10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended July 30, 2016

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 0-21764

PERRY ELLIS INTERNATIONAL, INC.

(Exact Name of Registrant as Specified in its Charter)

Florida	59-1162998
(State or other jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
3000 N.W. 107 Avenue Miami, Florida	33172
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s Telephone Number, Including Area Code: (305) 592-2830

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

The number of shares outstanding of the registrant’s common stock is 15,496,000 (as of August 29, 2016).

PERRY ELLIS INTERNATIONAL, INC.

INDEX

	PAGE
PART I: FINANCIAL INFORMATION
Item 1:
Condensed Consolidated Balance Sheets (Unaudited) as of July  30, 2016 and January 30, 2016		1
Condensed Consolidated Statements of Operations (Unaudited) for the three and six months ended July 30, 2016 and August 1, 2015		2
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) for the three and six months ended July 30, 2016 and August 1, 2015		3
Condensed Consolidated Statements of Cash Flows (Unaudited) for the six months ended July 30, 2016 and August 1, 2015		4
Notes to Unaudited Condensed Consolidated Financial Statements		6
Item 2:
Management’s Discussion and Analysis of Financial Condition and Results of Operations		26
Item 3:
Quantitative and Qualitative Disclosures About Market Risk		35
Item 4:
Controls and Procedures		35
PART II: OTHER INFORMATION
Item 6:
Exhibits		36

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(amounts in thousands, except share data)

	July 30, 2016			January 30, 2016
ASSETS
Current Assets:
Cash and cash equivalents	$	27,882		$	31,902
Accounts receivable, net		120,639			132,066
Inventories		134,414			182,750
Investments, at fair value		13,633			9,782
Prepaid income taxes		—			1,818
Prepaid expenses and other current assets		8,347			8,461
Total current assets		304,915			366,779
Property and equipment, net		63,796			63,908
Other intangible assets, net		187,485			187,919
Deferred income tax		392			442
Other assets		2,757			2,927
TOTAL	$	559,345		$	621,975
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	55,740		$	103,684
Accrued expenses and other liabilities		22,879			26,497
Accrued interest payable		1,487			1,521
Income taxes payable		459			—
Unearned revenues		3,857			4,213
Deferred pension obligation		12,206			12,107
Total current liabilities		96,628			148,022
Senior subordinated notes payable, net		49,600			49,528
Senior credit facility		33,865			61,758
Real estate mortgages		20,873			21,318
Unearned revenues and other long-term liabilities		18,464			14,853
Deferred income taxes		36,007			35,015
Total long-term liabilities		158,809			182,472
Total liabilities		255,437			330,494
Commitment and contingencies
Equity:
Preferred stock $.01 par value; 5,000,000 shares authorized; no shares issued or outstanding		—			—
Common stock $.01 par value; 100,000,000 shares authorized; 15,609,579 shares issued and outstanding as of July 30, 2016 and 15,409,310 shares issued and outstanding as of January 30, 2016		156			154
Additional paid-in-capital		146,868			144,025
Retained earnings		172,495			161,810
Accumulated other comprehensive loss		(15,611	)		(14,508	)
Total equity		303,908			291,481
TOTAL	$	559,345		$	621,975

See Notes to Unaudited Condensed Consolidated Financial Statements

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PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(amounts in thousands, except per share data)

	Three Months Ended						Six Months Ended
	July 30, 2016			August 1, 2015			July 30, 2016		August 1, 2015
Revenues:
Net sales	$	193,341		$	204,638		$	444,216	$	462,895
Royalty income		8,312			8,661			18,731		16,818
Total revenues		201,653			213,299			462,947		479,713
Cost of sales		127,822			137,357			294,032		313,671
Gross profit		73,831			75,942			168,915		166,042
Operating expenses:
Selling, general and administrative expenses		72,654			68,254			142,588		137,862
Depreciation and amortization		3,716			3,446			7,183		6,768
Total operating expenses		76,370			71,700			149,771		144,630
Loss on sale of long-lived assets		—			—			—		(697	)
Operating (loss) income		(2,539	)		4,242			19,144		20,715
Costs of early extinguishment of debt		—			5,121			—		5,121
Interest expense		1,889			1,943			3,914		5,570
Net (loss) income before income taxes		(4,428	)		(2,822	)		15,230		10,024
Income tax (benefit) provision		(863	)		(1,541	)		4,545		1,894
Net (loss) income	$	(3,565	)	$	(1,281	)	$	10,685	$	8,130
Net (loss) income per share:
Basic	$	(0.24	)	$	(0.09	)	$	0.72	$	0.55
Diluted	$	(0.24	)	$	(0.09	)	$	0.71	$	0.53
Weighted average number of shares outstanding
Basic		14,953			15,048			14,882		14,849
Diluted		14,953			15,048			15,139		15,283

See Notes to Unaudited Condensed Consolidated Financial Statements

2

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(UNAUDITED)

(amounts in thousands)

	Three Months Ended						Six Months Ended
	July 30, 2016			August 1, 2015			July 30, 2016			August 1, 2015
Net (loss) income	$	(3,565	)	$	(1,281	)	$	10,685		$	8,130
Other Comprehensive income:
Foreign currency translation adjustments, net		(3,093	)		153			(1,430	)		1,091
Unrealized gain on pension liability, net of tax		155			135			310			270
Unrealized gain (loss) on investments		10			—			17			(7	)
Total other comprehensive (loss) income		(2,928	)		288			(1,103	)		1,354
Comprehensive (loss) income	$	(6,493	)	$	(993	)	$	9,582		$	9,484

See Notes to Unaudited Condensed Consolidated Financial Statements

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PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(amounts in thousands)

	Six Months Ended
	July 30, 2016			August 1, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	10,685		$	8,130
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		7,382			7,087
Provision for bad debts		478			279
Amortization of debt issue cost		205			266
Amortization of premiums and discounts		28			94
Amortization of unrealized (gain) loss on pension liability		310			270
Costs on early extinguishment of debt		—			1,158
Deferred income taxes		1,042			1,613
Share-based compensation		3,786			2,286
Loss on sale of long-lived assets		—			697
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable, net		10,087			13,199
Inventories		47,604			30,149
Prepaid income taxes		1,874			190
Prepaid expenses and other current assets		110			(759	)
Other assets		37			107
Accounts payable and accrued expenses		(52,572	)		(41,175	)
Accrued interest payable		(34	)		(2,534	)
Income taxes payable		344			—
Unearned revenues and other liabilities		3,469			(666	)
Deferred pension obligation		99			85
Net cash provided by operating activities		34,934			20,476
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(6,609	)		(7,345	)
Purchases of investments		(9,039	)		(2,641	)
Proceeds from investment maturities		5,205			11,860
Proceeds on sale of intangible assets		—			2,500
Net cash (used in) provided by investing activities		(10,443	)		4,374
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings from senior credit facility		179,380			255,065
Payments on senior credit facility		(207,273	)		(196,854	)
Payments on senior subordinated notes		—			(100,000	)
Payments on real estate mortgages		(423	)		(410	)
Payments on capital leases		(129	)		(77	)
Deferred financing fees		—			(569	)
Proceeds from exercise of stock options		5			1,339
Tax benefit from exercise of equity instruments		—			(201	)
Net cash used in financing activities		(28,440	)		(41,707	)
Effect of exchange rate changes on cash and cash equivalents		(71	)		575
NET DECREASE IN CASH AND CASH EQUIVALENTS		(4,020	)		(16,282	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		31,902			43,547
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	27,882		$	27,265

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PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Continued

(amounts in thousands)

	Six Months Ended
	July 30, 2016		August 1, 2015
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	3,715	$	7,746
Income taxes	$	700	$	366
NON-CASH FINANCING AND INVESTING ACTIVITIES:
Accrued purchases of property and equipment	$	407	$	—

See Notes to Unaudited Condensed Consolidated Financial Statements

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PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. GENERAL

The accompanying unaudited condensed consolidated financial statements of Perry Ellis International, Inc. and subsidiaries (“Perry Ellis” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the requirements of the Securities and Exchange Commission on Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and changes in cash flows required by GAAP for annual financial statements. The condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended January 30, 2016, filed with the Securities and Exchange Commission on April 14, 2016.

The information presented reflects all adjustments, which are in the opinion of management of a normal and recurring nature, necessary for a fair presentation of the interim periods. Results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the entire fiscal year.

2. RECENT ACCOUNTING PRONOUNCEMENTS

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” ASU No. 2014-09 clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards (“IFRS”) that removes inconsistencies and weaknesses in revenue requirements, provides a more robust framework for addressing revenue issues, improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, provides more useful information to users of financial statements through improved disclosure requirements and simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. ASU No. 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Companies can choose to apply the ASU using either the full retrospective approach or a modified retrospective approach. The Company is currently evaluating both methods of adoption and the impact, if any, that the adoption of this ASU will have on the Company’s results of operations or the Company’s financial position.

In March 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30)”, which is simplifying the Presentation of Debt Issuance Costs. The standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for interim periods beginning after December 15, 2015. The Company adopted the accounting standard in the first quarter of fiscal 2017. Prior to the adoption, debt issuance costs were classified as other assets. This presentation change was applied retrospectively to the condensed consolidated balance sheet and consequently, amounts related to debt issuance costs are presented as a direct deduction of the corresponding debt liability for all periods presented.

The effect on the condensed consolidating balance sheet as of January 30, 2016, as a result of this change in presentation, is a decrease of ($0.5) million in other assets, and a decrease of ($0.5) million in senior subordinated notes payable.

In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”, which requires inventory measured using any method other than last-in, first out (“LIFO”) or the retail inventory method to be subsequently measured at the lower of cost or net realizable value, rather than at the lower of cost or market. Under this ASU, subsequent measurement of inventory using the LIFO and retail inventory method is unchanged. ASU 2015-11 is effective prospectively for fiscal years, and for interim periods within those years, beginning after December 15, 2016. Early application is permitted. The adoption of ASU No. 2015-11 is not expected to have a material impact on the Company’s results of operations or the Company’s financial position.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” which requires an entity that is a lessee to recognize the assets and liabilities arising from leases on the balance sheet. This guidance also requires

6

disclosures about the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods, using a modified retrospective approach, and early adoption is permitted. The Company is evaluating the effect that the adoption will have on its consolidated financial statements and related disclosures.

In March 2016, the FASB issued ASU No. 2016-07, “Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting,” which eliminates the requirement to retroactively adjust an investment that subsequently qualifies for equity method accounting (as a result of an increase in level of ownership interest or degree of influence) as if the equity method of accounting had been applied during all prior periods that the investment was held. The new standard requires that the investor add the cost of acquiring additional ownership interest in the investee to its current basis and prospectively adopt the equity method of accounting. Any unrealized gains or losses in an available-for-sale investment that subsequently qualifies as an equity method investment should be recognized in earnings at the date the investment qualifies as an equity method investment. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. This new guidance is not expected to have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, “Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which is part of the FASB’s Simplification Initiative. The updated guidance simplifies the accounting for share-based payment transactions. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”, which amends certain aspects of the FASB’s new revenue standard, ASU 2014-09, “Revenue from Contracts with Customers”, specifically the standard’s guidance on identifying performance obligations and the implementation guidance on licensing. The amendments clarify when promised goods or services are separately identifiable (i.e., distinct within the context of a contract), an important step in determining whether goods and services should be accounted for as separate performance obligations. In addition, the amendments allow entities to disregard goods or services that are immaterial in the context of a contract and provide an accounting policy election for accounting for certain shipping and handling activities. The amendments also clarify how an entity should evaluate the nature of its promise in granting a license of intellectual property (IP), which will determine whether the entity recognizes revenue over time or at a point in time. The amendments revise the guidance to address how entities should apply the exception for sales- and usage-based royalties to licenses of IP, recognize revenue for licenses that are not separate performance obligations and evaluate different types of license restrictions (e.g., time-based, geography-based). The new guidance’s effective date and transition provisions are aligned with the requirements in the new revenue standard, which is not yet effective. The Company is currently evaluating the impact, if any, that the adoption of this ASU will have on the Company’s results of operations or the Company’s financial position.

In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients,” which amends certain aspects of the new revenue standard, ASU 2014-09, “Revenue from Contracts with Customers”. The amendments are intended to provide clarifying guidance in a few narrow areas such as collectability, contract modifications, completed contracts at transition, and non-cash considerations. The new guidance’s effective date and transition provisions are aligned with the requirements in the new revenue standard, which is not yet effective. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which provides guidance for the accounting for credit losses on instruments within its scope. The amendments guide on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. The amendments require a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments also require that credit losses on available-for-sale debt securities be presented as an allowance. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. The amendments in this

7

update are effective for fiscal years beginning after December 15, 2019, including interim periods within those annual periods. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

3. ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following as of:

	July 30, 2016			January 30, 2016
	(in thousands)
Trade accounts	$	133,691		$	144,708
Royalties		4,442			5,892
Other receivables		1,011			1,769
Total		139,144			152,369
Less: allowances		(18,505	)		(20,303	)
Total	$	120,639		$	132,066

4. INVENTORIES

Inventories are stated at the lower of cost (weighted moving average cost) or market. Cost principally consists of the purchase price, customs, duties, freight, and commissions to buying agents.

Inventories consisted of the following as of:

	July 30, 2016		January 30, 2016
	(in thousands)
Finished goods	$	134,414	$	182,414
Raw materials and in process		—		336
Total	$	134,414	$	182,750

5. INVESTMENTS

The Company’s investments include marketable securities and certificates of deposit at July 30, 2016 and included certificates of deposit at January 30, 2016. Marketable securities are classified as available-for-sale and consist of corporate bonds with maturity dates less than two years. Certificates of deposit are classified as available-for-sale with $10.4 million with maturity dates within one year or less. Investments are stated at fair value. The estimated fair value of the marketable securities is based on quoted prices in an active market (Level 1 fair value measures).

8

Investments consisted of the following as of July 30, 2016:

			Gross		Gross			Estimated
	Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Marketable securities	$	3,264	$	12	$	—		$	3,276
Certificates of deposit		10,361		—		(4	)		10,357
Total investments	$	13,625	$	12	$	(4	)	$	13,633

Investments consisted of the following as of January 30, 2016:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(in thousands)
Certificates of deposit	$	9,791	$	—	$	(9	)	$	9,782
Total investments	$	9,791	$	—	$	(9	)	$	9,782

6. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following as of:

	July 30, 2016			January 30, 2016
	(in thousands)
Furniture, fixtures and equipment	$	87,713		$	84,634
Buildings and building improvements		20,420			19,462
Vehicles		523			523
Leasehold improvements		48,078			46,882
Land		9,430			9,430
Total		166,164			160,931
Less: accumulated depreciation and amortization		(102,368	)		(97,023	)
Total	$	63,796		$	63,908

The above table of property and equipment includes assets held under capital leases as of:

	July 30,			January 30,
	2016			2016
	(in thousands)
Furniture, fixtures and equipment	$	810		$	810
Less: accumulated depreciation and amortization		(317	)		(182	)
Total	$	493		$	628

For the three months ended July 30, 2016 and August 1, 2015, depreciation and amortization expense relating to property and equipment amounted to $3.6 million and $3.3 million, respectively. For the six months ended July 30, 2016 and August 1, 2015, depreciation and amortization expense relating to property and equipment amounted to $6.9 million and $6.6 million, respectively. These amounts include amortization expense for leased property under capital leases.

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7. OTHER INTANGIBLE ASSETS

Trademarks

Trademarks included in other intangible assets, net, are considered indefinite-lived assets and totaled $184.1 million at July 30, 2016 and January 30, 2016.

On March 19, 2015, the Company entered into an agreement to sell the intellectual property of its C&C California brand to a third party. The sales price was $2.5 million, which was collected during the first quarter of fiscal 2016. In connection with this transaction, the Company recorded a loss of ($0.7) million in the licensing segment.

Other

Other intangible assets represent customer lists as of:

	July 30, 2016			January 30, 2016
	(in thousands)
Customer lists	$	8,450		$	8,450
Less: accumulated amortization		(5,111	)		(4,677	)
Total	$	3,339		$	3,773

For the three months ended July 30, 2016 and August 1, 2015, amortization expense relating to customer lists amounted to approximately $0.2 million for each of the periods. For the six months ended July 30, 2016 and August 1, 2015, amortization expense relating to customer lists amounted to $0.4 million for each of the periods. Other intangible assets are amortized over their estimated useful lives of 10 years. Assuming no impairment, the table sets forth the estimated amortization expense for future periods based on recorded amounts as of January 30, 2016:

	(in thousands)
2017	$	868
2018	$	835
2019	$	793
2020	$	734
2021	$	543

8. LETTER OF CREDIT FACILITIES

Borrowings and availability under letter of credit facilities consisted of the following as of:

	July 30, 2016			January 30, 2016
	(in thousands)
Total letter of credit facilities	$	30,264		$	30,286
Outstanding letters of credit		(11,470	)		(11,395	)
Total credit available	$	18,794		$	18,891

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9. ADVERTISING AND RELATED COSTS

The Company’s accounting policy relating to advertising and related costs is to expense these costs in the period incurred. Advertising and related costs were approximately $3.7 million and $3.2 million for the three months ended July 30, 2016 and August 1, 2015, respectively, and $8.0 million and $7.0 million for the six months ended July 30, 2016 and August 1, 2015, respectively, and are included in selling, general and administrative expenses.

10. NET (LOSS) INCOME PER SHARE

Basic net (loss) income per share is computed by dividing net income by the weighted average shares of outstanding common stock. The calculation of diluted net (loss) income per share is similar to basic earnings per share except that the denominator includes potentially dilutive common stock. The potentially dilutive common stock included in the Company’s computation of diluted net income per share includes the effects of stock options, stock appreciation rights (“SARS”), and unvested restricted shares as determined using the treasury stock method.

The following table sets forth the computation of basic and diluted (loss) income per share:

	Three Months Ended						Six Months Ended
	July 30, 2016			August 1, 2015			July 30, 2016		August 1, 2015
	(in thousands, except per share data)
Numerator:
Net (loss) income	$	(3,565	)	$	(1,281	)	$	10,685	$	8,130
Denominator:
Basic-weighted average shares		14,953			15,048			14,882		14,849
Dilutive effect: equity awards		—			—			257		434
Diluted-weighted average shares		14,953			15,048			15,139		15,283
Basic (loss) income per share	$	(0.24	)	$	(0.09	)	$	0.72	$	0.55
Diluted (loss) income per share	$	(0.24	)	$	(0.09	)	$	0.71	$	0.53
Antidilutive effect:(1)		1,103			1,220			604		517

⁽¹⁾ Represents weighted average of stock options to purchase shares of common stock, SARS and restricted stock that were not included in computing diluted income per share because their effects were antidilutive for the respective periods.

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11. EQUITY

The following table reflects the changes in equity:

	Changes in Equity
	(in thousands)
Equity at January 30, 2016	$	291,481
Comprehensive income		9,582
Share transactions under employee equity compensation plans		2,845
Equity at July 30, 2016	$	303,908
Equity at January 31, 2015	$	302,017
Comprehensive income		9,484
Share transactions under employee equity compensation plans		2,199
Equity at August 1, 2015	$	313,700

During the second quarter of fiscal 2016, the Company retired 770,753 shares of treasury stock recorded at a cost of approximately $15.7 million. Accordingly, during the second quarter of fiscal 2016, the Company reduced common stock and additional paid in capital by $7,000 and $15.7 million, respectively.

12. ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss by component, net of tax:

	Unrealized (Loss) Gain on Pension Liability			Foreign Currency Translation Adjustments, Net			Unrealized Gain (Loss) on Investments			Total
	(in thousands)
Balance, January 30, 2016	$	(7,368	)	$	(7,131	)	$	(9	)	$	(14,508	)
Other comprehensive (loss) income before reclassifications		—			(1,430	)		17			(1,413	)
Amounts reclassified from accumulated other comprehensive income		310			—			—			310
Balance, July 30, 2016	$	(7,058	)	$	(8,561	)	$	8		$	(15,611	)

	Unrealized (Loss) Gain on Pension Liability			Foreign Currency Translation Adjustments, Net			Unrealized (Loss) Gain on Investments			Total
	(in thousands)
Balance, January 31, 2015	$	(8,085	)	$	(4,774	)	$	7		$	(12,852	)
Other comprehensive income (loss) before reclassifications		—			1,091			(7	)		1,084
Amounts reclassified from accumulated other comprehensive income		270			—			—			270
Balance, August 1, 2015	$	(7,815	)	$	(3,683	)	$	—		$	(11,498	)

12

A summary of the impact on the condensed consolidated statements of operations line items is as follows:

	Three Months Ended
	July 30, 2016		August 1, 2015
	(in thousands)
Amortization of defined benefit pension items
Actuarial gains	$	155	$	135	Selling, general and administrative expenses
Tax provision		—		—	Income tax provision
Total, net of tax	$	155	$	135
	Six Months Ended
	July 30, 2016		August 1, 2015
	(in thousands)
Amortization of defined benefit pension items
Actuarial gains	$	310	$	270	Selling, general and administrative expenses
Tax provision		—		—	Income tax provision
Total, net of tax	$	310	$	270

13. INCOME TAXES

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The Company’s U.S. federal income tax returns for fiscal 2011 through fiscal 2016 are open tax years. The Company’s state tax filings are subject to varying statutes of limitations. The Company’s unrecognized state tax benefits are related to open tax years from fiscal 2005 through fiscal 2017, depending on each state’s particular statute of limitation. As of July 30, 2016, the fiscal 2011, 2012 and 2013 U.S. federal income tax returns are under examination as well as various state, local, and foreign income tax returns by various taxing authorities.

The Company has a $1.1 million liability recorded for unrecognized tax benefits as of January 30, 2016, which includes interest and penalties of $0.2 million. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. All of the unrecognized tax benefits, if recognized, would affect the Company’s effective tax rate. During the three months and six months ended July 30, 2016, the total amount of unrecognized tax benefits increased by approximately $37,000 and $87,000, respectively. The change to the total amount of the unrecognized tax benefit for the three and six months ended July 30, 2016 included an increase in interest and penalties of approximately $15,000 and $41,000, respectively.

The Company does not currently anticipate a resolution within the next twelve months for any of the remaining unrecognized tax benefits as of July 30, 2016. The statute of limitations related to the Company’s fiscal 2011, 2012 and 2013 U.S. federal tax years has been extended as part of the examination and is not expected to lapse within the next twelve months.

At the end of fiscal 2016, the Company maintained a $46.2 million valuation allowance against its remaining domestic deferred tax asset; including, but not limited to, the federal net operating loss carryforward and the U.S. state net operating loss carryforwards, utilization of which is not restricted by factors beyond the Company’s control. The establishment of valuation allowances and development of projected annual effective tax rates requires significant judgment and is impacted by various estimates. Both positive and negative evidence, as well as the objectivity and verifiability of that evidence, is considered in determining the appropriateness of recording a valuation allowance on deferred tax assets. An accumulation of recent pretax losses is considered strong negative evidence in that evaluation. Although the Company recognized pretax earnings through the six months ended July 30, 2016, by itself that does not represent sufficient positive evidence that its deferred tax asset will be realized to warrant removing the valuation allowances established against the U.S. deferred tax assets. Deferred tax assets without valuation allowances remain in certain foreign tax jurisdictions, where supported by the evidence.

14. STOCK OPTIONS, STOCK APPRECIATION RIGHTS AND RESTRICTED SHARES

During the first and second quarters of fiscal 2017, the Company granted an aggregate of 86,173 and 14,914 shares of restricted stock to certain key employees, which vest primarily over a three-year period, at an estimated value of $1.6 million and $0.3 million, respectively. This value is being recorded as compensation expense on a straight-line basis over the vesting period of the restricted stock.

Also, during the second quarter of fiscal 2017, the Company awarded to six directors an aggregate of 31,902 shares of restricted stock. The restricted stock awarded vests primarily over a one-year period, at an estimated value of $0.7 million. This value is being recorded as compensation expense on a straight-line basis over the vesting period of the restricted stock.

13

During the first quarter of fiscal 2017, the Company granted performance based restricted stock to certain key employees. Such stock generally vests 100% in April 2019, provided that each employee is still an employee of the Company on such date, and that the Company has met certain performance criteria. A total of 184,004 shares of performance-based restricted stock were issued at an estimated value of $3.5 million.

During the first and second quarters of fiscal 2017, a total of 159,862 and 11,343 shares of restricted stock vested, of which 46,000 and 3,105 shares were withheld to cover the employees’ statutory income tax requirements. The estimated value of the withheld shares was $880,000 and $60,000, respectively.

15. SEGMENT INFORMATION

The Company has four reportable segments: Men’s Sportswear and Swim, Women’s Sportswear, Direct-to-Consumer and Licensing. The Men’s Sportswear and Swim and Women’s Sportswear segments derive revenues from the design, import and distribution of apparel to department stores and other retail outlets, principally throughout the United States. The Direct-to-Consumer segment derives its revenues from the sale of the Company’s branded and licensed products through the Company’s retail stores and e-commerce platforms. The Licensing segment derives its revenues from royalties associated from the use of the Company’s brand names, principally Perry Ellis, Original Penguin, Laundry, Gotcha, Pro Player, Farah, Ben Hogan and John Henry.

The Company allocates certain corporate selling, general and administrative expenses based primarily on the revenues generated by the segments.

	Three Months Ended						Six Months Ended
	July 30, 2016			August 1, 2015			July 30, 2016			August 1, 2015
	(in thousands)
Revenues:
Men’s Sportswear and Swim	$	145,148		$	150,488		$	343,073		$	348,941
Women’s Sportswear		24,136			29,882			56,625			68,705
Direct-to-Consumer		24,057			24,268			44,518			45,249
Licensing		8,312			8,661			18,731			16,818
Total revenues	$	201,653		$	213,299		$	462,947		$	479,713
Depreciation and amortization:
Men’s Sportswear and Swim	$	2,006		$	1,863		$	3,903		$	3,738
Women’s Sportswear		764			566			1,378			1,066
Direct-to-Consumer		889			971			1,785			1,875
Licensing		57			46			117			89
Total depreciation and amortization	$	3,716		$	3,446		$	7,183		$	6,768
Operating (loss) income:
Men’s Sportswear and Swim	$	(2,425	)	$	822		$	14,517		$	12,152
Women’s Sportswear		(3,106	)		(1,051	)		(3,457	)		331
Direct-to-Consumer		(2,933	)		(2,147	)		(6,305	)		(4,013	)
Licensing (1)		5,925			6,618			14,389			12,245
Total operating (loss) income	$	(2,539	)	$	4,242		$	19,144		$	20,715
Costs on early extinguishment of debt		—			5,121			—			5,121
Total interest expense		1,889			1,943			3,914			5,570
Total net (loss) income before income taxes	$	(4,428	)	$	(2,822	)	$	15,230		$	10,024

⁽¹⁾  Operating income for the licensing segment for the six months ended July 30, 2016, includes a loss on sale of long-lived assets in the amount of $0.7 million. See footnote 7 to the consolidated financial statements for further information.

14

16. BENEFIT PLAN

The Company sponsors a qualified pension plan. The following table provides the components of net benefit cost for the plan during the three and six months of fiscal 2017 and 2016:

	Three Months Ended						Six Months Ended
	July 30, 2016			August 1, 2015			July 30, 2016			August 1, 2015
	(in thousands)
Service cost	$	63		$	63		$	126		$	126
Interest cost		124			337			248			674
Expected return on plan assets		(87	)		(658	)		(174	)		(1,316	)
Amortization of net gain		155			135			310			270
Net periodic benefit cost	$	255		$	(123	)	$	510		$	(246	)

17. SENIOR SUBORDINATED NOTES PAYABLE

In March 2011, the Company issued $150 million 7 ⁷⁄₈ % senior subordinated notes, due April 1, 2019. The proceeds of this offering were used to retire the $150 million 8 ⁷⁄₈ % senior subordinated notes due September 15, 2013 and to repay a portion of the outstanding balance on the senior credit facility. The proceeds to the Company were $146.5 million yielding an effective interest rate of 8.0%.

On April 6, 2015, the Company elected to call for the partial redemption of $100 million of its $150 million 7 ⁷⁄₈% senior subordinated notes due 2019 and a notice of redemption was sent to all registered holders of the senior subordinated notes. The redemption terms provided for the payment of a redemption premium of 103.938% of the principal amount redeemed. On May 6, 2015, the Company completed the redemption of the $100 million of its senior subordinated notes. The Company incurred debt extinguishment costs of approximately $5.1 million in connection with the redemption, including the redemption premium as well as the write-off of note issuance costs. At July 30, 2016, the balance of the 7 ⁷⁄₈% senior subordinated notes totaled $49.6 million, net of debt issuance cost in the amount of $0.4 million. At January 30, 2016, the balance of the 7 ⁷⁄₈% senior subordinated notes totaled $49.5 million, net of debt issuance cost in the amount of $0.5 million.

Certain Covenants. The indenture governing the senior subordinated notes contains certain covenants which restrict the Company’s ability and the ability of its subsidiaries to, among other things, incur additional indebtedness in certain circumstances, pay dividends or make other distributions on, redeem or repurchase capital stock, make investments or other restricted payments, create liens on assets to secure debt, engage in transactions with affiliates, and effect a consolidation or merger. The Company is not aware of any non-compliance with any of its covenants in this indenture. The Company could be materially harmed if it violates any covenants because the indenture’s trustee could declare the outstanding notes, together with accrued interest, to be immediately due and payable, which the Company may not be able to satisfy. In addition, a violation could also constitute a cross-default under the senior credit facility, the letter of credit facilities and the real estate mortgages resulting in all of the Company’s debt obligations becoming immediately due and payable, which the Company may not be able to satisfy.

18. SENIOR CREDIT FACILITY

On April 22, 2015, the Company amended and restated its existing senior credit facility (the “Credit Facility”), with Wells Fargo Bank, National Association, as agent for the lenders, and Bank of America, N.A., as syndication agent. The Credit Facility provides a revolving credit facility of up to an aggregate amount of $200 million. The Credit Facility has been extended through April 30, 2020. In connection with this amendment and restatement, the Company paid fees in the amount of $0.6 million. These fees will be amortized over the term of the credit facility as interest expense. At July 30, 2016, the Company had outstanding borrowings of $33.9 million under the Credit Facility. At January 30, 2016, the Company had outstanding borrowings of $61.8 million, under the Credit Facility.

15

Certain Covenants. The Credit Facility contains certain financial and other covenants, which, among other things, require the Company to maintain a minimum fixed charge coverage ratio if availability falls below certain thresholds. The Company is not aware of any non-compliance with any of its covenants in this Credit Facility. These covenants may restrict the Company’s ability and the ability of its subsidiaries to, among other things, incur additional indebtedness and liens in certain circumstances, redeem or repurchase capital stock, make certain investments or sell assets. The Company may pay cash dividends subject to certain restrictions set forth in the covenants including, but not limited to, meeting a minimum excess availability threshold and no occurrence of a default. The Company could be materially harmed if it violates any covenants, as the lenders under the Credit Facility could declare all amounts outstanding, together with accrued interest, to be immediately due and payable. If the Company is unable to repay those amounts, the lenders could proceed against its assets and the assets of its subsidiaries that are borrowers or guarantors. In addition, a covenant violation that is not cured or waived by the lenders could also constitute a cross-default under certain of the Company’s other outstanding indebtedness, such as the indenture relating to its 7 ⁷⁄₈% senior subordinated notes due April 1, 2019, its letter of credit facilities, or its real estate mortgage loans. A cross-default could result in all of the Company’s debt obligations becoming immediately due and payable, which it may not be able to satisfy. Additionally, the Credit Facility includes a subjective acceleration clause if a “material adverse change” in the Company’s business occurs. The Company believes that the likelihood of the lender exercising this right is remote.

Borrowing Base. Borrowings under the Credit Facility are limited to a borrowing base calculation, which generally restricts the outstanding balance to the sum of (a) 87.5% of eligible receivables plus (b) 87.5% of eligible foreign accounts up to $1.5 million plus (c) the lesser of (i) the inventory loan limit, which equals 80% of the maximum credit under the Credit Facility at the time, (ii) a maximum of 70.0% of eligible finished goods inventory with an inventory limit not to exceed $125 million, or 90.0% of the net recovery percentage (as defined in the Credit Facility) of eligible inventory.

Interest. Interest on the outstanding principal balance drawn under the Credit Facility accrues at the prime rate and at the rate quoted by the agent for Eurodollar loans. The margin adjusts quarterly, in a range of 0.50% to 1.00% for prime rate loans and 1.50% to 2.00% for Eurodollar loans, based on the previous quarterly average of excess availability plus excess cash on the last day of the previous quarter.

Security. As security for the indebtedness under the Credit Facility, the Company granted to the lenders a first priority security interest (subject to liens permitted under the Credit Facility to be senior thereto) in substantially all of its existing and future assets, including, without limitation, accounts receivable, inventory, deposit accounts, general intangibles, equipment and capital stock or membership interests, as the case may be, of certain subsidiaries, and real estate, but excluding its non-U.S. subsidiaries and all of its trademark portfolio.

19. FAIR VALUE MEASUREMENTS

Accounts receivable, accounts payable, accrued interest payable and accrued expenses. The carrying amounts reported in the consolidated balance sheets approximate fair value due to the short-term nature of these instruments.

Investments. (classified within Level 1 of the valuation hierarchy)—The carrying amounts of the available-for-sale investments are measured at fair value on a recurring basis in the consolidated balance sheets.

Real estate mortgages. (classified within Level 2 of the valuation hierarchy)—The carrying amounts of the real estate mortgages were approximately $21.7 million and $22.0 million at July 30, 2016 and January 30, 2016, respectively. The carrying values of the real estate mortgages at July 30, 2016 and January 30, 2016, approximate their fair values since the interest rates approximate market.

Senior credit facility. The carrying amount of the senior credit facility approximates fair value due to the frequent resets of its floating interest rate.

Senior subordinated notes payable. (classified within Level 1 of the valuation hierarchy)—The carrying amounts of the 7 ⁷⁄₈% senior subordinated notes payable were approximately $49.6 million and $49.5 million at July 30, 2016 and January 30, 2016. The fair value of the 7 ⁷⁄₈% senior subordinated notes payable was approximately $49.5 million and $49.0 million as of July 30, 2016 and January 30, 2016, respectively, based on quoted market prices.

16

These estimated fair value amounts have been determined using available market information and appropriate valuation methods.

20. COMMITMENTS AND CONTINGENCIES

On April 20, 2016, the Company entered into an employment agreement with George Feldenkreis, the Company’s Executive Chairman. The term of the employment agreement shall continue until Mr. Feldenkreis’ death or termination of the employment agreement by the Company or Mr. Feldenkreis. He will be paid a base salary of not less than $750,000 per year during the term of employment and, among other things, a lump sum payment of $1.0 million upon the termination of his employment in most circumstances. Additionally, he is entitled to participate in the Company’s incentive compensation plans. In connection with the terms of his new employment agreement, the Company accelerated the expense recognition related to his outstanding cash incentive and stock based compensation awards. The impact of the acceleration was a $4.2 million charge during the second quarter of fiscal 2017 to selling, general and administrative expenses.

On April 20, 2016, the Company entered into an employment agreement with Oscar Feldenkreis, the Company’s Vice Chairman of the Board of Directors, Chief Executive Officer and President. The term of the employment agreement ends on February 2, 2019. Pursuant to the employment agreement, he will be paid a base salary of not less than $1,350,000 per year during the term of his employment with the Company. Additionally, he is entitled to participate in the Company’s incentive compensation plans.

21. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The Company and several of its subsidiaries (the “Guarantors”) have fully and unconditionally guaranteed the senior subordinated notes payable on a joint and several basis. These guarantees are subject to release in limited circumstances (only upon the occurrence of certain customary conditions). The following are condensed consolidating financial statements, which present, in separate columns: Perry Ellis International, Inc., (Parent Only), the Guarantors on a combined, or where appropriate, consolidated basis, and the Non-Guarantors on a combined, or where appropriate, consolidated basis. Additional columns present eliminating adjustments and consolidated totals as of July 30, 2016 and January 30, 2016 and for the three and six months ended July 30, 2016 and August 1, 2015. The combined Guarantors are 100% owned subsidiaries of Perry Ellis International, Inc., and have fully and unconditionally guaranteed the senior subordinated notes payable on a joint and several basis.

17

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

AS OF JULY 30, 2016

(amounts in thousands)

	Parent Only		Guarantors		Non- Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	3,949	$	23,933	$	—		$	27,882
Accounts receivable, net		—		94,942		25,697		—			120,639
Intercompany receivable, net		80,417		—		—		(80,417	)		—
Inventories		—		113,649		20,765		—			134,414
Investment, at fair value		—		—		13,633		—			13,633
Prepaid expenses and other current assets		—		7,525		822		—			8,347
Total current assets		80,417		220,065		84,850		(80,417	)		304,915
Property and equipment, net		—		61,312		2,484		—			63,796
Other intangible assets, net		—		155,153		32,332		—			187,485
Deferred income taxes		—		—		392		—			392
Investment in subsidiaries		275,401		—		—		(275,401	)		—
Other assets		—		1,962		795		—			2,757
TOTAL	$	355,818	$	438,492	$	120,853	$	(355,818	)	$	559,345
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	—	$	46,167	$	9,573	$	—		$	55,740
Accrued expenses and other liabilities		—		17,972		4,907		—			22,879
Accrued interest payable		1,487		—		—		—			1,487
Income taxes payable		823		624		708		(1,696	)		459
Unearned revenues		—		3,068		789		—			3,857
Deferred pension obligation		—		12,136		70		—			12,206
Intercompany payable, net		—		72,291		17,298		(89,589	)		—
Total current liabilities		2,310		152,258		33,345		(91,285	)		96,628
Senior subordinated notes payable, net		49,600		—		—		—			49,600
Senior credit facility		—		33,865		—		—			33,865
Real estate mortgages		—		20,873		—		—			20,873
Unearned revenues and other long-term liabilities		—		18,247		217		—			18,464
Deferred income taxes		—		34,311		—		1,696			36,007
Total long-term liabilities		49,600		107,296		217		1,696			158,809
Total liabilities		51,910		259,554		33,562		(89,589	)		255,437
Total equity		303,908		178,938		87,291		(266,229	)		303,908
TOTAL	$	355,818	$	438,492	$	120,853	$	(355,818	)	$	559,345

18

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF JANUARY 30, 2016

(amounts in thousands)

	Parent Only		Guarantors		Non- Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	775	$	31,127	$	—		$	31,902
Accounts receivable, net		—		106,018		26,048		—			132,066
Intercompany receivable, net		74,091		—		—		(74,091	)		—
Inventories		—		155,703		27,047		—			182,750
Investment, at fair value		—		—		9,782		—			9,782
Prepaid income taxes		1,017		—		—		801			1,818
Prepaid expenses and other current assets		—		7,426		1,035		—			8,461
Total current assets		75,108		269,922		95,039		(73,290	)		366,779
Property and equipment, net		—		61,260		2,648		—			63,908
Other intangible assets, net		—		155,587		32,332		—			187,919
Investment in subsidiaries		267,422		—		—		(267,422	)		—
Deferred income taxes		—		—		442		—			442
Other assets		—		2,150		777		—			2,927
TOTAL	$	342,530	$	488,919	$	131,238	$	(340,712	)	$	621,975
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	—	$	89,961	$	13,723	$	—		$	103,684
Accrued expenses and other liabilities		—		21,524		4,973		—			26,497
Accrued interest payable		1,521		—		—		—			1,521
Income taxes payable		—		623		272		(895	)		—
Unearned revenues		—		2,952		1,261		—			4,213
Deferred pension obligation		—		12,025		82		—			12,107
Intercompany payable, net		—		60,384		21,449		(81,833	)		—
Total current liabilities		1,521		187,469		41,760		(82,728	)		148,022
Senior subordinated notes payable, net		49,528		—		—		—			49,528
Senior credit facility		—		61,758		—		—			61,758
Real estate mortgages		—		21,318		—		—			21,318
Unearned revenues and other long-term liabilities		—		14,608		245		—			14,853
Deferred income taxes		—		33,319		—		1,696			35,015
Total long-term liabilities		49,528		131,003		245		1,696			182,472
Total liabilities		51,049		318,472		42,005		(81,032	)		330,494
Total equity		291,481		170,447		89,233		(259,680	)		291,481
TOTAL	$	342,530	$	488,919	$	131,238	$	(340,712	)	$	621,975

19

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS ) INCOME (UNAUDITED)

FOR THE THREE MONTHS ENDED JULY 30, 2016

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations		Consolidated
Revenues:
Net sales	$	—		$	169,237		$	24,104		$	—	$	193,341
Royalty income		—			5,061			3,251			—		8,312
Total revenues		—			174,298			27,355			—		201,653
Cost of sales		—			111,729			16,093			—		127,822
Gross profit		—			62,569			11,262			—		73,831
Operating expenses:
Selling, general and administrative expenses		—			62,361			10,293			—		72,654
Depreciation and amortization		—			3,276			440			—		3,716
Total operating expenses		—			65,637			10,733			—		76,370
Operating (loss) income		—			(3,068	)		529			—		(2,539	)
Interest expense (income)		—			1,901			(12	)		—		1,889
Net (loss) income before income taxes		—			(4,969	)		541			—		(4,428	)
Income tax (benefit) provision		—			(1,441	)		578			—		(863	)
Equity in earnings of subsidiaries, net		(3,565	)		—			—			3,565		—
Net loss		(3,565	)		(3,528	)		(37	)		3,565		(3,565	)
Other comprehensive (loss) income		(2,928	)		155			(3,083	)		2,928		(2,928	)
Comprehensive loss	$	(6,493	)	$	(3,373	)	$	(3,120	)	$	6,493	$	(6,493	)

20

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS ) INCOME (UNAUDITED)

FOR THE THREE MONTHS ENDED AUGUST 1, 2015

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Net sales	$	—		$	179,921		$	24,717		$	—		$	204,638
Royalty income		—			5,286			3,375			—			8,661
Total revenues		—			185,207			28,092			—			213,299
Cost of sales		—			121,408			15,949			—			137,357
Gross profit		—			63,799			12,143			—			75,942
Operating expenses:
Selling, general and administrative expenses		—			57,275			10,979			—			68,254
Depreciation and amortization		—			3,138			308			—			3,446
Total operating expenses		—			60,413			11,287			—			71,700
Operating income		—			3,386			856			—			4,242
Costs on early extinguishment of debt		—			5,121			—			—			5,121
Interest expense		—			1,939			4			—			1,943
Net (loss) income before income taxes		—			(3,674	)		852			—			(2,822	)
Income tax (benefit) provision		—			(2,517	)		976			—			(1,541	)
Equity in earnings of subsidiaries, net		(1,281	)		—			—			1,281			—
Net loss		(1,281	)		(1,157	)		(124	)		1,281			(1,281	)
Other comprehensive income		288			135			153			(288	)		288
Comprehensive (loss) income	$	(993	)	$	(1,022	)	$	29		$	993		$	(993	)

21

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE SIX MONTHS ENDED JULY 30, 2016

(amounts in thousands)

	Parent Only			Guarantors		Non- Guarantors			Eliminations			Consolidated
Revenues:
Net sales	$	—		$	394,142	$	50,074		$	—		$	444,216
Royalty income		—			12,275		6,456			—			18,731
Total revenues		—			406,417		56,530			—			462,947
Cost of sales		—			260,705		33,327			—			294,032
Gross profit		—			145,712		23,203			—			168,915
Operating expenses:
Selling, general and administrative expenses		—			123,794		18,794			—			142,588
Depreciation and amortization		—			6,467		716			—			7,183
Total operating expenses		—			130,261		19,510			—			149,771
Operating income		—			15,451		3,693			—			19,144
Interest expense		—			3,935		(21	)		—			3,914
Net income before income taxes		—			11,516		3,714			—			15,230
Income tax provision		—			3,025		1,520			—			4,545
Equity in earnings of subsidiaries, net		10,685			—		—			(10,685	)		—
Net income		10,685			8,491		2,194			(10,685	)		10,685
Other comprehensive (loss) income		(1,103	)		310		(1,413	)		1,103			(1,103	)
Comprehensive income	$	9,582		$	8,801	$	781		$	(9,582	)	$	9,582

22

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE SIX MONTHS ENDED AUGUST 1, 2015

(amounts in thousands)

	Parent Only		Guarantors			Non- Guarantors		Eliminations			Consolidated
Revenues:
Net sales	$	—	$	412,200		$	50,695	$	—		$	462,895
Royalty income		—		10,198			6,620		—			16,818
Total revenues		—		422,398			57,315		—			479,713
Cost of sales		—		281,659			32,012		—			313,671
Gross profit		—		140,739			25,303		—			166,042
Operating expenses:
Selling, general and administrative expenses		—		117,120			20,742		—			137,862
Depreciation and amortization		—		6,162			606		—			6,768
Total operating expenses		—		123,282			21,348		—			144,630
Loss on sale of long-lived assets		—		(697	)		—		—			(697	)
Operating income		—		16,760			3,955		—			20,715
Costs on early extinguishment of debt		—		5,121			—		—			5,121
Interest expense		—		5,506			64		—			5,570
Net income before income taxes		—		6,133			3,891		—			10,024
Income tax provision		—		564			1,330		—			1,894
Equity in earnings of subsidiaries, net		8,130		—			—		(8,130	)		—
Net income		8,130		5,569			2,561		(8,130	)		8,130
Other comprehensive income		1,354		270			1,084		(1,354	)		1,354
Comprehensive income	$	9,484	$	5,839		$	3,645	$	(9,484	)	$	9,484

23

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED JULY 30, 2016

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations			Consolidated
NET CASH PROVIDED BY OPERATING ACTIVITIES:	$	4,543		$	28,295		$	4,802		$	(2,706	)	$	34,934
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		—			(5,854	)		(755	)		—			(6,609	)
Purchase of investments		—			—			(9,039	)		—			(9,039	)
Proceeds from investments maturities		—			—			5,205			—			5,205
Intercompany transactions		(4,477	)		—			—			4,477			—
Net cash used in investing activities		(4,477	)		(5,854	)		(4,589	)		4,477			(10,443	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings from senior credit facility		—			179,380			—			—			179,380
Payments on senior credit facility		—			(207,273	)		—			—			(207,273	)
Payments on real estate mortgages		—			(423	)		—			—			(423	)
Payments on capital leases		—			(129	)		—			—			(129	)
Dividends paid to stockholder		—			—			(2,706	)		2,706			—
Proceeds from exercise of stock options		5			—			—			—			5
Intercompany transactions		—			9,178			(4,630	)		(4,548	)		—
Net cash provided by (used in) financing activities		5			(19,267	)		(7,336	)		(1,842	)		(28,440	)
Effect of exchange rate changes on cash and cash equivalents		(71	)		—			(71	)		71			(71	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		—			3,174			(7,194	)		—			(4,020	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		—			775			31,127			—			31,902
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	—		$	3,949		$	23,933		$	—		$	27,882

24

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED AUGUST 1, 2015

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations			Consolidated
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES:	$	(1,789	)	$	19,293		$	2,972		$	—		$	20,476
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		—			(6,734	)		(611	)		—			(7,345	)
Purchase of investments		—			—			(2,641	)		—			(2,641	)
Proceeds from investment maturities		—			—			11,860			—			11,860
Proceeds on sale of intangible assets		—			2,500			—			—			2,500
Intercompany transactions		100,076			—			—			(100,076	)		—
Net cash provided by (used in) investing activities		100,076			(4,234	)		8,608			(100,076	)		4,374
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on senior subordinated notes		(100,000	)		—			—			—			(100,000	)
Borrowings from senior credit facility		—			255,065			—			—			255,065
Payments on senior credit facility		—			(196,854	)		—			—			(196,854	)
Payments on real estate mortgages		—			(410	)		—			—			(410	)
Payments on capital leases		—			(77	)		—			—			(77	)
Deferred financing fees		—			(569	)		—			—			(569	)
Proceeds from exercise of stock options		1,339			—			—			—			1,339
Tax benefit from exercise of equity instruments		(201	)		—			—			—			(201	)
Intercompany transactions		—			(97,968	)		(2,683	)		100,651			—
Net cash used in financing activities		(98,862	)		(40,813	)		(2,683	)		100,651			(41,707	)
Effect of exchange rate changes on cash and cash equivalents		575			—			575			(575	)		575
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		—			(25,754	)		9,472			—			(16,282	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		—			30,055			13,492			—			43,547
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	—		$	4,301		$	22,964		$	—		$	27,265

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Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations

Unless the context otherwise requires, all references to “Perry Ellis,” the “Company,” “we,” “us” or “our” include Perry Ellis International, Inc. and its subsidiaries. This management’s discussion and analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended January 30, 2016, filed with the Securities and Exchange Commission on April 14, 2016.

Forward–Looking Statements

We caution readers that this report includes “forward-looking statements” as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations rather than historical facts and they are indicated by words or phrases such as “anticipate,” “believe,” “budget,” “contemplate,” “continue,” “could,” “envision,” “estimate,” “expect,” “guidance,” “indicate,” “intend,” “may,” “might,” “plan,” “possibly,” “potential,” “predict,” “probably,” “pro-forma,” “project,” “seek,” “should,” “target,” or “will” or the negative thereof or other variations thereon and similar words or phrases or comparable terminology. Such forward-looking statements include, but are not limited to, statements regarding Perry Ellis’ strategic operating review, growth initiatives and internal operating improvements intended to drive revenues and enhance profitability, the implementation of Perry Ellis’ profitability improvement plan and Perry Ellis’ plans to exit underperforming, low growth brands and businesses. We have based such forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Some of the factors that could affect our financial performance, cause actual results to differ from our estimates, or underlie such forward-looking statements, are as set forth below and in various places in this report. These factors include, but are not limited to:

• general economic conditions,

• a significant decrease in business from or loss of any of our major customers or programs,

• anticipated and unanticipated trends and conditions in our industry, including the impact of recent or future retail and wholesale consolidation,

• recent and future economic conditions, including turmoil in the financial and credit markets,

• the effectiveness of our planned advertising, marketing and promotional campaigns,

• our ability to contain costs,

• disruptions in the supply chain, including, but not limited to those caused by port disruptions,

• our future capital needs and our ability to obtain financing,

• our ability to protect our trademarks,

• our ability to integrate acquired businesses, trademarks, tradenames, and licenses,

• our ability to predict consumer preferences and changes in fashion trends and consumer acceptance of both new designs and newly introduced products,

• the termination or non-renewal of any material license agreements to which we are a party,

26

• changes in the costs of raw materials, labor and advertising,

• our ability to carry out growth strategies including expansion in international and direct-to-consumer retail markets,

• our plans, strategies, objectives, expectations and intentions, which are subject to change at any time at our discretion,

• potential cyber risk and technology failures that could disrupt operations or result in a data breach,

• the level of consumer spending for apparel and other merchandise,

• our ability to compete,

• exposure to foreign currency risk and interest rate risk,

• the impact to our business resulting from the United Kingdom’s referendum vote to exit the European Union and the uncertainty surrounding the terms and conditions of such a withdrawal, as well as the related impact to global stock markets and currency exchange rates;

• possible disruption in commercial activities due to terrorist activity and armed conflict,

• other factors set forth in this report and in our other Securities and Exchange Commission (“SEC”) filings.

You are cautioned that all forward-looking statements involve risks and uncertainties detailed in our filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which are valid only as of the date they were made. We undertake no obligation to update or revise any forward-looking statements to reflect new information or the occurrence of unanticipated events or otherwise.

Critical Accounting Policies

Included in the footnotes to the consolidated financial statements in our Annual Report on Form 10-K for the year ended January 30, 2016 is a summary of all significant accounting policies used in the preparation of our consolidated financial statements. We follow the accounting methods and practices as required by accounting principles generally accepted in the United States of America (“GAAP”). In particular, our critical accounting policies and areas in which we use judgment are in the areas of revenue recognition, the estimated collectability of accounts receivable, the recoverability of obsolete or overstocked inventory, the impairment of long-lived assets that are our trademarks, the recoverability of deferred tax assets and the measurement of retirement related benefits. We believe that there have been no significant changes to our critical accounting policies during the three and six months ended July 30, 2016 as compared to those we disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended January 30, 2016.

27

Results of Operations

The following table sets forth, for the periods indicated, selected financial data expressed by segments and includes a reconciliation of EBITDA to operating income by segment, the most directly comparable GAAP financial measure:

	Three Months Ended						Six Months Ended
	July 30, 2016			August 1, 2015			July 30, 2016			August 1, 2015
	(in thousands)
Revenues by segment:
Men’s Sportswear and Swim	$	145,148		$	150,488		$	343,073		$	348,941
Women’s Sportswear		24,136			29,882			56,625			68,705
Direct-to-Consumer		24,057			24,268			44,518			45,249
Licensing		8,312			8,661			18,731			16,818
Total revenues	$	201,653		$	213,299		$	462,947		$	479,713
	Three Months Ended						Six Months Ended
	July 30, 2016			August 1, 2015			July 30, 2016			August 2, 2014
	(in thousands)
Reconciliation of operating income to EBITDA
Operating (loss) income by segment:
Men’s Sportswear and Swim	$	(2,425	)	$	822		$	14,517		$	12,152
Women’s Sportswear		(3,106	)		(1,051	)		(3,457	)		331
Direct-to-Consumer		(2,933	)		(2,147	)		(6,305	)		(4,013	)
Licensing		5,925			6,618			14,389			12,245
Total operating (loss) income	$	(2,539	)	$	4,242		$	19,144		$	20,715
Add:
Depreciation and amortization
Men’s Sportswear and Swim	$	2,006		$	1,863		$	3,903		$	3,738
Women’s Sportswear		764			566			1,378			1,066
Direct-to-Consumer		889			971			1,785			1,875
Licensing		57			46			117			89
Total depreciation and amortization	$	3,716		$	3,446		$	7,183		$	6,768
EBITDA by segment:
Men’s Sportswear and Swim	$	(419	)	$	2,685		$	18,420		$	15,890
Women’s Sportswear		(2,342	)		(485	)		(2,079	)		1,397
Direct-to-Consumer		(2,044	)		(1,176	)		(4,520	)		(2,138	)
Licensing		5,982			6,664			14,506			12,334
Total EBITDA	$	1,177		$	7,688		$	26,327		$	27,483
EBITDA margin by segment
Men’s Sportswear and Swim		(0.3	%)		1.8	%		5.4	%		4.6	%
Women’s Sportswear		(9.7	%)		(1.6	%)		(3.7	%)		2.0	%
Direct-to-Consumer		(8.5	%)		(4.8	%)		(10.2	%)		(4.7	%)
Licensing		72.0	%		76.9	%		77.4	%		73.3	%
Total EBITDA margin		0.6	%		3.6	%		5.7	%		5.7	%

EBITDA consists of earnings before interest, depreciation and amortization, costs on early extinguishment of debt and income taxes. EBITDA is not a measurement of financial performance under accounting principles generally accepted in the United States of America, and does not represent cash flow from operations. The most directly comparable GAAP financial measure, presented above, is operating income. EBITDA and EBITDA margin are presented solely as a supplemental disclosure because management believes that they are a common measure of operating performance in the apparel industry.

The following is a discussion of the results of operations for the three and six month periods ended July 30, 2016 of the fiscal year ending January 28, 2017 (“fiscal 2017”) compared with the three and six month periods ended August 1, 2015 of the fiscal year ended January 30, 2016 (“fiscal 2016”).

28

Results of Operations—three and six months ended July 30, 2016 compared to the three and six months ended August 1, 2015.

Net sales. Men’s Sportswear and Swim net sales for the three months ended July 30, 2016 were $145.1 million, a decrease of $5.4 million, or 3.6%, from $150.5 million for the three months ended August 1, 2015. The net sales decrease was attributed to business exits coupled with a $2.7 million impact from foreign currency conversions which was partially offset by a 3.5% increase in the core Perry Ellis, Original Penguin and golf apparel businesses.

Men’s Sportswear and Swim net sales for the six months ended July 30, 2016 were $343.1 million, a decrease of $5.8 million, or 1.7%, from $348.9 million for the six months ended August 1, 2015. The net sales decrease was attributed primarily to exited brands coupled with the negative impact in our special markets programs and foreign currency conversions, partially offset by increases in our core Perry Ellis and Original Penguin collections, and golf lifestyle apparel business.

Women’s Sportswear net sales for the three months ended July 30, 2016 were $24.1 million, a decrease of $5.8 million, or 19.4%, from $29.9 million for the three months ended August 1, 2015. The net sales decrease was attributed primarily to the sale of C&C California in the prior year as well as the planned decrease in special markets programs.

Women’s Sportswear net sales for the six months ended July 30, 2016 were $56.6 million, a decrease of $12.1 million, or 17.6%, from $68.7 million for the six months ended August 1, 2015. The net sales decrease was primarily due to the sale of C&C California in the prior year and our planned decrease in special markets programs consistent with reductions cited above.

Direct-to-Consumer net sales for the three months ended July 30, 2016 were $24.1 million, a decrease of $0.2 million, or 0.8%, from $24.3 million for the three months ended August 1, 2015. The slight decrease was driven by three store closings during the first half of fiscal 2017, partially offset by a comparable sales increase of 1.2%. We have experienced a significant negative impact on traffic and comparable same store sales for our retail store locations that cater to higher level of tourist activity. These doors represent close to 45% of our total store count.

Direct-to-Consumer net sales for the six months ended July 30, 2016 were $44.5 million, a decrease of $0.7 million, or 1.5%, from $45.2 million for the six months ended August 1, 2015. The decrease was driven by relatively flat comparable same store sales, coupled with three net fewer stores as compared to the prior period.

Royalty income. Royalty income for the three months ended July 30, 2016 was $8.3 million, a decrease of $0.4 million, or 4.6%, from $8.7 million for the three months ended August 1, 2015. The decrease in royalty income was attributed to the transition of two of our licensed partners, one to in-house ownership and one to a new partnership.

Royalty income for the six months ended July 30, 2016 was $18.7 million, an increase of $1.9 million, or 11.3%, from $16.8 million for the six months ended August 1, 2015. Royalty income increases were attributed to increases in our Perry Ellis and Original Penguin brands as well as the new licenses signed during this and last year, and from our continuing initiatives to upgrade our licensing partners, partially offset by the transition discussed above.

Gross profit. Gross profit was $73.8 million for the three months ended July 30, 2016, a decrease of $2.1 million, or 2.8%, from $75.9 million for the three months ended August 1, 2015. This decrease is attributed to the sales decrease from our brand exits and special markets program described above.

Gross profit was $168.9 million for the six months ended July 30, 2016, an increase of $2.9 million, or 1.7%, from $166.0 million for the six months ended August 1, 2015. This increase is attributed to the sales mix composition, our increase in royalty income described above and the factors described within the gross profit margin section below.

Gross profit margin. As a percentage of total revenue, gross profit margins were 36.6% for the three months ended July 30, 2016, as compared to 35.6% for the three months ended August 1, 2015, an expansion of 100 basis points. The expansion was driven by stronger product margins in our men’s collection, golf apparel, Nike and direct-to-consumer businesses.

29

For the six months ended July 30, 2016, gross profit margins were 36.5% as a percentage of total revenue as compared to 34.6% for the six months ended August 1, 2015, an expansion of 190 basis points. The increase is attributed to stronger product margins and reduced markdowns in our men’s collection, golf apparel and Nike businesses as well as an increase in royalty income and consolidation in our foreign buying offices and freight services.

Selling, general and administrative expenses. Selling, general and administrative expenses for the three months ended July 30, 2016 were $72.7 million, an increase of $4.4 million, or 6.4%, from $68.3 million for the three months ended August 1, 2015. The increase was attributed primarily to severance costs related to our restructuring activities, as well as the required acceleration of compensation costs relating to the new contract for our executive chairman. These compensation costs will be distributed in future periods as they are earned. See footnote 20 to the unaudited condensed consolidated financial statements for further information regarding the acceleration of compensation.

Selling, general and administrative expenses for the six months ended July 30, 2016 were $142.6 million, an increase of $4.7 million, or 3.4%, from $137.9 million for the six months ended August 1, 2015. The increase is attributed to slightly higher incentive compensation accruals, severance costs and the acceleration of compensation costs as discussed above, partially offset by reduced costs resulting from our continued focus on the core infrastructure.

EBITDA. Men’s Sportswear and Swim EBITDA margin for the three months ended July 30, 2016 decreased 210 basis points to (0.3%) from 1.8% for the three months ended August 1, 2015. Direct costs associated with the segment remained relatively flat from the previous quarter. Because of this, the decrease in net sales described above had an unfavorable impact on the EBITDA margin. Men’s Sportswear and Swim EBITDA margin for the six months ended July 30, 2016 increased 80 basis points to 5.4%, from 4.6% for the six months ended August 1, 2015. The EBITDA margin was favorably impacted by the increase in gross profit and margins in our men’s collection, golf apparel and Nike businesses. Because of this increase, we were able to realize a favorable leverage in selling, general and administrative expenses, more specifically on payroll and advertising expenses.

Women’s Sportswear EBITDA margin for the three months ended July 30, 2016 decreased 810 basis points to (9.7%) from (1.6%) for the three months ended August 1, 2015. Women’s Sportswear EBITDA margin for the six months ended July 30, 2016 decreased 570 basis points to (3.7%) from 2.0% for the six months ended August 1, 2015. The EBITDA margin was unfavorably impacted by the exit of C&C California and planned decreases in special markets programs, as a result we were not able to realize favorable leverage in selling, general and administrative expenses.

Direct-to-Consumer EBITDA margin for the three months ended July 30, 2016 decreased 370 basis points to (8.5%) from (4.8%) for the three months ended August 1, 2015. Direct-to-Consumer EBITDA margin for the six months ended July 30, 2016 decreased 550 basis points to (10.2%), from (4.7%) for the six months ended August 1, 2015. The decrease was attributable to the closing of a net of three stores, as described above. Additionally, selling, general and administrative expenses were unfavorably impacted by increases in rent as we renewed some of our leases at higher rates.

Licensing EBITDA margin for the three months ended July 30, 2016 decreased 490 basis points to 72.0%, from 76.9% for the three months ended August 1, 2015. Direct costs associated with the licensing segment remained relatively flat from the previous quarter. Because of this, the decrease in royalty income described above had an unfavorable impact on the EBITDA margin. Licensing EBITDA margin for the six months ended July 30, 2016 increased 410 basis points to 77.4%, from 73.3% for the six months ended August 1, 2015. The EBITDA margin was favorably impacted by the increase in royalty income described above. Also, as described below, during the three months ended May 2, 2015, we had a loss on the sale of the C&C California brand tradename, which was the primary reason for the lower EBITDA margin in the first quarter of fiscal 2016.

Depreciation and amortization. Depreciation and amortization for the three months ended July 30, 2016, was $3.7 million, an increase of $0.3 million, or 8.8% from $3.4 million for the three months ended August 1, 2015.

30

Depreciation and amortization for the six months ended July 30, 2016, was $7.2 million, an increase of $0.4 million, or 5.9%, from $6.8 million for the six months ended August 1, 2015. The increase is attributed to depreciation related to our capital expenditures, primarily in the direct-to-consumer segment, and leasehold improvements made during fiscal 2016.

Loss on sale of long-lived assets. During the first quarter of fiscal 2016, we entered into an agreement to sell the intellectual property of our C&C California brand to a third party. As a result of this transaction, we recorded a loss of ($0.7) million in the licensing segment.

Cost on early extinguishment of debt. On April 6, 2015, we called for partial redemption $100 million of our $150 million outstanding 7 ⁷ / ₈ % Senior Subordinated Notes. The redemption terms provided for the payment of a redemption premium of 103.938% of the principal amount redeemed. On May 6, 2015, we completed the redemption of $100 million of our senior subordinated notes. We incurred debt extinguishment costs of approximately $5.1 million in connection with the redemption premium and the write-off of note issuance costs.

Interest expense. Interest expense for the three months ended July 30, 2016 and the three months ended August 1, 2015 was $1.9 million. Interest remained flat. Interest expense for the six months ended July 30, 2016 was $3.9 million, a decrease of $1.7 million, or 30.4%, from $5.6 million for the six months ended August 1, 2015. The decrease was primarily attributable to a decrease in interest resulting from the partial redemption of $100 million of our senior subordinated notes during the second quarter of fiscal 2016. This decrease was partially offset by a higher average amount borrowed on our credit facility as compared to the prior year period. The increase in the credit facility was due to its use for the redemption of the notes as discussed above.

Income taxes. The income tax benefit for the three months ended July 30, 2016, was $0.9 million, a decrease of $0.6 million, as compared to $1.5 million for the three months ended August 1, 2015. For the three months ended July 30, 2016, our effective tax rate was 19.5% as compared to 54.7% for the three months ended August 1, 2015. The income tax provision for the six months ended July 30, 2016, was $4.5 million, an increase of $2.6 million, as compared to $1.9 million for the six months ended August 1, 2015. For the six months ended July 30, 2016, our effective tax rate was 29.8% as compared to 18.9% for the six months ended August 1, 2015. The overall change in the effective tax rate is attributed to the current year impact of the valuation allowance on domestic taxes and a change in the ratio of income between domestic and foreign operations, of which the domestic operations are taxed at higher statutory tax rates.

Net (loss) income. Net loss for the three months ended July 30, 2016 was $3.6 million, an increase of $2.3 million, or 176.9%, as compared to a loss of $1.3 million for the three months ended August 1, 2015. Net income for the six months ended July 30, 2016 was $10.7 million, an increase of $2.6 million, or 32.1%, as compared to $8.1 million for the six months ended August 1, 2015. The changes in operating results were due to the items described above.

Liquidity and Capital Resources

We rely principally on cash flow from operations and borrowings under our senior credit facility to finance our operations, pension funding requirements, acquisitions, and capital expenditures. We believe that our working capital requirements will increase for next year as we continue to expand internationally. As of July 30, 2016, our total working capital was $208.3 million as compared to $218.8 million at January 30, 2016 and $215.3 million as of August 1, 2015. We believe that our cash flows from operations and availability under our senior credit facility and remaining letter of credit facilities are sufficient to meet our working capital needs and capital expenditure needs over the next year.

We consider the undistributed earnings of our foreign subsidiaries as of July 30, 2016, to be indefinitely reinvested and, accordingly, no United States income taxes have been provided thereon. As of July 30, 2016, the amount of cash associated with indefinitely reinvested foreign earnings was approximately $23.9 million. We have not, nor do we anticipate the need to, repatriate funds to the United States to satisfy domestic liquidity needs arising in the ordinary course of business, including liquidity needs associated with our domestic debt service requirements.

31

Net cash provided by operating activities was $34.9 million for the six months ended July 30, 2016, as compared to cash provided by operating activities of $20.5 million for the six months ended August 1, 2015.

The cash provided by operating activities for the six months ended July 30, 2016, is primarily attributable to a decrease in accounts receivable of $10.1 million, decreased inventory of $47.6 million due to improved inventory management, an increase in unearned revenues and other liabilities of $3.5 million, as well as a decrease in prepaid income taxes of $1.9 million. This was partially offset by a decrease in accounts payable and accrued expenses of $52.6 million.

The cash provided by operating activities for the six months ended August 1, 2015, is primarily attributable to a decrease in accounts receivable of $13.2 million due to the timing of shipments as compared to the prior year, as well as decreased inventory of $30.1 million due to improved inventory management. This was partially offset by a decrease in accounts payable and accrued expenses of $41.2 million as well as decreased accrued interest payable of $2.5 million. For the six months ended August 1, 2015, our inventory turnover ratio increased to 3.7 as compared to 3.3 for the comparable period in fiscal 2015. Inventory levels declined as noted above resulting from tighter inventory management.

Net cash used in investing activities was $10.4 million for the six months ended July 30, 2016 as compared to cash provided by investing activities of $4.4 million for the six months ended August 1, 2015. The net cash used in investing activities during the first six months of fiscal 2017 primarily reflects the purchase of investments of $9.0 million and the purchase of property and equipment of $6.6 million primarily for leasehold improvements and store fixtures; offset by the proceeds from the maturities of investments in the amount of $5.2 million.

Net cash provided by investing activities was $4.4 million for the six months ended August 1, 2015, as compared to cash used in investing activities of $16.1 million for the six months ended August 2, 2014. The net cash provided by investing activities during the first six months of fiscal 2016 primarily reflects the proceeds from the maturities of investments in the amount of $11.9 million and proceeds on the sale of the C&C California brand in the amount of $2.5 million; offset by the purchase of investments of $2.6 million and the purchase of property and equipment of $7.3 million primarily for leasehold improvements and store fixtures.

Net cash used in financing activities was $28.4 million for the six months ended July 30, 2016 as compared to cash used in financing activities of $41.7 million for the six months ended August 1, 2015. The net cash used during the first six months of fiscal 2017 primarily reflects net payments on our senior credit facility of $27.9 million, payments of $0.4 million on our mortgage loans and payments on capital leases of $0.1 million.

Net cash used in financing activities was $41.7 million for the six months ended August 1, 2015, as compared to cash used in financing activities of $8.7 million for the six months ended August 2, 2014. The net cash used during the first six months of fiscal 2016 primarily reflects payments for the partial redemption on our senior subordinated notes of $100 million, payments of $0.4 million on our mortgage loans, payments of deferred financing fees on the senior credit facility of $0.6 million and payments on capital leases of $0.07 million; partially offset by net borrowings on our senior credit facility of $58.2 million, proceeds from the exercises of stock options of $1.3 million and a tax benefit from exercise of equity instruments of $0.2 million. We financed the redemption of the subordinated notes through our senior credit facility.

Our Board of Directors has authorized us to purchase, from time to time and as market and business conditions warrant, up to $70 million of our common stock for cash in the open market or in privately negotiated transactions through October 31, 2016. Although our Board of Directors allocated a maximum of $70 million to carry out the program, we are not obligated to purchase any specific number of outstanding shares and will reevaluate the program on an ongoing basis.

There have been no open market purchases through the second quarter of fiscal 2017. Total purchases under the plan to date amount to approximately $58.6 million.

During the second quarter of fiscal 2016, we retired 770,753 shares of treasury stock recorded at a cost of approximately $15.7 million. Accordingly, during the second quarter of fiscal 2016 we reduced common stock and additional paid in capital by $7,000 and $15.7 million, respectively.

32

Acquisitions

None.

7 ⁷/₈% $150 Million Senior Subordinated Notes Payable

In March 2011, we issued $150 million 7 ⁷ / ₈ % senior subordinated notes, due April 1, 2019. The proceeds of this offering were used to retire the $150 million 8 ⁷ / ₈ % senior subordinated notes due September 15, 2013 and to repay a portion of the outstanding balance on the senior credit facility. The proceeds to us were $146.5 million yielding an effective interest rate of 8.0%.

On April 6, 2015, we elected to call for the partial redemption of $100 million of our $150 million 7 ⁷ / ₈ % senior subordinated notes due 2019 and a notice of redemption was sent to all registered holders of the senior subordinated notes. The redemption terms provided for the payment of a redemption premium of 103.938% of the principal amount redeemed. On May 6, 2015, we completed the redemption of the $100 million of our senior subordinated notes. We incurred debt extinguishment costs of approximately $5.1 million in connection with the redemption, including the redemption premium as well as the write-off of note issuance costs. At July 30, 2016, the balance of the 7 ⁷ / ₈ % senior subordinated notes totaled $49.6 million, net of debt issuance costs in the amount of $0.4 million. At January 30, 2016, the balance of the 7 ⁷ / ₈ % senior subordinated notes totaled $49.5 million, net of debt issuance costs in the amount of $0.5 million.

Certain Covenants. The indenture governing the senior subordinated notes contains certain covenants which restrict our ability and the ability of our subsidiaries to, among other things, incur additional indebtedness in certain circumstances, pay dividends or make other distributions on, redeem or repurchase capital stock, make investments or other restricted payments, create liens on assets to secure debt, engage in transactions with affiliates, and effect a consolidation or merger. We are not aware of any non-compliance with any of our covenants in this indenture. We could be materially harmed if we violate any covenants because the indenture’s trustee could declare the outstanding notes, together with accrued interest, to be immediately due and payable, which we may not be able to satisfy. In addition, a violation could also constitute a cross-default under the senior credit facility, the letter of credit facilities and the real estate mortgages resulting in all of our debt obligations becoming immediately due and payable, which we may not be able to satisfy.

Senior Credit Facility

On April 22, 2015, we amended and restated our existing senior credit facility (the “Credit Facility”), with Wells Fargo Bank, National Association, as agent for the lenders, and Bank of America, N.A., as syndication agent. The Credit Facility provides a revolving credit facility of up to an aggregate amount of $200 million. The Credit Facility has been extended through April 30, 2020. In connection with this amendment and restatement, we paid fees in the amount of $0.6 million. These fees will be amortized over the term of the credit facility as interest expense. At July 30, 2016, we had outstanding borrowings of $33.9 million, under the Credit Facility. At January 30, 2016, we had outstanding borrowings of $61.8 million, under the Credit Facility.

Certain Covenants. The Credit Facility contains certain financial and other covenants, which, among other things, require us to maintain a minimum fixed charge coverage ratio if availability falls below certain thresholds. We are not aware of any non-compliance with any of our covenants in this Credit Facility. These covenants may restrict our ability and the ability of our subsidiaries to, among other things, incur additional indebtedness and liens in certain circumstances, redeem or repurchase capital stock, make certain investments or sell assets. We may pay cash dividends subject to certain restrictions set forth in the covenants including, but not limited to, meeting a minimum excess availability threshold and no occurrence of a default. We could be materially harmed if we violate any covenants, as the lenders under the Credit Facility could declare all amounts outstanding, together with accrued interest, to be immediately due and payable. If we are unable to repay those amounts, the lenders could proceed against our assets and the assets of our subsidiaries that are borrowers or guarantors. In addition, a covenant violation that is not cured or waived by the lenders could also constitute a cross-default under certain of our other outstanding indebtedness, such as the indenture relating to our 7 ⁷ / ₈ % senior subordinated notes due April 1, 2019, our letter of credit facilities, or our real estate mortgage loans. A cross-default could result in all of our debt obligations becoming immediately due and payable, which we may not be able to satisfy. Additionally, our Credit Facility includes a subjective acceleration clause if a “material adverse change” in our business occurs. We believe that the likelihood of the lender exercising this right is remote.

33

Borrowing Base. Borrowings under the Credit Facility are limited to a borrowing base calculation, which generally restricts the outstanding balance to the sum of (a) 87.5% of eligible receivables plus (b) 87.5% of eligible foreign accounts up to $1.5 million plus (c) the lesser of (i) the inventory loan limit, which equals 80% of the maximum credit under the Credit Facility at the time, (ii) a maximum of 70.0% of eligible finished goods inventory with an inventory limit not to exceed $125 million, or 90.0% of the net recovery percentage (as defined in the Credit Facility) of eligible inventory.

Interest. Interest on the outstanding principal balance drawn under the Credit Facility accrues at the prime rate and at the rate quoted by the agent for Eurodollar loans. The margin adjusts quarterly, in a range of 0.50% to 1.00% for prime rate loans and 1.50% to 2.00% for Eurodollar loans, based on the previous quarterly average of excess availability plus excess cash on the last day of the previous quarter.

Security. As security for the indebtedness under the Credit Facility, we granted to the lenders a first priority security interest (subject to liens permitted under the Credit Facility to be senior thereto) in substantially all of our existing and future assets, including, without limitation, accounts receivable, inventory, deposit accounts, general intangibles, equipment and capital stock or membership interests, as the case may be, of certain subsidiaries, and real estate, but excluding our non-U.S. subsidiaries and all of our trademark portfolio.

Letter of Credit Facilities

As of July 30, 2016, we maintained one U.S. dollar letter of credit facility totaling $30.0 million and one letter of credit facility totaling $0.3 million utilized by our United Kingdom subsidiary. Each documentary letter of credit is secured primarily by the consignment of merchandise in transit under that letter of credit and certain subordinated liens on our assets.

During the first quarter of fiscal 2016, a $15 million line of credit expired and was not renewed. During fiscal 2016, we decreased the letter of credit sublimit in our Senior Credit Facility to $30.0 million. At July 30, 2016 and January 30, 2016, there was $18.8 and $18.9 million, respectively, available under the existing letter of credit facilities.

Real Estate Mortgage Loans

In July 2010, we paid off our then existing real estate mortgage loan and refinanced our main administrative office, warehouse and distribution facility in Miami with a $13.0 million mortgage loan. The loan is due on August 1, 2020. In July 2013, we amended the mortgage loan agreement to modify the interest rate. The interest rate was reduced to 3.9% per annum and the terms were restated to reflect new monthly payments of principal and interest of $69,000, based on a 25-year amortization with the outstanding principal due at maturity. At July 30, 2016, the balance of the real estate mortgage loan totaled $10.9 million, net of discount, of which $399,000 is due within one year.

In June 2006, we entered into a mortgage loan for $15 million secured by our Tampa facility. The loan is due on January 23, 2019. In January 2014, we amended the mortgage loan to modify the interest rate. The interest rate was reduced to 3.25% per annum and the terms were restated to reflect new monthly payments of principal and interest of approximately $68,000, based on a 20-year amortization with the outstanding principal due at maturity. At July 30, 2016, the balance of the real estate mortgage loan totaled $10.9 million, net of discount, of which approximately $468,000 is due within one year.

The real estate mortgage loans contain certain covenants. We are not aware of any non-compliance with any of the covenants. If we violate any covenants, the lender under the real estate mortgage loan could declare all amounts outstanding thereunder to be immediately due and payable, which we may not be able to satisfy. A covenant violation could constitute a cross-default under our senior credit facility, the letter of credit facilities and the indenture relating to our senior subordinated notes resulting in all of our debt obligations becoming immediately due and payable, which we may not be able to satisfy.

34

Off-Balance Sheet Arrangements

We are not a party to any “off-balance sheet arrangements,” as defined by applicable GAAP and SEC rules.

Effects of Inflation and Foreign Currency Fluctuations

We do not believe that inflation or foreign currency fluctuations significantly affected our results of operations for the three and six months ended July 30, 2016.

Item 3: Quantitative and Qualitative Disclosures about Market Risk

The market risk inherent in our financial statements represents the potential changes in the fair value, earnings or cash flows arising from changes in interest rates. We manage this exposure through regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. Our policy allows the use of derivative financial instruments for identifiable market risk exposure, including interest rate. We currently do not have any derivative financial instruments for identifiable market risk.

Commodity Price Risk

We are exposed to market risks for the pricing of cotton and other fibers, which may impact fabric prices. Fabric is a portion of the overall product cost, which includes various components. We manage our fabric prices by using a combination of different strategies including the utilization of sophisticated logistics and supply chain management systems, which allow us to maintain maximum flexibility in our global sourcing of products. This provides us with the ability to re-direct our sourcing of products to the most cost-effective jurisdictions. In addition, we may modify our product offerings to our customers based on the availability of new fibers, yield enhancement techniques and other technological advances that allow us to utilize more cost effective fibers. Finally, we also have the ability to adjust our price points of such products, to the extent market conditions allow. These factors, along with our foreign-based sourcing offices, allow us to procure product from lower cost countries or capitalize on certain tariff-free arrangements, which help mitigate any commodity price increases that may occur. We have not historically managed, and do not currently intend to manage, commodity price exposures by using derivative instruments.

Other

Our current exposure to foreign exchange risk is not significant and accordingly, we have not entered into any transactions to hedge against those risks.

Item 4: Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report pursuant to Rule 13a-15(b) of the Securities Exchange Act. Based upon this evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective as of July 30, 2016 in ensuring that the information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

There were no changes in our internal control over financial reporting during the quarter ended July 30, 2016 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

35

PART II: OTHER INFORMATION

Item 6. Exhibits

Index to Exhibits

Exhibit Number	Exhibit Description	Where Filed
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a)	Filed herewith.
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)	Filed herewith.
32.1	Certification of Principal Executive Officer pursuant to Section 1350	Filed herewith.
32.2	Certification of Principal Financial Officer pursuant to Section 1350	Filed herewith.
101.INS	XBRL Instance Document	Filed herewith.
101.SCH	XBRL Taxonomy Extension Schema	Filed herewith.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase	Filed herewith.
101.DEF	XBRL Taxonomy Extension Definition Linkbase	Filed herewith.
101.LAB	XBRL Taxonomy Extension Label Linkbase	Filed herewith.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase	Filed herewith.

36

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Perry Ellis International, Inc.
September 2, 2016	By:	/S/ ANITA BRITT
	Anita Britt, Chief Financial Officer
	(Principal Financial Officer and Duly Authorized Officer)

37

Exhibit Index

Exhibit Number	Exhibit Description
31.1	Certification of Principal Executive Officer pursuant to Rule 13a- 14(a)/15d-14(a)
31.2	Certification of Principal Financial Officer pursuant to Rule 13a- 14(a)/15d-14(a)
32.1	Certification of Principal Executive Officer pursuant to Section 1350
32.2	Certification of Principal Financial Officer pursuant to Section 1350
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

38

EX-31.1

Exhibit 31.1

Certification

I, Oscar Feldenkreis, certify that:

1) I have reviewed this Quarterly Report on Form 10-Q of Perry Ellis International, Inc.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Accounting Principles Generally Accepted in the United States of America;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

September 2, 2016

	/S/ OSCAR FELDENKREIS
Name:	Oscar Feldenkreis
Title:	Chief Executive Officer and President
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification

I, Anita Britt, certify that:

1) I have reviewed this Quarterly Report on Form 10-Q of Perry Ellis International, Inc.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Accounting Principles Generally Accepted in the United States of America;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

September 2, 2016

	/S/ ANITA BRITT
Name:	Anita Britt
Title:	Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification

I, Oscar Feldenkreis, certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge, the Quarterly Report on Form 10-Q of Perry Ellis International, Inc. (the “Company”) for the quarter ended July 30, 2016 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

September 2, 2016

	/S/ OSCAR FELDENKREIS
Name:	Oscar Feldenkreis
Title:	Chief Executive Officer and President
	(Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Certification

I, Anita Britt, certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge, the Quarterly Report on Form 10-Q of Perry Ellis International, Inc. (the “Company”) for the quarter ended July 30, 2016 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

September 2, 2016

	/S/ ANITA BRITT
Name:	Anita Britt
Title:	Chief Financial Officer
	(Principal Financial Officer)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Jul. 30, 2016	Aug. 29, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 30, 2016
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Trading Symbol	PERY
Entity Registrant Name	PERRY ELLIS INTERNATIONAL, INC
Entity Central Index Key	0000900349
Current Fiscal Year End Date	--01-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		15,496,000

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 30, 2016	Jan. 30, 2016
Current Assets:
Cash and cash equivalents	$ 27,882	$ 31,902
Accounts receivable, net	120,639	132,066
Inventories	134,414	182,750
Investments, at fair value	13,633	9,782
Prepaid income taxes		1,818
Prepaid expenses and other current assets	8,347	8,461
Total current assets	304,915	366,779
Property and equipment, net	63,796	63,908
Other intangible assets, net	187,485	187,919
Deferred income tax	392	442
Other assets	2,757	2,927
TOTAL	559,345	621,975
Current Liabilities:
Accounts payable	55,740	103,684
Accrued expenses and other liabilities	22,879	26,497
Accrued interest payable	1,487	1,521
Income taxes payable	459
Unearned revenues	3,857	4,213
Deferred pension obligation	12,206	12,107
Total current liabilities	96,628	148,022
Senior subordinated notes payable, net	49,600	49,528
Senior credit facility	33,865	61,758
Real estate mortgages	20,873	21,318
Unearned revenues and other long-term liabilities	18,464	14,853
Deferred income taxes	36,007	35,015
Total long-term liabilities	158,809	182,472
Total liabilities	255,437	330,494
Commitment and contingencies
Equity:
Preferred stock $.01 par value; 5,000,000 shares authorized; no shares issued or outstanding
Common stock $.01 par value; 100,000,000 shares authorized; 15,609,579 shares issued and outstanding as of July 30, 2016 and 15,409,310 shares issued and outstanding as of January 30, 2016	156	154
Additional paid-in-capital	146,868	144,025
Retained earnings	172,495	161,810
Accumulated other comprehensive loss	(15,611)	(14,508)
Total equity	303,908	291,481
TOTAL	$ 559,345	$ 621,975

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jul. 30, 2016	Jan. 30, 2016
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	15,609,579	15,409,310
Common stock, shares outstanding	15,609,579	15,409,310

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Revenues:
Net sales	$ 193,341	$ 204,638	$ 444,216	$ 462,895
Royalty income	8,312	8,661	18,731	16,818
Total revenues	201,653	213,299	462,947	479,713
Cost of sales	127,822	137,357	294,032	313,671
Gross profit	73,831	75,942	168,915	166,042
Operating expenses:
Selling, general and administrative expenses	72,654	68,254	142,588	137,862
Depreciation and amortization	3,716	3,446	7,183	6,768
Total operating expenses	76,370	71,700	149,771	144,630
Loss on sale of long-lived assets				(697)
Operating (loss) income	(2,539)	4,242	19,144	20,715
Costs of early extinguishment of debt		5,121		5,121
Interest expense (income)	1,889	1,943	3,914	5,570
Net (loss) income before income taxes	(4,428)	(2,822)	15,230	10,024
Income tax (benefit) provision	(863)	(1,541)	4,545	1,894
Net (loss) income	$ (3,565)	$ (1,281)	$ 10,685	$ 8,130
Net (loss) income per share:
Basic	$ (0.24)	$ (0.09)	$ 0.72	$ 0.55
Diluted	$ (0.24)	$ (0.09)	$ 0.71	$ 0.53
Weighted average number of shares outstanding
Basic	14,953	15,048	14,882	14,849
Diluted	14,953	15,048	15,139	15,283

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Net (loss) income	$ (3,565)	$ (1,281)	$ 10,685	$ 8,130
Other Comprehensive income:
Foreign currency translation adjustments, net	(3,093)	153	(1,430)	1,091
Unrealized gain on pension liability, net of tax	155	135	310	270
Unrealized gain (loss) on investments	10		17	(7)
Total other comprehensive (loss) income	(2,928)	288	(1,103)	1,354
Comprehensive (loss) income	$ (6,493)	$ (993)	$ 9,582	$ 9,484

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 10,685	$ 8,130
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,382	7,087
Provision for bad debts	478	279
Amortization of debt issue cost	205	266
Amortization of premiums and discounts	28	94
Amortization of unrealized (gain) loss on pension liability	310	270
Costs on early extinguishment of debt		1,158
Deferred income taxes	1,042	1,613
Share-based compensation	3,786	2,286
Loss on sale of long-lived assets		697
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable, net	10,087	13,199
Inventories	47,604	30,149
Prepaid income taxes	1,874	190
Prepaid expenses and other current assets	110	(759)
Other assets	37	107
Accounts payable and accrued expenses	(52,572)	(41,175)
Accrued interest payable	(34)	(2,534)
Income taxes payable	344
Unearned revenues and other liabilities	3,469	(666)
Deferred pension obligation	99	85
Net cash provided by operating activities	34,934	20,476
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(6,609)	(7,345)
Purchases of investments	(9,039)	(2,641)
Proceeds from investment maturities	5,205	11,860
Proceeds on sale of intangible assets		2,500
Net cash (used in) provided by investing activities	(10,443)	4,374
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings from senior credit facility	179,380	255,065
Payments on senior credit facility	(207,273)	(196,854)
Payments on senior subordinated notes		(100,000)
Payments on real estate mortgages	(423)	(410)
Payments on capital leases	(129)	(77)
Deferred financing fees		(569)
Proceeds from exercise of stock options	5	1,339
Tax benefit from exercise of equity instruments		(201)
Net cash used in financing activities	(28,440)	(41,707)
Effect of exchange rate changes on cash and cash equivalents	(71)	575
NET DECREASE IN CASH AND CASH EQUIVALENTS	(4,020)	(16,282)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	31,902	43,547
CASH AND CASH EQUIVALENTS AT END OF PERIOD	27,882	27,265
Cash paid during the period for:
Interest	3,715	7,746
Income taxes	700	$ 366
NON-CASH FINANCING AND INVESTING ACTIVITIES:
Accrued purchases of property and equipment	$ 407

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GENERAL

6 Months Ended

Jul. 30, 2016

GENERAL

1. GENERAL

The accompanying unaudited condensed consolidated financial statements of Perry Ellis International, Inc. and subsidiaries (“Perry Ellis” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the requirements of the Securities and Exchange Commission on Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and changes in cash flows required by GAAP for annual financial statements. The condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended January 30, 2016, filed with the Securities and Exchange Commission on April 14, 2016.

The information presented reflects all adjustments, which are in the opinion of management of a normal and recurring nature, necessary for a fair presentation of the interim periods. Results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the entire fiscal year.

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RECENT ACCOUNTING PRONOUNCEMENTS

6 Months Ended

Jul. 30, 2016

RECENT ACCOUNTING PRONOUNCEMENTS

2. RECENT ACCOUNTING PRONOUNCEMENTS

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” ASU No. 2014-09 clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards (“IFRS”) that removes inconsistencies and weaknesses in revenue requirements, provides a more robust framework for addressing revenue issues, improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, provides more useful information to users of financial statements through improved disclosure requirements and simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. ASU No. 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Companies can choose to apply the ASU using either the full retrospective approach or a modified retrospective approach. The Company is currently evaluating both methods of adoption and the impact, if any, that the adoption of this ASU will have on the Company’s results of operations or the Company’s financial position.

In March 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30)”, which is simplifying the Presentation of Debt Issuance Costs. The standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for interim periods beginning after December 15, 2015. The Company adopted the accounting standard in the first quarter of fiscal 2017. Prior to the adoption, debt issuance costs were classified as other assets. This presentation change was applied retrospectively to the condensed consolidated balance sheet and consequently, amounts related to debt issuance costs are presented as a direct deduction of the corresponding debt liability for all periods presented.

The effect on the condensed consolidating balance sheet as of January 30, 2016, as a result of this change in presentation, is a decrease of ($0.5) million in other assets, and a decrease of ($0.5) million in senior subordinated notes payable.

In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”, which requires inventory measured using any method other than last-in, first out (“LIFO”) or the retail inventory method to be subsequently measured at the lower of cost or net realizable value, rather than at the lower of cost or market. Under this ASU, subsequent measurement of inventory using the LIFO and retail inventory method is unchanged. ASU 2015-11 is effective prospectively for fiscal years, and for interim periods within those years, beginning after December 15, 2016. Early application is permitted. The adoption of ASU No. 2015-11 is not expected to have a material impact on the Company’s results of operations or the Company’s financial position.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” which requires an entity that is a lessee to recognize the assets and liabilities arising from leases on the balance sheet. This guidance also requires disclosures about the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods, using a modified retrospective approach, and early adoption is permitted. The Company is evaluating the effect that the adoption will have on its consolidated financial statements and related disclosures.

In March 2016, the FASB issued ASU No. 2016-07, “Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting,” which eliminates the requirement to retroactively adjust an investment that subsequently qualifies for equity method accounting (as a result of an increase in level of ownership interest or degree of influence) as if the equity method of accounting had been applied during all prior periods that the investment was held. The new standard requires that the investor add the cost of acquiring additional ownership interest in the investee to its current basis and prospectively adopt the equity method of accounting. Any unrealized gains or losses in an available-for-sale investment that subsequently qualifies as an equity method investment should be recognized in earnings at the date the investment qualifies as an equity method investment. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. This new guidance is not expected to have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, “Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which is part of the FASB’s Simplification Initiative. The updated guidance simplifies the accounting for share-based payment transactions. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”, which amends certain aspects of the FASB’s new revenue standard, ASU 2014-09, “Revenue from Contracts with Customers”, specifically the standard’s guidance on identifying performance obligations and the implementation guidance on licensing. The amendments clarify when promised goods or services are separately identifiable (i.e., distinct within the context of a contract), an important step in determining whether goods and services should be accounted for as separate performance obligations. In addition, the amendments allow entities to disregard goods or services that are immaterial in the context of a contract and provide an accounting policy election for accounting for certain shipping and handling activities. The amendments also clarify how an entity should evaluate the nature of its promise in granting a license of intellectual property (IP), which will determine whether the entity recognizes revenue over time or at a point in time. The amendments revise the guidance to address how entities should apply the exception for sales- and usage-based royalties to licenses of IP, recognize revenue for licenses that are not separate performance obligations and evaluate different types of license restrictions (e.g., time-based, geography-based). The new guidance’s effective date and transition provisions are aligned with the requirements in the new revenue standard, which is not yet effective. The Company is currently evaluating the impact, if any, that the adoption of this ASU will have on the Company’s results of operations or the Company’s financial position.

In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients,” which amends certain aspects of the new revenue standard, ASU 2014-09, “Revenue from Contracts with Customers”. The amendments are intended to provide clarifying guidance in a few narrow areas such as collectability, contract modifications, completed contracts at transition, and non-cash considerations. The new guidance’s effective date and transition provisions are aligned with the requirements in the new revenue standard, which is not yet effective. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which provides guidance for the accounting for credit losses on instruments within its scope. The amendments guide on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. The amendments require a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments also require that credit losses on available-for-sale debt securities be presented as an allowance. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those annual periods. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

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ACCOUNTS RECEIVABLE

6 Months Ended

Jul. 30, 2016

ACCOUNTS RECEIVABLE

3. ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following as of:

	July 30, 2016			January 30, 2016
	(in thousands)
Trade accounts	$	133,691		$	144,708
Royalties		4,442			5,892
Other receivables		1,011			1,769
Total		139,144			152,369
Less: allowances		(18,505	)		(20,303	)
Total	$	120,639		$	132,066

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INVENTORIES

6 Months Ended

Jul. 30, 2016

INVENTORIES

4. INVENTORIES

Inventories are stated at the lower of cost (weighted moving average cost) or market. Cost principally consists of the purchase price, customs, duties, freight, and commissions to buying agents.

Inventories consisted of the following as of:

	July 30, 2016		January 30, 2016
	(in thousands)
Finished goods	$	134,414	$	182,414
Raw materials and in process		—		336
Total	$	134,414	$	182,750

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INVESTMENTS

6 Months Ended

Jul. 30, 2016

INVESTMENTS

5. INVESTMENTS

The Company’s investments include marketable securities and certificates of deposit at July 30, 2016 and included certificates of deposit at January 30, 2016. Marketable securities are classified as available-for-sale and consist of corporate bonds with maturity dates less than two years. Certificates of deposit are classified as available-for-sale with $10.4 million with maturity dates within one year or less. Investments are stated at fair value. The estimated fair value of the marketable securities is based on quoted prices in an active market (Level 1 fair value measures).

Investments consisted of the following as of July 30, 2016:

			Gross		Gross			Estimated
	Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Marketable securities	$	3,264	$	12	$	—		$	3,276
Certificates of deposit		10,361		—		(4	)		10,357
Total investments	$	13,625	$	12	$	(4	)	$	13,633

Investments consisted of the following as of January 30, 2016:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(in thousands)
Certificates of deposit	$	9,791	$	—	$	(9	)	$	9,782
Total investments	$	9,791	$	—	$	(9	)	$	9,782

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PROPERTY AND EQUIPMENT

6 Months Ended

Jul. 30, 2016

PROPERTY AND EQUIPMENT

6. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following as of:

	July 30, 2016			January 30, 2016
	(in thousands)
Furniture, fixtures and equipment	$	87,713		$	84,634
Buildings and building improvements		20,420			19,462
Vehicles		523			523
Leasehold improvements		48,078			46,882
Land		9,430			9,430
Total		166,164			160,931
Less: accumulated depreciation and amortization		(102,368	)		(97,023	)
Total	$	63,796		$	63,908

The above table of property and equipment includes assets held under capital leases as of:

	July 30,			January 30,
	2016			2016
	(in thousands)
Furniture, fixtures and equipment	$	810		$	810
Less: accumulated depreciation and amortization		(317	)		(182	)
Total	$	493		$	628

For the three months ended July 30, 2016 and August 1, 2015, depreciation and amortization expense relating to property and equipment amounted to $3.6 million and $3.3 million, respectively. For the six months ended July 30, 2016 and August 1, 2015, depreciation and amortization expense relating to property and equipment amounted to $6.9 million and $6.6 million, respectively. These amounts include amortization expense for leased property under capital leases.

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OTHER INTANGIBLE ASSETS

6 Months Ended

Jul. 30, 2016

OTHER INTANGIBLE ASSETS

7. OTHER INTANGIBLE ASSETS

Trademarks

Trademarks included in other intangible assets, net, are considered indefinite-lived assets and totaled $184.1 million at July 30, 2016 and January 30, 2016.

On March 19, 2015, the Company entered into an agreement to sell the intellectual property of its C&C California brand to a third party. The sales price was $2.5 million, which was collected during the first quarter of fiscal 2016. In connection with this transaction, the Company recorded a loss of ($0.7) million in the licensing segment.

Other

Other intangible assets represent customer lists as of:

	July 30, 2016			January 30, 2016
	(in thousands)
Customer lists	$	8,450		$	8,450
Less: accumulated amortization		(5,111	)		(4,677	)
Total	$	3,339		$	3,773

For the three months ended July 30, 2016 and August 1, 2015, amortization expense relating to customer lists amounted to approximately $0.2 million for each of the periods. For the six months ended July 30, 2016 and August 1, 2015, amortization expense relating to customer lists amounted to $0.4 million for each of the periods. Other intangible assets are amortized over their estimated useful lives of 10 years. Assuming no impairment, the table sets forth the estimated amortization expense for future periods based on recorded amounts as of January 30, 2016:

	(in thousands)
2017	$	868
2018	$	835
2019	$	793
2020	$	734
2021	$	543

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LETTER OF CREDIT FACILITIES

6 Months Ended

Jul. 30, 2016

LETTER OF CREDIT FACILITIES

8. LETTER OF CREDIT FACILITIES

Borrowings and availability under letter of credit facilities consisted of the following as of:

	July 30, 2016			January 30, 2016
	(in thousands)
Total letter of credit facilities	$	30,264		$	30,286
Outstanding letters of credit		(11,470	)		(11,395	)
Total credit available	$	18,794		$	18,891

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ADVERTISING AND RELATED COSTS

6 Months Ended

Jul. 30, 2016

ADVERTISING AND RELATED COSTS

9. ADVERTISING AND RELATED COSTS

The Company’s accounting policy relating to advertising and related costs is to expense these costs in the period incurred. Advertising and related costs were approximately $3.7 million and $3.2 million for the three months ended July 30, 2016 and August 1, 2015, respectively, and $8.0 million and $7.0 million for the six months ended July 30, 2016 and August 1, 2015, respectively, and are included in selling, general and administrative expenses.

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NET (LOSS) INCOME PER SHARE

6 Months Ended

Jul. 30, 2016

NET (LOSS) INCOME PER SHARE

10. NET (LOSS) INCOME PER SHARE

Basic net (loss) income per share is computed by dividing net income by the weighted average shares of outstanding common stock. The calculation of diluted net (loss) income per share is similar to basic earnings per share except that the denominator includes potentially dilutive common stock. The potentially dilutive common stock included in the Company’s computation of diluted net income per share includes the effects of stock options, stock appreciation rights (“SARS”), and unvested restricted shares as determined using the treasury stock method.

The following table sets forth the computation of basic and diluted (loss) income per share:

	Three Months Ended						Six Months Ended
	July 30, 2016			August 1, 2015			July 30, 2016		August 1, 2015
	(in thousands, except per share data)
Numerator:
Net (loss) income	$	(3,565	)	$	(1,281	)	$	10,685	$	8,130
Denominator:
Basic-weighted average shares		14,953			15,048			14,882		14,849
Dilutive effect: equity awards		—			—			257		434
Diluted-weighted average shares		14,953			15,048			15,139		15,283
Basic (loss) income per share	$	(0.24	)	$	(0.09	)	$	0.72	$	0.55
Diluted (loss) income per share	$	(0.24	)	$	(0.09	)	$	0.71	$	0.53
Antidilutive effect:(1)		1,103			1,220			604		517

⁽¹⁾ Represents weighted average of stock options to purchase shares of common stock, SARS and restricted stock that were not included in computing diluted income per share because their effects were antidilutive for the respective periods.

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EQUITY

6 Months Ended

Jul. 30, 2016

EQUITY

11. EQUITY

The following table reflects the changes in equity:

	Changes in Equity
	(in thousands)
Equity at January 30, 2016	$	291,481
Comprehensive income		9,582
Share transactions under employee equity compensation plans		2,845
Equity at July 30, 2016	$	303,908
Equity at January 31, 2015	$	302,017
Comprehensive income		9,484
Share transactions under employee equity compensation plans		2,199
Equity at August 1, 2015	$	313,700

During the second quarter of fiscal 2016, the Company retired 770,753 shares of treasury stock recorded at a cost of approximately $15.7 million. Accordingly, during the second quarter of fiscal 2016, the Company reduced common stock and additional paid in capital by $7,000 and $15.7 million, respectively.

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ACCUMULATED OTHER COMPREHENSIVE LOSS

6 Months Ended

Jul. 30, 2016

ACCUMULATED OTHER COMPREHENSIVE LOSS

12. ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in accumulated other comprehensive loss by component, net of tax:

	Unrealized (Loss) Gain on Pension Liability			Foreign Currency Translation Adjustments, Net			Unrealized Gain (Loss) on Investments			Total
	(in thousands)
Balance, January 30, 2016	$	(7,368	)	$	(7,131	)	$	(9	)	$	(14,508	)
Other comprehensive (loss) income before reclassifications		—			(1,430	)		17			(1,413	)
Amounts reclassified from accumulated other comprehensive income		310			—			—			310
Balance, July 30, 2016	$	(7,058	)	$	(8,561	)	$	8		$	(15,611	)

	Unrealized (Loss) Gain on Pension Liability			Foreign Currency Translation Adjustments, Net			Unrealized (Loss) Gain on Investments			Total
	(in thousands)
Balance, January 31, 2015	$	(8,085	)	$	(4,774	)	$	7		$	(12,852	)
Other comprehensive income (loss) before reclassifications		—			1,091			(7	)		1,084
Amounts reclassified from accumulated other comprehensive income		270			—			—			270
Balance, August 1, 2015	$	(7,815	)	$	(3,683	)	$	—		$	(11,498	)

A summary of the impact on the condensed consolidated statements of operations line items is as follows:

	Three Months Ended
	July 30, 2016		August 1, 2015
	(in thousands)
Amortization of defined benefit pension items
Actuarial gains	$	155	$	135	Selling, general and administrative expenses
Tax provision		—		—	Income tax provision
Total, net of tax	$	155	$	135
	Six Months Ended
	July 30, 2016		August 1, 2015
	(in thousands)
Amortization of defined benefit pension items
Actuarial gains	$	310	$	270	Selling, general and administrative expenses
Tax provision		—		—	Income tax provision
Total, net of tax	$	310	$	270

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INCOME TAXES

6 Months Ended

Jul. 30, 2016

INCOME TAXES

13. INCOME TAXES

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The Company’s U.S. federal income tax returns for fiscal 2011 through fiscal 2016 are open tax years. The Company’s state tax filings are subject to varying statutes of limitations. The Company’s unrecognized state tax benefits are related to open tax years from fiscal 2005 through fiscal 2017, depending on each state’s particular statute of limitation. As of July 30, 2016, the fiscal 2011, 2012 and 2013 U.S. federal income tax returns are under examination as well as various state, local, and foreign income tax returns by various taxing authorities.

The Company has a $1.1 million liability recorded for unrecognized tax benefits as of January 30, 2016, which includes interest and penalties of $0.2 million. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. All of the unrecognized tax benefits, if recognized, would affect the Company’s effective tax rate. During the three months and six months ended July 30, 2016, the total amount of unrecognized tax benefits increased by approximately $37,000 and $87,000, respectively. The change to the total amount of the unrecognized tax benefit for the three and six months ended July 30, 2016 included an increase in interest and penalties of approximately $15,000 and $41,000, respectively.

The Company does not currently anticipate a resolution within the next twelve months for any of the remaining unrecognized tax benefits as of July 30, 2016. The statute of limitations related to the Company’s fiscal 2011, 2012 and 2013 U.S. federal tax years has been extended as part of the examination and is not expected to lapse within the next twelve months.

At the end of fiscal 2016, the Company maintained a $46.2 million valuation allowance against its remaining domestic deferred tax asset; including, but not limited to, the federal net operating loss carryforward and the U.S. state net operating loss carryforwards, utilization of which is not restricted by factors beyond the Company’s control. The establishment of valuation allowances and development of projected annual effective tax rates requires significant judgment and is impacted by various estimates. Both positive and negative evidence, as well as the objectivity and verifiability of that evidence, is considered in determining the appropriateness of recording a valuation allowance on deferred tax assets. An accumulation of recent pretax losses is considered strong negative evidence in that evaluation. Although the Company recognized pretax earnings through the six months ended July 30, 2016, by itself that does not represent sufficient positive evidence that its deferred tax asset will be realized to warrant removing the valuation allowances established against the U.S. deferred tax assets. Deferred tax assets without valuation allowances remain in certain foreign tax jurisdictions, where supported by the evidence.

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STOCK OPTIONS, STOCK APPRECIATION RIGHTS AND RESTRICTED SHARES

6 Months Ended

Jul. 30, 2016

STOCK OPTIONS, STOCK APPRECIATION RIGHTS AND RESTRICTED SHARES

14. STOCK OPTIONS, STOCK APPRECIATION RIGHTS AND RESTRICTED SHARES

During the first and second quarters of fiscal 2017, the Company granted an aggregate of 86,173 and 14,914 shares of restricted stock to certain key employees, which vest primarily over a three-year period, at an estimated value of $1.6 million and $0.3 million, respectively. This value is being recorded as compensation expense on a straight-line basis over the vesting period of the restricted stock.

Also, during the second quarter of fiscal 2017, the Company awarded to six directors an aggregate of 31,902 shares of restricted stock. The restricted stock awarded vests primarily over a one-year period, at an estimated value of $0.7 million. This value is being recorded as compensation expense on a straight-line basis over the vesting period of the restricted stock.

During the first quarter of fiscal 2017, the Company granted performance based restricted stock to certain key employees. Such stock generally vests 100% in April 2019, provided that each employee is still an employee of the Company on such date, and that the Company has met certain performance criteria. A total of 184,004 shares of performance-based restricted stock were issued at an estimated value of $3.5 million.

During the first and second quarters of fiscal 2017, a total of 159,862 and 11,343 shares of restricted stock vested, of which 46,000 and 3,105 shares were withheld to cover the employees’ statutory income tax requirements. The estimated value of the withheld shares was $880,000 and $60,000, respectively.

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SEGMENT INFORMATION

6 Months Ended

Jul. 30, 2016

SEGMENT INFORMATION

15. SEGMENT INFORMATION

The Company has four reportable segments: Men’s Sportswear and Swim, Women’s Sportswear, Direct-to-Consumer and Licensing. The Men’s Sportswear and Swim and Women’s Sportswear segments derive revenues from the design, import and distribution of apparel to department stores and other retail outlets, principally throughout the United States. The Direct-to-Consumer segment derives its revenues from the sale of the Company’s branded and licensed products through the Company’s retail stores and e-commerce platforms. The Licensing segment derives its revenues from royalties associated from the use of the Company’s brand names, principally Perry Ellis, Original Penguin, Laundry, Gotcha, Pro Player, Farah, Ben Hogan and John Henry.

The Company allocates certain corporate selling, general and administrative expenses based primarily on the revenues generated by the segments.

	Three Months Ended						Six Months Ended
	July 30, 2016			August 1, 2015			July 30, 2016			August 1, 2015
	(in thousands)
Revenues:
Men’s Sportswear and Swim	$	145,148		$	150,488		$	343,073		$	348,941
Women’s Sportswear		24,136			29,882			56,625			68,705
Direct-to-Consumer		24,057			24,268			44,518			45,249
Licensing		8,312			8,661			18,731			16,818
Total revenues	$	201,653		$	213,299		$	462,947		$	479,713
Depreciation and amortization:
Men’s Sportswear and Swim	$	2,006		$	1,863		$	3,903		$	3,738
Women’s Sportswear		764			566			1,378			1,066
Direct-to-Consumer		889			971			1,785			1,875
Licensing		57			46			117			89
Total depreciation and amortization	$	3,716		$	3,446		$	7,183		$	6,768
Operating (loss) income:
Men’s Sportswear and Swim	$	(2,425	)	$	822		$	14,517		$	12,152
Women’s Sportswear		(3,106	)		(1,051	)		(3,457	)		331
Direct-to-Consumer		(2,933	)		(2,147	)		(6,305	)		(4,013	)
Licensing (1)		5,925			6,618			14,389			12,245
Total operating (loss) income	$	(2,539	)	$	4,242		$	19,144		$	20,715
Costs on early extinguishment of debt		—			5,121			—			5,121
Total interest expense		1,889			1,943			3,914			5,570
Total net (loss) income before income taxes	$	(4,428	)	$	(2,822	)	$	15,230		$	10,024

⁽¹⁾  Operating income for the licensing segment for the six months ended July 30, 2016, includes a loss on sale of long-lived assets in the amount of $0.7 million. See footnote 7 to the consolidated financial statements for further information.

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BENEFIT PLAN

6 Months Ended

Jul. 30, 2016

BENEFIT PLAN

16. BENEFIT PLAN

The Company sponsors a qualified pension plan. The following table provides the components of net benefit cost for the plan during the three and six months of fiscal 2017 and 2016:

	Three Months Ended						Six Months Ended
	July 30, 2016			August 1, 2015			July 30, 2016			August 1, 2015
	(in thousands)
Service cost	$	63		$	63		$	126		$	126
Interest cost		124			337			248			674
Expected return on plan assets		(87	)		(658	)		(174	)		(1,316	)
Amortization of net gain		155			135			310			270
Net periodic benefit cost	$	255		$	(123	)	$	510		$	(246	)

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SENIOR SUBORDINATED NOTES PAYABLE

6 Months Ended

Jul. 30, 2016

SENIOR SUBORDINATED NOTES PAYABLE

17. SENIOR SUBORDINATED NOTES PAYABLE

In March 2011, the Company issued $150 million 7 ⁷⁄₈ % senior subordinated notes, due April 1, 2019. The proceeds of this offering were used to retire the $150 million 8 ⁷⁄₈ % senior subordinated notes due September 15, 2013 and to repay a portion of the outstanding balance on the senior credit facility. The proceeds to the Company were $146.5 million yielding an effective interest rate of 8.0%.

On April 6, 2015, the Company elected to call for the partial redemption of $100 million of its $150 million 7 ⁷⁄₈% senior subordinated notes due 2019 and a notice of redemption was sent to all registered holders of the senior subordinated notes. The redemption terms provided for the payment of a redemption premium of 103.938% of the principal amount redeemed. On May 6, 2015, the Company completed the redemption of the $100 million of its senior subordinated notes. The Company incurred debt extinguishment costs of approximately $5.1 million in connection with the redemption, including the redemption premium as well as the write-off of note issuance costs. At July 30, 2016, the balance of the 7 ⁷⁄₈% senior subordinated notes totaled $49.6 million, net of debt issuance cost in the amount of $0.4 million. At January 30, 2016, the balance of the 7 ⁷⁄₈% senior subordinated notes totaled $49.5 million, net of debt issuance cost in the amount of $0.5 million.

Certain Covenants. The indenture governing the senior subordinated notes contains certain covenants which restrict the Company’s ability and the ability of its subsidiaries to, among other things, incur additional indebtedness in certain circumstances, pay dividends or make other distributions on, redeem or repurchase capital stock, make investments or other restricted payments, create liens on assets to secure debt, engage in transactions with affiliates, and effect a consolidation or merger. The Company is not aware of any non-compliance with any of its covenants in this indenture. The Company could be materially harmed if it violates any covenants because the indenture’s trustee could declare the outstanding notes, together with accrued interest, to be immediately due and payable, which the Company may not be able to satisfy. In addition, a violation could also constitute a cross-default under the senior credit facility, the letter of credit facilities and the real estate mortgages resulting in all of the Company’s debt obligations becoming immediately due and payable, which the Company may not be able to satisfy.

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SENIOR CREDIT FACILITY

6 Months Ended

Jul. 30, 2016

SENIOR CREDIT FACILITY

18. SENIOR CREDIT FACILITY

On April 22, 2015, the Company amended and restated its existing senior credit facility (the “Credit Facility”), with Wells Fargo Bank, National Association, as agent for the lenders, and Bank of America, N.A., as syndication agent. The Credit Facility provides a revolving credit facility of up to an aggregate amount of $200 million. The Credit Facility has been extended through April 30, 2020. In connection with this amendment and restatement, the Company paid fees in the amount of $0.6 million. These fees will be amortized over the term of the credit facility as interest expense. At July 30, 2016, the Company had outstanding borrowings of $33.9 million under the Credit Facility. At January 30, 2016, the Company had outstanding borrowings of $61.8 million, under the Credit Facility.

Certain Covenants. The Credit Facility contains certain financial and other covenants, which, among other things, require the Company to maintain a minimum fixed charge coverage ratio if availability falls below certain thresholds. The Company is not aware of any non-compliance with any of its covenants in this Credit Facility. These covenants may restrict the Company’s ability and the ability of its subsidiaries to, among other things, incur additional indebtedness and liens in certain circumstances, redeem or repurchase capital stock, make certain investments or sell assets. The Company may pay cash dividends subject to certain restrictions set forth in the covenants including, but not limited to, meeting a minimum excess availability threshold and no occurrence of a default. The Company could be materially harmed if it violates any covenants, as the lenders under the Credit Facility could declare all amounts outstanding, together with accrued interest, to be immediately due and payable. If the Company is unable to repay those amounts, the lenders could proceed against its assets and the assets of its subsidiaries that are borrowers or guarantors. In addition, a covenant violation that is not cured or waived by the lenders could also constitute a cross-default under certain of the Company’s other outstanding indebtedness, such as the indenture relating to its 7 ⁷⁄₈% senior subordinated notes due April 1, 2019, its letter of credit facilities, or its real estate mortgage loans. A cross-default could result in all of the Company’s debt obligations becoming immediately due and payable, which it may not be able to satisfy. Additionally, the Credit Facility includes a subjective acceleration clause if a “material adverse change” in the Company’s business occurs. The Company believes that the likelihood of the lender exercising this right is remote.

Borrowing Base. Borrowings under the Credit Facility are limited to a borrowing base calculation, which generally restricts the outstanding balance to the sum of (a) 87.5% of eligible receivables plus (b) 87.5% of eligible foreign accounts up to $1.5 million plus (c) the lesser of (i) the inventory loan limit, which equals 80% of the maximum credit under the Credit Facility at the time, (ii) a maximum of 70.0% of eligible finished goods inventory with an inventory limit not to exceed $125 million, or 90.0% of the net recovery percentage (as defined in the Credit Facility) of eligible inventory.

Interest. Interest on the outstanding principal balance drawn under the Credit Facility accrues at the prime rate and at the rate quoted by the agent for Eurodollar loans. The margin adjusts quarterly, in a range of 0.50% to 1.00% for prime rate loans and 1.50% to 2.00% for Eurodollar loans, based on the previous quarterly average of excess availability plus excess cash on the last day of the previous quarter.

Security. As security for the indebtedness under the Credit Facility, the Company granted to the lenders a first priority security interest (subject to liens permitted under the Credit Facility to be senior thereto) in substantially all of its existing and future assets, including, without limitation, accounts receivable, inventory, deposit accounts, general intangibles, equipment and capital stock or membership interests, as the case may be, of certain subsidiaries, and real estate, but excluding its non-U.S. subsidiaries and all of its trademark portfolio.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jul. 30, 2016

FAIR VALUE MEASUREMENTS

19. FAIR VALUE MEASUREMENTS

Accounts receivable, accounts payable, accrued interest payable and accrued expenses. The carrying amounts reported in the consolidated balance sheets approximate fair value due to the short-term nature of these instruments.

Investments. (classified within Level 1 of the valuation hierarchy)—The carrying amounts of the available-for-sale investments are measured at fair value on a recurring basis in the consolidated balance sheets.

Real estate mortgages. (classified within Level 2 of the valuation hierarchy)—The carrying amounts of the real estate mortgages were approximately $21.7 million and $22.0 million at July 30, 2016 and January 30, 2016, respectively. The carrying values of the real estate mortgages at July 30, 2016 and January 30, 2016, approximate their fair values since the interest rates approximate market.

Senior credit facility. The carrying amount of the senior credit facility approximates fair value due to the frequent resets of its floating interest rate.

Senior subordinated notes payable. (classified within Level 1 of the valuation hierarchy)—The carrying amounts of the 7 ⁷⁄₈% senior subordinated notes payable were approximately $49.6 million and $49.5 million at July 30, 2016 and January 30, 2016. The fair value of the 7 ⁷⁄₈% senior subordinated notes payable was approximately $49.5 million and $49.0 million as of July 30, 2016 and January 30, 2016, respectively, based on quoted market prices.

These estimated fair value amounts have been determined using available market information and appropriate valuation methods.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jul. 30, 2016

COMMITMENTS AND CONTINGENCIES

20. COMMITMENTS AND CONTINGENCIES

On April 20, 2016, the Company entered into an employment agreement with George Feldenkreis, the Company’s Executive Chairman. The term of the employment agreement shall continue until Mr. Feldenkreis’ death or termination of the employment agreement by the Company or Mr. Feldenkreis. He will be paid a base salary of not less than $750,000 per year during the term of employment and, among other things, a lump sum payment of $1.0 million upon the termination of his employment in most circumstances. Additionally, he is entitled to participate in the Company’s incentive compensation plans. In connection with the terms of his new employment agreement, the Company accelerated the expense recognition related to his outstanding cash incentive and stock based compensation awards. The impact of the acceleration was a $4.2 million charge during the second quarter of fiscal 2017 to selling, general and administrative expenses.

On April 20, 2016, the Company entered into an employment agreement with Oscar Feldenkreis, the Company’s Vice Chairman of the Board of Directors, Chief Executive Officer and President. The term of the employment agreement ends on February 2, 2019. Pursuant to the employment agreement, he will be paid a base salary of not less than $1,350,000 per year during the term of his employment with the Company. Additionally, he is entitled to participate in the Company’s incentive compensation plans.

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

6 Months Ended

Jul. 30, 2016

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

21. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The Company and several of its subsidiaries (the “Guarantors”) have fully and unconditionally guaranteed the senior subordinated notes payable on a joint and several basis. These guarantees are subject to release in limited circumstances (only upon the occurrence of certain customary conditions). The following are condensed consolidating financial statements, which present, in separate columns: Perry Ellis International, Inc., (Parent Only), the Guarantors on a combined, or where appropriate, consolidated basis, and the Non-Guarantors on a combined, or where appropriate, consolidated basis. Additional columns present eliminating adjustments and consolidated totals as of July 30, 2016 and January 30, 2016 and for the three and six months ended July 30, 2016 and August 1, 2015. The combined Guarantors are 100% owned subsidiaries of Perry Ellis International, Inc., and have fully and unconditionally guaranteed the senior subordinated notes payable on a joint and several basis.

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

AS OF JULY 30, 2016

(amounts in thousands)

	Parent Only		Guarantors		Non- Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	3,949	$	23,933	$	—		$	27,882
Accounts receivable, net		—		94,942		25,697		—			120,639
Intercompany receivable, net		80,417		—		—		(80,417	)		—
Inventories		—		113,649		20,765		—			134,414
Investment, at fair value		—		—		13,633		—			13,633
Prepaid expenses and other current assets		—		7,525		822		—			8,347
Total current assets		80,417		220,065		84,850		(80,417	)		304,915
Property and equipment, net		—		61,312		2,484		—			63,796
Other intangible assets, net		—		155,153		32,332		—			187,485
Deferred income taxes		—		—		392		—			392
Investment in subsidiaries		275,401		—		—		(275,401	)		—
Other assets		—		1,962		795		—			2,757
TOTAL	$	355,818	$	438,492	$	120,853	$	(355,818	)	$	559,345
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	—	$	46,167	$	9,573	$	—		$	55,740
Accrued expenses and other liabilities		—		17,972		4,907		—			22,879
Accrued interest payable		1,487		—		—		—			1,487
Income taxes payable		823		624		708		(1,696	)		459
Unearned revenues		—		3,068		789		—			3,857
Deferred pension obligation		—		12,136		70		—			12,206
Intercompany payable, net		—		72,291		17,298		(89,589	)		—
Total current liabilities		2,310		152,258		33,345		(91,285	)		96,628
Senior subordinated notes payable, net		49,600		—		—		—			49,600
Senior credit facility		—		33,865		—		—			33,865
Real estate mortgages		—		20,873		—		—			20,873
Unearned revenues and other long-term liabilities		—		18,247		217		—			18,464
Deferred income taxes		—		34,311		—		1,696			36,007
Total long-term liabilities		49,600		107,296		217		1,696			158,809
Total liabilities		51,910		259,554		33,562		(89,589	)		255,437
Total equity		303,908		178,938		87,291		(266,229	)		303,908
TOTAL	$	355,818	$	438,492	$	120,853	$	(355,818	)	$	559,345

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF JANUARY 30, 2016

(amounts in thousands)

	Parent Only		Guarantors		Non- Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	775	$	31,127	$	—		$	31,902
Accounts receivable, net		—		106,018		26,048		—			132,066
Intercompany receivable, net		74,091		—		—		(74,091	)		—
Inventories		—		155,703		27,047		—			182,750
Investment, at fair value		—		—		9,782		—			9,782
Prepaid income taxes		1,017		—		—		801			1,818
Prepaid expenses and other current assets		—		7,426		1,035		—			8,461
Total current assets		75,108		269,922		95,039		(73,290	)		366,779
Property and equipment, net		—		61,260		2,648		—			63,908
Other intangible assets, net		—		155,587		32,332		—			187,919
Investment in subsidiaries		267,422		—		—		(267,422	)		—
Deferred income taxes		—		—		442		—			442
Other assets		—		2,150		777		—			2,927
TOTAL	$	342,530	$	488,919	$	131,238	$	(340,712	)	$	621,975
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	—	$	89,961	$	13,723	$	—		$	103,684
Accrued expenses and other liabilities		—		21,524		4,973		—			26,497
Accrued interest payable		1,521		—		—		—			1,521
Income taxes payable		—		623		272		(895	)		—
Unearned revenues		—		2,952		1,261		—			4,213
Deferred pension obligation		—		12,025		82		—			12,107
Intercompany payable, net		—		60,384		21,449		(81,833	)		—
Total current liabilities		1,521		187,469		41,760		(82,728	)		148,022
Senior subordinated notes payable, net		49,528		—		—		—			49,528
Senior credit facility		—		61,758		—		—			61,758
Real estate mortgages		—		21,318		—		—			21,318
Unearned revenues and other long-term liabilities		—		14,608		245		—			14,853
Deferred income taxes		—		33,319		—		1,696			35,015
Total long-term liabilities		49,528		131,003		245		1,696			182,472
Total liabilities		51,049		318,472		42,005		(81,032	)		330,494
Total equity		291,481		170,447		89,233		(259,680	)		291,481
TOTAL	$	342,530	$	488,919	$	131,238	$	(340,712	)	$	621,975

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS ) INCOME (UNAUDITED)

FOR THE THREE MONTHS ENDED JULY 30, 2016

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations		Consolidated
Revenues:
Net sales	$	—		$	169,237		$	24,104		$	—	$	193,341
Royalty income		—			5,061			3,251			—		8,312
Total revenues		—			174,298			27,355			—		201,653
Cost of sales		—			111,729			16,093			—		127,822
Gross profit		—			62,569			11,262			—		73,831
Operating expenses:
Selling, general and administrative expenses		—			62,361			10,293			—		72,654
Depreciation and amortization		—			3,276			440			—		3,716
Total operating expenses		—			65,637			10,733			—		76,370
Operating (loss) income		—			(3,068	)		529			—		(2,539	)
Interest expense (income)		—			1,901			(12	)		—		1,889
Net (loss) income before income taxes		—			(4,969	)		541			—		(4,428	)
Income tax (benefit) provision		—			(1,441	)		578			—		(863	)
Equity in earnings of subsidiaries, net		(3,565	)		—			—			3,565		—
Net loss		(3,565	)		(3,528	)		(37	)		3,565		(3,565	)
Other comprehensive (loss) income		(2,928	)		155			(3,083	)		2,928		(2,928	)
Comprehensive loss	$	(6,493	)	$	(3,373	)	$	(3,120	)	$	6,493	$	(6,493	)

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS ) INCOME (UNAUDITED)

FOR THE THREE MONTHS ENDED AUGUST 1, 2015

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Net sales	$	—		$	179,921		$	24,717		$	—		$	204,638
Royalty income		—			5,286			3,375			—			8,661
Total revenues		—			185,207			28,092			—			213,299
Cost of sales		—			121,408			15,949			—			137,357
Gross profit		—			63,799			12,143			—			75,942
Operating expenses:
Selling, general and administrative expenses		—			57,275			10,979			—			68,254
Depreciation and amortization		—			3,138			308			—			3,446
Total operating expenses		—			60,413			11,287			—			71,700
Operating income		—			3,386			856			—			4,242
Costs on early extinguishment of debt		—			5,121			—			—			5,121
Interest expense		—			1,939			4			—			1,943
Net (loss) income before income taxes		—			(3,674	)		852			—			(2,822	)
Income tax (benefit) provision		—			(2,517	)		976			—			(1,541	)
Equity in earnings of subsidiaries, net		(1,281	)		—			—			1,281			—
Net loss		(1,281	)		(1,157	)		(124	)		1,281			(1,281	)
Other comprehensive income		288			135			153			(288	)		288
Comprehensive (loss) income	$	(993	)	$	(1,022	)	$	29		$	993		$	(993	)

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE SIX MONTHS ENDED JULY 30, 2016

(amounts in thousands)

	Parent Only			Guarantors		Non- Guarantors			Eliminations			Consolidated
Revenues:
Net sales	$	—		$	394,142	$	50,074		$	—		$	444,216
Royalty income		—			12,275		6,456			—			18,731
Total revenues		—			406,417		56,530			—			462,947
Cost of sales		—			260,705		33,327			—			294,032
Gross profit		—			145,712		23,203			—			168,915
Operating expenses:
Selling, general and administrative expenses		—			123,794		18,794			—			142,588
Depreciation and amortization		—			6,467		716			—			7,183
Total operating expenses		—			130,261		19,510			—			149,771
Operating income		—			15,451		3,693			—			19,144
Interest expense		—			3,935		(21	)		—			3,914
Net income before income taxes		—			11,516		3,714			—			15,230
Income tax provision		—			3,025		1,520			—			4,545
Equity in earnings of subsidiaries, net		10,685			—		—			(10,685	)		—
Net income		10,685			8,491		2,194			(10,685	)		10,685
Other comprehensive (loss) income		(1,103	)		310		(1,413	)		1,103			(1,103	)
Comprehensive income	$	9,582		$	8,801	$	781		$	(9,582	)	$	9,582

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE SIX MONTHS ENDED AUGUST 1, 2015

(amounts in thousands)

	Parent Only		Guarantors			Non- Guarantors		Eliminations			Consolidated
Revenues:
Net sales	$	—	$	412,200		$	50,695	$	—		$	462,895
Royalty income		—		10,198			6,620		—			16,818
Total revenues		—		422,398			57,315		—			479,713
Cost of sales		—		281,659			32,012		—			313,671
Gross profit		—		140,739			25,303		—			166,042
Operating expenses:
Selling, general and administrative expenses		—		117,120			20,742		—			137,862
Depreciation and amortization		—		6,162			606		—			6,768
Total operating expenses		—		123,282			21,348		—			144,630
Loss on sale of long-lived assets		—		(697	)		—		—			(697	)
Operating income		—		16,760			3,955		—			20,715
Costs on early extinguishment of debt		—		5,121			—		—			5,121
Interest expense		—		5,506			64		—			5,570
Net income before income taxes		—		6,133			3,891		—			10,024
Income tax provision		—		564			1,330		—			1,894
Equity in earnings of subsidiaries, net		8,130		—			—		(8,130	)		—
Net income		8,130		5,569			2,561		(8,130	)		8,130
Other comprehensive income		1,354		270			1,084		(1,354	)		1,354
Comprehensive income	$	9,484	$	5,839		$	3,645	$	(9,484	)	$	9,484

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED JULY 30, 2016

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations			Consolidated
NET CASH PROVIDED BY OPERATING ACTIVITIES:	$	4,543		$	28,295		$	4,802		$	(2,706	)	$	34,934
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		—			(5,854	)		(755	)		—			(6,609	)
Purchase of investments		—			—			(9,039	)		—			(9,039	)
Proceeds from investments maturities		—			—			5,205			—			5,205
Intercompany transactions		(4,477	)		—			—			4,477			—
Net cash used in investing activities		(4,477	)		(5,854	)		(4,589	)		4,477			(10,443	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings from senior credit facility		—			179,380			—			—			179,380
Payments on senior credit facility		—			(207,273	)		—			—			(207,273	)
Payments on real estate mortgages		—			(423	)		—			—			(423	)
Payments on capital leases		—			(129	)		—			—			(129	)
Dividends paid to stockholder		—			—			(2,706	)		2,706			—
Proceeds from exercise of stock options		5			—			—			—			5
Intercompany transactions		—			9,178			(4,630	)		(4,548	)		—
Net cash provided by (used in) financing activities		5			(19,267	)		(7,336	)		(1,842	)		(28,440	)
Effect of exchange rate changes on cash and cash equivalents		(71	)		—			(71	)		71			(71	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		—			3,174			(7,194	)		—			(4,020	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		—			775			31,127			—			31,902
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	—		$	3,949		$	23,933		$	—		$	27,882

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED AUGUST 1, 2015

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations			Consolidated
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES:	$	(1,789	)	$	19,293		$	2,972		$	—		$	20,476
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		—			(6,734	)		(611	)		—			(7,345	)
Purchase of investments		—			—			(2,641	)		—			(2,641	)
Proceeds from investment maturities		—			—			11,860			—			11,860
Proceeds on sale of intangible assets		—			2,500			—			—			2,500
Intercompany transactions		100,076			—			—			(100,076	)		—
Net cash provided by (used in) investing activities		100,076			(4,234	)		8,608			(100,076	)		4,374
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on senior subordinated notes		(100,000	)		—			—			—			(100,000	)
Borrowings from senior credit facility		—			255,065			—			—			255,065
Payments on senior credit facility		—			(196,854	)		—			—			(196,854	)
Payments on real estate mortgages		—			(410	)		—			—			(410	)
Payments on capital leases		—			(77	)		—			—			(77	)
Deferred financing fees		—			(569	)		—			—			(569	)
Proceeds from exercise of stock options		1,339			—			—			—			1,339
Tax benefit from exercise of equity instruments		(201	)		—			—			—			(201	)
Intercompany transactions		—			(97,968	)		(2,683	)		100,651			—
Net cash used in financing activities		(98,862	)		(40,813	)		(2,683	)		100,651			(41,707	)
Effect of exchange rate changes on cash and cash equivalents		575			—			575			(575	)		575
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		—			(25,754	)		9,472			—			(16,282	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		—			30,055			13,492			—			43,547
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	—		$	4,301		$	22,964		$	—		$	27,265

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ACCOUNTS RECEIVABLE (Tables)

6 Months Ended

Jul. 30, 2016

Components of Accounts Receivable

Accounts receivable consisted of the following as of:

	July 30, 2016			January 30, 2016
	(in thousands)
Trade accounts	$	133,691		$	144,708
Royalties		4,442			5,892
Other receivables		1,011			1,769
Total		139,144			152,369
Less: allowances		(18,505	)		(20,303	)
Total	$	120,639		$	132,066

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INVENTORIES (Tables)

6 Months Ended

Jul. 30, 2016

Summary of Inventories

Inventories consisted of the following as of:

	July 30, 2016		January 30, 2016
	(in thousands)
Finished goods	$	134,414	$	182,414
Raw materials and in process		—		336
Total	$	134,414	$	182,750

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INVESTMENTS (Tables)

6 Months Ended

Jul. 30, 2016

Investments

Investments consisted of the following as of July 30, 2016:

			Gross		Gross			Estimated
	Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Marketable securities	$	3,264	$	12	$	—		$	3,276
Certificates of deposit		10,361		—		(4	)		10,357
Total investments	$	13,625	$	12	$	(4	)	$	13,633

Investments consisted of the following as of January 30, 2016:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(in thousands)
Certificates of deposit	$	9,791	$	—	$	(9	)	$	9,782
Total investments	$	9,791	$	—	$	(9	)	$	9,782

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PROPERTY AND EQUIPMENT (Tables)

6 Months Ended

Jul. 30, 2016

Summary of Property and Equipment

Property and equipment consisted of the following as of:

	July 30, 2016			January 30, 2016
	(in thousands)
Furniture, fixtures and equipment	$	87,713		$	84,634
Buildings and building improvements		20,420			19,462
Vehicles		523			523
Leasehold improvements		48,078			46,882
Land		9,430			9,430
Total		166,164			160,931
Less: accumulated depreciation and amortization		(102,368	)		(97,023	)
Total	$	63,796		$	63,908

Summary of Property and Equipment Includes Assets Held under Capital Leases

The above table of property and equipment includes assets held under capital leases as of:

	July 30,			January 30,
	2016			2016
	(in thousands)
Furniture, fixtures and equipment	$	810		$	810
Less: accumulated depreciation and amortization		(317	)		(182	)
Total	$	493		$	628

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OTHER INTANGIBLE ASSETS (Tables)

6 Months Ended

Jul. 30, 2016

Summary of Other Intangible Assets

Other intangible assets represent customer lists as of:

	July 30, 2016			January 30, 2016
	(in thousands)
Customer lists	$	8,450		$	8,450
Less: accumulated amortization		(5,111	)		(4,677	)
Total	$	3,339		$	3,773

Schedule of Estimated Amortization Expense for Future Periods

Assuming no impairment, the table sets forth the estimated amortization expense for future periods based on recorded amounts as of January 30, 2016:

	(in thousands)
2017	$	868
2018	$	835
2019	$	793
2020	$	734
2021	$	543

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LETTER OF CREDIT FACILITIES (Tables)

6 Months Ended

Jul. 30, 2016

Borrowings and Availability under Letter of Credit Facilities

Borrowings and availability under letter of credit facilities consisted of the following as of:

	July 30, 2016			January 30, 2016
	(in thousands)
Total letter of credit facilities	$	30,264		$	30,286
Outstanding letters of credit		(11,470	)		(11,395	)
Total credit available	$	18,794		$	18,891

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NET (LOSS) INCOME PER SHARE (Tables)

6 Months Ended

Jul. 30, 2016

Calculation of Basic and Diluted (Loss) Income Per Share

The following table sets forth the computation of basic and diluted (loss) income per share:

	Three Months Ended						Six Months Ended
	July 30, 2016			August 1, 2015			July 30, 2016		August 1, 2015
	(in thousands, except per share data)
Numerator:
Net (loss) income	$	(3,565	)	$	(1,281	)	$	10,685	$	8,130
Denominator:
Basic-weighted average shares		14,953			15,048			14,882		14,849
Dilutive effect: equity awards		—			—			257		434
Diluted-weighted average shares		14,953			15,048			15,139		15,283
Basic (loss) income per share	$	(0.24	)	$	(0.09	)	$	0.72	$	0.55
Diluted (loss) income per share	$	(0.24	)	$	(0.09	)	$	0.71	$	0.53
Antidilutive effect:(1)		1,103			1,220			604		517

⁽¹⁾ Represents weighted average of stock options to purchase shares of common stock, SARS and restricted stock that were not included in computing diluted income per share because their effects were antidilutive for the respective periods.

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EQUITY (Tables)

6 Months Ended

Jul. 30, 2016

Changes in Equity

The following table reflects the changes in equity:

	Changes in Equity
	(in thousands)
Equity at January 30, 2016	$	291,481
Comprehensive income		9,582
Share transactions under employee equity compensation plans		2,845
Equity at July 30, 2016	$	303,908
Equity at January 31, 2015	$	302,017
Comprehensive income		9,484
Share transactions under employee equity compensation plans		2,199
Equity at August 1, 2015	$	313,700

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

6 Months Ended

Jul. 30, 2016

Changes in Accumulated Other Comprehensive Loss by Component Net of Tax

Changes in accumulated other comprehensive loss by component, net of tax:

	Unrealized (Loss) Gain on Pension Liability			Foreign Currency Translation Adjustments, Net			Unrealized Gain (Loss) on Investments			Total
	(in thousands)
Balance, January 30, 2016	$	(7,368	)	$	(7,131	)	$	(9	)	$	(14,508	)
Other comprehensive (loss) income before reclassifications		—			(1,430	)		17			(1,413	)
Amounts reclassified from accumulated other comprehensive income		310			—			—			310
Balance, July 30, 2016	$	(7,058	)	$	(8,561	)	$	8		$	(15,611	)

	Unrealized (Loss) Gain on Pension Liability			Foreign Currency Translation Adjustments, Net			Unrealized (Loss) Gain on Investments			Total
	(in thousands)
Balance, January 31, 2015	$	(8,085	)	$	(4,774	)	$	7		$	(12,852	)
Other comprehensive income (loss) before reclassifications		—			1,091			(7	)		1,084
Amounts reclassified from accumulated other comprehensive income		270			—			—			270
Balance, August 1, 2015	$	(7,815	)	$	(3,683	)	$	—		$	(11,498	)

Summary of Impact on Condensed Consolidated Statements of Operations Line Items

A summary of the impact on the condensed consolidated statements of operations line items is as follows:

	Three Months Ended
	July 30, 2016		August 1, 2015
	(in thousands)
Amortization of defined benefit pension items
Actuarial gains	$	155	$	135	Selling, general and administrative expenses
Tax provision		—		—	Income tax provision
Total, net of tax	$	155	$	135
	Six Months Ended
	July 30, 2016		August 1, 2015
	(in thousands)
Amortization of defined benefit pension items
Actuarial gains	$	310	$	270	Selling, general and administrative expenses
Tax provision		—		—	Income tax provision
Total, net of tax	$	310	$	270

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SEGMENT INFORMATION (Tables)

6 Months Ended

Jul. 30, 2016

Segment Information

The Company allocates certain corporate selling, general and administrative expenses based primarily on the revenues generated by the segments.

	Three Months Ended						Six Months Ended
	July 30, 2016			August 1, 2015			July 30, 2016			August 1, 2015
	(in thousands)
Revenues:
Men’s Sportswear and Swim	$	145,148		$	150,488		$	343,073		$	348,941
Women’s Sportswear		24,136			29,882			56,625			68,705
Direct-to-Consumer		24,057			24,268			44,518			45,249
Licensing		8,312			8,661			18,731			16,818
Total revenues	$	201,653		$	213,299		$	462,947		$	479,713
Depreciation and amortization:
Men’s Sportswear and Swim	$	2,006		$	1,863		$	3,903		$	3,738
Women’s Sportswear		764			566			1,378			1,066
Direct-to-Consumer		889			971			1,785			1,875
Licensing		57			46			117			89
Total depreciation and amortization	$	3,716		$	3,446		$	7,183		$	6,768
Operating (loss) income:
Men’s Sportswear and Swim	$	(2,425	)	$	822		$	14,517		$	12,152
Women’s Sportswear		(3,106	)		(1,051	)		(3,457	)		331
Direct-to-Consumer		(2,933	)		(2,147	)		(6,305	)		(4,013	)
Licensing (1)		5,925			6,618			14,389			12,245
Total operating (loss) income	$	(2,539	)	$	4,242		$	19,144		$	20,715
Costs on early extinguishment of debt		—			5,121			—			5,121
Total interest expense		1,889			1,943			3,914			5,570
Total net (loss) income before income taxes	$	(4,428	)	$	(2,822	)	$	15,230		$	10,024

⁽¹⁾  Operating income for the licensing segment for the six months ended July 30, 2016, includes a loss on sale of long-lived assets in the amount of $0.7 million. See footnote 7 to the consolidated financial statements for further information.

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BENEFIT PLAN (Tables)

6 Months Ended

Jul. 30, 2016

Components of Net Benefit Cost

The following table provides the components of net benefit cost for the plan during the three and six months of fiscal 2017 and 2016:

	Three Months Ended						Six Months Ended
	July 30, 2016			August 1, 2015			July 30, 2016			August 1, 2015
	(in thousands)
Service cost	$	63		$	63		$	126		$	126
Interest cost		124			337			248			674
Expected return on plan assets		(87	)		(658	)		(174	)		(1,316	)
Amortization of net gain		155			135			310			270
Net periodic benefit cost	$	255		$	(123	)	$	510		$	(246	)

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

6 Months Ended

Jul. 30, 2016

Condensed Consolidating Balance Sheet

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

AS OF JULY 30, 2016

(amounts in thousands)

	Parent Only		Guarantors		Non- Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	3,949	$	23,933	$	—		$	27,882
Accounts receivable, net		—		94,942		25,697		—			120,639
Intercompany receivable, net		80,417		—		—		(80,417	)		—
Inventories		—		113,649		20,765		—			134,414
Investment, at fair value		—		—		13,633		—			13,633
Prepaid expenses and other current assets		—		7,525		822		—			8,347
Total current assets		80,417		220,065		84,850		(80,417	)		304,915
Property and equipment, net		—		61,312		2,484		—			63,796
Other intangible assets, net		—		155,153		32,332		—			187,485
Deferred income taxes		—		—		392		—			392
Investment in subsidiaries		275,401		—		—		(275,401	)		—
Other assets		—		1,962		795		—			2,757
TOTAL	$	355,818	$	438,492	$	120,853	$	(355,818	)	$	559,345
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	—	$	46,167	$	9,573	$	—		$	55,740
Accrued expenses and other liabilities		—		17,972		4,907		—			22,879
Accrued interest payable		1,487		—		—		—			1,487
Income taxes payable		823		624		708		(1,696	)		459
Unearned revenues		—		3,068		789		—			3,857
Deferred pension obligation		—		12,136		70		—			12,206
Intercompany payable, net		—		72,291		17,298		(89,589	)		—
Total current liabilities		2,310		152,258		33,345		(91,285	)		96,628
Senior subordinated notes payable, net		49,600		—		—		—			49,600
Senior credit facility		—		33,865		—		—			33,865
Real estate mortgages		—		20,873		—		—			20,873
Unearned revenues and other long-term liabilities		—		18,247		217		—			18,464
Deferred income taxes		—		34,311		—		1,696			36,007
Total long-term liabilities		49,600		107,296		217		1,696			158,809
Total liabilities		51,910		259,554		33,562		(89,589	)		255,437
Total equity		303,908		178,938		87,291		(266,229	)		303,908
TOTAL	$	355,818	$	438,492	$	120,853	$	(355,818	)	$	559,345

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF JANUARY 30, 2016

(amounts in thousands)

	Parent Only		Guarantors		Non- Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	775	$	31,127	$	—		$	31,902
Accounts receivable, net		—		106,018		26,048		—			132,066
Intercompany receivable, net		74,091		—		—		(74,091	)		—
Inventories		—		155,703		27,047		—			182,750
Investment, at fair value		—		—		9,782		—			9,782
Prepaid income taxes		1,017		—		—		801			1,818
Prepaid expenses and other current assets		—		7,426		1,035		—			8,461
Total current assets		75,108		269,922		95,039		(73,290	)		366,779
Property and equipment, net		—		61,260		2,648		—			63,908
Other intangible assets, net		—		155,587		32,332		—			187,919
Investment in subsidiaries		267,422		—		—		(267,422	)		—
Deferred income taxes		—		—		442		—			442
Other assets		—		2,150		777		—			2,927
TOTAL	$	342,530	$	488,919	$	131,238	$	(340,712	)	$	621,975
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	—	$	89,961	$	13,723	$	—		$	103,684
Accrued expenses and other liabilities		—		21,524		4,973		—			26,497
Accrued interest payable		1,521		—		—		—			1,521
Income taxes payable		—		623		272		(895	)		—
Unearned revenues		—		2,952		1,261		—			4,213
Deferred pension obligation		—		12,025		82		—			12,107
Intercompany payable, net		—		60,384		21,449		(81,833	)		—
Total current liabilities		1,521		187,469		41,760		(82,728	)		148,022
Senior subordinated notes payable, net		49,528		—		—		—			49,528
Senior credit facility		—		61,758		—		—			61,758
Real estate mortgages		—		21,318		—		—			21,318
Unearned revenues and other long-term liabilities		—		14,608		245		—			14,853
Deferred income taxes		—		33,319		—		1,696			35,015
Total long-term liabilities		49,528		131,003		245		1,696			182,472
Total liabilities		51,049		318,472		42,005		(81,032	)		330,494
Total equity		291,481		170,447		89,233		(259,680	)		291,481
TOTAL	$	342,530	$	488,919	$	131,238	$	(340,712	)	$	621,975

Condensed Consolidating Statement of Comprehensive Income

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS ) INCOME (UNAUDITED)

FOR THE THREE MONTHS ENDED JULY 30, 2016

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations		Consolidated
Revenues:
Net sales	$	—		$	169,237		$	24,104		$	—	$	193,341
Royalty income		—			5,061			3,251			—		8,312
Total revenues		—			174,298			27,355			—		201,653
Cost of sales		—			111,729			16,093			—		127,822
Gross profit		—			62,569			11,262			—		73,831
Operating expenses:
Selling, general and administrative expenses		—			62,361			10,293			—		72,654
Depreciation and amortization		—			3,276			440			—		3,716
Total operating expenses		—			65,637			10,733			—		76,370
Operating (loss) income		—			(3,068	)		529			—		(2,539	)
Interest expense (income)		—			1,901			(12	)		—		1,889
Net (loss) income before income taxes		—			(4,969	)		541			—		(4,428	)
Income tax (benefit) provision		—			(1,441	)		578			—		(863	)
Equity in earnings of subsidiaries, net		(3,565	)		—			—			3,565		—
Net loss		(3,565	)		(3,528	)		(37	)		3,565		(3,565	)
Other comprehensive (loss) income		(2,928	)		155			(3,083	)		2,928		(2,928	)
Comprehensive loss	$	(6,493	)	$	(3,373	)	$	(3,120	)	$	6,493	$	(6,493	)

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS ) INCOME (UNAUDITED)

FOR THE THREE MONTHS ENDED AUGUST 1, 2015

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Net sales	$	—		$	179,921		$	24,717		$	—		$	204,638
Royalty income		—			5,286			3,375			—			8,661
Total revenues		—			185,207			28,092			—			213,299
Cost of sales		—			121,408			15,949			—			137,357
Gross profit		—			63,799			12,143			—			75,942
Operating expenses:
Selling, general and administrative expenses		—			57,275			10,979			—			68,254
Depreciation and amortization		—			3,138			308			—			3,446
Total operating expenses		—			60,413			11,287			—			71,700
Operating income		—			3,386			856			—			4,242
Costs on early extinguishment of debt		—			5,121			—			—			5,121
Interest expense		—			1,939			4			—			1,943
Net (loss) income before income taxes		—			(3,674	)		852			—			(2,822	)
Income tax (benefit) provision		—			(2,517	)		976			—			(1,541	)
Equity in earnings of subsidiaries, net		(1,281	)		—			—			1,281			—
Net loss		(1,281	)		(1,157	)		(124	)		1,281			(1,281	)
Other comprehensive income		288			135			153			(288	)		288
Comprehensive (loss) income	$	(993	)	$	(1,022	)	$	29		$	993		$	(993	)

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE SIX MONTHS ENDED JULY 30, 2016

(amounts in thousands)

	Parent Only			Guarantors		Non- Guarantors			Eliminations			Consolidated
Revenues:
Net sales	$	—		$	394,142	$	50,074		$	—		$	444,216
Royalty income		—			12,275		6,456			—			18,731
Total revenues		—			406,417		56,530			—			462,947
Cost of sales		—			260,705		33,327			—			294,032
Gross profit		—			145,712		23,203			—			168,915
Operating expenses:
Selling, general and administrative expenses		—			123,794		18,794			—			142,588
Depreciation and amortization		—			6,467		716			—			7,183
Total operating expenses		—			130,261		19,510			—			149,771
Operating income		—			15,451		3,693			—			19,144
Interest expense		—			3,935		(21	)		—			3,914
Net income before income taxes		—			11,516		3,714			—			15,230
Income tax provision		—			3,025		1,520			—			4,545
Equity in earnings of subsidiaries, net		10,685			—		—			(10,685	)		—
Net income		10,685			8,491		2,194			(10,685	)		10,685
Other comprehensive (loss) income		(1,103	)		310		(1,413	)		1,103			(1,103	)
Comprehensive income	$	9,582		$	8,801	$	781		$	(9,582	)	$	9,582

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE SIX MONTHS ENDED AUGUST 1, 2015

(amounts in thousands)

	Parent Only		Guarantors			Non- Guarantors		Eliminations			Consolidated
Revenues:
Net sales	$	—	$	412,200		$	50,695	$	—		$	462,895
Royalty income		—		10,198			6,620		—			16,818
Total revenues		—		422,398			57,315		—			479,713
Cost of sales		—		281,659			32,012		—			313,671
Gross profit		—		140,739			25,303		—			166,042
Operating expenses:
Selling, general and administrative expenses		—		117,120			20,742		—			137,862
Depreciation and amortization		—		6,162			606		—			6,768
Total operating expenses		—		123,282			21,348		—			144,630
Loss on sale of long-lived assets		—		(697	)		—		—			(697	)
Operating income		—		16,760			3,955		—			20,715
Costs on early extinguishment of debt		—		5,121			—		—			5,121
Interest expense		—		5,506			64		—			5,570
Net income before income taxes		—		6,133			3,891		—			10,024
Income tax provision		—		564			1,330		—			1,894
Equity in earnings of subsidiaries, net		8,130		—			—		(8,130	)		—
Net income		8,130		5,569			2,561		(8,130	)		8,130
Other comprehensive income		1,354		270			1,084		(1,354	)		1,354
Comprehensive income	$	9,484	$	5,839		$	3,645	$	(9,484	)	$	9,484

Condensed Consolidating Statement of Cash Flows

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED JULY 30, 2016

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations			Consolidated
NET CASH PROVIDED BY OPERATING ACTIVITIES:	$	4,543		$	28,295		$	4,802		$	(2,706	)	$	34,934
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		—			(5,854	)		(755	)		—			(6,609	)
Purchase of investments		—			—			(9,039	)		—			(9,039	)
Proceeds from investments maturities		—			—			5,205			—			5,205
Intercompany transactions		(4,477	)		—			—			4,477			—
Net cash used in investing activities		(4,477	)		(5,854	)		(4,589	)		4,477			(10,443	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings from senior credit facility		—			179,380			—			—			179,380
Payments on senior credit facility		—			(207,273	)		—			—			(207,273	)
Payments on real estate mortgages		—			(423	)		—			—			(423	)
Payments on capital leases		—			(129	)		—			—			(129	)
Dividends paid to stockholder		—			—			(2,706	)		2,706			—
Proceeds from exercise of stock options		5			—			—			—			5
Intercompany transactions		—			9,178			(4,630	)		(4,548	)		—
Net cash provided by (used in) financing activities		5			(19,267	)		(7,336	)		(1,842	)		(28,440	)
Effect of exchange rate changes on cash and cash equivalents		(71	)		—			(71	)		71			(71	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		—			3,174			(7,194	)		—			(4,020	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		—			775			31,127			—			31,902
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	—		$	3,949		$	23,933		$	—		$	27,882

PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED AUGUST 1, 2015

(amounts in thousands)

	Parent Only			Guarantors			Non- Guarantors			Eliminations			Consolidated
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES:	$	(1,789	)	$	19,293		$	2,972		$	—		$	20,476
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		—			(6,734	)		(611	)		—			(7,345	)
Purchase of investments		—			—			(2,641	)		—			(2,641	)
Proceeds from investment maturities		—			—			11,860			—			11,860
Proceeds on sale of intangible assets		—			2,500			—			—			2,500
Intercompany transactions		100,076			—			—			(100,076	)		—
Net cash provided by (used in) investing activities		100,076			(4,234	)		8,608			(100,076	)		4,374
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on senior subordinated notes		(100,000	)		—			—			—			(100,000	)
Borrowings from senior credit facility		—			255,065			—			—			255,065
Payments on senior credit facility		—			(196,854	)		—			—			(196,854	)
Payments on real estate mortgages		—			(410	)		—			—			(410	)
Payments on capital leases		—			(77	)		—			—			(77	)
Deferred financing fees		—			(569	)		—			—			(569	)
Proceeds from exercise of stock options		1,339			—			—			—			1,339
Tax benefit from exercise of equity instruments		(201	)		—			—			—			(201	)
Intercompany transactions		—			(97,968	)		(2,683	)		100,651			—
Net cash used in financing activities		(98,862	)		(40,813	)		(2,683	)		100,651			(41,707	)
Effect of exchange rate changes on cash and cash equivalents		575			—			575			(575	)		575
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		—			(25,754	)		9,472			—			(16,282	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		—			30,055			13,492			—			43,547
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	—		$	4,301		$	22,964		$	—		$	27,265

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Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands	Jul. 30, 2016	Jan. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other assets	$ 2,757	$ 2,927
Senior subordinated notes payable, net	$ 49,600	49,528
ASU 2015-03 | Restatement Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other assets		(500)
Senior subordinated notes payable, net		$ (500)

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Components of Accounts Receivable (Detail) - USD ($) $ in Thousands	Jul. 30, 2016	Jan. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 139,144	$ 152,369
Less: allowances	(18,505)	(20,303)
Total	120,639	132,066
Trade Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	133,691	144,708
Royalties Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	4,442	5,892
Other Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 1,011	$ 1,769

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Inventories (Detail) - USD ($) $ in Thousands	Jul. 30, 2016	Jan. 30, 2016
Inventory [Line Items]
Finished goods	$ 134,414	$ 182,414
Raw materials and in process		336
Total	$ 134,414	$ 182,750

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Investments - Additional Information (Detail) $ in Millions	Jul. 30, 2016 USD ($)
Certificates of Deposit
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities maturing within one year or less	$ 10.4

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Investments (Detail) - USD ($) $ in Thousands	Jul. 30, 2016	Jan. 30, 2016
Schedule of Investments [Line Items]
Cost	$ 13,625	$ 9,791
Gross Unrealized Gains	12
Gross Unrealized Losses	(4)	(9)
Estimated Fair Value	13,633	9,782
Certificates of Deposit
Schedule of Investments [Line Items]
Cost	10,361	9,791
Gross Unrealized Losses	(4)	(9)
Estimated Fair Value	10,357	$ 9,782
Marketable securities
Schedule of Investments [Line Items]
Cost	3,264
Gross Unrealized Gains	12
Estimated Fair Value	$ 3,276

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Property and Equipment (Detail) - USD ($) $ in Thousands	Jul. 30, 2016	Jan. 30, 2016
Property, Plant and Equipment [Line Items]
Total	$ 166,164	$ 160,931
Less: accumulated depreciation and amortization	(102,368)	(97,023)
Total	63,796	63,908
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Total	87,713	84,634
Buildings and building improvements
Property, Plant and Equipment [Line Items]
Total	20,420	19,462
Vehicles
Property, Plant and Equipment [Line Items]
Total	523	523
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total	48,078	46,882
Land
Property, Plant and Equipment [Line Items]
Total	$ 9,430	$ 9,430

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Summary of Property and Equipment Includes Assets Held under Capital Leases (Detail) - USD ($) $ in Thousands	Jul. 30, 2016	Jan. 30, 2016
Property, Plant and Equipment [Line Items]
Furniture, fixtures and equipment	$ 810	$ 810
Less: accumulated depreciation and amortization	(317)	(182)
Total	$ 493	$ 628

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Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense related to property and equipment	$ 3.6	$ 3.3	$ 6.9	$ 6.6

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Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	May 02, 2015	Jul. 30, 2016	Aug. 01, 2015	Jan. 30, 2016
Intangible Assets [Line Items]
Asset sales agreement date				Mar. 19, 2015
Sale of intellectual property, collected during first quarter of fiscal 2016			$ 2,500		$ 2,500
Intangible assets amortized estimated useful lives				10 years
Customer Lists
Intangible Assets [Line Items]
Amortization expense	$ 200	$ 200		$ 400	$ 400
Trademarks
Intangible Assets [Line Items]
Trademarks included in other intangible assets, net	$ 184,100			184,100		$ 184,100
Licensing
Intangible Assets [Line Items]
Gain (loss) on sale of intangible assets			$ (700)	$ (700)

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Intangible Assets (Detail) - Customer Lists - USD ($) $ in Thousands	Jul. 30, 2016	Jan. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Customer lists	$ 8,450	$ 8,450
Less: accumulated amortization	(5,111)	(4,677)
Total	$ 3,339	$ 3,773

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Schedule of Estimated Amortization Expense for Future Periods (Detail) $ in Thousands	Jan. 30, 2016 USD ($)
Finite-Lived Intangible Assets [Line Items]
Estimated amortization expense 2017	$ 868
Estimated amortization expense 2018	835
Estimated amortization expense 2019	793
Estimated amortization expense 2020	734
Estimated amortization expense 2021	$ 543

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Letter of Credit Facilities (Detail) - Letter of Credit - USD ($)	Jul. 30, 2016	Jan. 30, 2016
Line of Credit Facility [Line Items]
Total letter of credit facilities	$ 30,264,000	$ 30,286,000
Outstanding letters of credit	(11,470,000)	(11,395,000)
Total credit available	$ 18,794,000	$ 18,891,000

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Advertising and Related Costs - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Advertising Costs [Line Items]
Advertising and related costs	$ 3.7	$ 3.2	$ 8.0	$ 7.0

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Computation of Basic and Diluted (Loss) Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Numerator:
Net (loss) income		$ (3,565)	$ (1,281)	$ 10,685	$ 8,130
Denominator:
Basic-weighted average shares		14,953	15,048	14,882	14,849
Dilutive effect: equity awards				257	434
Diluted-weighted average shares		14,953	15,048	15,139	15,283
Basic (loss) income per share		$ (0.24)	$ (0.09)	$ 0.72	$ 0.55
Diluted (loss) income per share		$ (0.24)	$ (0.09)	$ 0.71	$ 0.53
Antidilutive effect	[1]	1,103	1,220	604	517

[1] Represents weighted average of stock options to purchase shares of common stock, SARS and restricted stock that were not included in computing diluted income per share because their effects were antidilutive for the respective periods.

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Equity (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Equity [Line Items]
Beginning Balance			$ 291,481	$ 302,017
Comprehensive income	$ (6,493)	$ (993)	9,582	9,484
Share transactions under employee equity compensation plans			2,845	2,199
Ending Balance	$ 303,908	$ 313,700	$ 303,908	$ 313,700

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Equity - Additional Information (Detail)	3 Months Ended
	Aug. 01, 2015 USD ($) shares
Common Stock
Shareholders Equity [Line Items]
Retirement of treasury stock, shares | shares	770,753
Retirement of treasury stock	$ 7,000
Additional Paid-in Capital
Shareholders Equity [Line Items]
Retirement of treasury stock	15,700,000
Treasury Stock
Shareholders Equity [Line Items]
Retirement of treasury stock	$ 15,700,000

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Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 291,481	$ 302,017
Other comprehensive (loss) income before reclassifications	(1,413)	1,084
Amounts reclassified from accumulated other comprehensive income	310	270
Ending Balance	303,908	313,700
Unrealized (Loss) Gain on Pension Liability
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(7,368)	(8,085)
Amounts reclassified from accumulated other comprehensive income	310	270
Ending Balance	(7,058)	(7,815)
Foreign Currency Translation Adjustments, Net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(7,131)	(4,774)
Other comprehensive (loss) income before reclassifications	(1,430)	1,091
Ending Balance	(8,561)	(3,683)
Unrealized Gain (Loss) on Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(9)	7
Other comprehensive (loss) income before reclassifications	17	(7)
Ending Balance	8
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(14,508)	(12,852)
Ending Balance	$ (15,611)	$ (11,498)

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Summary of Impact on Condensed Consolidated Statements of Operations Line Items (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Selling, general and administrative expenses	$ 72,654	$ 68,254	$ 142,588	$ 137,862
Tax provision	863	1,541	(4,545)	(1,894)
Actuarial gains
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Selling, general and administrative expenses	155	135	310	270
Unrealized (Loss) Gain on Pension Liability
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax provision	0	0	0	0
Total, net of tax	$ 155	$ 135	$ 310	$ 270

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Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended	6 Months Ended
	Jul. 30, 2016	Jul. 30, 2016	Jan. 31, 2017	Jan. 30, 2016
Income Tax Disclosure [Line Items]
Unrecognized tax benefits				$ 1,100,000
Unrecognized tax benefits, interest and penalties				$ 200,000
Unrecognized tax benefits, increase (decrease)	$ 37,000	$ 87,000
Increase (decrease) in interest and penalties	$ 15,000	$ 41,000
Scenario, Forecast
Income Tax Disclosure [Line Items]
Valuation allowance			$ 46,200,000
State and Local Jurisdiction | Earliest Tax Year
Income Tax Disclosure [Line Items]
Open tax years		2005
State and Local Jurisdiction | Latest Tax Year
Income Tax Disclosure [Line Items]
Open tax years		2017
Internal Revenue Service (IRS) | Earliest Tax Year
Income Tax Disclosure [Line Items]
Open tax years		2011
Internal Revenue Service (IRS) | Latest Tax Year
Income Tax Disclosure [Line Items]
Open tax years		2016
Internal Revenue Service (IRS) | Tax Year 2011
Income Tax Disclosure [Line Items]
Year selected for income tax examination year		2011
Internal Revenue Service (IRS) | Tax Year 2012
Income Tax Disclosure [Line Items]
Year selected for income tax examination year		2012
Internal Revenue Service (IRS) | Tax Year 2013
Income Tax Disclosure [Line Items]
Year selected for income tax examination year		2013

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Stock Options, Stock Appreciation Rights and Restricted Shares - Additional Information (Detail) $ in Thousands	3 Months Ended
	Jul. 30, 2016 USD ($) Director shares	Apr. 30, 2016 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock tax withheld	3,105	46,000
Number of restricted stock tax withholding value | $	$ 60	$ 880
Subject to Withholding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock vested	11,343	159,862
Performance Based Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares awarded		184,004
Fair value of stock granted | $		$ 3,500
Awards expected vesting percentage		100.00%
Award vesting date		2019-04
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares awarded	14,914	86,173
Fair value of stock granted | $	$ 300	$ 1,600
Vesting period of awards	3 years	3 years
Restricted Stock | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares awarded	31,902
Fair value of stock granted | $	$ 700
Vesting period of awards	1 year
Number of directors awarded restricted stock | Director	6

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Segment Information - Additional Information (Detail)	6 Months Ended
	Jul. 30, 2016 Segment
Segment Reporting Information [Line Items]
Number of reportable segments	4

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Revenues Generated by Segments (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Segment Reporting Information [Line Items]
Total revenues		$ 201,653	$ 213,299	$ 462,947	$ 479,713
Total depreciation and amortization		3,716	3,446	7,183	6,768
Total operating (loss) income		(2,539)	4,242	19,144	20,715
Costs on early extinguishment of debt			5,121		5,121
Total interest expense		1,889	1,943	3,914	5,570
Total net (loss) income before income taxes		(4,428)	(2,822)	15,230	10,024
Men's Sportswear and Swim
Segment Reporting Information [Line Items]
Total revenues		145,148	150,488	343,073	348,941
Total depreciation and amortization		2,006	1,863	3,903	3,738
Total operating (loss) income		(2,425)	822	14,517	12,152
Women's Sportswear
Segment Reporting Information [Line Items]
Total revenues		24,136	29,882	56,625	68,705
Total depreciation and amortization		764	566	1,378	1,066
Total operating (loss) income		(3,106)	(1,051)	(3,457)	331
Direct-to-Consumer
Segment Reporting Information [Line Items]
Total revenues		24,057	24,268	44,518	45,249
Total depreciation and amortization		889	971	1,785	1,875
Total operating (loss) income		(2,933)	(2,147)	(6,305)	(4,013)
Licensing
Segment Reporting Information [Line Items]
Total revenues		8,312	8,661	18,731	16,818
Total depreciation and amortization		57	46	117	89
Total operating (loss) income	[1]	$ 5,925	$ 6,618	$ 14,389	$ 12,245

[1] Operating income for the licensing segment for the six months ended July 30, 2016, includes a loss on sale of long-lived assets in the amount of $0.7 million. See footnote 7 to the consolidated financial statements for further information.

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Revenues Generated by Segments (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	May 02, 2015	Jul. 30, 2016
Licensing
Segment Reporting Information [Line Items]
Gain (loss) on sale of intangible assets	$ (0.7)	$ (0.7)

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Components of Net Benefit Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 63	$ 63	$ 126	$ 126
Interest cost	124	337	248	674
Expected return on plan assets	(87)	(658)	(174)	(1,316)
Amortization of net gain	155	135	310	270
Net periodic benefit cost	$ 255	$ (123)	$ 510	$ (246)

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Senior Subordinated Notes Payable - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended	6 Months Ended
	Apr. 06, 2015	Mar. 31, 2011	Aug. 01, 2015	Aug. 01, 2015	Jul. 30, 2016	Jan. 30, 2016
Senior Secured Notes [Line Items]
Payments on senior subordinated notes				$ 100,000
Costs of early extinguishment of debt			$ (5,121)	$ (5,121)
Senior notes amount outstanding					$ 49,600	$ 49,528
7 7/8% Senior Subordinated Notes Due 2019
Senior Secured Notes [Line Items]
Debt instrument face amount		$ 150,000
Debt instrument stated interest rate		7.875%
Debt instrument maturity date		Apr. 01, 2019
Proceeds from issuance of senior subordinated notes		$ 146,500
Debt instrument interest rate, effective percentage		8.00%
Payments on senior subordinated notes	$ 100,000
Redemption price for the senior subordinated notes	103.938%
Redemption date	May 06, 2015
Costs of early extinguishment of debt	$ (5,121)
Senior notes amount outstanding					49,600	49,500
Debt issuance cost					$ 400	$ 500
8 7/8% Senior Subordinated Notes Due 2013
Senior Secured Notes [Line Items]
Debt instrument stated interest rate		8.875%
Debt instrument maturity date		Sep. 15, 2013
Retire senior subordinated notes		$ 150,000

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Senior Credit Facility - Additional Information (Detail) - USD ($)		6 Months Ended
	Apr. 22, 2015	Jul. 30, 2016	Jan. 30, 2016
Level 1 | Senior Subordinated Notes
Line of Credit Facility [Line Items]
Debt instrument stated interest rate		7.875%	7.875%
Senior Credit Facility
Line of Credit Facility [Line Items]
Credit facility maximum borrowing capacity	$ 200,000,000
Credit facility expiry date	Apr. 30, 2020
Credit facility outstanding borrowings		$ 33,900,000	$ 61,800,000
Amendment and restatement fees	$ 600,000
Credit facility borrowing base calculation, percentage of eligible receivables		87.50%
Credit facility borrowing base calculation, percentage of eligible accounts		87.50%
Credit facility borrowing base calculation, percentage of eligible inventory loan limit		80.00%
Credit facility borrowing base calculation, net recovery percentage of eligible inventory		90.00%
Senior Credit Facility | Maximum
Line of Credit Facility [Line Items]
Credit facility borrowing base calculation, amount of eligible accounts		$ 1,500,000
Credit facility borrowing base calculation, percentage of eligible finished goods inventory		70.00%
Credit facility borrowing base calculation, amount of eligible finished goods inventory		$ 125,000,000
Senior Credit Facility | Maximum | Prime Rate Loans
Line of Credit Facility [Line Items]
Spread above selected rate		1.00%
Senior Credit Facility | Maximum | Euro Dollar Rate
Line of Credit Facility [Line Items]
Spread above selected rate		2.00%
Senior Credit Facility | Minimum | Prime Rate Loans
Line of Credit Facility [Line Items]
Spread above selected rate		0.50%
Senior Credit Facility | Minimum | Euro Dollar Rate
Line of Credit Facility [Line Items]
Spread above selected rate		1.50%

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Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands	Jul. 30, 2016	Jan. 30, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior subordinated notes payable, net	$ 49,600	$ 49,528
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts of the real estate mortgages	21,700	22,000
Level 1 | Senior Subordinated Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of the 7 7/8% senior subordinated notes payable	$ 49,500	$ 49,000
Debt instrument stated interest rate	7.875%	7.875%

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Commitments and Contingencies - Additional Information (Detail) - USD ($)		3 Months Ended	6 Months Ended
	Apr. 20, 2016	Jul. 30, 2016	Jul. 30, 2016	Aug. 01, 2015
Commitments and Contingencies Disclosure [Line Items]
Share-based compensation			$ 3,786,000	$ 2,286,000
Vice Chairman of the Board of Directors, Chief Executive Officer and President
Commitments and Contingencies Disclosure [Line Items]
Employment agreement expiration date	Feb. 02, 2019
Executive Chairman
Commitments and Contingencies Disclosure [Line Items]
Employment agreement, lump sum / severance payment, payable upon the termination		$ 1,000,000
Executive Chairman | Selling, General and Administrative Expenses
Commitments and Contingencies Disclosure [Line Items]
Share-based compensation		4,200,000
Minimum | Vice Chairman of the Board of Directors, Chief Executive Officer and President
Commitments and Contingencies Disclosure [Line Items]
Employment agreements base salaries	$ 1,350,000
Minimum | Executive Chairman
Commitments and Contingencies Disclosure [Line Items]
Employment agreements base salaries		$ 750,000

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Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands	Jul. 30, 2016	Jan. 30, 2016	Aug. 01, 2015	Jan. 31, 2015
Current Assets:
Cash and cash equivalents	$ 27,882	$ 31,902	$ 27,265	$ 43,547
Accounts receivable, net	120,639	132,066
Inventories	134,414	182,750
Investment, at fair value	13,633	9,782
Prepaid income taxes		1,818
Prepaid expenses and other current assets	8,347	8,461
Total current assets	304,915	366,779
Property and equipment, net	63,796	63,908
Other intangible assets, net	187,485	187,919
Deferred income taxes	392	442
Other assets	2,757	2,927
TOTAL	559,345	621,975
Current Liabilities:
Accounts payable	55,740	103,684
Accrued expenses and other liabilities	22,879	26,497
Accrued interest payable	1,487	1,521
Income taxes payable	459
Unearned revenues	3,857	4,213
Deferred pension obligation	12,206	12,107
Total current liabilities	96,628	148,022
Senior subordinated notes payable, net	49,600	49,528
Senior credit facility	33,865	61,758
Real estate mortgages	20,873	21,318
Unearned revenues and other long-term liabilities	18,464	14,853
Deferred income taxes	36,007	35,015
Total long-term liabilities	158,809	182,472
Total liabilities	255,437	330,494
Total equity	303,908	291,481	313,700	302,017
TOTAL	559,345	621,975
Parent
Current Assets:
Intercompany receivable, net	80,417	74,091
Prepaid income taxes		1,017
Total current assets	80,417	75,108
Investment in subsidiaries	275,401	267,422
TOTAL	355,818	342,530
Current Liabilities:
Accrued interest payable	1,487	1,521
Income taxes payable	823
Total current liabilities	2,310	1,521
Senior subordinated notes payable, net	49,600	49,528
Total long-term liabilities	49,600	49,528
Total liabilities	51,910	51,049
Total equity	303,908	291,481
TOTAL	355,818	342,530
Guarantors
Current Assets:
Cash and cash equivalents	3,949	775	4,301	30,055
Accounts receivable, net	94,942	106,018
Inventories	113,649	155,703
Prepaid expenses and other current assets	7,525	7,426
Total current assets	220,065	269,922
Property and equipment, net	61,312	61,260
Other intangible assets, net	155,153	155,587
Other assets	1,962	2,150
TOTAL	438,492	488,919
Current Liabilities:
Accounts payable	46,167	89,961
Accrued expenses and other liabilities	17,972	21,524
Income taxes payable	624	623
Unearned revenues	3,068	2,952
Deferred pension obligation	12,136	12,025
Intercompany payable, net	72,291	60,384
Total current liabilities	152,258	187,469
Senior credit facility	33,865	61,758
Real estate mortgages	20,873	21,318
Unearned revenues and other long-term liabilities	18,247	14,608
Deferred income taxes	34,311	33,319
Total long-term liabilities	107,296	131,003
Total liabilities	259,554	318,472
Total equity	178,938	170,447
TOTAL	438,492	488,919
Non-Guarantors
Current Assets:
Cash and cash equivalents	23,933	31,127	$ 22,964	$ 13,492
Accounts receivable, net	25,697	26,048
Inventories	20,765	27,047
Investment, at fair value	13,633	9,782
Prepaid expenses and other current assets	822	1,035
Total current assets	84,850	95,039
Property and equipment, net	2,484	2,648
Other intangible assets, net	32,332	32,332
Deferred income taxes	392	442
Other assets	795	777
TOTAL	120,853	131,238
Current Liabilities:
Accounts payable	9,573	13,723
Accrued expenses and other liabilities	4,907	4,973
Income taxes payable	708	272
Unearned revenues	789	1,261
Deferred pension obligation	70	82
Intercompany payable, net	17,298	21,449
Total current liabilities	33,345	41,760
Unearned revenues and other long-term liabilities	217	245
Total long-term liabilities	217	245
Total liabilities	33,562	42,005
Total equity	87,291	89,233
TOTAL	120,853	131,238
Eliminations
Current Assets:
Intercompany receivable, net	(80,417)	(74,091)
Prepaid income taxes		801
Total current assets	(80,417)	(73,290)
Investment in subsidiaries	(275,401)	(267,422)
TOTAL	(355,818)	(340,712)
Current Liabilities:
Income taxes payable	(1,696)	(895)
Intercompany payable, net	(89,589)	(81,833)
Total current liabilities	(91,285)	(82,728)
Deferred income taxes	1,696	1,696
Total long-term liabilities	1,696	1,696
Total liabilities	(89,589)	(81,032)
Total equity	(266,229)	(259,680)
TOTAL	$ (355,818)	$ (340,712)

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Condensed Consolidating Statement of Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 30, 2016	Aug. 01, 2015	Jul. 30, 2016	Aug. 01, 2015
Revenues:
Net sales	$ 193,341	$ 204,638	$ 444,216	$ 462,895
Royalty income	8,312	8,661	18,731	16,818
Total revenues	201,653	213,299	462,947	479,713
Cost of sales	127,822	137,357	294,032	313,671
Gross profit	73,831	75,942	168,915	166,042
Operating expenses:
Selling, general and administrative expenses	72,654	68,254	142,588	137,862
Depreciation and amortization	3,716	3,446	7,183	6,768
Total operating expenses	76,370	71,700	149,771	144,630
Loss on sale of long-lived assets				(697)
Operating (loss) income	(2,539)	4,242	19,144	20,715
Costs on early extinguishment of debt		5,121		5,121
Interest expense (income)	1,889	1,943	3,914	5,570
Net (loss) income before income taxes	(4,428)	(2,822)	15,230	10,024
Income tax (benefit) provision	(863)	(1,541)	4,545	1,894
Net (loss) income	(3,565)	(1,281)	10,685	8,130
Other comprehensive (loss) income	(2,928)	288	(1,103)	1,354
Comprehensive (loss) income	(6,493)	(993)	9,582	9,484
Parent
Operating expenses:
Equity in earnings of subsidiaries, net	(3,565)	(1,281)	10,685	8,130
Net (loss) income	(3,565)	(1,281)	10,685	8,130
Other comprehensive (loss) income	(2,928)	288	(1,103)	1,354
Comprehensive (loss) income	(6,493)	(993)	9,582	9,484
Guarantors
Revenues:
Net sales	169,237	179,921	394,142	412,200
Royalty income	5,061	5,286	12,275	10,198
Total revenues	174,298	185,207	406,417	422,398
Cost of sales	111,729	121,408	260,705	281,659
Gross profit	62,569	63,799	145,712	140,739
Operating expenses:
Selling, general and administrative expenses	62,361	57,275	123,794	117,120
Depreciation and amortization	3,276	3,138	6,467	6,162
Total operating expenses	65,637	60,413	130,261	123,282
Loss on sale of long-lived assets				(697)
Operating (loss) income	(3,068)	3,386	15,451	16,760
Costs on early extinguishment of debt		5,121		5,121
Interest expense (income)	1,901	1,939	3,935	5,506
Net (loss) income before income taxes	(4,969)	(3,674)	11,516	6,133
Income tax (benefit) provision	(1,441)	(2,517)	3,025	564
Net (loss) income	(3,528)	(1,157)	8,491	5,569
Other comprehensive (loss) income	155	135	310	270
Comprehensive (loss) income	(3,373)	(1,022)	8,801	5,839
Non-Guarantors
Revenues:
Net sales	24,104	24,717	50,074	50,695
Royalty income	3,251	3,375	6,456	6,620
Total revenues	27,355	28,092	56,530	57,315
Cost of sales	16,093	15,949	33,327	32,012
Gross profit	11,262	12,143	23,203	25,303
Operating expenses:
Selling, general and administrative expenses	10,293	10,979	18,794	20,742
Depreciation and amortization	440	308	716	606
Total operating expenses	10,733	11,287	19,510	21,348
Operating (loss) income	529	856	3,693	3,955
Interest expense (income)	(12)	4	(21)	64
Net (loss) income before income taxes	541	852	3,714	3,891
Income tax (benefit) provision	578	976	1,520	1,330
Net (loss) income	(37)	(124)	2,194	2,561
Other comprehensive (loss) income	(3,083)	153	(1,413)	1,084
Comprehensive (loss) income	(3,120)	29	781	3,645
Eliminations
Operating expenses:
Equity in earnings of subsidiaries, net	3,565	1,281	(10,685)	(8,130)
Net (loss) income	3,565	1,281	(10,685)	(8,130)
Other comprehensive (loss) income	2,928	(288)	1,103	(1,354)
Comprehensive (loss) income	$ 6,493	$ 993	$ (9,582)	$ (9,484)

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Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	May 02, 2015	Jul. 30, 2016	Aug. 01, 2015
Condensed Cash Flow Statements, Captions [Line Items]
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES:		$ 34,934	$ 20,476
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(6,609)	(7,345)
Purchase of investments		(9,039)	(2,641)
Proceeds from investments maturities		5,205	11,860
Proceeds on sale of intangible assets	$ 2,500		2,500
Net cash provided by (used in) investing activities		(10,443)	4,374
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on senior subordinated notes			(100,000)
Borrowings from senior credit facility		179,380	255,065
Payments on senior credit facility		(207,273)	(196,854)
Payments on real estate mortgages		(423)	(410)
Payments on capital leases		(129)	(77)
Deferred financing fees			(569)
Proceeds from exercise of stock options		5	1,339
Tax benefit from exercise of equity instruments			(201)
Net cash provided by (used in) financing activities		(28,440)	(41,707)
Effect of exchange rate changes on cash and cash equivalents		(71)	575
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(4,020)	(16,282)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	43,547	31,902	43,547
CASH AND CASH EQUIVALENTS AT END OF PERIOD		27,882	27,265
Parent
Condensed Cash Flow Statements, Captions [Line Items]
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES:		4,543	(1,789)
CASH FLOWS FROM INVESTING ACTIVITIES:
Intercompany transactions		(4,477)	100,076
Net cash provided by (used in) investing activities		(4,477)	100,076
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on senior subordinated notes			(100,000)
Proceeds from exercise of stock options		5	1,339
Tax benefit from exercise of equity instruments			(201)
Net cash provided by (used in) financing activities		5	(98,862)
Effect of exchange rate changes on cash and cash equivalents		(71)	575
Guarantors
Condensed Cash Flow Statements, Captions [Line Items]
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES:		28,295	19,293
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(5,854)	(6,734)
Proceeds on sale of intangible assets			2,500
Net cash provided by (used in) investing activities		(5,854)	(4,234)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings from senior credit facility		179,380	255,065
Payments on senior credit facility		(207,273)	(196,854)
Payments on real estate mortgages		(423)	(410)
Payments on capital leases		(129)	(77)
Deferred financing fees			(569)
Intercompany transactions		9,178	(97,968)
Net cash provided by (used in) financing activities		(19,267)	(40,813)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		3,174	(25,754)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	30,055	775	30,055
CASH AND CASH EQUIVALENTS AT END OF PERIOD		3,949	4,301
Non-Guarantors
Condensed Cash Flow Statements, Captions [Line Items]
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES:		4,802	2,972
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(755)	(611)
Purchase of investments		(9,039)	(2,641)
Proceeds from investments maturities		5,205	11,860
Net cash provided by (used in) investing activities		(4,589)	8,608
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid to stockholder		(2,706)
Intercompany transactions		(4,630)	(2,683)
Net cash provided by (used in) financing activities		(7,336)	(2,683)
Effect of exchange rate changes on cash and cash equivalents		(71)	575
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(7,194)	9,472
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	$ 13,492	31,127	13,492
CASH AND CASH EQUIVALENTS AT END OF PERIOD		23,933	22,964
Eliminations
Condensed Cash Flow Statements, Captions [Line Items]
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES:		(2,706)
CASH FLOWS FROM INVESTING ACTIVITIES:
Intercompany transactions		4,477	(100,076)
Net cash provided by (used in) investing activities		4,477	(100,076)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid to stockholder		2,706
Intercompany transactions		(4,548)	100,651
Net cash provided by (used in) financing activities		(1,842)	100,651
Effect of exchange rate changes on cash and cash equivalents		$ 71	$ (575)