Perry Ellis believes its Callaway apparel line will see revenues reaching $100 million in three to five years. The company entered into the licensing agreement in March 2009 and Perry Ellis designed product began shipping in Spring 2010.
“It's a very unique relationship and partnership where we split up the channels of distribution,” said Oscar Feldenkreis, Perry Ellis president and COO, speaking at the Cowen and Company Consumer Conference. “They will be responsible for green grass and sporting goods, we will be responsible for the corporate side of the marketing as well as the traditional retail area. We will share in expenses on the design and sourcing, and also service as a distribution center and customer service center for them as they go ahead and develop that business.
Feldenkreis said the arrangement has enabled Perry Ellis to reach an agreement to launch the Top Flight apparel brand at Kmart this year. It also enables Perry Ellis to expand its women's golf apparel presence. In total, the Callaway apparel brand reaches 6,000 retail doors, including Bloomingdale's, Lord & Taylor, and Nordstrom's, as well as Dillard's. Other golf brands owned by Perry Ellis reach more mid-tier channels such as Grand Slam at Kohl's and PGA Tour at J.C. Penney.
The Callaway license was previously held by Ashworth, which was acquired by TaylorMade-adidas Golf.
Among other sports areas, Feldenkreis said Perry Ellis' swim group, which includes Nike swim and Jantzen, is focusing on evolving the cover-up categories, as “more and more women are trying to buy their cover-ups at the same times that they buy their swimsuits.” Overall, Perry Ellis said its swim and action sports business, which includes Gotcha and Red Sand, do $80 million annually, he said.
