Perry Ellis International saw a “substantial increases” in revenues of its Nike Swim line as well as 60 percent jump in its much-bigger golf apparel segment in the third quarter.
On a conference call with analysts, Oscar Feldenkreis, Perry Ellis’ president and COO, said the company is seeing growth in its golf segment across all channels of distribution while also realizing margin expansion.
“We have an expanding portfolio of some of the most recognized brands in the industry, such as Callaway, PGA TOUR, Grand Slam and Ben Hogan, and we're positioned for solid performance, which should continue well into the future,” said Feldenkreis. “In this area, we have unparalleled success and the momentum is only getting stronger.”
Regarding Callaway, he said Perry Ellis is extending the line to Latin America and Canada. This January, Callaway will be shown for the first time at the PGA merchandising show. Feldenkreis said, “It is an opportunity to grow the brand to new heights, elevating it to the number-one position for the branded golf apparel.”
The PGA Tour doubled its sales shipments in the quarter and Perry Ellis has partnered with the PGA TOUR to support the brands’ international expansion while also moving into Latin America and Canada. The brand has received an all-door commitment from Sears Canada for spring 2013.
The acquisition of the Ben Hogan brand, completed in February 2012, is expected to “start showing very good results in the next quarter, and we have great plans for the future.” The current focus is on improving design, merchandising and marketing teams around the brand.
Strong double-digit growth is projected for the golf area for the full year.
Regarding its swim segment, Feldenkreis said Nike “continues its momentum across all channels of distribution and product categories.” Q3 shipments in the swim segment were up 22 percent over last year, driven by increases in team dealers and the sporting goods channel. Improvements in sell-throughs, inventory availability and packaging of its goggles are projected to continue to drive increases with sporting goods, team and specialty stores and Internet channels. Said Feldenkreis of Nike, “We anticipate solid growth going forward in this brand.”
The swim group, which also includes Jantzen and Jag, is expected to finish with high-single-digit revenue increases for the year.
Overall, Perry Ellis’ earnings were down 49.2 percent in the quarter to $3.2 million, or 21 cents a share, but were higher than forecasts. Sales slid 4.9 percent to $236.2 million, in-line with company guidance of an expected mid-single digit decrease. Continued growth within golf, direct to consumer and women’s contemporary lines were offset by planned decreases in its Perry Ellis and Rafaella collection businesses.
