Perry Ellis International (ticker: PERY), which designs, distributes and licenses apparel and accessories reported Q2 2005 earnings results yesterday. Here are key quotes attributed to Chairman and CEO George Feldenkreis from management's earnings results conference call:
....the situation, going forward, is that the United States is
asking from China to have a quota through 2008, which are basically
last year plus 7.5% growth. The Chinese are asking to have quotas based
on the imports into the United States between January 1 and June 30 of
this year, plus 7% growth.
....the expectation is that the quota charge would be
$1.00 a unit more than it was at the beginning of this year, which was
On Production Trends
....China is no longer the lowest garment producer on the garment side. It's really more in Vietnam and Bangladesh and other areas are coming up, where labor is lower than China. So, the issue with China long-term is fabric.
....as....more textile production is developed in other countries, production is going to be moving to other countries, too, which are totally quota-free. So, it's a moving game. It's just that you have to be ahead of the curve, and I think we're pretty good at doing that.
....our imports from countries like Vietnam, which used to be nothing,
are now in the 15, 16% of total imports for the Company. Bangladesh was
almost 0, it's, today, running 12, 13%.
(Quotes are from the CCBN StreetEvents transcript.)
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