31 Oct Weyco Group’s Q3 Revenues Climb 5 Percent
Weyco Group, Inc., the parent of Bogs, reported sales for the third quarter of 2013 were $83.1 million, an increase of 5 percent from 2012 sales of $79.5 million. Earnings from operations increased 6 percent to $8.6 million in the third quarter of 2013, compared to $8.1 million in 2012.
Net earnings attributable to the Company were $5.4 million in the third quarter of 2013, up 4 percent from $5.2 million in 2012. Diluted earnings per share increased to 50 cents per share in 2013, from 48 cents per share in the third quarter of 2012.
Earnings for last year’s third quarter included approximately $460,000 ($270,000 after tax, or 3 cents per diluted share) of income resulting from a reduction in the estimated liability for future payments related to the 2011 acquisition of The Combs Company. Without this adjustment, earnings from operations and net earnings attributable to the Company would have been up 12 percent and 10 percent, respectively, for the quarter.
Net sales in the North American wholesale segment, which include North American wholesale sales and licensing revenues, were $64.8 million for the third quarter of 2013, compared to $61.0 million in 2012. Wholesale product sales were $63.9 million in the third quarter of 2013, up from $60.2 million in 2012. This increase was primarily due to higher sales of the Nunn Bush brand. Wholesale net sales of Nunn Bush were up approximately $5.4 million, or 39 percent, for the quarter due to higher sales volumes at department stores and national shoe chains, driven by increased sales of new casual products. Licensing revenues remained flat at approximately $800,000 in the third quarter of 2013 and 2012. Earnings from operations for the wholesale segment were $7.1 million in the third quarter of 2013, up 8 percent from $6.6 million in 2012. Last year’s third quarter earnings from operations included approximately $460,000 of income resulting from the adjustment referred to above. Without this prior year adjustment, earnings from operations for the wholesale segment would have been up 16 percent for the quarter.
Net sales in the North American retail segment, which include sales from the Company’s Florsheim retail stores and its internet business in the United States, were $5.2 million in the third quarter of 2013, compared to $5.5 million in 2012. Same store sales increased 7 percent for the quarter. There were eight fewer domestic retail stores as of September 30, 2013 than at September 30, 2012. Earnings from operations for the retail segment increased approximately $190,000 for the quarter.
Other net sales, which include the wholesale and retail sales of Florsheim Australia and Florsheim Europe, were $13.1 million in the third quarter of 2013, compared to $12.9 million in 2012. Earnings from operations of these businesses decreased to $1.0 million in the third quarter of 2013, from $1.2 million in the same period last year. This decrease was primarily due to a $700,000 decline in the operating earnings of Florsheim Australia’s wholesale business which was offset by a $450,000 increase in the operating earnings of its retail business.
“We are pleased with our solid growth in both sales and operating earnings this quarter,” stated Thomas W. Florsheim, Jr., the Company’s Chairman and CEO. “In particular, we are pleased with the performance of our Nunn Bush brand. We believe the brand’s new casual products position us well for solid growth as we move into the fourth quarter.”
On October 28, 2013, the Company’s Board of Directors declared a quarterly cash dividend of $0.18 per share to all shareholders of record on December 10, 2013, payable January 2, 2014.