Perry Ellis International Sells Fragrance Portfolio for $63M
By Matthew W. Evans

Perry Ellis International said Monday that it reached a $63 million deal to sell its fragrance inventory and related assets to Falic Fashion Group LLC. Falic has also taken over the worldwide license to manufacture perfumes, fragrances, lotions, toiletries and cosmetics under the Perry Ellis brand.
Expecting the sale of its fragrance business to be accretive to earnings, Perry Ellis raised its 2008 profit guidance by 9 cents per share, and expects earnings to be within the $1.80 to $1.84 range, per fully diluted share. Initial guidance was between $1.71 and $1.75 per share. These agreements will allow Perry Ellis International not only to recoup significantly all of the invested capital utilized for the purchase of assets from Parlux Fragrances Inc., but also to maximize our royalty income from this key product category.

Hi guys I thought this article was interesting on Perry Ellis licensing their fragrance line. It shows how licensing not only benefits the sales and growth of the actual product, but also how some companies will license their products to help the stock of the company. In the article it stated that Perry Ellis was having a hard time selling their perfume this agreement will help position the perfume in the appropriate channels to mirror with the growth of the apparel division. I think Perry Ellis mainly made this business venture to increase their share but it was very smart and they received 63 million dollars in the process.

Jazmine Hasty