Perry Ellis International, which has been the licensee for Nike branded performance and non-performance swimwear since 2003, has renewed the license agreement and extended it internationally, starting with certain unspecified countries in Europe and in Central and South America. Sales in Europe are expected to start in the second and third quarters of 2016, said the company, but we have been unable to obtain further details about the distribution of the line.
Nike swimmwear was previously distributed in Europe through its former licensee Jantzen, a U.S. company that was bought by Perry Ellis in 2002. According to industry sources, Perry Ellis was not been selling Jantzen swimwear in Europe in the past five years and Nike swimwear is pratically absent from this market.
The Miami-based company said the new deal with Nike was consistent with its strategic initiatives to expand its international footprint. While expanding its distribution of Perry Ellis and Original Penguin menswear in Europe, the company signed 27 new licenses last year, extending the distribution of eight of the company's brands to other territories or entering new product categories.
Perry Ellis extended the distribution of its licensed Callaway Golf apparel line to Europe in the second half of 2014, hiring sales reps throughout the region. It is now available in many pro shops in the U.K., where Perry Ellis Europe is based, and in the the rest of Europe. European customers are also buying Callaway apparel through Callaway's online store.
In releasing its results for the fourth quarter of 2014, the company's management said that the performance of the Callaway line in Europel over the internet beat expectations by more than 20 percent last year. Coupled with the launch of a new Callaway Athleisure line, this helped Perris Ellis' golf segment to record a high single-digit gain in the fourth quarter of 2014. The segment includes Jack Nicklaus golf apparel and Ben Hogan.
On the other hand, the strikes at U.S. West Coast ports limited to 0.7 percent the growth in the company's total revenues for the quarter. This and other factors led to a 5 percent decline in the quarter for Perry Ellis men's sportswear and swimwear segment.
In the past financial year, Perry Ellis' total revenues declined to $890 million from $912 million in the previous year because of a strategic rationalization of the product portfolio. However, international revenues rose by 15 percent, representing 12 percent of the total turnover. The gross margin improved by 0.8 percentage points to 34 percent, but the company made a net loss of $37.2 million compared with a loss of $22.8 million in the previous year.
Adidas swimwear has a strong presence all over Europe. In the U.S., meanwhile, The Original Swimwear Company is taking over from Manhattan Beachwear as the local licensee for Adidas swimwear.
