Soft consumer spending drags Weyco earnings down

Revenue off 11 percent in Q2

Weyco Group Inc. headquarters
The Weyco Group Inc. headquarters in Glendale.

 

Glendale-based Weyco Group, Inc. reported a drop in both revenue and earnings during the second quarter, fueled by lower consumer spending in the footwear and apparel segments.

Weyco Group Inc. headquarters
The Weyco Group Inc. headquarters in Glendale.

The company reported net income of $1.1 million, a 48.3 percent drop from the same time last year. Earnings were also down, moving from 19 cents to 9 cents per diluted share.

Revenue fell 11.1 percent to $56.9 million.

“Our second quarter was challenging,” said Thomas Florsheim, Jr. Weyco chairman and chief executive officer.

A mild winter reduced demand for the company’s BOGS brand and left retailers with increased inventories.

“Our retail partners saw a slowdown in traffic and a weaker sales trend, which resulted in a general concern about inventory levels which impacted our other three brands,” Florsheim said. “We feel these conditions may continue in the back half of 2016, but believe our brands are well positioned for future growth when the reail environment for footwear improves.”

Weyco reported revenue for its North American wholesale segment was $41.5 million, down from $48.1 million last year. Net sales of Stacy Adams, Nunn Bush and Florsheim brands were off 5 percent, 17 percent and 5 percent respectively.

The North American retail segment reported revenue of $4.7 million, compared to $5 million last year. Same store sales were down 2 percent for the quarter.

Company executives are scheduled to discuss the results in more detail during a conference call Wednesday.

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Arthur covers banking and finance and the economy at BizTimes while also leading special projects as an associate editor. He also spent five years covering manufacturing at BizTimes. He previously was managing editor at The Waukesha Freeman. He is a graduate of Carroll University and did graduate coursework at Marquette. A native of southeastern Wisconsin, he is also a nationally certified gymnastics judge and enjoys golf on the weekends.

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