Glendale-based shoe distributor and marketer Weyco Group Inc. ended 2017 with higher North American sales of its Florsheim and Stacy Adams brands, but that wasn’t enough to create revenue growth in a challenging retail environment.
Despite a 2.2 percent drop in fourth quarter revenue to $80.3 million, the company was able to hold net income to a decline of 1.2 percent at $8.1 million. Diluted earnings were actually up by 1 cent to 79 cents per diluted share.
Earnings from operations were up 17 percent for the quarter and, after adjusting for changes prompted by tax reform, earnings attributable to the company were up 8 percent.
“Our efforts to control costs and improve gross margins helped generate earnings growth for our wholesale business this year,” stated Thomas W. Florsheim, Jr., Weyco Group chairman and chief executive officer. “Despite the challenging retail environment, we feel we ended the year with better, more efficient operations. As we turn to 2018, our focus will continue to be on investing in and growing our brands, and maximizing shareholder value.”
For the full year, the company reported $283.8 million in revenue, down 4.4 percent from last year. Net income was up slightly to $16.5 million and earnings improved from $1.56 to $1.60 per diluted share.
The North American wholesale segment, the company’s largest, saw revenue decline 5 percent for the year to $217.3 million. The company’s Florsheim brand was up 5 percent for the year, including a 12 percent increase in the fourth quarter. The Stacy Adams brand was down 2 percent for the year, despite a 10 percent increase in the fourth quarter.
