California Apparel News

It’s 3 a.m., and Julie McMackin is standing on a ladder inside her beachside swimwear boutique setting up a window display of mannequins, which she hopes will catch the attention of passersby. It would be difficult for anyone to not notice the brightly colored crochet suits.

Getting a good night’s rest is not an issue for McMackin, who founded Molly Brown’s Swimwear in Newport Beach, Calif., in 1976. But keeping her customers excited about swimwear is.

The early-morning merchandising has become a familiar tactic for McMackin—and for good reason. The swim business has been erratic this year, and McMackin believes her efforts help keep sales steady. Molly Brown’s sales are 20 percent higher than they were at the same time last year, she said.

“The displays make people curious and get their attention as they walk by—and then they come in,” she said, adding that she rotates her window displays every six weeks.

Several swimwear businesses encountered a slump in sales during late spring and June as a result of poor weather. Those who thought business would pick up again in a post-war economy were unpleasantly surprised.

Industry sources predicted that overall sales of swimwear and related apparel for men, women and children in 2003 will fall 3.8 percent from last year’s overall sales, which peaked at $3.5 billion.

Consumers were late to get into the summer shopping mode because of bad weather, according to Marshal Cohen, senior analyst of Port Washington, N.Y.–based research company The NPD Group Inc., which tracks swimwear sales.

That’s hardly comforting news for business owners who, with just weeks before Back-to-School season begins in August, are scrambling to clear their inventories to make room for new merchandise.

Debbie Harvey, director of merchandise buying at Cocoa Beach, Fla.–based retailer Ron Jon Surf Shop, which specializes in junior swimwear and junior sportswear at its nationwide specialty chain stores, said sales were down for the month of June. Harvey attributed the decrease in sales to poor weather, particularly the shifting climate on the East Coast.

Swim shelter

One area that seems to be sheltered from the ups and downs of the market is high-end women’s swimwear. Specialty retailers that carry high-end swimwear—such as Molly Brown’s, Everything But Water and Diane’s Swimwear—said sell-throughs for many brands have skyrocketed in recent weeks.

Women’s swimwear typically brings in $1.6 billion annually, according to NPD Group.

In recent years, junior swimwear has been the strong seller, said Susan Crank, chief executive officer of Anaheim, Calif.–based swim makerLunada Bay Corp., which produces junior, misses and contemporary swimwear through Southern California contractors.

This year, contemporary and designer lines are gaining in sales volume, she said.

“For a while, swim makers were looking to fill a void,” Crank explained. “The line between missy and junior swimwear has been blurred, and the result is a younger look in contemporary swimwear. We’ve seen some [sales] increases this year, but we have yet to maximize our business. We’re not at our peak yet, but we like it like that. We sell select stores, and that keeps the product special.”

Lunada Bay, which earns roughly $40 million annually, produces swimwear under the Becca, Bebe, Lucky Brand, David & Goliath and Mossimo labels. The company sells to department stores such as Nordstrom and Bloomingdale’s and chain specialty retailers, including Everything But Water Inc.

Lunada Bay’s upscale brands, Bebe and Becca, retail from $85 to $120. Combined sales for both labels comprise more than 80 percent of the company’s business, Crank said.

For Cruise 2004, the company plans to incorporate sexy, edgy looks—including thong bikinis and lots of novelty details— into both lines, which will debut during the July 19–23 run of the Miami Swim Show.

“Skimpy isn’t necessarily contemporary,” Crank added. “Several looks in our collection have a very clean and modern focus.”

San Diego–based contemporary swimwear maker Vix Swimwear Inc. was not immune to the decrease in sales during late May and early June. Sales were 35 percent to 40 percent lower than the company’s original projections, a spokesperson from the company said.

However, following July 4, several retailers contacted the company and reported high sell-through rates. One specialty retailer sold 1,500 suits over the holiday.

But the swimwear maker is not taking any more reorders for the summer.

“At this point, we’re trying to liquidate our inventory to make room for new styles,” Vix Director of Sales and Marketing Amanda Delecce said.

Vix is planning to debut Sofia, an upscale junior swim line, and Lenny, a misses swim line, at the Miami Swim Show. Additionally, the company produces a junior swim line called Rygy.

Dual focus

Customers in the California communities of Riverside, Manhattan Beach and Palm Springs can pick up junior swimwear styles in Diane’s Swimwear stores and high-end lines in separate Diane’s boutiques. Diane Biggs, owner of the 41-year-old specialty chain, launched the two-store concept six years ago.

One store carries junior swim lines and the other carries contemporary and designer labels. The junior stores cater to surf divas, while the contemporary stores cater to fashionistas, Biggs said.

“We’re item buyers, so we had to define our customers by age fashion tastes,” Biggs explained. “Because we’ve distinguished our store and customers, it’s easier to know which store the product goes in. The most important thing you can do as a retailer is to make your stores’ merchandise saleable for your customer by selecting items that she’s going to be attracted to.”

Biggs said sales for both categories are equal; junior shoppers go through many moderately priced swimsuits, while contemporary customers purchase fewer suits but at a higher price point.

Because of fluctuating swimwear sales, Biggs said she is placing her orders against sales.

“We’re buying smarter, so there are fewer markdowns and returns,” Biggs said. “We placed orders conservatively for this year and close to the numbers to insure profitability. We operate by following our numbers religiously.”

Unique buy

Contemporary buyers are looking for unique fabrications and novelty embellishments for both sportswear and swimwear collections. Swim retailers point to innovative looks by young contemporary designers— such as Ashley Paige, Wet Samba and Andrea Rizzo—that use shell, bead, bamboo, bone, silver-ring and macrameacute; details.

Stacey Siegel, president of Orlando, Fla.–based chain retailer Everything But Water, said one-piece halter styles, crochet suits and cheeky boyshorts by Baja Blue, Swim Systems and Becca are strong performers at her 42 retail stores in the United States and Puerto Rico.

Swimwear is a big part of the contemporary lifestyle concept, Saks Fifth Avenue Market Director Colleen Sherin said.

“Many contemporary designers are offering a lot of new novelty looks to the swim market, and that is very appealing to our customers,” she said. “It’s a strong performer for us and an important category for swimwear.”

The high-end retailer carries a large inventory of swimwear by contemporary designers, including Vix, Shoshanna, Bella Brazil, Ashley Paige, TNA by Lisa Lozano and others.

Sherin predicted the string bikini would continue to be a strong seller for Cruise 2004.

“The contemporary swim customer is not afraid to experiment a bit more with different silhouettes and novelty looks,” she said.

Molly Brown’s McMackin said her store has seen 100 percent sell-though on highend lines such as TNA, Vix, LeTarte and Salinas.

“[Southern California] girls are looking for something special,” she said. “They’re not just looking for basic bikini; they’re looking for specialty items that make them stand out on a crowded beach.”

McMackin said Vix’s white Lycra halter suit with silver-ring embellishments ($98 retail), TNA’s “Cha Cha” triangle bikini with ruffled top and bottom ($98 retail) and “Twister” suit with circus polka dots ($95 retail) and LeTarte’s pastel paisley, beaded bikini ($142 retail) have completely sold out.

“Right now we’re running out of inventory,” she said. “There’s a shortage in the market for better swimwear. After Fourth of July weekend, I could have ordered a couple hundred more of those suits, but the manufacturers said they’re done making those styles.”

Exactly how long this boom will last is uncertain. Swimsuit sales will stay relatively strong for the next 30 days and then taper off around August, McMackin predicted. In the meantime, she’s planning ahead.

“My strategy is to go to the Miami Swim Show next week to find some new lines for Spring season and keep my store looking good,” she said.