Weyco Group Sales Contract in Second Quarter

Weyco Group Inc., which owns footwear brands Florsheim and Bogs, reported a lackluster second quarter of 2014 with a decrease in sales and flat income.

For the period ending June 30, the footwear firm reported a net income of $2.2 million, or $0.20 diluted earnings a share. The net income and earnings per share remained flat from the year ago period for the Milwaukee-based company.

Net sales fell to $62.9 million, a 3 percent decrease over the $65 million a year ago. 

Executives said the decrease in net sales was a result of slow business in the North American wholesale division, which contracted to $44.8 million, down 6 percent from the $47.5 million in 2013. Orders for Nunn Bush shrank 18 percent and Florsheim fell 8 percent due to a slowdown in orders from department stores and off-price retailers.

The Florsheim Australia and Florsheim Europe retail segments of the company were a bright spot with net sales of $12.8 million, an increase of 5 percent compared to 2013.

“Despite these challenges, we are pleased with the results of Florsheim Australia’s retail operations, where we saw solid growth in both sales and operating earnings this quarter. Furthermore, we are excited about the positive momentum of our Bogs brand, and with our newly expanded product line, we are anticipating a strong selling season in the second half of 2014,” said Thomas W. Florsheim Jr., the CEO and chairman of Weyco Group.

In the conference call, executives said they were feeling confident entering the second half of the year.

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