Weyco Group, Inc., the parent of Bogs, reported sales for the second quarter of 2013 were $65.0 million, an increase of 8 percent from 2012 sales of $60.3 million. Earnings from operations for the second quarter were $3.7 million, compared to $3.4 million in 2012.
Net earnings attributable to the company and diluted earnings per share were flat at $2.2 million and 20 cents per share, respectively, for the second quarter of 2013 and 2012. Earnings for last year's second quarter included approximately $700,000 ($410,000 after tax, or 4 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 36 percent and 22 percent, respectively, for the quarter.
Net sales in the North American wholesale segment, which include North American wholesale sales and licensing revenues, were $47.5 million for the second quarter of 2013, compared to $43.6 million in 2012.
Wholesale product sales were $46.9 million in the second quarter of 2013, up from $43.1 million in 2012. This increase was primarily due to higher sales of the Nunn Bush and Florsheim brands. Wholesale net sales of Nunn Bush and Florsheim were up 11 percent and 18 percent, respectively, for the quarter due to higher sales volumes at department stores and national shoe chains.
Licensing revenues were approximately $625,000 in the second quarter of 2013 and $539,000 in 2012. Earnings from operations for the segment were $2.2 million in the second quarter of 2013, compared to $2.1 million in 2012. Last year's second quarter earnings from operations included approximately $700,000 of income resulting from the adjustment referred to above. Without the prior year adjustment, earnings from operations for the segment would have been up 57 percent for the quarter.
Net sales in the North American retail segment, which include sales from the company's Florsheim retail stores in the United States and its Internet business, were $5.4 million in the second quarter of 2013, compared with $5.6 million in 2012. Same store sales increased 6 percent for the quarter. There were seven fewer domestic retail stores as of June 30, 2013 than at June 30, 2012. Earnings from operations for the segment increased approximately $550,000 for the quarter.
Other net sales, which include the wholesale and retail sales of Florsheim Australia and Florsheim Europe, were $12.2 million in the second quarter of 2013, compared to $11.1 million in 2012. The majority of other net sales are generated by Florsheim Australia.
Florsheim Australia's net sales increased 7 percent, or approximately $750,000, this quarter. Collectively, earnings from operations of the company's other businesses were $900,000 in the second quarter of 2013 compared with $1.3 million in the same period last year.
Other expense for the second quarter of 2013 included foreign currency transaction losses of approximately $520,000 primarily due to the revaluation of intercompany loans with Florsheim Australia. The second quarter of 2012 included approximately $140,000 of foreign currency transaction losses.
“We are pleased with our solid growth in both sales and operating earnings this quarter,” stated Thomas W. Florsheim, Jr., Chairman and CEO. “While the current retail market remains unpredictable, we feel our overall business is well positioned going into the second half of the year.”
On July 29, 2013, the company's Board of Directors declared a quarterly cash dividend of $0.18 per share to all shareholders of record September 1, 2013 payable September 30, 2013.
Weyco's brand include: Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters and Umi.
