Perry Ellis International is forecasting mid- to high-single digit revenue gains in its golf apparel business for 2010 while its swim and action sports business are both expected to grow double digits.
Looking at fourth quarter results, company Chairman and CEO George Feldenkreis said on a conference call with analysts that Grand Slam grew revenues 20% at Kohl’s in Q4 and PGA Tour at J.C. Penney expanded its penetration and is positioned for strong growth this year.
The PGA Tour program also added a new collegiate apparel program that will ship in July to department stores, college bookstores, as well as sporting good retailers, a new channel of distribution for the golf segment. Initial shipments in January of Callaway golf apparel to 330 department store doors have exceeded expectations and we see a bright future ahead, said Feldenkreis. Top-Flite apparel was just launched at 800 Kmart doors and the performance has been nothing short of spectacular with sales trending double digits ahead of plan.
Swim, which includes Nike as well as fashion brands such as Jantzen and Jag, started off the year experiencing strong sell-through. We feel optimistic about the Swim season based on early reads we have experienced and feel retailers will continue to invest in building inventory, said Feldenkreis.
Overall, Perry Ellis posted a profit of $8.5 million, or 64 cents a share, in the quarter compared with a year-earlier loss of $21.6 million, or $1.58. Excluding items like debt-extinguishment costs in the latest quarter and prior-year write-downs, earnings rose to $20.1 million from $2.4 million as revenue increased 2.7% to $190 million.
