The cost of new acquisitions impacted the bottom line at Weyco Group, Inc. in the first quarter.
While total revenue rose 7 percent, higher expenses and the $29.3 million cash purchase of The Combs Co. cut into earnings at the Milwaukee-based firm.
For the period ended March 31, net income at Weyco was $3.4 million, or 30 cents a share, a decrease of 13 percent from $3.9 million, or 34 cents, in the first quarter of 2010.
Net sales rose to $65.1 million, from $61 million.
The firm said in a statement that The Combs Co., the owner of the Bogs and Rafters footwear brands, raked in about $27 million of sales in 2010 and will be accretive to earnings for fiscal 2011.
“We are excited about the addition of more casual brands to our portfolio,” Tom Florsheim, Jr., chairman and CEO of Weyco Group, said in a statement.
“Our earnings have decreased during this transitional period, but we believe that as we continue through 2011, we will start to leverage our operational efficiencies and see the positive impact of our new businesses.”
Wholesale and retail revenue in North America rose in the mid-single-digit range for the quarter. Florsheim Australia’s net sales grew 7 percent while Florsheim Europe was down 7 percent, due to the closing of its retail store in Germany at the end of 2010, as well as decreased wholesale shipments.
By brand, wholesale revenue of Nunn Bush inched up 1 percent and Florsheim increased 5 percent, while Stacy Adams fell 4 percent.
The firm ended the quarter with cash and cash equivalents of $7.2 million.