At ICR Xchange, Oscar Feldenkreis, Perry Ellis International’s president and COO, said revenue growth in its golf apparel segment has exceeded 14 percent over the last four years and the category’s outlook remains robust.
“We're seeing a tremendous movement towards at leisure and activewear, so we are getting a lot of that halo affect; constant product innovation; growth and diversification across authentic golf channels of distribution,” said Feldenkreis.
The growth is expected to be driven by international expansions currently underway with Europe, Africa, Middle East, and Asia; licensing expansion of the Ben Hogan brand; direct-to-consumer opportunities via the launch of Callaway Apparel and retail partners' website; and the launch of product extensions, like Callaway training and golf accessories.
Its golf lineup includes the owned Grand Slam and Ben Hogan brands. It licenses the Callaway, Jack Nicklaus, and PGA Tour names.
Companywide, golf accounts for about 21 percent of the company’s sales. Perry Ellis makes up 24 percent; Original Penguin, 11 percent; Nike Swim, about 15 percent; and its women’s businesses (Rafaella and Laundry), about 14 percent.
Management did not provide an update to fourth-quarter results. It reiterated that it expects guidance for the current year of $910 million to $920 million and adjusted EPS of 85 to 95 cents a share.
