Perry Ellis ended what management called its “worst year in business” as the company posted sales declines for both the fourth quarter and the fiscal year and net losses for both periods.


However, the company offset some of that news with the announcement that it had picked up the license for Callaway Apparel.  The brand was apparently made available following the acquisition of the previous licensee, Ashowrth, Inc. by Callaway competitor, TaylorMade-adidas Golf.

 

On a conference call with analysts discussing both Q4 financial results and the new license, George Feldenkrei, chairman and CEO, commented that Callaway branded apparel sales totaled $50 million in 2007, but that “The businesses that we are taking, which we're going to be developing which is really the retail and the corporate part of the business were a very, very small part of that number.”


Also as part of the Callaway deal, Perry Ellis will exit its apparel license for the PING Collection of apparel, which it had built into a $60 million wholesale brand. PERY will let the license expire at the end of the year after revenues for the brand declined by almost $5 million during 2008. Management noted that “general weakness in the green grass and corporate market” contributed to the decision to exit the business as well as “discrepancies with our licensure on the direction of the brand.”
Overall, Perry Ellis’ golf business grew by almost 20% for fiscal 2009 primarily driven by the performance of the Grand Slam at Kohl's, PGA Tour at J.C. Penney and other retailers and Champion stores at Macy's.
Nike, Jantzen, JAG and other Swim divisions in general delivered another outstanding quarter with revenue growth of over 7% and annual growth of above 10% while also growing market share.


In the action sports business, Gotcha expanded from a test of 100 doors in spring '08 to 678 doors in spring '09 primarily at Kohl's and other mid-tier regional retailers. Gotcha more than doubled its revenue in fiscal 2009.


For the fourth quarter, total company net revenues decreased 9.9% to $ $191.2 million from $212.3 million though the golf and Hispanic categories were above plan and Swim posted “a solid performance.” The company reported a quarterly loss of $21.6 million after net income of $9.9 million last year.


For the full fiscal year, net revenues declined 1.5% to $825.9 million from $838.5 million last year. The company also posted a net loss for the year of $12.0 million after a net income of $28.2 million last year.