Strong dollar drags Weyco earnings down

Revenue up for Glendale shoe company

The strength of the U.S. dollar hampered Glendale-based Weyco Group, Inc.’s first quarter results as earnings and net income were down despite a slight gain in top-line revenue.

Weyco Group-Glendale-03032016-MMeyer

“Overall, our first quarter proved challenging,” said Thomas W. Florsheim, Jr., Weyco chairman and chief executive officer. “While the strength of the U.S. dollar may continue to present challenges for us in the near term, we believe that all of our major brands have good momentum in their respective markets and are well-positioned for future growth.”

Weyco designs and markets footwear for men, women and children under the brands Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters and Umi. The company has roughly 1 million square feet of distribution and office space at a facility in Glendale.

Weyco’s net income for the quarter was down 28.7 percent from the same time in 2015 to $4.1 million. The company reported a 24 percent drop in its diluted earnings per share, down to 25 cents per share.

Revenue was up 1 percent to $78.9 million, driven by increases in North American wholesale, licensing and retail business. North American wholesale and licensing was up $1.1 million to $62.2 million. The Stacy Adams brand was up 12 percent because of new products. The Florsheim brand was up 8 percent with higher sales to department stores and national shoe chains. Those gains were offset by lower sales in the BOGS and Nunn Bush brands, which were down 17 percent and 3 percent respectively.

The North American retail segment, which includes the company’s Florsheim retail stores and Internet business, was up slightly to $5.1 million, with same store sales up 7 percent.

Florsheim Australia and Florsheim Europe sales were down from $12 million to $11.6 million, largely because of currency translation.

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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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