NEW YORK (Reuters) - Perry Ellis International Inc (PERY.O: Quote, Profile, Research, Stock Buzz) sees growth in its foray into women's contemporary clothing in the United States and from expansion abroad, with a deal in China or India to be announced in the near term, executives said on Monday.
Executives at the company, which has been reducing its private-label business to focus on higher-margin niche markets, also told the Reuters Consumer and Retail Summit that the current situation with the American consumer was not as dire as some have predicted.
"There is definitely a pull back on the consumer, no question about it," said Francisco Gonzalez-Meza Hoffmann, vice president of strategic initiatives. "But it's not as bad as sometimes it seems to be when you listen to the rumors or when you see the nightly news."
The company -- known for menswear but also a maker of golfwear, swimwear, clothing for the Hispanic market and a recent buyer of two women's contemporary brands -- has already provided fiscal 2009 revenue projections that beat Wall Street estimates.
Since U.S. tax rebate checks were mailed to consumers this spring, Perry Ellis has noticed an uptick in sales at its namesake stores and from its large department store customers.
Recent acquisitions of the Laundry by Shelli Segal and C&C California brands will be a platform with which the company can jump-start its women's business, said Paul Rosengard, group president of the company's premium brands.
"I'm in love emotionally with the Laundry and C&C purchase, not just for what it can add to our company in a vacuum but if/when we're successful there, it gives us the platform from which to relaunch Perry Ellis womenswear," Rosengard said.
Perry Ellis began as a women's line of clothing.
"If you look where the great home-run potentials are for us, it's womenswear, it's international, it's potentially retail -- those are the three potentially huge growth drivers," Rosengard said.
Strength in menswear will be an asset as it tries to convince department stores like Macy's Inc (M.N: Quote, Profile, Research, Stock Buzz) to carry a new Perry Ellis women's line when it is launched, Rosengard said.
"When they (retailers) feel confident, the time will be right," he said. "We have success in men's, we have credibility."
NEW LAUNDRY HITTING RETAIL
A newly designed Laundry brand will begin making dresses retailing for $250 to $400 that will hit stores like Saks (SKS.N: Quote, Profile, Research, Stock Buzz) Bloomingdale's, and Neiman Marcus by this holiday season, followed by a sportswear collection in 2009.
"We want to see the brand taking the growth path that would allow it to go back to the $100 to $150 million (sales) range no less than five years ago," Gonzalez-Meza Hoffmann said.
The company bought the brand from Liz Claiborne Inc (LIZ.N: Quote, Profile, Research, Stock Buzz) in January. Continued...
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