By  on January 30, 2007

NEW YORK — 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.

Falic has been in acquisition mode in the last five years. In 2002, the firm bought Hard Candy and Urban Decay, two color cosmetics brands, from LVMH Moët Hennessy Louis Vuitton for what was estimated to be less than $10 million.

Then, in 2005, Falic, which is wholly owned by Duty Free Americas Inc., reached a deal with LVMH to buy the Christian Lacroix fashion house, including couture, ready-to-wear, footwear, accessories and fragrances operations. The asking price in that sale was said to be between $40 million and $80 million.

"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," George Feldenkreis, chairman and chief executive officer of Perry Ellis International, said in a statement. "They are strongly committed to positioning our Perry Ellis fragrances in channels that complement our apparel distribution."

He added, "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."

Apothia Scents on International Push
LOS ANGELES — As the founder of the store Apothia at Fred Segal, Ron Robinson has introduced countless niche fragrance brands to the world. Now he is busy introducing his own.

After reaching nearly 70 U.S. stores in slightly over a year, Apothia is ramping up its international distribution. The brand is expected to enter all Harvey Nichols stores in February with three eau de parfums, the citrus-topped IF, unisex Velvet Rope and earthy L, as well as 10 candle varieties.

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