Perry Ellis International Inc. reported sales in its golf apparel segment rose 5 percent in the third quarter, despite general retail weakness.  Golf is one sport benefiting from warmer temperatures this fall.

On a conference call with analysts, Oscar Feldenkreis, vice chairman, president and COO, said Perry Ellis’ golf brands have been the leading golf apparel brands at the department store level.

“Our short sleeve product achieved unprecedented performance at retail during the months of August and September where the temperatures hit 90 degrees across most of the country,” said Feldenkreis. “In October, as the weather changed, our traditional layering pieces were a bright spot.”

The golf category is particularly expanding in the online direct-to-consumer with Callaway ahead 60 percent in that channel during the quarter. In Europe, where it was recently introduced, the Callaway business overall grew 28 percent.

The Ben Hogan brand was recently introduced in Europe in the U.K. through Walmart’s Asda chain. The company is also expanding in women’s golf apparel with PGA tour and Callaway. Its other golf apparel brands include Grand Slam and Jack Nicklaus.

For Spring 2016, the golf segment is rolling out premium levels of new fabric technology that has been well received by customers.

Feldenkreis believes Perry Ellis’s golf brands are positioned well in the category since it doesn't have a “heavy outerwear focus.” He also said the sporting goods channel represents less than 5 percent of its total golf business and the company remains “extremely diversified and positioned to grow this year and in years to come as our authentic golf brands continue to capture market share from traditional sportswear brands.”

Dick’s Sporting Goods had reduced its earnings outlook earlier in the week.

Meanwhile, Feldenkreis said the third quarter only represents 5 percent of Nike Swim’s annual sales. However, given the strength of its spring 2016 orders, Nike Swim is projected to see a “very strong Q4 and Q1.” The expansion of its licensing agreement with Nike to include Europe, Central America and South America takes effect in 2016 and the company is seeing a “tremendous” response from interested new accounts. Said Feldenkreis, “We believe that our expanded partnership in association with the number one brand in the world will be a major growth driver for the Nike Swim business.”                    

Overall, Perry Ellis reported a profit of $2.3 million, or 15 cents a share, in the third quarter, compared with a loss of $437,000, or three cents a share, a year earlier, aided by cost controls. Adjusted to exclude non-recurring  items, earnings improved to 16 cents a share from 3 cents a year ago.

Revenue shrank 2.8 percent to $205.4 million, driven by the sale of C&C California and the transition of certain exclusive labels to the company's national lifestyle brands. Its other brands include Original Penguin, Rafaella and the flagship Perry Ellis menswear label.

The company lifted its 2016 adjusted earnings per share guidance to the range of $1.81 to $1.88, from its previous guidance of $1.78 to $1.85. But it slashed its expectations for revenue–estimated to come in between $910 million to $920 million, compared with earlier guidance of $925 million to $935 million.

–Tom Ryan