Perry Ellis International is a small capital member of the Apparel/Accessories Industry in the Consumer Cyclical Sector, and its business model is a fine example of building value into a stock through systematic strategic marketing management.

Three important business strategies distinguish this stock. The first is its ability to participate at multiple price points. It can leverage demand trends whether the economy moves up or down. Secondly, the company has 15,000 retail shelves under its distribution coverage; this comes with professional management of stable, quality brands. Finally, the company is flexible in licensing related product lines. It has distributed world-renowned sport and outdoor apparel brands for some time and recently added bed and bath products from a reputed manufacturer to its range. The licensing strategy tells stock investors that the management is focused on the customer’s needs rather than internally.

The stock has nearly doubled during the latter part of March 2008, compared to its 52-week low. It is still about 50% below the annual stock price high as the 2008 spring season unfolds, which is nearly the ideal juncture to invest in and hold this stock. Investors will be encouraged to note that the stock is superior to the Apparel/Accessories Industry in respect of the Trailing Twelve Months Price to Earnings Ratio, the five-year sales growth, and the Total Debt to Equity Ratio.

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