Bogs’ sales were down 5.3 percent on a wholesale basis for the third quarter as shipments shifted later into the fall season. But parent Weyco Group still expects the outdoor shoe brand to deliver an increase in revenue for the year.

Sales for the Bogs segment, which also includes Rafters, reached $16.7 million against $17.6 million a year ago. The declines mainly came at outdoor and online retailers.

“The decrease in Bogs was a result of a shift in timing of fall shipments as retailers receive a larger percentage of their shipments in October versus September,” said Thomas W. Florsheim, Weyco’s chairman and CEO, on a conference call with analysts. “While fourth quarter weather is key for Bogs, we are optimistic about finishing the year with an overall increase based on early fall sell-throughs at retail. Our inventories are very clean, which has resulted in lower sales of obsolete inventory and higher profitability for Bogs.”

For the nine month period, revenues for the Bogs segment were $25.6 million, off 3.5 percent.

Companywide, Weyco’s sales for the quarter were $78.4 million, up 1.9 percent. Operating earnings were $8 million, ahead 3.1 percent.

Net earnings attributable to Weyco rose 27.2 percent to $6.3 million for the quarter, benefitting from the lower U.S. Federal tax rate this year.

Among segments:

  • North American wholesale segment’s sales for the quarter were $63.2 million, up 4 percent. Operating earnings  increased 3 percent to $7.6 million, mainly due to higher sales and an increase in gross margins to 34.4 percent from 33.9 percent of net sales in last year’s third quarter.
  • North American retail segment, which include our retail stores and U.S. Internet sales, were $4.9 million in the quarter, up 15 percent. Same-store sales, which include the Internet sales, were up 20 percent for the quarter, due mainly to increased sales on our company’s websites. Driven by higher online sales, retail operating earnings rose to $428,000 this quarter, up from $17,000 last year.
  • Other operations, which include the wholesale and retail businesses of Florsheim Australia and Florsheim Europe, had net sales of $10.3 million in the quarter, down 14 percent. This decrease was primarily due to a 16 percent reduction in the net sales at Florsheim Australia. In local currency, Florsheim Australia’s net sales were down 9 percent, with sales down in both its wholesale and retail businesses. The weaker Australian dollar also contributed to the decrease in Florsheim Australia’s net sales this year. Collectively, the operating earnings of Florsheim Australia and Florsheim Europe were $8,000 this quarter compared to $369,000 last year, with that decrease primarily due to the decline in Florsheim Australia’s net sales.

During the quarter, the minority interest shareholder of Florsheim Australia provided notice and tendered to the company his shares, which represented a 45 percent equity interest in Florsheim Australia. Accordingly, the company purchased a minority interest in Florsheim Australia for $3.7 million on August 30, and the company now owns 100 percent of Florsheim Australia.

Among other brands besides Bogs, sales on a wholesale basis rose 17 percent for Stacy Adams and 8 percent for Florsheim. Sales were flat for Nunn Bush.

Inventories were flat at $60.0 million against $60.3 million. Said Florsheim, “The fourth quarter is off to a strong start, with shipments up across all of our brands. We are optimistic this momentum will continue. Accordingly, we are increasing our inventory levels to meet that higher sales demand.”

Image courtesy Bogs