreement

• 3 new agreements in the last 10 months

International Licensing: 17% of brand’s royalty revenue• Strong Organic Growth in Latin America

Expect direct International expansion opportunities

following launch of Perry Ellis America in Europe

PERRY ELLIS INTERNATIONAL & LICENSING BUSINESSES


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ORIGINAL PENGUIN BRAND OVERVIEW


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44%LICENSING

20%DTC

36%WHOLESALE

60%DOMESTIC

40%INTL.

ORIGINAL PENGUIN BRAND OVERVIEW


AGE

18-45(sweet spot

25-35)

INCOM

$75K-125K


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ORIGINAL PENGUIN U S KEY RETAIL PARTNERS


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U.S. PARTNERS

10

24 & ECOM

20

32

53 & ECOM

116 & ECOM

25

50 & ECOM

2012

2015

EUROPEAN

PARTNERS

15

45

30

35

0

27

0

25

2012

2015

ORIGINAL PENGUIN – U.S. KEY RETAIL PARTNERS

ORIGINAL PENGUIN INTERNATIONAL & LICENSING BUSINE


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17 Domestic and

22 International AgreementsNorth America Licensing: 64% of brand’s royalty revenue

• Licensing growth driven by footwear, kids, eyewearand a new tailored-clothing license

• 5 new agreements in last 18 months

International Licensing: 36% of brand’s royalty revenue

Growth driven by business development in Europe andLatin America

Growth opportunities with direct expansion acrossWestern Europe, Eastern Europe, Middle East & Africa

ORIGINAL PENGUIN INTERNATIONAL & LICENSING BUSINE


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PEI GOLF: AUTHENTIC GLOBAL PORTFOLIO OF GOLF LIFESTY


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• Walmart• International

• Kohl’s • Department Stores• Sporting Goods•

Off Course• Western Hemisphere

• Department Stores• Green Grass•

International

•

•

•

•

•

•

•

GOOD BETTER

Pioneered evolution of performancecasual lifestyle apparel

Revenue growth +12%(8-Year CAGR through FY-15)

Projectdigit gro

PEI GOLF: AUTHENTIC, GLOBAL PORTFOLIO OF GOLF LIFESTY

PEI GOLF STRATEGIC INITI ATIVES


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Athleisure and Performance Training expansionsacross golf lifestyle portfolio

International expansion underway across Europe,Africa, Middle East & Asia

Licensing expansion for Ben Hogan brand

DTC opportunities via launch of callawayapparel.comand retail partners’ websites

Launch product extensions (Big & Tall, Lady GAL)

PEI GOLF STRATEGIC INITI ATIVES

TM

GOLFOn Course

LOf

PEI GOLF TOUR PLAYERS


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ROBERT STREBOfficial World Ranking: 392 total TOUR victories

MARC LEISHMANOfficial World Ranking: 2510 total TOUR victories

PATRICK REEDOfficial World Ranking: 105 total TOUR victories

DANNY WILLETTOfficial World Ranking: 195 total TOUR victories

PEI GOLF TOUR PLAYERS

NIKE SWIM BRAND OVERVIEW


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$180M North America Retail Sales

Key license and strategic partnership spanning

over 10 years

Renewed licensing agreement, including expanded

territories across Europe, Central and South America,

effective June 2016

Leverage PEI European infrastructure to drive growth

NIKE SWIM BRAND OVERVIEW


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FINANCIAL HIGHLIGHTS

STRONG 9M FI SCAL 2016 RESU LTS


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9M REVENUES

Revenues increased 2% to $685M, due to Company’score brand strategy

Adjusted gross margin expanded 140bps to 34.9%

Adjusted EBITDA grew 36% tEBITDA margin expanded 16

Earnings Per Share increase

FY15 FY16 FY15

$672M

$685M

$31M

$+2%+36%

4.6%

(margin) (m

9M ADJUSTED E

STRONG 9M FI SCAL 2016 RESU LTS

CAPITALIZATION SUMMAR Y


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CAPITALIZATIONCash & InvestmentsSenior Credit FacilitySenior Subordinated Notes Payable, NetReal Estate Mortgages

TOTAL NET DEBTInventoryAccounts Receivable

Total Current AssetsTotal Shareholders’ Equity

SUMMARY CREDIT STATISTICSTotal Net Debt to CapitalNet Debt / LTM EBITDA as AdjustedLTM EBITDA as Adjusted / PF Interest Expense

Oct 31, 2015$36.3$60.6$50.0$22.3

$97 $145.3$130.5

$323.4$317.1

23%1.9x4.7x

ACTUAL

Jan$63—$15$22

$1$18$13

$39$30

27%2.7x2.8x

AC




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TOTAL REVENUE

FULL YEARFY 2015A

9M YTDFY 2015A

9M YTDFY 2016A

ADJ. GROSS PROFIT**1

ADJ. EBITDA**

ADJ. EPS**

$890.0

$303.034.0%

$39.84.5%

$0.56

$672.3

$228.634.0%

$31.14.6%

$0.49

$685.2(+2%)

$242.435.4%

$42.46.2%

$1.46

$

3

$$

$

(1) Adjusted for costs associated with exited brands and other strategic initiatives* Guidance as of 11/19/2015** Non-GAAP reconciliations are contained in PERY press release issued on 11/19/15, which was filed as Exhibit 99.1 to a Form 8-k filed


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Documents

PERY Jan 2016 Investor Presentation