North American wholesale sales of the Stacy Adams and Florsheim brands helped boost revenue for Glendale-based Weyco Group Inc. during the quarter.
The footwear designer and distributor reported net income of $1.3 million, up from $1 million during the same period last year. Earnings also improved from 9 to 12 cents per diluted share.
Revenue during the quarter was up 1 percent to $57.5 million. Thomas Florsheim Jr., Weyco chairman and chief executive officer, attributed the increase to new product launches for two wholesale brands. The Stacy Adams and Florsheim brands both saw North American wholesale sales increase by 10 percent during the quarter. Those gains offset a 13 percent decline for the Nunn Bush brand.
“After a difficult first quarter we are pleased with the turnaround in our business,” Florsheim Jr. said “While the environment remains challenging we were able to increase our share of the men’s, non-athletic footwear market.”
The North American retail market did not perform quite as well. Sales were up slightly, but same-store sales were down by 2 percent. The company opened a new outlet store in Florida last September, which helped to offset the closure of two other stores.
Florsheim Jr. said the brick-and-mortar environment continues to be challenged as consumers shift their purchases online, impacting the company’s retail operations and the Nunn Bush brand sold at mid-tier department stores.
He added online sales are also being impacted by increased price competition leading to lower conversion rates.
“We are careful to maintain prices in order to protect the image of our brands and have resisted the trend on the web to price aggressively,” Florsheim Jr. said.
