Weyco Reports Q2: FX Headwinds Drag Margins

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Milkaukee, Wis.-based Weyco Group Inc.’s shares were down 2 percent at market close Tuesday just before the company posted second quarter earnings that showed declines in profits year-over-year. Management said foreign currency headwinds in Canada and Australia have been putting pressure on the firm’s margins.

Net sales for the distributor of Florsheim, Bogs, Stacy Adams, Umi and other footwear brands however, rose a modest 2 percent compared to the previous year’s revenues.

Net Income: Net earnings for the second quarter, ended June 30, 2015, totaled $2 million, down 8 percent from the same year-ago quarter’s $2.2 million.

EPS: Diluted earnings per share were 19 cents compared to 20 cents per diluted share in the same year-ago quarter.

Net Revenue: Second-quarter net sales increased 2 percent year-over-year to $64 million from the prior year’s same-quarter revenues of $63 million.

Executive Insights: “We are pleased with the performance of our North American wholesale segment, where we saw solid growth in both sales and operating earnings this quarter,” said Thomas Florsheim, Jr., Weyco’s chairman and CEO, in a release. “Despite the headwinds we face with weakening foreign currencies in Canada and Australia, we feel our overall business is well-positioned as we move into the second half of the year.”

Management will host a conference call on Wednesday, Aug. 5 at 11 a.m. EDT to discuss the financial results in more detail.