World Footwear

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Weyco posts declining sales but has improving earnings

Oct 27, 2017 United States
Weyco posts declining sales but has improving earnings
The Milwaukee-based footwear company has announced financial results for the quarter ended on the 30th of September
"While the changing retail environment continues to impact our top-line sales growth, we are pleased to announce a bottom line earnings increase for the quarter", stated Thomas W. Florsheim, Jr., the company's Chairman and CEO, adding: "This earnings increase reflects our ongoing efforts to improve gross margins and control costs in our wholesale business”.

Net sales for the third quarter totaled 76.9 million US dollars, a decrease of 3% as compared to the third quarter of the previous year (net sales of 79.1 million US dollars). Earnings from operations were flat compared to similar period last year (7.8 million US dollars in both the third quarters of 2017 and 2016). Net earnings attributable to the company increased by 7% to 4.9 million US dollars in the third quarter of 2017, up from 4.6 million US dollars in last year's third quarter.

Net sales in the North American wholesale segment, which include North American wholesale sales and licensing revenues, reached 60.7 million US dollars in the third quarter of 2017, down by 2% as compared to 62.2 million US dollars in the third quarter of 2016. Within the wholesale segment, net sales of the Stacy Adams and Nunn Bush brands were down by 3% and by 9%, respectively, for the quarter, due to lower department store sales. These brands, however, did see some increases in other trade channels. BOGS third quarter net sales were down by 4% for the quarter, due to lower sales with outdoor retailers. Florsheim sales were up by 9% for the quarter, due to higher sales to department stores and national shoe chains. Licensing revenues totaled 527 000 US dollars in the third quarter of 2017 (compares to 525 000 US dollars in last year's third quarter).

Net sales in the North American retail segment, which includes sales from the company's Florsheim retail stores and its internet business in the United States, reached  4.3 million US dollars in the third quarter of 2017, down by 9% as compared to 4.7 million US dollars in 2016.  Same store sales (which includes US internet sales) were down by 10% for the quarter due to decreased sales at both brick and mortar locations and on the Company's websites. With the majority of Weyco’s brick and mortar locations in Florida and Texas, sales this quarter were impacted by the recent hurricanes. Earnings from operations for the retail segment were 17 000 US dollars in the third quarter of 2017, as compared to 313 000 US dollars in the third quarter 2016. The decrease was mainly due to lower sales.  

Other net sales, which include the wholesale and retail net sales of Florsheim Australia and Florsheim Europe, were 11.9 million US dollars in the third quarter of 2017, down by 3% as compared to 12.2 million US dollars in the third quarter of 2016.

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