CARLSBAD, Calif. (Apr. 15, 2008)—Although Phoenix Footwear Group Inc. (AMEX: PXG) saw decreased net sales for the fourth quarter of 2007, the multi-brand footwear and accessories company expects growth for almost all of its brands in the first quarter of 2008.

The Tommy Bahama Rum Runner sneaker for men

For the fourth quarter ended Dec. 29, Phoenix saw net sales fall 3.2 percent to $19.4 million, compared to $20.1 million in the fourth quarter of fiscal 2006. Phoenix garnered an $11.9 million net loss, or $1.48 per share, a slight jump from last year’s fourth quarter loss totaling $23.4 million, or $2.95 per share.

During this time, the company saw 99 percent sales growth of Tommy Bahama product, as well as increased sales for its Trotters and SoftWalk lines. H.S. Trask sales fell due to a large closeout sale in 2006 and Chambers ladies footwear sales also stumbled due to a “challenging retail market.”

“While our consolidated growth for the fourth quarter was a negative 3.2 percent, we are very pleased by the progress and performance of majority of our brands in a very challenging retail environment,” says CEO Cathy Taylor. Last year saw the redesign and relaunch of Tommy Bahama and the addition of James Clopton as president of Phoenix’s Tommy Bahama and H.S. Trask divisions.

Net sales for the fiscal 2007 year ended Dec. 29 dropped to $82.9 million versus $87.5 million for fiscal 2006. Phoenix attributed the drop in sales to a 31.2 percent decrease in H.S. Trask sales, a decrease in Chambers, both of which were partially offset by Trotters’ 9.4 percent sales increase.

For the first quarter ended Mar. 29, Phoenix expects a 3 percent increase in net earnings to $21.9 million year-over-year. The company says each of its brands saw positive growth, with the exception of its Chambers business which dropped 4 percent.

For fiscal year 2008, Phoenix upheld its current guidance of net sales of between $95 million to $100 million and income from continuing operations between $2 to $2.5 million.

“Looking ahead, we remain optimistic about our future opportunities,” says Taylor. “We are very excited about the all-door program at Nordstrom for Tommy Bahama and believe this brand is well positioned to maintain significant double digit growth throughout the year.” Taylor mentions initial reaction to the newly redesigned H.S. trask line received a positive response in February and the company’s high price-point Trotters label, The Z Collection, is “performing in line with our expectations.”

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