Perry Ellis International said its swim business grew 20% in Q3, while
action sports more than doubled. Nike swim increased penetration from
spring '07 to spring '08 by 806 doors, surpassing the 6,200 door mark,
growing strongly at department stores and in the sporting goods
channel, George Feldenkreis, chairman and CEO, said on a conference
call. The company also started shipping its new spring 2008 fashion
swim lines under Janzen, Jag and Perry Ellis, into warm weather
markets, “with excellent initial sell-throughs.”
“The swim outlook is excellent,” said Feldenkreis. “We feel that swim,
alone for the fourth quarter, we're looking at an increase of 40% over
last year, alone in revenues.”
In action sports, Feldenkreis said the company is experiencing “a great
quarter” in the surf and skate markets, mainly driven by Redsand and
Gotcha in the department stores and sporting goods channel.
In golf, revenues grew 70% in the quarter, mainly driven by PGA Tour at
JCPenney and Champion's Tour at Macy's, which together more than
doubled in revenues. At Kohl's, Grand Slam revenues climbed nearly 50%,
and a new Grand Slam ladies initiative was launched in 100 doors for
holiday. Champion Tour will add 230 new doors to reach 500 Macy's doors
in spring '08. PGA Tour will grow from 778 doors to nearly 1,600 doors
in spring, including JC Penney as well as major sporting goods stores.
Overall, Perry Ellis reported third quarter sales rose 7% to $227.5
million, while gross profit margins were flat at 34%. Net income
increased 4%, to $8.5 million, or 55 cents a share, from $8.2 million,
or 53 cents, a year earlier. Looking ahead, Perry Ellis expects fiscal
2008 earnings in the range of $1.78 to $1.82 per share. Revenues are
expected to range between $870 million to $880 million.
