Weyco Group, Inc., parent company of the Florsheim, Bogs, Nunn Bush, and Stacy Adams brands, reported third quarter revenues fell 12 percent year-over-year to $74.3 million, compared to $84.2 million in Q3 2023, driven primarily from an 18 percent decline in Bogs sales in the North America Wholesale market, and to a lesser extent, declines in the Florsheim Austria business and the closure of the Florsheim Asia business.

Gross margins amounted to 44.3 percent of net sales in the third quarter, a 130 basis point improvement versus the 43.0 percent of net sales mark in Q3 2023.

North American Wholesale Segment
Net sales in Weyco’s Wholesale segment were $61.1 million in the third quarter, down 12 percent from $69.5 million in the third quarter of 2023. The decrease was said to be primarily due to lower sales of the Nunn Bush, Stacy Adams, and Bogs brands.

  • Nunn Bush third-quarter sales were down 20 percent, reportedly due in part to the previously disclosed shift in timing of shipments to a large retailer from third to second quarter, but also due to lower demand.
  • Stacy Adams sales were down 17 percent for the quarter due to lower demand, particularly in the dress-shoe category. Florsheim’s third-quarter sales were up 1 percent.
  • Bogs sales were down 18 percent for the quarter. The company said that while outdoor retailer inventory levels have normalized which positively impacted Bogs third-quarter performance relative to the first half of 2024, Bogs at-once orders did not reach their expected potential due to unseasonably warm and dry weather throughout the country. Weyco said Bogs fourth-quarter sales will largely depend on colder weather to bolster growth.

Wholesale gross margins reached 40.1 percent of net sales in Q3, compared to 38.6 percent of net sales last year.

Wholesale selling and administrative expenses were $15.1 million for the quarter versus $15.6 million last year, down due to lower employee costs, mainly commission-based compensation. As a percent of net sales, wholesale selling and administrative expenses were 25 percent in Q3 2024 and 22 percent in the third quarter of 2023. The increase as a percent of net sales was said to be due to the percent of costs that are fixed and do not vary with sales.

Wholesale operating earnings totaled $9.4 million for the quarter, down 16 percent from $11.3 million in 2023, as a result of lower sales.

North American Retail Segment
Net sales in Weyco’s Retail segment, which were generated mainly by the company’s e-commerce websites, were $7.2 million for the quarter, down 5 percent from $7.6 million in 2023. Lower sales on the Bogs website, blamed on the mild Fall, were said to be partially offset by higher sales on the Florsheim and Stacy Adams websites this quarter.

Retail gross margins percent of net sales were 66.9 percent of net sales in Q3, compared to 65.4 percent of net sales in the third quarter of 2023.

Retail operating earnings totaled $0.8 million for the quarter versus $0.9 million last year.

Other Operations
Other operations historically included the company’s Retail and Wholesale businesses in Australia, South Africa, and Asia Pacific, or collectively known as Florsheim Australia. Weyco ceased operations in the Asia Pacific region in 2023 and has substantially completed the wind down of that business. As a result, the third-quarter 2024 operating results of the “Other Operations category and Florsheim Australia only reflect that of Australia and South Africa.

Net sales of Florsheim Australia were $6.0 million, down 15 percent from $7.1 million in the third quarter of 2023. The decrease was almost entirely due to the closing of our Asia Pacific operations. Sales in Australia were down 1 percent for the quarter, due to the impact of four fewer retail stores operating compared to the same period last year. Australia’s same-store sales were up 1 percent for the quarter.

Florsheim Australia’s gross margins were 59.2 percent of net sales for the third quarter, compared to 61.6 percent of net sales in Q3 last year.

Florsheim Australia’s operating earnings were zero for the period down from $0.3 million last year.

Income Statement Summary
Earnings from operations totaled $10.2 million in the third quarter, down 18 percent compared to $12.4 million in Q3 2023.

Interest income totaled $0.9 million in the third quarter of 2024 compared to $0.3 million in last year’s third quarter. This year included interest earned on higher cash balances in the U.S. and Canada.

Net earnings were $8.1 million, or 83 cents per diluted share, compared to $9.3 million, or 98 cents per diluted share, in Q3 2023.

“This was a challenging quarter for our North American businesses,” stated Thomas W. Florsheim, Jr., Chairman and CEO, Weyco Group, Inc. “All our wholesale brands were impacted by soft consumer demand resulting from cutbacks in discretionary spending. Additionally, Bogs at-once and e-commerce performance was more muted than anticipated due to the mild start to Fall. While the retail landscape remains uncertain, we remain confident in the strength of our brands, and believe that each is well-positioned in its respective market for growth when conditions improve.”

Image courtesy Bogs