Second Quarter Results from Operations

Total revenue decreased 2.3% to $209.4 million compared to $214.4 million in the quarter ended July 30, 2011 (“second quarter of fiscal 2012”) and in-line with Company guidance of a low-single digit decrease. The Company noted that continued momentum within golf, direct-to-consumer, and women’s contemporary was slightly offset by decreases in its Perry Ellis and Rafaella collection businesses.

Oscar Feldenkreis, President and Chief Operating Officer, commented, “We met our expectations for the second quarter and continue to make significant progress in our Perry Ellis and Rafaella collection businesses, which is encouraging as we move forward. We expect to see improved performance beginning with the holiday season and the new team’s full impact beginning in spring 2013.”

Gross margin for the second quarter decreased by 60 basis points to 33.1% compared to 33.7% last year due to costs associated with the exit of underperforming brands and businesses, the closing of a sourcing office, as well as increased promotional activity within the Company’s collection businesses.

Selling, general and administrative (“SG&A”) expenses for the second quarter of fiscal 2013 increased $2.7 million to $66.1 million compared to $63.4 million in the second quarter of fiscal 2012. This increase was attributed primarily to costs associated with the Company’s voluntary early retirement program, exited brands and businesses, and the exit and relocation of a third party logistics provider.

As reported under generally accepted accounting principles (“GAAP”), net loss for the second quarter of fiscal 2013 was $2.4 million, or earnings per share (“EPS”) of ($0.17), compared to net income of $1.8 million, or $0.11 per fully diluted share in the second quarter of fiscal 2012.

After considering the costs of the exit of underperforming brands, the voluntary retirement program, the closing of the sourcing office and the relocation of the third party logistics provider, earnings per fully diluted share, as adjusted, for the second quarter of fiscal 2013 was $0.01 compared to earnings per fully diluted share, as adjusted, of $0.11 in the second quarter of fiscal 2012.

Adjusted EBITDA for the second quarter totaled $7.4 million or 3.6% of revenue.

First Half Operations Review

For the six months ended July 28, 2012 (“first half of fiscal 2013”) total revenues decreased 5.5% to $475.0 million compared to $502.7 million for the six months ended July 30, 2011 (“first half of fiscal 2012”) and in line with Company guidance. The revenue reduction during the first half of the fiscal year, as compared to last year, was primarily attributable to softness in the Company’s collection businesses.