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Weyco Group earnings flat on lower shoe sales

Sep 2, 2014 United States
Weyco Group earnings flat on lower shoe sales
Profits were flat for shoemaker Weyco Group, Inc. in the second quarter as sales of Nunn Bush and Florsheim brands declined
US based Weyco Group, Inc. announced that its net sales for the second quarter stood at 62.9 million US dollars, a decrease of 3% as compared to 2013 net sales of 65.0 million US dollars. Earnings from operations were 3.4 million US dollars in the second quarter of 2014, compared to 3.7 million US dollars in 2013, a decrease of 8%. Net earnings attributable to the company and diluted earnings per share were flat at 2.2 million US dollars and 0.20 US dollars per share, respectively (for the second quarter of both 2014 and 2013).

Net sales in the North American wholesale segment (which also include licensing revenues) stood at 44.8 million US dollars for the second quarter of 2014, down 6% as compared to 47.5 million US dollars in 2013. Within the wholesale segment, sales of the BOGS brand increased by 36% for the quarter, driven by higher sales volumes across all major distribution channels. Stacy Adams sales were flat while Nunn Bush and Florsheim sales were down 18% and 8%, respectively, for the quarter. The declines at Nunn Bush and Florsheim were primarily due to lower sales volumes with department stores and off-price retailers. Wholesale gross earnings were 31% of net sales in the second quarter of 2014, compared to 30% in the second quarter of 2013. Earnings from operations for the wholesale segment were 1.7 million US dollars in the second quarter of 2014, compared to 2.2 million US dollars in the same period last year.

Net sales in the North American retail segment, which include sales from the company’s Florsheim retail stores and the US internet business, were 5.3 million US dollars in the second quarter of 2014, down 2% as compared to 5.4 million US dollars in 2013. Same store sales were up 4% for the quarter. Earnings from operations for the retail segment were 563.000 US dollars in the second quarter of 2014, down 4% as compared to 585.000 US dollars in 2013. Other net sales, which include the wholesale and retail net sales of Florsheim Australia and Florsheim Europe, were 12.8 million US dollars in the second quarter of 2014, up 5% as compared to 12.2 million US dollars in 2013. The majority of other net sales were generated by Florsheim Australia, which were up 3% for the quarter; however, in local currency, net sales were up 10%. This increase was primarily due to higher sales volumes in the retail businesses, where same storesales were up 17% for the quarter. The increase was only 3% in US dollars due to the weaker Australian dollar relative to the US dollar in 2014. Earnings from operations of these businesses were 1.1 million US dollars in the second quarter of 2014, up 18% as compared to 918.000 US dollars in the same period last year.

“Our North American wholesale segment was down this quarter due mainly to lower sales with a few key retailers; however, we expect this business to improve as we move into the second half of the year”, commented Thomas W. Florsheim Jr., Company’s Chairman and CEO, adding: “Despite these challenges, we are very pleased with the results of Florsheim Australia’s retail operations where we saw solid growth in both sales and operating earnings this quarter. Furthermore, we are excited about the positive momentum of our BOGS brand, and with our newly expanded product line, we are anticipating a strong selling season in the second half of 2014.”

Flat is the word that also characterizes the semester. Net sales stood at 137.8 million US dollars by the end of the first semester of the year, 0.6% below the amount registered in similar period last year. Earning from operations reached 8.3 million US dollars, a decrease of 1.3% compared to the 8.4 million US dollars registered in 2013. Net income attributable to the company was quite flat (+0.1%) reaching 5.4 million US dollars.

Weyco Group, Inc. is Wisconsin corporation incorporated in the year 1906 as Weyenberg Shoe Manufacturing Company. Effective from April 1990 the name of the corporation was changed to Weyco Group, Inc. The Company designs and markets footwear principally for men, but also for women and children, under a portfolio of brand names including: Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters and Umi.

Weyco Group, Inc. shares were last traded at 26.9 US dollars at the NASDAQ on the 29th of August.

For more information about the Weyco Group, Inc. please refer to the company’s website.

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