Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

The number of shares outstanding of the registrant’s common stock is ~~15,567,000~~15,496,000 (as of ~~May 31,~~August 29, 2016).


	April 30,			January 30,
	2016			2016			July 30, 2016			January 30, 2016
ASSETS

Current Assets:
Cash and cash equivalents	$	26,953		$	31,902		$	27,882		$	31,902
Accounts receivable, net		174,233			132,066			120,639			132,066
Inventories		153,673			182,750			134,414			182,750
Investments, at fair value		10,279			9,782			13,633			9,782
Prepaid income taxes		—			1,818			—			1,818
Prepaid expenses and other current assets		7,707			8,461			8,347			8,461

Total current assets		372,845			366,779			304,915			366,779

Property and equipment, net		64,763			63,908			63,796			63,908
Other intangible assets, net		187,702			187,919			187,485			187,919
Deferred income tax		470			442			392			442
Other assets		2,848			2,927			2,757			2,927

TOTAL	$	628,628		$	621,975		$	559,345		$	621,975

LIABILITIES AND EQUITY

Current Liabilities:
Accounts payable	$	51,544		$	103,684		$	55,740		$	103,684
Accrued expenses and other liabilities		27,036			26,497			22,879			26,497
Accrued interest payable		601			1,521			1,487			1,521
Income taxes payable		2,651			—			459			—
Unearned revenues		4,292			4,213			3,857			4,213
Deferred pension obligation		12,189			12,107			12,206			12,107

Total current liabilities		98,313			148,022			96,628			148,022

Senior subordinated notes payable, net		49,564			49,528			49,600			49,528
Senior credit facility		100,872			61,758			33,865			61,758
Real estate mortgages		21,112			21,318			20,873			21,318
Unearned revenues and other long-term liabilities		15,308			14,853			18,464			14,853
Deferred income taxes		35,449			35,015			36,007			35,015

Total long-term liabilities		222,305			182,472			158,809			182,472

Total liabilities		320,618			330,494			255,437			330,494

Commitment and contingencies

Equity:
Preferred stock $.01 par value; 5,000,000 shares authorized; no shares issued or outstanding		—			—			—			—
Common stock $.01 par value; 100,000,000 shares authorized; 15,567,017 shares issued and outstanding as of April 30, 2016 and 15,409,310 shares issued and outstanding as of January 30, 2016		156			154
Common stock $.01 par value; 100,000,000 shares authorized; 15,609,579 shares issued and outstanding as of July 30, 2016 and 15,409,310 shares issued and outstanding as of January 30, 2016								156			154
Additional paid-in-capital		144,477			144,025			146,868			144,025
Retained earnings		176,060			161,810			172,495			161,810
Accumulated other comprehensive loss		(12,683	)		(14,508	)		(15,611	)		(14,508	)

Total equity		308,010			291,481			303,908			291,481

TOTAL	$	628,628		$	621,975		$	559,345		$	621,975


	Three Months Ended
	April 30,		May 2,			Three Months Ended						Six Months Ended
	2016		2015			July 30, 2016			August 1, 2015			July 30, 2016		August 1, 2015
Revenues:
Net sales	$	250,875	$	258,257		$	193,341		$	204,638		$	444,216	$	462,895
Royalty income		10,419		8,157			8,312			8,661			18,731		16,818

Total revenues		261,294		266,414			201,653			213,299			462,947		479,713
Cost of sales		166,210		176,314			127,822			137,357			294,032		313,671

Gross profit		95,084		90,100			73,831			75,942			168,915		166,042

Operating expenses:
Selling, general and administrative expenses		69,934		69,608			72,654			68,254			142,588		137,862
Depreciation and amortization		3,467		3,322			3,716			3,446			7,183		6,768

Total operating expenses		73,401		72,930			76,370			71,700			149,771		144,630
Loss on sale of long-lived assets		—		(697	)		—			—			—		(697	)

Operating income		21,683		16,473
Operating (loss) income							(2,539	)		4,242			19,144		20,715
Costs of early extinguishment of debt							—			5,121			—		5,121
Interest expense		2,025		3,627			1,889			1,943			3,914		5,570

Net income before income taxes		19,658		12,846
Income tax provision		5,408		3,435
Net (loss) income before income taxes							(4,428	)		(2,822	)		15,230		10,024
Income tax (benefit) provision							(863	)		(1,541	)		4,545		1,894

Net income	$	14,250	$	9,411
Net (loss) income						$	(3,565	)	$	(1,281	)	$	10,685	$	8,130

Net income per share:
Net (loss) income per share:
Basic	$	0.96	$	0.64		$	(0.24	)	$	(0.09	)	$	0.72	$	0.55

Diluted	$	0.95	$	0.62		$	(0.24	)	$	(0.09	)	$	0.71	$	0.53

Weighted average number of shares outstanding
Basic		14,810		14,649			14,953			15,048			14,882		14,849
Diluted		15,060		15,161			14,953			15,048			15,139		15,283


	Three Months Ended					Three Months Ended						Six Months Ended
	April 30,		May 2,			July 30, 2016			August 1, 2015			July 30, 2016			August 1, 2015
Net (loss) income						$	(3,565	)	$	(1,281	)	$	10,685		$	8,130
	2016		2015
Net income	$	14,250	$	9,411
Other Comprehensive income:
Foreign currency translation adjustments, net		1,663		938			(3,093	)		153			(1,430	)		1,091
Unrealized gain on pension liability, net of tax		155		135			155			135			310			270
Unrealized gain (loss) on investments		7		(7	)		10			—			17			(7	)

Total other comprehensive income		1,825		1,066
Total other comprehensive (loss) income							(2,928	)		288			(1,103	)		1,354

Comprehensive income	$	16,075	$	10,477
Comprehensive (loss) income						$	(6,493	)	$	(993	)	$	9,582		$	9,484


	Three Months Ended
	April 30,			May 2,			Six Months Ended
	2016			2015			July 30, 2016			August 1, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	14,250		$	9,411		$	10,685		$	8,130
Adjustments to reconcile net income to net cash used in operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,565			3,482			7,382			7,087
Provision for bad debts		404			250			478			279
Amortization of debt issue cost		103			163			205			266
Amortization of premiums and discounts		14			54			28			94
Amortization of unrealized (gain) loss on pension liability		155			135			310			270
Costs on early extinguishment of debt								—			1,158
Deferred income taxes		406			1,783			1,042			1,613
Share-based compensation		1,336			1,049			3,786			2,286
Loss on sale of long-lived assets		—			697			—			697
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable, net		(41,451	)		(43,443	)		10,087			13,199
Inventories		30,226			30,553			47,604			30,149
Prepaid income taxes		1,878			908			1,874			190
Prepaid expenses and other current assets		1,194			773			110			(759	)
Other assets		16			92			37			107
Accounts payable and accrued expenses		(53,081	)		(42,726	)		(52,572	)		(41,175	)
Accrued interest payable		(920	)		(3,008	)		(34	)		(2,534	)
Income taxes payable		2,157			—			344			—
Unearned revenues and other liabilities		667			104			3,469			(666	)
Deferred pension obligation		81			55			99			85

Net cash used in operating activities		(39,000	)		(39,668	)
Net cash provided by operating activities								34,934			20,476

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(4,098	)		(3,319	)
Purchase of investments		(2,455	)		(2,640	)
Proceeds from investments maturities		1,965			8,580
Purchases of property and equipment								(6,609	)		(7,345	)
Purchases of investments								(9,039	)		(2,641	)
Proceeds from investment maturities								5,205			11,860
Proceeds on sale of intangible assets		—			2,500			—			2,500

Net cash (used in) provided by investing activities		(4,588	)		5,121			(10,443	)		4,374

CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings from senior credit facility		123,995			90,036			179,380			255,065
Payments on senior credit facility		(84,881	)		(80,366	)		(207,273	)		(196,854	)
Payments on senior subordinated notes								—			(100,000	)
Payments on real estate mortgages		(212	)		(206	)		(423	)		(410	)
Payments on capital leases		(64	)		(77	)		(129	)		(77	)
Deferred financing fees		—			(569	)		—			(569	)
Proceeds from exercise of stock options		—			114			5			1,339
Tax benefit from exercise of equity instruments		—			396			—			(201	)

Net cash provided by financing activities		38,838			9,328
Net cash used in financing activities								(28,440	)		(41,707	)

Effect of exchange rate changes on cash and cash equivalents		(199	)		408			(71	)		575

NET DECREASE IN CASH AND CASH EQUIVALENTS		(4,949	)		(24,811	)		(4,020	)		(16,282	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		31,902			43,547			31,902			43,547

CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	26,953		$	18,736		$	27,882		$	27,265

The accompanying unaudited condensed consolidated financial statements of Perry Ellis International, Inc. and subsidiaries (“Perry Ellis” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the requirements of the Securities and Exchange Commission on Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and changes in cash flows required by GAAP for annual financial statements. ~~These~~The condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended January 30, 2016, filed with the Securities and Exchange Commission on April 14, 2016.

The information presented reflects all adjustments, which are in the opinion of management of a normal and recurring nature, necessary for a fair presentation of the interim periods. Results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the entire fiscal year.

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” ASU No. 2014-09 clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards (“IFRS”) that removes inconsistencies and weaknesses in revenue requirements, provides a more robust framework for addressing revenue issues, improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, provides more useful information to users of financial statements through improved disclosure requirements and simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. ASU No. 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Companies can choose to apply the ASU using either the full retrospective approach or a modified retrospective approach. The Company is currently evaluating both methods of adoption and the impact, if any, that the adoption of this ASU will have on the Company’s results of operations or the Company’s financial position.

In March 2015, the FASB issued ASU 2015-03, “~~Interest—~~Interest - Imputation of Interest (Subtopic 835-30)”, which is simplifying the Presentation of Debt Issuance Costs. The standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for interim periods beginning after December 15, 2015. The Company adopted the accounting standard in the first quarter of fiscal 2017. Prior to the adoption, debt issuance costs were classified as other assets. This presentation change was applied retrospectively to the condensed consolidated balance sheet and consequently, amounts related to debt issuance costs are presented as a direct deduction of the corresponding debt liability for all periods presented.

The effect on the condensed consolidating balance sheet as of January 30, 2016, as a result of this change in presentation, is a decrease of ($0.5) million in other assets, and a decrease of ($0.5) million in senior subordinated notes payable.

In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”, which requires inventory measured using any method other than last-in, first out (“LIFO”) or the retail inventory method to be subsequently measured at the lower of cost or net realizable value, rather than at the lower of cost or market. Under this ASU, subsequent measurement of inventory using the LIFO and retail inventory method is unchanged. ASU 2015-11 is effective prospectively for fiscal years, and for interim periods within those years, beginning after December 15, 2016. Early application is permitted. The adoption of ASU No. 2015-11 is not expected to have a material impact on the Company’s results of operations or the Company’s financial position.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”which requires an entity that is a lessee to recognize the assets and liabilities arising from leases on the balance sheet. This guidance also requires

disclosures about the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods, using a modified retrospective approach, and early adoption is permitted. The Company is evaluating the effect that the adoption will have on its consolidated financial statements and related disclosures.

In March 2016, the FASB issued ASU No. 2016-07, “Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting,” which eliminates the requirement to retroactively adjust an investment that subsequently qualifies for equity method accounting (as a result of an increase in level of ownership interest or degree of influence) as if the equity method of accounting had been applied during all prior periods that the investment was held. The new standard requires that the investor add the cost of acquiring additional ownership interest in the investee to its current basis and prospectively adopt the equity method of accounting. Any unrealized gains or losses in an available-for-sale investment that subsequently qualifies as an equity method investment should be recognized in earnings at the date the investment qualifies as an equity method investment. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. This new guidance is not expected to have a material impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, “Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which is part of the FASB’s Simplification Initiative. The updated guidance simplifies the accounting for share-based payment transactions. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”, which amends certain aspects of the FASB’s new revenue standard, ASU 2014-09, “Revenue from Contracts with Customers”,specifically the standard’s guidance on identifying performance obligations and the implementation guidance on licensing. The amendments clarify when promised goods or services are separately identifiable (i.e., distinct within the context of a contract), an important step in determining whether goods and services should be accounted for as separate performance obligations. In addition, the amendments allow entities to disregard goods or services that are immaterial in the context of a contract and provide an accounting policy election for accounting for certain shipping and handling activities. The amendments also clarify how an entity should evaluate the nature of its promise in granting a license of intellectual property (IP), which will determine whether the entity recognizes revenue over time or at a point in time. The amendments revise the guidance to address how entities should apply the exception for sales- and usage-based royalties to licenses of IP, recognize revenue for licenses that are not separate performance obligations and evaluate different types of license restrictions (e.g., time-based, geography-based). The new guidance’s effective date and transition provisions are aligned with the requirements in the new revenue standard, which is not yet effective. The Company is currently evaluating the impact, if any, that the adoption of this ASU will have on the Company’s results of operations or the Company’s financial position.

In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients,” which amends certain aspects of the new revenue standard, ASU 2014-09,“Revenue from Contracts with Customers”. The amendments are intended to provide clarifying guidance in a few narrow areas such as collectability, contract modifications, completed contracts at transition, and non-cash considerations. The new guidance’s effective date and transition provisions are aligned with the requirements in the new revenue standard, which is not yet effective. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which provides guidance for the accounting for credit losses on instruments within its scope. The amendments guide on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. The amendments require a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments also require that credit losses on available-for-sale debt securities be presented as an allowance. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. The amendments in this

update are effective for fiscal years beginning after December 15, 2019, including interim periods within those annual periods. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.


	April 30,			January 30,
	2016			2016			July 30, 2016			January 30, 2016
	(in thousands)						(in thousands)
Trade accounts	$	192,668		$	144,708		$	133,691		$	144,708
Royalties		3,986			5,892			4,442			5,892
Other receivables		1,841			1,769			1,011			1,769

Total		198,495			152,369			139,144			152,369
Less: allowances		(24,262	)		(20,303	)		(18,505	)		(20,303	)

Total	$	174,233		$	132,066		$	120,639		$	132,066

Inventories are stated at the lower of cost (weighted moving average cost) or market. Cost principally consists of the purchase price, customs, duties, freight, and commissions to buying agents.


	April 30,		January 30,
	2016		2016		July 30, 2016		January 30, 2016
	(in thousands)				(in thousands)
Finished goods	$	153,581	$	182,414	$	134,414	$	182,414
Raw materials and in process		92		336		—		336

Total	$	153,673	$	182,750	$	134,414	$	182,750

The Company’s investments include marketable securities and certificates of deposit at ~~April~~July 30, 2016 and included certificates of deposit at January 30, 2016. Marketable securities are classified as available-for-sale and consist of corporate bonds with maturity dates less than two years. Certificates of deposit are classified as available-for-sale with ~~$10.3~~$10.4 million with maturity dates within one year or less. Investments are stated at fair value. The estimated fair value of the marketable securities is based on quoted prices in an active market (Level 1 fair value measures).


			Gross		Gross			Estimated
	Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Marketable securities	$	3,264	$	12	$	—		$	3,276
Certificates of deposit		10,361		—		(4	)		10,357

Total investments	$	13,625	$	12	$	(4	)	$	13,633


			Gross		Gross			Estimated
	Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(in thousands)									(in thousands)
Certificates of deposit		9,791		0		(9	)		9,782	$	9,791	$	—	$	(9	)	$	9,782

Total investments	$	9,791	$	0	$	(9	)	$	9,782	$	9,791	$	—	$	(9	)	$	9,782


	April 30,			January 30,
	2016			2016			July 30, 2016			January 30, 2016
	(in thousands)						(in thousands)
Furniture, fixtures and equipment	$	86,384		$	84,634		$	87,713		$	84,634
Buildings and building improvements		19,916			19,462			20,420			19,462
Vehicles		556			523			523			523
Leasehold improvements		47,717			46,882			48,078			46,882
Land		9,430			9,430			9,430			9,430

Total		164,003			160,931			166,164			160,931
Less: accumulated depreciation and amortization		(99,240	)		(97,023	)		(102,368	)		(97,023	)

Total	$	64,763		$	63,908		$	63,796		$	63,908

The above table of property and equipment includes assets held under capital leases as of:


	April 30,			January 30,			July 30,			January 30,
	2016			2016			2016			2016
	(in thousands)						(in thousands)
Furniture, fixtures and equipment	$	810		$	810		$	810		$	810
Less: accumulated depreciation and amortization		(249	)		(182	)		(317	)		(182	)

Total	$	561		$	628		$	493		$	628

For the three months ended ~~April~~July 30, 2016 and ~~May 2,~~August 1, 2015, depreciation and amortization expense relating to property and equipment amounted to $3.6 million and $3.3 million, ~~for each of~~respectively. For the ~~periods.~~six months ended July 30, 2016 and August 1, 2015, depreciation and amortization expense relating to property and equipment amounted to $6.9 million and $6.6 million, respectively. These amounts include amortization expense for leased property under capital leases.

Trademarks included in other intangible assets, net, are considered indefinite-lived assets and totaled $184.1 million at ~~April~~July 30, 2016 and January 30, 2016.

On March 19, 2015, the Company entered into an agreement to sell the intellectual property of its C&C California brand to a third party. The sales price was $2.5 million, which was collected during the first quarter of fiscal 2016. In connection with this transaction, the Company recorded a loss of ($0.7) million in the licensing segment.


	April 30,			January 30,
	2016			2016			July 30, 2016			January 30, 2016
	(in thousands)						(in thousands)
Customer lists	$	8,450		$	8,450		$	8,450		$	8,450
Less: accumulated amortization		(4,894	)		(4,677	)		(5,111	)		(4,677	)

Total	$	3,556		$	3,773		$	3,339		$	3,773

For the three months ended ~~April~~July 30, 2016 and ~~May 2,~~August 1, 2015, amortization expense relating to customer lists amounted to approximately $0.2 million for each of the periods. For the six months ended July 30, 2016 and August 1, 2015, amortization expense relating to customer lists amounted to $0.4 million for each of the periods. Other intangible assets are amortized over their estimated useful lives of 10 years. Assuming no impairment, the table sets forth the estimated amortization expense for future periods based on recorded amounts as of January 30, 2016:


	(in thousands)		(in thousands)
2017	$	868	$	868
2018		835	$	835
2019		793	$	793
2020		734	$	734
2021		543	$	543

Borrowings and availability under letter of credit facilities consisted of the following as of:


	April 30,			January 30,
	2016			2016			July 30, 2016			January 30, 2016
	(in thousands)						(in thousands)
Total letter of credit facilities	$	30,292		$	30,286		$	30,264		$	30,286
Outstanding letters of credit		(11,395	)		(11,395	)		(11,470	)		(11,395	)

Total credit available	$	18,897		$	18,891		$	18,794		$	18,891

The Company’s accounting policy relating to advertising and related costs is to expense these costs in the period incurred. Advertising and related costs were approximately ~~$4.3~~$3.7 million and ~~$3.8~~$3.2 million for the three months ended ~~April~~July 30, 2016 and ~~May 2,~~August 1, 2015, respectively, and $8.0 million and $7.0 million for the six months ended July 30, 2016 and August 1, 2015, respectively, and are included in selling, general and administrative expenses.

Basic net (loss) income per share is computed by dividing net income by the weighted average shares of outstanding common stock. The calculation of diluted net (loss) income per share is similar to basic earnings per share except that the denominator includes potentially dilutive common stock. The potentially dilutive common stock included in the Company’s computation of diluted net income per share includes the effects of stock options, stock appreciation rights (“SARS”), and unvested restricted shares as determined using the treasury stock method.

The following table sets forth the computation of basic and diluted (loss) income per share:


	Three Months Ended
	April 30,		May 2,		Three Months Ended						Six Months Ended
	2016		2015		July 30, 2016			August 1, 2015			July 30, 2016		August 1, 2015
	(in thousands, except per share data)				(in thousands, except per share data)
Numerator:
Net income	$	14,250	$	9,411
Net (loss) income					$	(3,565	)	$	(1,281	)	$	10,685	$	8,130

Denominator:
Basic-weighted average shares		14,810		14,649		14,953			15,048			14,882		14,849
Dilutive effect: equity awards		250		512		—			—			257		434

Diluted-weighted average shares		15,060		15,161		14,953			15,048			15,139		15,283

Basic income per share	$	0.96	$	0.64
Basic (loss) income per share					$	(0.24	)	$	(0.09	)	$	0.72	$	0.55

Diluted income per share	$	0.95	$	0.62
Diluted (loss) income per share					$	(0.24	)	$	(0.09	)	$	0.71	$	0.53

Antidilutive effect:⁽¹⁾		804		479		1,103			1,220			604		517


	Changes in Equity		Changes in Equity
	(in thousands)		(in thousands)
Equity at January 30, 2016	$	291,481	$	291,481

Comprehensive income		16,075		9,582
Share transactions under employee equity compensation plans		454		2,845

Equity at April 30, 2016	$	308,010
Equity at July 30, 2016			$	303,908

Equity at January 31, 2015	$	302,017	$	302,017

Comprehensive income		10,477		9,484
Share transactions under employee equity compensation plans		895		2,199

Equity at May 2, 2015	$	313,389
Equity at August 1, 2015			$	313,700

During the second quarter of fiscal 2016, the Company retired 770,753 shares of treasury stock recorded at a cost of approximately $15.7 million. Accordingly, during the second quarter of fiscal 2016, the Company reduced common stock and additional paid in capital by $7,000 and $15.7 million, respectively.


	Unrealized			Foreign			Unrealized
	(Loss) Gain on			Currency Translation			Gain (Loss) on
	Pension Liability			Adjustments, Net			Investments			Total			Unrealized (Loss) Gain on Pension Liability			Foreign Currency Translation Adjustments, Net			Unrealized Gain (Loss) on Investments			Total
	(in thousands)												(in thousands)
Balance, January 30, 2016	$	(7,368	)	$	(7,131	)	$	(9	)	$	(14,508	)	$	(7,368	)	$	(7,131	)	$	(9	)	$	(14,508	)
Other comprehensive income before reclassifications		—			1,663			7			1,670
Other comprehensive (loss) income before reclassifications														—			(1,430	)		17			(1,413	)
Amounts reclassified from accumulated other comprehensive income		155			—			—			155			310			—			—			310

Balance, April 30, 2016	$	(7,213	)	$	(5,468	)	$	(2	)	$	(12,683	)
Balance, July 30, 2016													$	(7,058	)	$	(8,561	)	$	8		$	(15,611	)

   Unrealized    Foreign    Unrealized
   (Loss) Gain on    Currency Translation    (Loss) Gain on
   Pension Liability    Adjustments, Net    Investments    Total
   (in thousands)
Balance, January 31, 2015
   $ (8,085 )    $ (4,774 )    $ 7       $ (12,852 )
Other comprehensive income before reclassifications
   —         938       (7 )    931
Amounts reclassified from accumulated other comprehensive income
   135       —         —         135








Balance, May 2, 2015
   $ (7,950 )    $ (3,836 )    $ —         $ (11,786 )

A summary of the impact on the condensed consolidated ~~statement~~statements of ~~income~~operations line items is as follows:


	Three Months Ended					Three Months Ended
	April 30, 2016		May 2, 2015			July 30, 2016		August 1, 2015
	(in thousands)					(in thousands)
Amortization of defined benefit pension items
Actuarial gains	$	155	$	135	Selling, general and administrative expenses	$	155	$	135	Selling, general and administrative expenses
Tax provision		—		—			—		—	Income tax provision

Total, net of tax	$	155	$	135		$	155	$	135


						Six Months Ended
						July 30, 2016		August 1, 2015
						(in thousands)
Amortization of defined benefit pension items
Actuarial gains						$	310	$	270	Selling, general and administrative expenses
Tax provision							—		—	Income tax provision

Total, net of tax						$	310	$	270

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The Company’s U.S. federal income tax returns for fiscal 2011 through fiscal 2016 are open tax years. The Company’s state ~~and foreign~~ tax filings are subject to varying statutes of limitations. The Company’s unrecognized state tax benefits are related to open tax years from fiscal 2005 through fiscal 2017, depending on each state’s particular statute of limitation. As of ~~April~~July 30, 2016, the fiscal 2011, 2012 and 2013 U.S. federal income tax returns are under examination as well as various state, local, and foreign income tax returns by various taxing authorities.

The Company has a $1.1 million liability recorded for unrecognized tax benefits as of January 30, 2016, which includes interest and penalties of $0.2 million. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. All of the unrecognized tax benefits, if recognized, would affect the Company’s effective tax rate. During the three months and six months ended ~~April~~July 30, 2016, the total amount of unrecognized tax benefits increased by approximately ~~$50,000.~~$37,000 and $87,000, respectively. The change to the total amount of the unrecognized tax benefit for the three and six months ended ~~April~~July 30, 2016 included an increase in interest and penalties of approximately ~~$26,000.~~$15,000 and $41,000, respectively.

The Company does not currently anticipate a resolution within the next twelve months for any of the remaining unrecognized tax benefits as of ~~April~~July 30, 2016. The statute of limitations related to the Company’s fiscal 2011, 2012 and 2013 U.S. federal tax years has been extended as part of the examination and is not expected to lapse within the next twelve months.

At the end of fiscal 2016, the Company maintained a $46.2 million valuation allowance against its remaining domestic deferred tax asset; including, but not limited to, the federal net operating loss carryforward and the U.S. state net operating loss carryforwards, ~~whose~~ utilization of which is not restricted by factors beyond the Company’s control. The establishment of valuation allowances and development of projected annual effective tax rates requires significant judgment and is impacted by various estimates. Both positive and negative evidence, as well as the objectivity and verifiability of that evidence, is considered in determining the appropriateness of recording a valuation allowance on deferred tax assets. An accumulation of recent pretax losses is considered strong negative evidence in that evaluation. Although the Company recognized pretax earnings inthrough the ~~first quarter of fiscal 2017,~~six months ended July 30, 2016, by itself that does not represent sufficient positive evidence that ~~the~~its deferred tax asset will be realized to warrant removing the valuation allowances established against the U.S. deferred tax assets. Deferred tax assets without valuation allowances remain in certain foreign tax jurisdictions, where supported by the evidence.

During the ~~three months ended April 30, 2016,~~first and second quarters of fiscal 2017, the Company granted an aggregate of 86,173 and 14,914 shares of restricted stock to certain key employees, which vest primarily over a three-year period, at an estimated value of $1.6 million and $0.3 million, respectively. This value is being recorded as compensation expense on a straight-line basis over the vesting period of the restricted stock.

Also, during the second quarter of fiscal 2017, the Company awarded to six directors an aggregate of 31,902 shares of restricted stock. The restricted stock awarded vests primarily over a one-year period, at an estimated value of $0.7 million. This value is being recorded as compensation expense on a straight-line basis over the vesting period of the restricted stock.

During the ~~three months ended April 30, 2016,~~first quarter of fiscal 2017, the Company granted performance based restricted stock to certain key employees. Such stock generally vests 100% in April 2019, provided that each employee is still an employee of the Company on such date, and that the Company has met certain performance criteria. A total of ~~184,044~~184,004 shares of performance-based restricted stock were issued at an estimated value of ~~$1.9~~$3.5 million.

During the ~~three months ended April 30, 2016,~~first and second quarters of fiscal 2017, a total of 159,862 and 11,343 shares of restricted stock vested, of which 46,000 and 3,105 shares were withheld to cover the employees’ statutory income tax requirements. The estimated value of the withheld shares was ~~$0.9 million.~~$880,000 and $60,000, respectively.

The Company has four reportable segments: Men’s Sportswear and Swim, Women’s Sportswear, Direct-to-Consumer and Licensing. The Men’s Sportswear and Swim and Women’s Sportswear segments derive revenues from the design, import and distribution of apparel to department stores and other retail outlets, principally throughout the United States. The Direct-to-Consumer segment derives its revenues from the sale of the Company’s branded and licensed products through the Company’s retail stores and e-commerce platforms. The Licensing segment derives its revenues from royalties associated from the use of the Company’s brand names, principally Perry Ellis, Original Penguin, Laundry, Gotcha, Pro Player, Farah, Ben Hogan and John ~~Henry, Jantzen, and Savane.~~Henry.

The Company allocates certain corporate selling, general and administrative expenses based primarily on the revenues generated by the segments.


	Three Months Ended
	April 30,			May 2,			Three Months Ended						Six Months Ended
	2016			2015			July 30, 2016			August 1, 2015			July 30, 2016			August 1, 2015
	(in thousands)						(in thousands)
Revenues:
Men’s Sportswear and Swim	$	197,925		$	198,453		$	145,148		$	150,488		$	343,073		$	348,941
Women’s Sportswear		32,489			38,823			24,136			29,882			56,625			68,705
Direct-to-Consumer		20,461			20,981			24,057			24,268			44,518			45,249
Licensing		10,419			8,157			8,312			8,661			18,731			16,818

Total revenues	$	261,294		$	266,414		$	201,653		$	213,299		$	462,947		$	479,713

Depreciation and amortization:
Men’s Sportswear and Swim	$	1,897		$	1,875		$	2,006		$	1,863		$	3,903		$	3,738
Women’s Sportswear		614			500			764			566			1,378			1,066
Direct-to-Consumer		896			904			889			971			1,785			1,875
Licensing		60			43			57			46			117			89

Total depreciation and amortization	$	3,467		$	3,322		$	3,716		$	3,446		$	7,183		$	6,768

Operating income (loss):
Operating (loss) income:
Men’s Sportswear and Swim	$	16,942		$	11,330		$	(2,425	)	$	822		$	14,517		$	12,152
Women’s Sportswear		(351	)		1,382			(3,106	)		(1,051	)		(3,457	)		331
Direct-to-Consumer		(3,372	)		(1,866	)		(2,933	)		(2,147	)		(6,305	)		(4,013	)
Licensing⁽¹⁾		8,464			5,627			5,925			6,618			14,389			12,245

Total operating income	$	21,683		$	16,473
Total operating (loss) income							$	(2,539	)	$	4,242		$	19,144		$	20,715
Costs on early extinguishment of debt								—			5,121			—			5,121
Total interest expense		2,025			3,627			1,889			1,943			3,914			5,570

Total net income before income taxes	$	19,658		$	12,846
Total net (loss) income before income taxes							$	(4,428	)	$	(2,822	)	$	15,230		$	10,024

The Company sponsors a qualified pension plan. The following table provides the components of net benefit cost for the plan during the ~~first quarter~~three and six months of fiscal 2017 and 2016:


	Three Months Ended
	April 30,			May 2,			Three Months Ended						Six Months Ended
	2016			2015			July 30, 2016			August 1, 2015			July 30, 2016			August 1, 2015
	(in thousands)						(in thousands)
Service cost	$	63		$	63		$	63		$	63		$	126		$	126
Interest cost		124			337			124			337			248			674
Expected return on plan assets		(87	)		(658	)		(87	)		(658	)		(174	)		(1,316	)
Amortization of net gain		155			135			155			135			310			270

Net periodic benefit cost (income)	$	255		$	(123	)
Net periodic benefit cost							$	255		$	(123	)	$	510		$	(246	)

In March 2011, the Company issued $150 million 7⁷/ ⁄₈% senior subordinated notes, due April 1, 2019. The proceeds of this offering were used to retire the $150 million 8⁷/ ⁄₈% senior subordinated notes due September 15, 2013 and to repay a portion of the outstanding balance on the senior credit facility. The proceeds to the Company were $146.5 million yielding an effective interest rate of 8.0%.

On April 6, 2015, the Company elected to call for the partial redemption of $100 million of its $150 million 7⁷/ ⁄₈% senior subordinated notes due 2019 and a notice of redemption was sent to all registered holders of the senior subordinated notes. The redemption terms provided for the payment of a redemption premium of 103.938% of the principal amount redeemed. On May 6, 2015, the Company completed the redemption of the $100 million of its senior subordinated notes. The Company incurred debt extinguishment costs of approximately $5.1 million in connection with the redemption, including the redemption premium as well as the write-off of note issuance costs. At ~~April~~July 30, 2016, the balance of the 7⁷/ ⁄₈% senior subordinated notes totaled $49.6 million, net of debt issuance cost in the amount of $0.4 million. At January 30, 2016, the balance of the 7⁷/ ⁄₈% senior subordinated notes totaled $49.5 million, net of debt issuance cost in the amount of $0.5 million.

Certain Covenants.The indenture governing the senior subordinated notes contains certain covenants which restrict the Company’s ability and the ability of its subsidiaries to, among other things, incur additional indebtedness in certain circumstances, pay dividends or make other distributions on, redeem or repurchase capital stock, make investments or other restricted payments, create liens on assets to secure debt, engage in transactions with affiliates, and effect a consolidation or merger. The Company is not aware of any non-compliance with any of its covenants in this indenture. The Company could be materially harmed if it violates any covenants because the indenture’s trustee could declare the outstanding notes, together with accrued interest, to be immediately due and payable, which itthe Company may not be able to satisfy. In addition, a violation could also constitute a cross-default under the senior credit facility, the letter of credit facilities and the real estate mortgages resulting in all of ~~its~~the Company’s debt obligations becoming immediately due and payable, which the Company may not be able to satisfy.

On April 22, 2015, the Company amended and restated its existing senior credit facility (the “Credit Facility”), with Wells Fargo Bank, National Association, as agent for the lenders, and Bank of America, N.A., as syndication agent. The Credit Facility provides a revolving credit facility of up to an aggregate amount of $200 million. The Credit Facility has been extended through April 30, ~~2020 (“Maturity Date”).~~2020. In connection with this amendment and restatement, the Company paid fees in the amount of $0.6 million. These fees will be amortized over the term of the credit facility as interest expense. At ~~April~~July 30, 2016, the Company had outstanding borrowings of ~~$100.9~~$33.9 million under the Credit Facility. At January 30, 2016, the Company had outstanding borrowings of $61.8 million, under the Credit Facility.

Certain Covenants. The Credit Facility contains certain financial and other covenants, which, among other things, require the Company to maintain a minimum fixed charge coverage ratio if availability falls below certain thresholds. The Company is not aware of any non-compliance with any of its covenants in this Credit Facility. These covenants may restrict ~~its~~the Company’s ability and the ability of its subsidiaries to, among other things, incur additional indebtedness and liens in certain circumstances, redeem or repurchase capital stock, make certain investments or sell assets. The Company may pay cash dividends subject to certain restrictions set forth in the covenants including, but not limited to, meeting a minimum excess availability threshold and no occurrence of a default. The Company could be materially harmed if it violates any covenants, as the lenders under the Credit Facility could declare all amounts outstanding, together with accrued interest, to be immediately due and payable. If the Company is unable to repay those amounts, the lenders could proceed against its assets and the assets of its subsidiaries that are borrowers or guarantors. In addition, a covenant violation that is not cured or waived by the lenders could also constitute a cross-default under certain of ~~its~~the Company’s other outstanding indebtedness, such as the indenture relating to its 7⁷/ ⁄₈% senior subordinated notes due April 1, 2019, its letter of credit facilities, or its real estate mortgage loans. A cross-default could result in all of ~~its~~the Company’s debt obligations becoming immediately due and payable, which it may not be able to satisfy. Additionally, the Credit Facility includes a subjective acceleration clause if a “material adverse change” in the Company’s business occurs. The Company believes that the likelihood of the lender exercising this right is remote.

Borrowing ~~Base.~~Base. Borrowings under the Credit Facility are limited to a borrowing base calculation, which generally restricts the outstanding balance to the sum of (a) 87.5% of eligible receivables plus (b) 87.5% of eligible foreign accounts up to $1.5 million plus (c) the lesser of (i) the inventory loan limit, which equals 80% of the maximum credit under the Credit Facility at the time, (ii) a maximum of 70.0% of eligible finished goods inventory with an inventory limit not to exceed $125 million, or 90.0% of the net recovery percentage (as defined in the Credit Facility) of eligible inventory.

Interest. Interest on the outstanding principal balance drawn under the Credit Facility accrues at the prime rate and at the rate quoted by the agent for Eurodollar loans. The margin adjusts quarterly, in a range of 0.50% to 1.00% for prime rate loans and 1.50% to 2.00% for Eurodollar loans, based on the previous quarterly average of excess availability plus excess cash on the last day of the previous quarter.

Security. As security for the indebtedness under the Credit Facility, the Company granted to the lenders a first priority security interest (subject to liens permitted under the Credit Facility to be senior thereto) in substantially all of its existing and future assets, including, without limitation, accounts receivable, inventory, deposit accounts, general intangibles, equipment and capital stock or membership interests, as the case may be, of certain subsidiaries, and real estate, but excluding its non-U.S. subsidiaries and all of its trademark portfolio.

Accounts receivable, accounts payable, accrued interest payable and accrued expenses. The carrying amounts reported in the consolidated balance sheets approximate fair value due to the short-term nature of these instruments.

Investments. (classified within Level 1 of the valuation hierarchy)—The carrying amounts of the available-for-sale investments are measured at fair value on a recurring basis in the consolidated balance sheets.

Real estate mortgages. (classified within Level 2 of the valuation hierarchy)—The carrying amounts of the real estate mortgages were approximately ~~$21.9~~$21.7 million and $22.0 million at ~~April~~July 30, 2016 and January 30, 2016, respectively. The carrying values of the real estate mortgages at ~~April~~July 30, 2016 and January 30, 2016, approximate their fair values since the interest rates approximate market.

Senior credit facility. The carrying amount of the senior credit facility approximates fair value due to the frequent resets of its floating interest rate.

Senior subordinated notes payable. (classified within Level 1 of the valuation hierarchy)—The carrying amounts of the 7^{7 /}⁄₈% senior subordinated notes payable were approximately $49.6 million and $49.5 million at ~~April~~July 30, 2016 and January 30, 2016. The fair value of the 7^{7 /}⁄₈% senior subordinated notes payable was approximately ~~$52.0~~$49.5 million and $49.0 million as of ~~April~~July 30, 2016 and January 30, 2016, respectively, based on quoted market prices.

These estimated fair value amounts have been determined using available market information and appropriate valuation methods.

On April 20, 2016, the Company entered into an employment agreement with George Feldenkreis, the Company’s Executive Chairman. The term of the employment agreement shall continue until ~~the~~Mr. Feldenkreis’ death or termination of the employment agreement by the Company or Mr. Feldenkreis. He will be paid a base salary of not less than $750,000 per year during the term of employment and, among other things, a lump sum payment of $1.0 million upon the termination of his employment in most circumstances. Additionally, he is entitled to participate in the Company’s incentive compensation plans. In connection with the terms of his new employment agreement, the Company accelerated the expense recognition related to his outstanding cash incentive and stock based compensation awards. The impact of the acceleration was a $4.2 million charge during the second quarter of fiscal 2017 to selling, general and administrative expenses.

On April 20, 2016, the Company entered into an employment agreement with Oscar Feldenkreis, the Company’s Vice Chairman of the Board of Directors, Chief Executive Officer and President. The term of the employment agreement ends on February 2, 2019. Pursuant to the employment agreement, he will be paid a base salary of not less than $1,350,000 per year during the term of his employment with the Company. Additionally, he is entitled to participate in the Company’s incentive compensation plans.

The Company and several of its subsidiaries (the “Guarantors”) have fully and unconditionally guaranteed the senior subordinated notes payable on a joint and several basis. These guarantees are subject to release in limited circumstances (only upon the occurrence of certain customary conditions). The following are condensed consolidating financial statements, which present, in separate columns: Perry Ellis International, Inc., (Parent Only), the Guarantors on a combined, or where appropriate, consolidated basis, and the Non-Guarantors on a combined, or where appropriate, consolidated basis. Additional columns present eliminating adjustments and consolidated totals as of ~~April~~July 30, 2016 and January 30, 2016 and for the three and six months ended ~~April~~July 30, 2016 and ~~May 2,~~August 1, 2015. The combined Guarantors are 100% owned subsidiaries of Perry Ellis International, Inc., and have fully and unconditionally guaranteed the senior subordinated notes payable on a joint and several basis.


	Parent Only		Guarantors		Non-Guarantors		Eliminations			Consolidated		Parent Only		Guarantors		Non- Guarantors		Eliminations			Consolidated
ASSETS

Current Assets:
Cash and cash equivalents	$	—	$	3,399	$	23,554	$	—		$	26,953	$	—	$	3,949	$	23,933	$	—		$	27,882
Accounts receivable, net		—		146,714		27,519		—			174,233		—		94,942		25,697		—			120,639
Intercompany receivable, net		82,603		—		—		(82,603	)		—		80,417		—		—		(80,417	)		—
Inventories		—		129,936		23,737		—			153,673		—		113,649		20,765		—			134,414
Investment, at fair value		—		—		10,279		—			10,279		—		—		13,633		—			13,633
Prepaid expenses and other current assets		—		6,977		730		—			7,707		—		7,525		822		—			8,347

Total current assets		82,603		287,026		85,819		(82,603	)		372,845		80,417		220,065		84,850		(80,417	)		304,915

Property and equipment, net		—		61,980		2,783		—			64,763		—		61,312		2,484		—			63,796
Other intangible assets, net		—		155,370		32,332		—			187,702		—		155,153		32,332		—			187,485
Deferred income taxes		—		—		470		—			470		—		—		392		—			392
Investment in subsidiaries		278,966		—		—		(278,966	)		—		275,401		—		—		(275,401	)		—
Other assets		—		2,043		805		—			2,848		—		1,962		795		—			2,757

TOTAL	$	361,569	$	506,419	$	122,209	$	(361,569	)	$	628,628	$	355,818	$	438,492	$	120,853	$	(355,818	)	$	559,345

LIABILITIES AND EQUITY

Current Liabilities:
Accounts payable	$	—	$	46,847	$	4,697	$	—		$	51,544	$	—	$	46,167	$	9,573	$	—		$	55,740
Accrued expenses and other liabilities		—		22,275		4,761		—			27,036		—		17,972		4,907		—			22,879
Accrued interest payable		601		—		—		—			601		1,487		—		—		—			1,487
Income taxes payable		3,394		190		763		(1,696	)		2,651		823		624		708		(1,696	)		459
Unearned revenues		—		3,141		1,151		—			4,292		—		3,068		789		—			3,857
Deferred pension obligation		—		12,124		65		—			12,189		—		12,136		70		—			12,206
Intercompany payable, net		—		68,566		20,116		(88,682	)		—		—		72,291		17,298		(89,589	)		—

Total current liabilities		3,995		153,143		31,553		(90,378	)		98,313		2,310		152,258		33,345		(91,285	)		96,628

Senior subordinated notes payable, net		49,564		—		—		—			49,564		49,600		—		—		—			49,600
Senior credit facility		—		100,872		—		—			100,872		—		33,865		—		—			33,865
Real estate mortgages		—		21,112		—		—			21,112		—		20,873		—		—			20,873
Unearned revenues and other long-term liabilities		—		15,073		235		—			15,308		—		18,247		217		—			18,464
Deferred income taxes		—		33,753		—		1,696			35,449		—		34,311		—		1,696			36,007

Total long-term liabilities		49,564		170,810		235		1,696			222,305		49,600		107,296		217		1,696			158,809

Total liabilities		53,559		323,953		31,788		(88,682	)		320,618		51,910		259,554		33,562		(89,589	)		255,437

Total equity		308,010		182,466		90,421		(272,887	)		308,010		303,908		178,938		87,291		(266,229	)		303,908

TOTAL	$	361,569	$	506,419	$	122,209	$	(361,569	)	$	628,628	$	355,818	$	438,492	$	120,853	$	(355,818	)	$	559,345


	Parent Only		Guarantors		Non-Guarantors		Eliminations			Consolidated		Parent Only		Guarantors		Non- Guarantors		Eliminations			Consolidated
ASSETS

Current Assets:
Cash and cash equivalents	$	—	$	775	$	31,127	$	—		$	31,902	$	—	$	775	$	31,127	$	—		$	31,902
Accounts receivable, net		—		106,018		26,048		—			132,066		—		106,018		26,048		—			132,066
Intercompany receivable, net		74,091		—		—		(74,091	)		—		74,091		—		—		(74,091	)		—
Inventories		—		155,703		27,047		—			182,750		—		155,703		27,047		—			182,750
Investment, at fair value		—		—		9,782		—			9,782		—		—		9,782		—			9,782
Deferred income taxes		—		—		—		—			—
Prepaid income taxes		1,017		—		—		801			1,818		1,017		—		—		801			1,818
Prepaid expenses and other current assets		—		7,426		1,035		—			8,461		—		7,426		1,035		—			8,461

Total current assets		75,108		269,922		95,039		(73,290	)		366,779		75,108		269,922		95,039		(73,290	)		366,779

Property and equipment, net		—		61,260		2,648		—			63,908		—		61,260		2,648		—			63,908
Other intangible assets, net		—		155,587		32,332		—			187,919		—		155,587		32,332		—			187,919
Investment in subsidiaries		267,422		—		—		(267,422	)		—		267,422		—		—		(267,422	)		—
Deferred income taxes		—		—		442		—			442		—		—		442		—			442
Other assets		—		2,150		777		—			2,927		—		2,150		777		—			2,927

TOTAL	$	342,530	$	488,919	$	131,238	$	(340,712	)	$	621,975	$	342,530	$	488,919	$	131,238	$	(340,712	)	$	621,975

LIABILITIES AND EQUITY

Current Liabilities:
Accounts payable	$	—	$	89,961	$	13,723	$	—		$	103,684	$	—	$	89,961	$	13,723	$	—		$	103,684
Accrued expenses and other liabilities		—		21,524		4,973		—			26,497		—		21,524		4,973		—			26,497
Accrued interest payable		1,521		—		—		—			1,521		1,521		—		—		—			1,521
Income taxes payable		—		623		272		(895	)		—		—		623		272		(895	)		—
Unearned revenues		—		2,952		1,261		—			4,213		—		2,952		1,261		—			4,213
Deferred pension obligation		—		12,025		82		—			12,107		—		12,025		82		—			12,107
Intercompany payable, net		—		60,384		21,449		(81,833	)		—		—		60,384		21,449		(81,833	)		—

Total current liabilities		1,521		187,469		41,760		(82,728	)		148,022		1,521		187,469		41,760		(82,728	)		148,022

Senior subordinated notes payable, net		49,528		—		—		—			49,528		49,528		—		—		—			49,528
Senior credit facility		—		61,758		—		—			61,758		—		61,758		—		—			61,758
Real estate mortgages		—		21,318		—		—			21,318		—		21,318		—		—			21,318
Unearned revenues and other long-term liabilities		—		14,608		245		—			14,853		—		14,608		245		—			14,853
Deferred income taxes		—		33,319		—		1,696			35,015		—		33,319		—		1,696			35,015

Total long-term liabilities		49,528		131,003		245		1,696			182,472		49,528		131,003		245		1,696			182,472

Total liabilities		51,049		318,472		42,005		(81,032	)		330,494		51,049		318,472		42,005		(81,032	)		330,494

Total equity		291,481		170,447		89,233		(259,680	)		291,481		291,481		170,447		89,233		(259,680	)		291,481

TOTAL	$	342,530	$	488,919	$	131,238	$	(340,712	)	$	621,975	$	342,530	$	488,919	$	131,238	$	(340,712	)	$	621,975


					Non-
	Parent Only		Guarantors		Guarantors			Eliminations			Consolidated		Parent Only			Guarantors		Non- Guarantors			Eliminations			Consolidated
Revenues:
Net sales	$	—	$	224,905	$	25,970		$	—		$	250,875	$	—		$	394,142	$	50,074		$	—		$	444,216
Royalty income		—		7,214		3,205			—			10,419		—			12,275		6,456			—			18,731

Total revenues		—		232,119		29,175			—			261,294		—			406,417		56,530			—			462,947
Cost of sales		—		148,976		17,234			—			166,210		—			260,705		33,327			—			294,032

Gross profit		—		83,143		11,941			—			95,084		—			145,712		23,203			—			168,915
Operating expenses:
Selling, general and administrative expenses		—		61,433		8,501			—			69,934		—			123,794		18,794			—			142,588
Depreciation and amortization		—		3,191		276			—			3,467		—			6,467		716			—			7,183

Total operating expenses		—		64,624		8,777			—			73,401		—			130,261		19,510			—			149,771

Operating income		—		18,519		3,164			—			21,683		—			15,451		3,693			—			19,144
Interest expense		—		2,034		(9	)		—			2,025		—			3,935		(21	)		—			3,914

Net income before income taxes		—		16,485		3,173			—			19,658		—			11,516		3,714			—			15,230
Income tax provision		—		4,466		942			—			5,408		—			3,025		1,520			—			4,545

Equity in earnings of subsidiaries, net		14,250		—		—			(14,250	)		—		10,685			—		—			(10,685	)		—

Net income		14,250		12,019		2,231			(14,250	)		14,250		10,685			8,491		2,194			(10,685	)		10,685

Other comprehensive income		1,825		155		1,670			(1,825	)		1,825
Other comprehensive (loss) income														(1,103	)		310		(1,413	)		1,103			(1,103	)

Comprehensive income	$	16,075	$	12,174	$	3,901		$	(16,075	)	$	16,075	$	9,582		$	8,801	$	781		$	(9,582	)	$	9,582


						Non-
	Parent Only		Guarantors			Guarantors		Eliminations			Consolidated			Parent Only		Guarantors			Non- Guarantors		Eliminations			Consolidated
Revenues:
Net sales	$	—	$	232,279		$	25,978	$	—		$	258,257		$	—	$	412,200		$	50,695	$	—		$	462,895
Royalty income		—		4,912			3,245		—			8,157			—		10,198			6,620		—			16,818

Total revenues		—		237,191			29,223		—			266,414			—		422,398			57,315		—			479,713
Cost of sales		—		160,251			16,063		—			176,314			—		281,659			32,012		—			313,671

Gross profit		—		76,940			13,160		—			90,100			—		140,739			25,303		—			166,042
Operating expenses:
Selling, general and administrative expenses		—		59,845			9,763		—			69,608			—		117,120			20,742		—			137,862
Depreciation and amortization		—		3,024			298		—			3,322			—		6,162			606		—			6,768

Total operating expenses		—		62,869			10,061		—			72,930			—		123,282			21,348		—			144,630

Loss on sale of long-lived assets		—		(697	)		—		—			(697	)		—		(697	)		—		—			(697	)

Operating income		—		13,374			3,099		—			16,473			—		16,760			3,955		—			20,715
Costs on early extinguishment of debt															—		5,121			—		—			5,121
Interest expense		—		3,567			60		—			3,627			—		5,506			64		—			5,570

Net income before income taxes		—		9,807			3,039		—			12,846			—		6,133			3,891		—			10,024
Income tax provision		—		3,081			354		—			3,435			—		564			1,330		—			1,894

Equity in earnings of subsidiaries, net		9,411		—			—		(9,411	)		—			8,130		—			—		(8,130	)		—

Net income		9,411		6,726			2,685		(9,411	)		9,411			8,130		5,569			2,561		(8,130	)		8,130

Other comprehensive income		1,066		135			931		(1,066	)		1,066			1,354		270			1,084		(1,354	)		1,354

Comprehensive income	$	10,477	$	6,861		$	3,616	$	(10,477	)	$	10,477		$	9,484	$	5,839		$	3,645	$	(9,484	)	$	9,484


								Non-									Parent Only			Guarantors			Non- Guarantors			Eliminations			Consolidated
	Parent Only			Guarantors				Guarantors			Eliminations			Consolidated
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:	$	6,192		$	(40,153	)		$	(7,745	)	$	2,706		$	(39,000	)
NET CASH PROVIDED BY OPERATING ACTIVITIES:																	$	4,543		$	28,295		$	4,802		$	(2,706	)	$	34,934

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		—			(3,742	)			(356	)		—			(4,098	)		—			(5,854	)		(755	)		—			(6,609	)
Purchase of investments		—			—				(2,455	)		—			(2,455	)		—			—			(9,039	)		—			(9,039	)
Proceeds from investments maturities		—			—				1,965			—			1,965			—			—			5,205			—			5,205
Intercompany transactions		(5,993	)		—				—			5,993			—			(4,477	)		—			—			4,477			—

Net cash used in investing activities		(5,993	)		(3,742	)			(846	)		5,993			(4,588	)		(4,477	)		(5,854	)		(4,589	)		4,477			(10,443	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings from senior credit facility		—			123,995				—			—			123,995			—			179,380			—			—			179,380
Payments on senior credit facility		—			(84,881	)			—			—			(84,881	)		—			(207,273	)		—			—			(207,273	)
Payments on real estate mortgages		—			(212	)			—			—			(212	)		—			(423	)		—			—			(423	)
Payments on capital leases		—			(64	)			—			—			(64	)		—			(129	)		—			—			(129	)
Dividends paid to stockholder		—			—				2,706			(2,706	)		—			—			—			(2,706	)		2,706			—
Proceeds from exercise of stock options																		5			—			—			—			5
Intercompany transactions		—			7,681		��		(1,489	)		(6,192	)		—			—			9,178			(4,630	)		(4,548	)		—

Net cash provided by financing activities		—			46,519				1,217			(8,898	)		38,838
Net cash provided by (used in) financing activities																		5			(19,267	)		(7,336	)		(1,842	)		(28,440	)
Effect of exchange rate changes on cash and cash equivalents		(199	)		—				(199	)		199			(199	)		(71	)		—			(71	)		71			(71	)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		—			2,624				(7,573	)		—			(4,949	)		—			3,174			(7,194	)		—			(4,020	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		—			775				31,127			—			31,902			—			775			31,127			—			31,902

CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	—		$	3,399			$	23,554		$	—		$	26,953		$	—		$	3,949		$	23,933		$	—		$	27,882


							Non-									Parent Only			Guarantors			Non- Guarantors			Eliminations			Consolidated
	Parent Only			Guarantors			Guarantors			Eliminations			Consolidated
NET CASH USED IN OPERATING ACTIVITIES:	$	(1,639	)	$	(34,209	)	$	(3,820	)	$	—		$	(39,668	)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES:																$	(1,789	)	$	19,293		$	2,972		$	—		$	20,476

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		—			(2,969	)		(350	)		—			(3,319	)		—			(6,734	)		(611	)		—			(7,345	)
Purchase of investments		—			—			(2,640	)		—			(2,640	)		—			—			(2,641	)		—			(2,641	)
Proceeds from investments maturities		—			—			8,580			—			8,580
Proceeds from investment maturities																	—			—			11,860			—			11,860
Proceeds on sale of intangible assets		—			2,500			—			—			2,500			—			2,500			—			—			2,500
Intercompany transactions		721			—			—			(721	)		—			100,076			—			—			(100,076	)		—

Net cash provided by (used in) investing activities		721			(469	)		5,590			(721	)		5,121			100,076			(4,234	)		8,608			(100,076	)		4,374

CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on senior subordinated notes																	(100,000	)		—			—			—			(100,000	)
Borrowings from senior credit facility		—			90,036			—			—			90,036			—			255,065			—			—			255,065
Payments on senior credit facility		—			(80,366	)		—			—			(80,366	)		—			(196,854	)		—			—			(196,854	)
Payments on real estate mortgages		—			(206	)		—			—			(206	)		—			(410	)		—			—			(410	)
Payments on capital leases		—			(77	)		—			—			(77	)		—			(77	)		—			—			(77	)
Deferred financing fees		—			(569	)		—			—			(569	)		—			(569	)		—			—			(569	)
Proceeds from exercise of stock options		114			—			—			—			114			1,339			—			—			—			1,339
Tax benefit from exercise of equity instruments		396			—			—			—			396			(201	)		—			—			—			(201	)
Intercompany transactions		—			(1,002	)		(127	)		1,129			—			—			(97,968	)		(2,683	)		100,651			—

Net cash provided by (used in) financing activities		510			7,816			(127	)		1,129			9,328
Net cash used in financing activities																	(98,862	)		(40,813	)		(2,683	)		100,651			(41,707	)
Effect of exchange rate changes on cash and cash equivalents		408			—			408			(408	)		408			575			—			575			(575	)		575

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		—			(26,862	)		2,051			—			(24,811	)		—			(25,754	)		9,472			—			(16,282	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		—			30,055			13,492			—			43,547			—			30,055			13,492			—			43,547

CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	—		$	3,193		$	15,543		$	—		$	18,736		$	—		$	4,301		$	22,964		$	—		$	27,265

~~Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations~~

Unless the context otherwise requires, all references to “Perry Ellis,” the “Company,” “we,” “us” or “our” include Perry Ellis International, Inc. and its subsidiaries. This management’s discussion and analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended January 30, 2016, filed with the Securities and Exchange Commission on April 14, 2016.

We caution readers that this report includes “forward-looking statements” as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations rather than historical facts and they are indicated by words or phrases such as “anticipate,” “believe,” “budget,” “contemplate,” “continue,” “could,” “envision,” “estimate,” “expect,” “guidance,” “indicate,” “intend,” “may,” “might,” “plan,” “possibly,” “potential,” “predict,” “probably,” “pro-forma,” “project,” “seek,” “should,” “target,” or “will” or the negative thereof or other variations thereon and similar words or phrases or comparable terminology. Such forward-looking statements include, but are not limited to, statements regarding Perry Ellis’ strategic operating review, growth initiatives and internal operating improvements intended to drive revenues and enhance profitability, the implementation of Perry Ellis’ profitability improvement plan and Perry Ellis’ plans to exit underperforming, low growth brands and businesses. We have based such forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Some of the factors that could affect our financial performance, cause actual results to differ from our estimates, or underlie such forward-looking statements, are as set forth below and in various places in this report. These factors include, but are not limited to:

You are cautioned that all forward-looking statements involve risks and uncertainties detailed in our filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which are valid only as of the date they were made. We undertake no obligation to update or revise any forward-looking statements to reflect new information or the occurrence of unanticipated events or otherwise.

Included in the footnotes to the consolidated financial statements in our Annual Report on Form 10-K for the year ended January 30, 2016 is a summary of all significant accounting policies used in the preparation of our consolidated financial statements. We follow the accounting methods and practices as required by accounting principles generally accepted in the United States of America (“GAAP”). In particular, our critical accounting policies and areas in which we use judgment are in the areas of revenue recognition, the estimated collectability of accounts receivable, the recoverability of obsolete or overstocked inventory, the impairment of long-lived assets that are our trademarks, the recoverability of deferred tax assets and the measurement of retirement related benefits. We believe that there have been no significant changes to our critical accounting policies during the three and six months ended ~~April~~July 30, 2016 as compared to those we disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended January 30, 2016.

The following table sets forth, for the periods indicated, selected financial data expressed by segments and includes a reconciliation of EBITDA to operating income by segment, the most directly comparable GAAP financial measure:


	Three Months Ended
	April 30,			May 2,			Three Months Ended						Six Months Ended
	2016			2015			July 30, 2016			August 1, 2015			July 30, 2016			August 1, 2015
	(in thousands)						(in thousands)
Revenues by segment:
Men’s Sportswear and Swim	$	197,925		$	198,453		$	145,148		$	150,488		$	343,073		$	348,941
Women’s Sportswear		32,489			38,823			24,136			29,882			56,625			68,705
Direct-to-Consumer		20,461			20,981			24,057			24,268			44,518			45,249
Licensing		10,419			8,157			8,312			8,661			18,731			16,818

Total revenues	$	261,294		$	266,414		$	201,653		$	213,299		$	462,947		$	479,713


	Three Months Ended						Three Months Ended						Six Months Ended
	April 30, 2016			May 2, 2015			July 30, 2016			August 1, 2015			July 30, 2016			August 2, 2014
	(in thousands)						(in thousands)
Reconciliation of operating income to EBITDA
Operating income (loss) by segment:
Operating (loss) income by segment:
Men’s Sportswear and Swim	$	16,942		$	11,330		$	(2,425	)	$	822		$	14,517		$	12,152
Women’s Sportswear		(351	)		1,382			(3,106	)		(1,051	)		(3,457	)		331
Direct-to-Consumer		(3,372	)		(1,866	)		(2,933	)		(2,147	)		(6,305	)		(4,013	)
Licensing		8,464			5,627			5,925			6,618			14,389			12,245

Total operating income	$	21,683		$	16,473
Total operating (loss) income							$	(2,539	)	$	4,242		$	19,144		$	20,715

Add:
Depreciation and amortization
Men’s Sportswear and Swim	$	1,897		$	1,875		$	2,006		$	1,863		$	3,903		$	3,738
Women’s Sportswear		614			500			764			566			1,378			1,066
Direct-to-Consumer		896			904			889			971			1,785			1,875
Licensing		60			43			57			46			117			89

Total depreciation and amortization	$	3,467		$	3,322		$	3,716		$	3,446		$	7,183		$	6,768

EBITDA by segment:
Men’s Sportswear and Swim	$	18,839		$	13,205		$	(419	)	$	2,685		$	18,420		$	15,890
Women’s Sportswear		263			1,882			(2,342	)		(485	)		(2,079	)		1,397
Direct-to-Consumer		(2,476	)		(962	)		(2,044	)		(1,176	)		(4,520	)		(2,138	)
Licensing		8,524			5,670			5,982			6,664			14,506			12,334

Total EBITDA	$	25,150		$	19,795		$	1,177		$	7,688		$	26,327		$	27,483

EBITDA margin by segment
Men’s Sportswear and Swim		9.5	%		6.7	%		(0.3	%)		1.8	%		5.4	%		4.6	%
Women’s Sportswear		0.8	%		4.8	%		(9.7	%)		(1.6	%)		(3.7	%)		2.0	%
Direct-to-Consumer		(12.1	%)		(4.6	%)		(8.5	%)		(4.8	%)		(10.2	%)		(4.7	%)
Licensing		81.8	%		69.5	%		72.0	%		76.9	%		77.4	%		73.3	%
Total EBITDA margin		9.6	%		7.4	%		0.6	%		3.6	%		5.7	%		5.7	%

EBITDA consists of earnings before interest, depreciation and amortization, costs on early extinguishment of debt and income taxes. EBITDA is not a measurement of financial performance under accounting principles generally accepted in the United States of America, and does not represent cash flow from operations. The most directly comparable GAAP financial measure, presented above, is operating income. EBITDA and EBITDA margin are presented solely as a supplemental disclosure because management believes that they are a common measure of operating performance in the apparel industry.

The following is a discussion of the results of operations for the three and six month ~~period in the first quarter~~periods ended July 30, 2016 of the fiscal year ending January 28, 2017 (“fiscal 2017”) compared with the three and six month ~~period in the first quarter~~periods ended August 1, 2015 of the fiscal year ended January 30, 2016 (“fiscal 2016”).

Results of Operations—three and six months ended ~~April~~July 30, 2016 compared to the three and six months ended ~~May 2,~~August 1, 2015.

Net ~~sales~~sales.. Men’s Sportswear and Swim net sales for the three months ended ~~April~~July 30, 2016 were ~~$197.9~~$145.1 million, a decrease of ~~$0.6~~$5.4 million, or ~~0.3%~~3.6%, from ~~$198.5~~$150.5 million for the three months ended ~~May 2,~~August 1, 2015. The net sales decrease was attributed ~~primarily~~ to business exits coupled with a 3%$2.7 million impact from foreign currency conversions which was partially offset by a 3.5% increase in the core Perry Ellis, Original Penguin and golf apparel businesses.

Men’s Sportswear and Swim net sales for the six months ended July 30, 2016 were $343.1 million, a decrease ~~due~~of $5.8 million, or 1.7%, from $348.9 million for the six months ended August 1, 2015. The net sales decrease was attributed primarily to exited brands coupled with the negative impact in our special markets programs and foreign currency conversions, partially offset by increases in our core Perry Ellis and Original Penguin collections, and golf lifestyle apparel business.

Women’s Sportswear net sales for the three months ended ~~April~~July 30, 2016 were ~~$32.5~~$24.1 million, a decrease of ~~$6.3~~$5.8 million, or ~~16.2%~~19.4%, from ~~$38.8~~$29.9 million for the three months ended ~~May 2,~~August 1, 2015. The net sales decrease was attributed primarily to the sale of C&C California in the prior year as well as the planned decrease in special markets programs.

Women’s Sportswear net sales for the six months ended July 30, 2016 were $56.6 million, a decrease of $12.1 million, or 17.6%, from $68.7 million for the six months ended August 1, 2015. The net sales decrease was primarily due to the sale of C&C California in the prior year and our planned decrease in special markets ~~programs.~~programs consistent with reductions cited above.

Direct-to-Consumer net sales for the three months ended ~~April~~July 30, 2016 were ~~$20.5~~$24.1 million, a decrease of ~~$0.5~~$0.2 million, or ~~2.4%~~0.8%, from ~~$21.0~~$24.3 million for the three months ended ~~May 2,~~August 1, 2015. The slight decrease was driven by three store closings during the first half of fiscal 2017, partially offset by a comparable sales increase of 1.2%. We have experienced a significant negative impact on traffic and comparable same store sales for our retail store locations that cater to higher level of tourist activity. These doors represent close to 45% of our total store count.

Direct-to-Consumer net sales for the six months ended July 30, 2016 were $44.5 million, a decrease of $0.7 million, or 1.5%, from $45.2 million for the six months ended August 1, 2015. The decrease was driven by ~~a retail stores sales decline of 1.3% in~~relatively flat comparable same store sales, ~~for the direct to consumer business,~~ coupled with ~~two~~three net fewer stores as compared to the prior period.

Royalty income. Royalty income for the three months ended ~~April~~July 30, 2016 was ~~$10.4~~$8.3 million, ~~an increase~~a decrease of ~~$2.2~~$0.4 million, or ~~26.8%~~4.6%, from ~~$8.2~~$8.7 million for the three months ended ~~May 2,~~August 1, 2015. The decrease in royalty income was attributed to the transition of two of our licensed partners, one to in-house ownership and one to a new partnership.

Royalty income for the six months ended July 30, 2016 was $18.7 million, an increase of $1.9 million, or 11.3%, from $16.8 million for the six months ended August 1, 2015. Royalty income increases were attributed to increases in our Perry Ellis and Original Penguin brands as well as the new licenses signed during this and last year, and from our continuing initiatives to upgrade our licensing ~~partners. For~~partners, partially offset by the ~~remainder of the year, we anticipate even royalty income, compared to the prior quarter periods.~~transition discussed above.

Gross profit.Gross profit was ~~$95.1~~$73.8 million for the three months ended ~~April~~July 30, 2016, ~~an increase~~a decrease of ~~$5.0~~$2.1 million, or ~~5.5%~~2.8%, from ~~$90.1~~$75.9 million for the three months ended ~~May 2,~~August 1, 2015. This decrease is attributed to the sales decrease from our brand exits and special markets program described above.

Gross profit was $168.9 million for the six months ended July 30, 2016, an increase of $2.9 million, or 1.7%, from $166.0 million for the six months ended August 1, 2015. This increase is attributed to the sales mix composition, our increase in royalty income described above and the factors described within the gross profit margin section below.

Gross profit margin. As a percentage of total revenue, gross profit margins were ~~36.4%~~36.6% for the three months ended ~~April~~July 30, 2016, as compared to ~~33.8%~~35.6% for the three months ended ~~May 2,~~August 1, 2015, an ~~increase~~expansion of ~~260~~100 basis points. The expansion was driven by stronger product margins in our men’s collection, golf apparel, Nike and direct-to-consumer businesses.

For the six months ended July 30, 2016, gross profit margins were 36.5% as a percentage of total revenue as compared to 34.6% for the six months ended August 1, 2015, an expansion of 190 basis points. The increase is attributed to stronger product margins and reduced markdowns in our men’s collection, golf apparel and Nike businesses as well as an increase in royalty income and consolidation in our foreign buying offices and freight services.

Selling, general and administrative ~~expenses.~~expenses. Selling, general and administrative expenses for the three months ended ~~April~~July 30, 2016 were ~~$69.9~~$72.7 million, an increase of ~~$0.3~~$4.4 million, or ~~0.4%~~6.4%, from ~~$69.6~~$68.3 million for the three months ended ~~May 2,~~August 1, 2015. The increase was attributed primarily to severance costs related to our restructuring activities, as well as the required acceleration of compensation costs relating to the new contract for our executive chairman. These compensation costs will be distributed in future periods as they are earned. See footnote 20 to the unaudited condensed consolidated financial statements for further information regarding the acceleration of compensation.

Selling, general and administrative expenses for the six months ended July 30, 2016 were $142.6 million, an increase of $4.7 million, or 3.4%, from $137.9 million for the six months ended August 1, 2015. The increase is attributed to slightly higher incentive compensation accruals, severance costs and the acceleration of compensation costs as discussed above, partially offset by reduced costs resulting from our ~~infrastructure review.~~continued focus on the core infrastructure.

EBITDA. Men’s Sportswear and Swim EBITDA margin for the three months ended ~~April~~July 30, 2016 ~~increased by 280~~decreased 210 basis points to ~~9.5%~~(0.3%) from ~~6.7%~~1.8% for the three months ended ~~May 2,~~August 1, 2015. Direct costs associated with the segment remained relatively flat from the previous quarter. Because of this, the decrease in net sales described above had an unfavorable impact on the EBITDA margin. Men’s Sportswear and Swim EBITDA margin for the six months ended July 30, 2016 increased 80 basis points to 5.4%, from 4.6% for the six months ended August 1, 2015. The EBITDA margin was favorably impacted by the increase in gross profit and margins in our men’s collection, golf apparel and Nike businesses. Because of this increase, we were able to realize a favorable leverage in selling, general and administrative expenses, more specifically on payroll and advertising expenses.

Women’s Sportswear EBITDA margin for the three months ended ~~April~~July 30, 2016 decreased 810 basis points to ~~0.8%,~~(9.7%) from ~~4.8%~~(1.6%) for the three months ended ~~May 2,~~August 1, 2015. Women’s Sportswear EBITDA margin for the six months ended July 30, 2016 decreased 570 basis points to (3.7%) from 2.0% for the six months ended August 1, 2015. The EBITDA margin was unfavorably impacted by the ~~decrease~~exit of C&C California and planned decreases in ~~net sales described above. Because of this decrease in revenue,~~special markets programs, as a result we were not able to realize favorable leverage in selling, general and administrative expenses.

Direct-to-Consumer EBITDA margin for the three months ended ~~April~~July 30, 2016 decreased ~~750~~370 basis points to ~~(12.1%~~(8.5%), from ~~(4.6%~~(4.8%) for the three months ended ~~May 2,~~August 1, 2015. Direct-to-Consumer EBITDA margin for the six months ended July 30, 2016 decreased 550 basis points to (10.2%), from (4.7%) for the six months ended August 1, 2015. The decrease was attributable to the ~~decrease~~closing of ~~revenue from our~~a net of three stores, as described above. Additionally, selling, general and administrative expenses were unfavorably impacted by increases in rent as we renewed some of our leases at higher rates.

Licensing EBITDA margin for the three months ended ~~April~~July 30, 2016 ~~increased~~decreased 490 basis points to ~~81.8%~~72.0%, from ~~69.5%~~76.9% for the three months ended ~~May 2,~~August 1, 2015. Direct costs associated with the licensing segment remained relatively flat from the previous quarter. Because of this, the decrease in royalty income described above had an unfavorable impact on the EBITDA margin. Licensing EBITDA margin for the six months ended July 30, 2016 increased 410 basis points to 77.4%, from 73.3% for the six months ended August 1, 2015.The EBITDA margin was favorably impacted by the increase in royalty income described above. Also, as described below, during the three months ended May 2, 2015, we had a loss on the sale of the C&C California brand tradename, which was the primary reason for the lower EBITDA margin in the first quarter of fiscal 2016.

Depreciation and amortization. Depreciation and amortization for the three months ended ~~April~~July 30, 2016, was ~~$3.5~~$3.7 million, an increase of ~~$0.2~~$0.3 million, or ~~6.1%,~~8.8% from ~~$3.3~~$3.4 million for the three months ended ~~May 2,~~August 1, 2015.

Depreciation and amortization for the six months ended July 30, 2016, was $7.2 million, an increase of $0.4 million, or 5.9%, from $6.8 million for the six months ended August 1, 2015. The increase is attributed to depreciation related to our capital expenditures, primarily in the direct-to-consumer segment, and leasehold improvements made during fiscal 2016.

Loss on sale of long-lived ~~assets.~~assets. During the first quarter of fiscal 2016, we entered into an agreement to sell the intellectual property of our C&C California brand to a third party. As a result of this transaction, we recorded a loss of ($0.7) million in the licensing segment.

Cost on early extinguishment of debt.On April 6, 2015, we called for partial redemption $100 million of our $150 million outstanding 7 ⁷/ ₈% Senior Subordinated Notes. The redemption terms provided for the payment of a redemption premium of 103.938% of the principal amount redeemed. On May 6, 2015, we completed the redemption of $100 million of our senior subordinated notes. We incurred debt extinguishment costs of approximately $5.1 million in connection with the redemption premium and the write-off of note issuance costs.

Interest expense. Interest expense for the three months ended ~~April~~July 30, 2016 and the three months ended August 1, 2015 was $1.9 million. Interest remained flat. Interest expense for the six months ended July 30, 2016 was ~~$2.0~~$3.9 million, a decrease of ~~$1.6~~$1.7 million, or ~~44.4%~~30.4%, from ~~$3.6~~$5.6 million for the ~~three~~six months ended ~~May 2,~~August 1, 2015. The decrease was primarily attributable to a decrease in interest resulting from the partial redemption of $100 million of our senior subordinated notes during the second quarter of fiscal 2016. This decrease was partially offset by a higher average amount borrowed on our credit facility as compared to the prior year period. The increase in the credit facility was due to its use for the redemption of the notes as discussed above.

Income taxes. The income tax ~~expense~~benefit for the three months ended ~~April~~July 30, 2016, was ~~$5.4~~$0.9 million, ~~an increase~~a decrease of ~~$2.0~~$0.6 million, as compared to ~~$3.4~~$1.5 million for the three months ended ~~May 2,~~August 1, 2015. For the three months ended ~~April~~July 30, 2016, our effective tax rate was ~~27.5%~~19.5% as compared to ~~26.7%~~54.7% for the three months ended ~~May 2,~~August 1, 2015. The income tax provision for the six months ended July 30, 2016, was $4.5 million, an increase of $2.6 million, as compared to $1.9 million for the six months ended August 1, 2015. For the six months ended July 30, 2016, our effective tax rate was 29.8% as compared to 18.9% for the six months ended August 1, 2015. The overall change in the effective tax rate is attributed to the current year impact of the valuation allowance on domestic taxes and a change in the ratio of income between domestic and foreign operations, of which the domestic operations are taxed at higher statutory tax rates.

Net (loss) income.Net ~~income~~loss for the three months ended ~~April~~July 30, 2016 was ~~$14.3~~$3.6 million, an increase of ~~$4.9~~$2.3 million, or ~~52.1%~~176.9%, as compared to ~~$9.4~~a loss of $1.3 million for the three months ended ~~May 2,~~August 1, 2015. Net income for the six months ended July 30, 2016 was $10.7 million, an increase of $2.6 million, or 32.1%, as compared to $8.1 million for the six months ended August 1, 2015. The changes in operating results were due to the items described above.

We rely principally on cash flow from operations and borrowings under our senior credit facility to finance our operations, pension funding requirements, acquisitions, and capital expenditures. We believe that our working capital requirements will increase for ~~this~~next year as we continue to expand internationally. As of ~~April~~July 30, 2016, our total working capital was ~~$274.5~~$208.3 million as compared to $218.8 million ~~as of~~at January 30, 2016 and ~~$265.5~~$215.3 million as of ~~May 2,~~August 1, 2015. We believe that our cash flows from operations and availability under our senior credit facility and remaining letter of credit facilities are sufficient to meet our working capital needs and capital expenditure needs over the next year.

We consider the undistributed earnings of our foreign subsidiaries as of ~~April~~July 30, 2016, to be indefinitely reinvested and, accordingly, no United States income taxes have been provided thereon. As of ~~April~~July 30, 2016, the amount of cash associated with indefinitely reinvested foreign earnings was approximately ~~$23.6~~$23.9 million. We have not, nor do we anticipate the need to, repatriate funds to the United States to satisfy domestic liquidity needs arising in the ordinary course of business, including liquidity needs associated with our domestic debt service requirements.

Net cash ~~used in~~provided by operating activities was ~~$39.0~~$34.9 million for the ~~three~~six months ended ~~April~~July 30, 2016, as compared to cash ~~used in~~provided by operating activities of ~~$39.7~~$20.5 million for the ~~three~~six months ended ~~May 2,~~August 1, 2015.

The cash ~~used in~~provided by operating activities for ~~three~~the six months ended ~~April~~July 30, 2016, is primarily attributable to ~~an increase~~a decrease in accounts receivable of ~~$41.5~~$10.1 million, decreased inventory of $47.6 million due to improved inventory management, an increase in unearned revenues and other liabilities of $3.5 million, as well as a decrease in prepaid income taxes of $1.9 million. This was partially offset by a decrease in accounts payable and accrued expenses of ~~$53.1 million; which~~$52.6 million.

The cash provided by operating activities for the six months ended August 1, 2015, is primarily attributable to a decrease in accounts receivable of $13.2 million due to the timing of shipments as compared to the prior year, as well as decreased inventory of $30.1 million due to improved inventory management. This was partially offset by a decrease in inventory of $30.2 million associated with strong inventory management, an increase in income taxes payable of $2.2 million, a decrease in prepaid expenses and other current assets of $1.2 million, and a decrease in prepaid income taxes of $1.9 million. Our inventory turnover ratio remained constant at 3.6 as compared to the prior period because of our continued tight inventory management.

~~The cash used in operating activities for three months ended May 2, 2015, is primarily attributable to an increase in accounts receivable of $43.4 million, an increase in~~ accounts payable and accrued expenses of ~~$42.7~~$41.2 million ~~and an increase in~~as well as decreased accrued interest payable of ~~$3.0 million; which was partially offset by a decrease in inventory of $30.6 million associated with strong inventory management. As a result of~~$2.5 million. For the ~~increase in sales for the first quarter of fiscal 2016 as compared to prior quarter,~~six months ended August 1, 2015, our inventory turnover ratio increased to ~~3.6~~3.7 as compared to 3.3 for the comparable ~~quarter~~period in fiscal 2015. Inventory levels declined as noted above resulting from tighter inventory management.

Net cash used in investing activities was ~~$4.6~~$10.4 million for the ~~three~~six months ended ~~April~~July 30, 2016 as compared to cash provided by investing activities of ~~$5.1~~$4.4 million for the ~~three~~six months ended ~~May 2,~~August 1, 2015. The net cash used in investing activities during the first ~~three~~six months of fiscal 2017 primarily reflects the purchase of investments of $9.0 million and the purchase of property and equipment of ~~$4.1~~$6.6 million primarily for ~~leaseholds~~leasehold improvements and ~~the purchase of investments of $2.5 million; partially~~store fixtures; offset by the proceeds from the maturities of investments in the amount of ~~$2.0~~$5.2 million. ~~We anticipate capital expenditures during~~

Net cash provided by investing activities was $4.4 million for the ~~remainder~~six months ended August 1, 2015, as compared to cash used in investing activities of ~~fiscal 2017 of $8.0~~$16.1 million ~~to $9.0 million in new leasehold improvements, technology, systems, retail stores, and other expenditures.~~

for the six months ended August 2, 2014. The net cash provided by investing activities during the ~~three~~first six months ~~ended May 2, 2015~~of fiscal 2016 primarily reflects the proceeds from the maturities of investments in the amount of ~~$8.6~~$11.9 million and proceeds on the sale of the C&C California brand in the amount of $2.5 million; offset by the purchase of investments of $2.6 million and the purchase of property and equipment of ~~$3.3~~$7.3 million primarily for ~~leaseholds~~leasehold improvements and ~~the purchase of investments of $2.6 million.~~store fixtures.

Net cash ~~provided by~~used in financing activities was ~~$38.8~~$28.4 million for the ~~three~~six months ended ~~April~~July 30, 2016 as compared to ~~net~~ cash ~~provided by~~used in financing activities of ~~$9.3~~$41.7 million for the ~~three~~six months ended ~~May 2,~~August 1, 2015. The net cash ~~provided~~used during the first ~~three~~six months of fiscal 2017 primarily reflects net payments on our senior credit facility of $27.9 million, payments of $0.4 million on our mortgage loans and payments on capital leases of $0.1 million.

Net cash used in financing activities was $41.7 million for the six months ended August 1, 2015, as compared to cash used in financing activities of $8.7 million for the six months ended August 2, 2014. The net cash used during the first six months of fiscal 2016 primarily reflects payments for the partial redemption on our senior subordinated notes of $100 million, payments of $0.4 million on our mortgage loans, payments of deferred financing fees on the senior credit facility of $0.6 million and payments on capital leases of $0.07 million; partially offset by net borrowings on our senior credit facility of ~~$39.1 million; which was partially offset by $0.2 million in payments on our mortgage loans.~~

~~The net cash provided during the first three months of fiscal 2016 primarily reflects net borrowings on our senior credit facility of $9.7~~$58.2 million, proceeds from the ~~exercise~~exercises of stock options of ~~$0.1~~$1.3 million and a tax benefit from exercise of equity instruments of ~~$0.4 million; which was partially offset by payments~~$0.2 million. We financed the redemption of ~~$0.6 million in deferred financing fees on~~ the subordinated notes through our senior credit ~~facility and $0.2 million in payments on our mortgage loans.~~facility.

Our Board of Directors has authorized us to purchase, from time to time and as market and business conditions warrant, up to $70 million of our common stock for cash in the open market or in privately negotiated transactions through October 31, 2016. Although our Board of Directors allocated a maximum of $70 million to carry out the program, we are not obligated to purchase any specific number of outstanding shares and will reevaluate the program on an ongoing basis.

There have been no open market purchases ~~during~~through the second quarter of fiscal 2017. Total purchases under the plan to date amount to approximately $58.6 million.

During the second quarter of fiscal 2016, we retired 770,753 shares of treasury stock recorded at a cost of approximately $15.7 million. Accordingly, during the second quarter of fiscal 2016 we reduced common stock and additional paid in capital by $7,000 and $15.7 million, respectively.

In March 2011, we issued $150 million 7 ⁷/ ₈% senior subordinated notes, due April 1, 2019. The proceeds of this offering were used to retire the $150 million 8 ⁷/ ₈% senior subordinated notes due September 15, 2013 and to repay a portion of the outstanding balance on the senior credit facility. The proceeds to us were $146.5 million yielding an effective interest rate of 8.0%.

On April 6, 2015, we elected to call for the partial redemption of $100 million of our $150 million 7 ⁷/ ₈% senior subordinated notes due 2019 and a notice of redemption was sent to all registered holders of the senior subordinated notes. The redemption terms provided for the payment of a redemption premium of 103.938% of the principal amount redeemed. On May 6, 2015, we completed the redemption of the $100 million of our senior subordinated notes. We incurred debt extinguishment costs of approximately $5.1 million in connection with the redemption, including the redemption premium as well as the write-off of note issuance costs. At ~~April~~July 30, 2016, the balance of the 7 ⁷/ ₈% senior subordinated notes totaled $49.6 million, net of debt issuance costs in the amount of $0.4 million. At January 30, 2016, the balance of the 7 ⁷/ ₈% senior subordinated notes totaled $49.5 million, net of debt issuance costs in the amount of $0.5 million.

Certain Covenants.The indenture governing the senior subordinated notes contains certain covenants which restrict our ability and the ability of our subsidiaries to, among other things, incur additional indebtedness in certain circumstances, pay dividends or make other distributions on, redeem or repurchase capital stock, make investments or other restricted payments, create liens on assets to secure debt, engage in transactions with affiliates, and effect a consolidation or merger. We are not aware of any non-compliance with any of our covenants in this indenture. We could be materially harmed if we violate any covenants because the indenture’s trustee could declare the outstanding notes, together with accrued interest, to be immediately due and payable, which we may not be able to satisfy. In addition, a violation could also constitute a cross-default under the senior credit facility, the letter of credit facilities and the real estate mortgages resulting in all of our debt obligations becoming immediately due and payable, which we may not be able to satisfy.

On April 22, 2015, we amended and restated our existing senior credit facility (the “Credit Facility”), with Wells Fargo Bank, National Association, as agent for the lenders, and Bank of America, N.A., as syndication agent. The Credit Facility provides a revolving credit facility of up to an aggregate amount of $200 million. The Credit Facility has been extended through April 30, ~~2020 (“Maturity Date”).~~2020. In connection with this amendment and restatement, we paid fees in the amount of $0.6 million. These fees will be amortized over the term of the credit facility as interest expense. At ~~April~~July 30, 2016, we had outstanding borrowings of ~~$100.9~~$33.9 million, under the Credit Facility. At January 30, 2016, we had outstanding borrowings of $61.8 million, under the Credit Facility.

Certain Covenants. The Credit Facility contains certain financial and other covenants, which, among other things, require ~~the Company~~us to maintain a minimum fixed charge coverage ratio if availability falls below certain thresholds. We are not aware of any non-compliance with any of our covenants in this Credit Facility. These covenants may restrict our ability and the ability of our subsidiaries to, among other things, incur additional indebtedness and liens in certain circumstances, redeem or repurchase capital stock, make certain investments or sell assets. We may pay cash dividends subject to certain restrictions set forth in the covenants including, but not limited to, meeting a minimum excess availability threshold and no occurrence of a default. We could be materially harmed if we violate any covenants, as the lenders under the Credit Facility could declare all amounts outstanding, together with accrued interest, to be immediately due and payable. If we are unable to repay those amounts, the lenders could proceed against our assets and the assets of our subsidiaries that are borrowers or guarantors. In addition, a covenant violation that is not cured or waived by the lenders could also constitute a cross-default under certain of our other outstanding indebtedness, such as the indenture relating to our 7⁷/ ₈% senior subordinated notes due April 1, 2019, our letter of credit facilities, or our real estate mortgage loans. A cross-default could result in all of our debt obligations becoming immediately due and payable, which we may not be able to satisfy. Additionally, our Credit Facility includes a subjective acceleration clause if a “material adverse change” in our business occurs. We believe that the likelihood of the lender exercising this right is remote.

Borrowing Base. Borrowings under the Credit Facility are limited to a borrowing base calculation, which generally restricts the outstanding balance to the sum of (a) 87.5% of eligible receivables plus (b) 87.5% of eligible foreign accounts up to $1.5 million plus (c) the lesser of (i) the inventory loan limit, which equals 80% of the maximum credit under the Credit Facility at the time, (ii) a maximum of 70.0% of eligible finished goods inventory with an inventory limit not to exceed $125 million, or 90.0% of the net recovery percentage (as defined in the Credit Facility) of eligible inventory.

Security. As security for the indebtedness under the Credit Facility, we granted to the lenders a first priority security interest (subject to liens permitted under the Credit Facility to be senior thereto) in substantially all of our existing and future assets, including, without limitation, accounts receivable, inventory, deposit accounts, general intangibles, equipment and capital stock or membership interests, as the case may be, of certain subsidiaries, and real estate, but excluding our non-U.S. subsidiaries and all of our trademark portfolio.

As of ~~April~~July 30, 2016, we maintained one U.S. dollar letter of credit facility totaling $30.0 million and one letter of credit facility totaling $0.3 million utilized by our United Kingdom subsidiary. Each documentary letter of credit is secured primarily by the consignment of merchandise in transit under that letter of credit and certain subordinated liens on our assets.

During the first quarter of fiscal 2016, a $15 million line of credit expired and was not renewed. During fiscal 2016, we decreased the letter of credit sublimit in our Senior Credit Facility to $30.0 million. At ~~April~~July 30, 2016 and January 30, 2016, there was $18.8 and $18.9 million, respectively, available under the existing letter of credit facilities.

In July 2010, we paid off our then existing real estate mortgage loan and refinanced our main administrative office, warehouse and distribution facility in Miami with a $13.0 million mortgage loan. The loan is due on August 1, 2020. The interest rate has been modified since the refinancing date. The interest rate was 4.25% per annum and monthly payments of principal and interest of $71,000 were due, based on a 25-year amortization with the outstanding principal due at maturity. In July 2013, we amended the mortgage loan agreement to modify the interest rate. The interest rate was reduced to 3.9% per annum and the terms were restated to reflect new monthly payments of principal and interest of $69,000, based on a 25-year amortization with the outstanding principal due at maturity. At ~~April~~July 30, 2016, the balance of the real estate mortgage loan totaled ~~$11.0~~$10.9 million, net of discount, of which ~~$361,000~~$399,000 is due within one year.

In June 2006, we entered into a mortgage loan for $15 million secured by our Tampa facility. The loan is due on January 23, 2019. The mortgage loan has been refinanced and the interest rate has been modified since such date. The interest rate was 4.00% per annum and quarterly payments of principal and interest of approximately $248,000 were due, based on a 20-year amortization with the outstanding principal due at maturity. In January 2014, we ~~again~~ amended the mortgage loan to modify the interest rate. The interest rate was reduced to 3.25% per annum and the terms were restated to reflect new monthly payments of principal and interest of approximately $68,000, based on a 20-year amortization with the outstanding principal due at maturity. At ~~April~~July 30, 2016, the balance of the real estate mortgage loan totaled ~~$11.0~~$10.9 million, net of discount, of which approximately ~~$464,000~~$468,000 is due within one year.

The real estate mortgage loans contain certain covenants. We are not aware of any non-compliance with any of the covenants. If we violate any covenants, the lender under the real estate mortgage loan could declare all amounts outstanding thereunder to be immediately due and payable, which we may not be able to satisfy. A covenant violation could constitute a cross-default under our senior credit facility, the letter of credit facilities and the indenture relating to our senior subordinated notes resulting in all of our debt obligations becoming immediately due and payable, which we may not be able to satisfy.

We are not a party to any “off-balance sheet arrangements,” as defined by applicable GAAP and SEC rules.

We do not believe that inflation or foreign currency fluctuations significantly affected our ~~financial position and~~ results of operations ~~as of and~~ for the three and six months ended ~~April~~July 30, 2016.

The market risk inherent in our financial statements represents the potential changes in the fair value, earnings or cash flows arising from changes in interest rates. We manage this exposure through regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. Our policy allows the use of derivative financial instruments for identifiable market risk exposure, including interest rate. We currently do not have any derivative financial instruments for identifiable market risk.

We are exposed to market risks for the pricing of cotton and other fibers, which may impact fabric prices. Fabric is a portion of the overall product cost, which includes various components. We manage our fabric prices by using a combination of different strategies including the utilization of sophisticated logistics and supply chain management systems, which allow us to maintain maximum flexibility in our global sourcing of products. This provides us with the ability to re-direct our sourcing of products to the most cost-effective jurisdictions. In addition, we may modify our product offerings to our customers based on the availability of new fibers, yield enhancement techniques and other technological advances that allow us to utilize more cost effective fibers. Finally, we also have the ability to adjust our price points of such products, to the extent market conditions allow. These factors, along with our foreign-based sourcing offices, allow us to procure product from lower cost countries or capitalize on certain tariff-free arrangements, which help mitigate any commodity price increases that may occur. We have not historically managed, and do not currently intend to manage, commodity price exposures by using derivative instruments.

Our current exposure to foreign exchange risk is not significant and accordingly, we have not entered into any transactions to hedge against those risks.

We carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report pursuant to Rule 13a-15(b) of the Securities Exchange Act. Based upon this evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective as of ~~April~~July 30, 2016 in ensuring that the information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

There were no changes in our internal control over financial reporting during the quarter ended ~~April~~July 30, 2016 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


Florida		59-1162998
(State or other jurisdiction of Incorporation or Organization)		(I.R.S. Employer
~~Incorporation or Organization)~~		Identification No.)


3000 N.W. 107 Avenue
Miami, Florida		33172
(Address of Principal Executive Offices)		(Zip Code)


	PAGE
PART I: FINANCIAL INFORMATION

Item 1:

Condensed Consolidated Balance Sheets (Unaudited) as of ~~April~~July 30, 2016 and January 30, 2016		1

Condensed Consolidated Statements of ~~Income~~Operations (Unaudited) for the three and six months ended ~~April~~July 30, 2016 and ~~May 2,~~August 1, 2015		2

Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) for the three and six months ended ~~April~~July 30, 2016 and ~~May 2,~~August 1, 2015		3

Condensed Consolidated Statements of Cash Flows (Unaudited) for the ~~three~~six months ended ~~April~~July 30, 2016 and ~~May 2,~~August 1, 2015		4

Notes to Unaudited Condensed Consolidated Financial Statements		6

Item 2:

Management’s Discussion and Analysis of Financial Condition and Results of Operations		2226

Item 3:

Quantitative and Qualitative Disclosures About Market Risk		2935

Item 4:

Controls and Procedures		3035

PART II: OTHER INFORMATION		31

Item 6:

Exhibits		3136


Exhibit Number	Exhibit Description	Where Filed

~~10.74~~	~~Employment Agreement dated April 20, 2016, by and between Perry Ellis International, Inc. and George Feldenkreis (1)~~		~~Filed herewith.~~

~~10.75~~	~~Employment Agreement dated April 20, 2016, by and between Perry Ellis International, Inc. and Oscar Feldenkreis (1)~~		~~Filed herewith.~~

31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a)		Filed herewith.

31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)		Filed herewith.

32.1	Certification of Principal Executive Officer pursuant to Section 1350		Filed herewith.

32.2	Certification of Principal Financial Officer pursuant to Section 1350		Filed herewith.

101.INS	XBRL Instance Document		Filed herewith.

101.SCH	XBRL Taxonomy Extension Schema		Filed herewith.

101.CAL	XBRL Taxonomy Extension Calculation Linkbase		Filed herewith.

101.DEF	XBRL Taxonomy Extension Definition Linkbase		Filed herewith.

101.LAB	XBRL Taxonomy Extension Label Linkbase		Filed herewith.

101.PRE	XBRL Taxonomy Extension Presentation Linkbase		Filed herewith.


	Unrealized (Loss) Gain on Pension Liability			Foreign Currency Translation Adjustments, Net			Unrealized (Loss) Gain on Investments			Total
	(in thousands)
Balance, January 31, 2015	$	(8,085	)	$	(4,774	)	$	7		$	(12,852	)
Other comprehensive income (loss) before reclassifications		—			1,091			(7	)		1,084
Amounts reclassified from accumulated other comprehensive income		270			—			—			270

Balance, August 1, 2015	$	(7,815	)	$	(3,683	)	$	—		$	(11,498	)


		4		~~Continued~~

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company