Perry Ellis, the listed Miami-based apparel group, considers itself more of an acquirer, and continues to eye the marketplace for opportunistic acquisitions, said a source close to the company.

   On whether Perry Ellis could be a potential target, the source described the “nature” of the company “to be an acquirer,” even during this recession, and added that the company has a “strong” balance sheet.

   For the quarter ending May 2, 2009, the company had net income of about $5.8 million, or 46 cents a share, beating analysts’ estimates, and had cash and cash equivalents of around $7 million. Revenues were a hair above $214 million and long-term debt was close to $212 million.
   Last year, Perry Ellis scooped up C&C California and Laundry by Shelli Segal for $34 million, two brands divested by listed New York-based Liz Claiborne.
   The source said the company could either acquire businesses that were synergistic with its current holdings or enter new fashion-related categories, and generally expects merger and acquisition activity to pick up, particularly of smaller brands.

   It was previously reported by this news service that listed Philadelphia-based Urban Outfitters could eye buys of companies with revenues between $10 million to $30 million.

   In terms of Perry Ellis’ core men’s apparel business, the source said the company is shifting its aesthetic to a more formal look, and believes that will be the trend for the near-term. The company also has embraced the notion that the customer wants “newness” and “value,” that he or she knows what they want to pay.

   Looking ahead generally, although it is difficult to predict, the source speculated that the economy, after having gone through a correction, would “bounce around the bottom for the next nine months,” with the real recovery beginning in the fall of 2010.
   In addition to Perry Ellis, C&C California and Laundry by Shelli Segal, the company offers product under the Axis, Tricots St. Raphael, Jantzen, John Henry, Cubavera, the Havanera Co., Natural Issue, Munsingwear, Grand Slam, Original Penguin, Mondo di Marco, Redsand, Pro Player, Manhattan, Axist, Savane, Farah, Gotcha, Girl Star and MCD brand names.
   It licenses the Nike brand for swimwear and swimwear accessories; the JAG brand for men’s and women’s swimwear and cover-ups; the Callaway Golf brand for golf apparel; and the PGA TOUR brand, including Champions Tour for golf apparel.
   As of August 7, 2009, the company's stock traded at $8.70 a share, up from its 52-week-low of $3.31, but less than a third of its 52-week-high of $27.70.

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