Kellwood fourth quarter sales increased 13.7% to $592.3 million, versus $521.2 million last year due to a combination of organic growth of 10%, and the acquisition of Phat Fashions and Phat Farm, which provided $18 million of revenue in the fourth quarter. Sales of Women's Sportswear increased 5% driven by the higher price point branded marketing initiatives. The Men's Sportswear business continued to enjoy robust and broad based year-to-year organic sales growth of 27%.

Sales in the ‘Other Soft Goods’ segment were up 6% in the fourth quarter versus last year due to strength in Kellwood’s American Recreation division, which includes Sierra Designs, Kelty, and Slumber Jack, among others.

Of particular note is Kellwood’s decision to segment their brands by distribution and target price point. “We now have approximately $500 million of sales which I consider a critical mass, from brands that retail at better plus price points, and $2 billion of sales from popular to moderately priced brands and private label programs,” said Hal J. Upbin, chairman and CEO. “Therefore, beginning with fiscal year 2005, and this conference call, we'd like to discuss sales for the company by major price point, namely, better plus and popular to moderate and private label.”

In the American Recreation Division, Eddie Bauer, Wenger Swiss Army, Wentzel, and Slumber Jack brands have been placed in the ‘popular to moderate’ price point category while Sierra Design and Kelty are in the ‘better plus’ price point category.

Upbin said that this segmentation strategy represents “an important strategic direction for the company going forward,” but Kellwood is not de-emphasizing its mid-market brands.