Weyco Group Unveils Third-Quarter Results

Weyco Group Unveils Third-Quarter Results
John and Tom Florsheim in Weyco Group’s Wisconsin headquarters

Weyco Group Inc., based in Glendale, Wisc., has announced its financial results for the quarter ended Sept. 30, 2014.
 
The firm reported an increase in net sales of $87.4 million, up 5 percent from Q3 2013. Earnings from operations increased by 5 percent to $9 million.
 
Net earnings attributable to the company were $5.5 million for the quarter, up two percent from Q3 2013. Diluted earnings per share increased to 51 cents per share for Q3, from 50 cents in 2013.
 
Net sales in the North American wholesale segment, which include North American wholesale transactions and licensing revenues, were $68 million for Q3, up five percent over the year-prior quarter.
 
Within the wholesale segment, Bogs increased sales by an impressive 37 percent, driven by higher sales volume across all major distribution channels.
 
Conversely, Nunn Bush and Florsheim sales were down, notably in department stores for Nunn Bush and in both department stores and independent retailers for Florsheim.
 
Wholesale gross earnings were 31.7 percent of net sales, compared with 32.6 percent in Q3 2013. The decrease in gross margins was driven by the impact of lower margins in its Canadian business, caused by a weaker Canadian dollar relative to the U.S. dollar in Q3 2014 vs. Q3 2013
 
Earnings from operations for the wholesale segment were $7.4 million for the quarter, up 5 percent from the same period last year, due mainly to higher net sales.
 
Net sales in the North American retail segment, which include sales from Florsheim retail stores and its Internet business in the U.S., were $5.4 million, up 2 percent from Q3 2013. Same-store sales were up 6 percent for the quarter. There were two fewer domestic retail stores during the quarter compared to Q3 last year.
 
Other net sales, which include the wholesale and retail net sales of Florsheim Australia and Florsheim Europe, were $14 million, up 7 percent over last year.
 
“We are excited about the growth of our Bogs brand in the U.S. and Canada; however, our legacy brands continue to face a tepid retail environment and challenges with a few key retailers,” said Thomas W. Florsheim Jr., chairman and CEO, in a company statement. “We feel the business with our legacy brands has now stabilized, and we anticipate rounding out the year with another strong quarter for Bogs.”