Perry Ellis International, Inc. F4Q09 (Qtr End 01/31/09) Earnings Call Transcript

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2009-03-19 14:12:16.0

Tags: Retail Company, Call Transcript, Needham & Co., Earnings, Brean Murray Co., Perry Ellis International Inc., Retail, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions) We’ll go first to Pauline Forge [ph] with Needham and Company.

Pauline Forge Needham & Company

Good morning and welcome to Anita. Congratulations on an exciting announcement with Callaway. We are hearing from other vendors out of the tradeshows that retailers are buying much more closer to need. So, are you seeing this as a shift in buying patterns for the industry or more of a short term correction to heal some of the wounds that were suffered during the fourth quarter?

And also if I may, I recall – if I recall correctly, you had mentioned that by far [ph] the inventory system maybe too lean, do you still feel that way now? Thank you.

Oscar Feldenkreis

The – I will answer the questions, this is Oscar, the retailers are purchasing much closer to the vest. They are also leaving dollars available for liquidity based on performance of product and we are receiving reorders on product that is performing at retailer. Please take – please keep in mind that last year the spring season was probably – was a good season in – if you compare spring season to spring season for last year. Also, the bottom really fell out of the market. We began to experience difficulties in the market, most – like in the May timeframe. So, that’s why right now you are seeing retailers are adjusting their inventory plans more according to what they experienced in Q4. And they are buying closer to vest and we are working much, much closer using our sophisticated systems to ensure that we are constantly feeding them needs to replenish their inventory on product that is performing well. Also, take into account that Easter – there is an Easter shift this year where last year Easter was in March, this year it’s in April. So, there is definitely a change in when they are actually going to build up more of their inventory needs. We will probably come in at the end of this month, going into the beginning of next month.

Pauline Forge Needham & Company

Right, thank you.

Operator

We’ll go next to Eric Beder from Brean Murray.

Eric Beder Brean Murray, Carret & Co.

Good morning

Oscar Feldenkreis

Good morning, Eric.

Eric Beder Brean Murray, Carret & Co.

Could you talk a little bit about the men’s specialty business? How big a business was that? I know you talked about the units you got rid off in Q4, but how big a business was that in terms of the overall picture?

 

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