Weyco Group earnings fall on weak wholesale segment

Warm winter led to lower orders of BOGS brand

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

Revenue and net income both fell more than 10 percent for Glendale-based Weyco Group Inc. as the company’s North American wholesale segment struggled.

Overall, net income for the footwear designer and marketer was down 12.6 percent to $4.7 million and earnings fell from 51 cents to 44 cents per diluted share. Revenue was down 13.3 percent in the quarter to $79.1 million.

“This was a difficult quarter for our North American wholesale segment,” said Thomas Florsheim Jr., Weyco chairman and chief executive officer. “Not only did we see a large reduction in BOGS orders following last year’s mild winter, we were also affected by a soft retail environment and changes in consumer buying patterns, which contributed to the loss of sales for two of our other major wholesale brands this quarter.”

The North American wholesale segment was down 17 percent, even as the Florsheim brand increased sales 7 percent with higher sales to national shoe chains.

The Stacy Adams brand was down 6 percent with lower sales to off-price retailers and the Nunn Bush brand was impacted across a number of distribution categories, but the drop was particularly strong in department stores as consumers continue to shift their buying online.

Orders for the BOGS brand were down as retailers carried inventory over from last year following a warm winter.

The North American retail segment was down slightly to $4.7 million and the rest of the company’s business, including Florsheim Australia and Florsheim Europe increase revenue 3 percent to $12.2 million.

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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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