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When James Purcell heard his name announced as winner of the Gold Coast Award last September-the audience-voted honor given to upcoming fashion designers-he whispered to a friend, ”I hope I`ll still be in business next fall when they present the award.”

Progress report: Purcell is not only on a business high, he`s confident enough to be expanding-adding sportswear to his collection of ”wild party clothes.” Other good signs: He was spotlighted in a Women`s Wear Daily`s story on ”The Next Generation” designers and-heady stuff for a fledgling-one of his dresses is being considered for Vogue`s June issue.

He`s also getting the star treatment from Henri Bendel, where he was one of the featured designers when Bendel`s opened on New York`s Fifth Avenue recently and was feted last week at a cocktail party at the North Michigan Avenue Bendel`s. Featured were his spring party clothes-sparkly strapless dresses with full, tie-on overskirts, `50s shirtdresses, glamor girl ballgowns- things he calls ”flirty without being vulgar.”

A native of Munster, Ind., where he grew up with eight sisters and a mother ”all interested in clothes,” Purcell worked for six years in the New York offices of the Midwest Stock Exchange. ”I quit on May 11, 1989, started designing dresses the next day.”

Now back in New York, he`s working on his fall collection, including things like boucle jeans, wide-legged cuffed pants, `40-ish dresses and suits (they`ll retail for about $225 to $900) plus more of his signature party clothes.

After that? ”Down the road-perfume, towels, underwear, swimsuits, sunglasses. …You just have to have hope.”