Perry Ellis International saw swimwear revenues climb 15% in the first quarter, driven by Jantzen, Nike Swim, Perry Ellis Swim, and Jag. Gross margins improved by over 200 basis points. Management said Nike's growth was driven by men's, women's and performance teen. Fashion athletic swimwear, with Nike women's separates, was among the best sellers in swimwear across all retail channels.
Management noted that Perry Ellis continues to strengthen its swim offerings by adding cover-ups, an area that could reach as high as a 20% of its total swim business next year.
Among its action brands, Gotcha board shorts and t-shirts were launched as an exclusive in 100 Kohl's doors during Q1. Redsand remains the number one selling action sports brand at regional department stores, such as Belk's, and gained additional space at department stores and specialty store channels.
In its golf division, revenues catapulted nearly 50% driven by a continued strong performance in its PGA Tour at JC Penney and Grand Slam at Kohl's coupled with the launch of Pro Tour at Belk's and Round Tree, Your Golf at Dillard's. Sell-throughs of between 8% to 12% weekly were achieved on PGA Tour at Penney while Grand Slam continued to be the number one golf brand at Kohl's.
Overall, Perry Ellis reported revenues in the quarter rose 6.4% to $243.5 million. Net income slid 4.3% to $9.1 million, or 60 cents a share, due to integration costs tied to the February 2008 acquisition of Laundry and C&C California and the closing of a South Carolina distribution facility.
