NEW YORK – Perry Ellis International’s search for a new fragrance licensee is over.
The Miami, Fla.-based owner of the Perry Ellis trademark reported Monday that it had sold its fragrance inventory and related assets to Falic Fashion Group, a subsidiary of Duty Free Americas Inc., for about $63 million in cash and had licensed Falic for fragrances bearing the Perry Ellis brand worldwide.
The transaction, which remains subject to price adjustments, would reverse the $63 million PEI spent last month when it reacquired its Perry Ellis fragrance license, and bought related inventory, from Parlux Fragrances.
PEI said that the transaction will boost its royalty income and result in a benefit to year-end earnings of approximately 9 cents a share. Full-year guidance for fiscal 2008 was lifted to a range of $1.80 to $1.84 per diluted share from previous guidance of $1.71 to $1.74.
George Feldenkreis, chairman and chief executive officer of PEI, stated, “We are very excited about this new direction for our fragrance business given Falic Fashion Group’s keen understanding of the high-end and luxury markets. They are strongly committed to positioning our Perry Ellis fragrances in channels that complement our apparel distribution, which is essential to further enhancing the cross-category lifestyle concept of our Perry Ellis brand.”
Shares of PEI jumped $1.88, or 6.9%, to close out the Nasdaq session at $28.95 following release of the news.