Weyco Reports Q3: Revenue Grows, FX Pressures Linger

Florsheim John Florsheim Tom Florsheim
John (left) and Tom Florsheim (right) in Weyco Group's Wisconsin headquarters.
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Weyco Group Inc. — the company behind Bogs, Florsheim, Stacy Adams and other brands — posted year-over-year gains in revenue while profit stayed flat.

Although revenue in the North American wholesale segment, which include North American wholesale sales and licensing revenues, gained 10 percent to $74.6 million, sales in the North American retail segment were down 11 percent to $4.8 million. The decrease, the company said, was due to three fewer domestic retail stores operating in the quarter compared to last year’s third quarter, as well as a 5 percent decrease in same store sales.

Within the wholesale segment, net sales at Bogs were up 20 percent; Stacy Adams gained 10 percent; and Florsheim and Nunn Bush net sales were up 4 percent and 1 percent respectively.

The company said it continued to feel the impact of currency pressures in Canada and Australia.

Net Income: Net earnings attributable to the company, for the quarter ending Sept. 30, 2015, were flat year-over-year at $5.5 million.

EPS: Diluted earnings per share were also flat at 51 cents per share.

Net Revenue: Revenue totaled $91.2 million, a 4 percent increase over third quarter 2014 net sales of $87.4 million.

Executive Insights: “We are excited to have achieved record third quarter sales. Our sales increase was driven by our eighth consecutive quarter of double-digit sales growth for our Bogs brand, as well as our fifth consecutive quarter of double-digit sales growth for our Stacy Adams brand. We feel fortunate that the strength of our U.S. businesses offset the significant headwinds caused by the appreciation of the U.S. dollar against the Canadian and Australian currencies.” — Thomas Florsheim, Jr., Weyco’s chairman and CEO in a release