Weyco Profit Slips on Combs Acquisition

Weyco Profit Slips on Combs Acquisition
John and Tom Florsheim in Weyco Group’s Wisconsin headquarters

Milwaukee-based Weyco Group Inc. posted an 11 percent decline in net earnings with $6.8 million in the fourth quarter, compared with $7.7 million in the prior corresponding period.

Diluted earnings per share were 62 cents for the period, compared with 71 cents in 2013.

The company said its earnings for the period included approximately $1.8 million (or $1.1 million after tax) of liabilities associated with its acquisition of Combs Co. Without this adjustment, earnings from operations and net earnings attributable to the company would have been up 2 percent and 4 percent, respectively, the firm said.

“Given the soft retail environment, we are pleased with the performance of our North American wholesale segment and are encouraged by the significant improvement in our retail business,” Tom Florsheim Jr., Weyco chairman and CEO, said in a statement.

The company posted sales of $78.5 million in the fourth quarter, compared with $78.4 million in the year-ago period.

For the full year, Weyco reported sales of $300.3 million, 2 percent higher than the fiscal 2012 result of $293.5 million. Earnings for the year were $17.6 million, down 7 percent on the prior year. 

“We are proud, as a company, to have achieved $300 million in sales in 2013, which is a testament to the strength and staying power of our brands,” Florsheim said.