Worries over US economy, spending uneven in apparel

By Alexandria Sage

LAS VEGAS, Aug 30 (Reuters) - Many U.S. apparel retailers and manufacturers worry about a weak U.S. economy, credit crunch, tumbling stock market and slow consumer spending, but those with strong products, luxury customers or skillful management say business is holding up.

A credit crunch, housing slowdown, tumbling stock market and weak second-quarter results from some retailers have rattled the industry just before the crucial holidays.

"If anyone tells you they see nothing but blue skies, they're nuts," said Doug Wood, chief operating officer of Oxford Industries' (OXM.N: Quote, Profile, Research, Stock Buzz) Tommy Bahama brand, at the Magic Marketplace apparel trade show this week.

Retailers said they were being careful to control inventory to avoid markdowns, he added.

Worry is fueling sales of brands and businesses, said John Henderson, a director at investment bank Net Worth Solutions, which specializes in the apparel industry.

"People I called on a year ago who said, 'No, it's not the right time,' they're (now) saying, 'You know something, I don't want to be the last person on the parade here," Henderson said, adding that his business had been "busier than ever" of late.

But many industry insiders at the trade show, where stores place orders for spring merchandise, said their business had not been hit.

"Retailers that are properly managed are doing well," said George Feldenkreis, the chief executive of Perry Ellis International (PERY.O: Quote, Profile, Research, Stock Buzz). "The consumer has not disappeared. Everyone has a job."