Weyco Group, Inc., owner of Bogs, reported net sales for the third quarter ended Sept. 30 were $74.6 million, an increase of 31% from 2010 sales of $57.1 million.
Operating earnings for the third quarter of 2011 were $6.7 million, compared to $4.5 million in 2010. Net earnings attributable to the company were $4.4 million, compared to $3.4 million in 2010. Diluted earnings per share increased to 40 cents per share in 2011 from 30 cents per share in the third quarter of 2010.
Net sales in the North American wholesale segment, which include North American wholesale sales and licensing revenues, were $56.6 million for the third quarter of 2011, compared with $41.4 million in 2010.
Net sales in the North American retail segment, which include sales from the company's 30 Florsheim retail stores in the United States and its Internet business, were $5.8 million in the third quarter of 2011, compared with $5.2 million in 2010, an increase of 13%. Same store sales were up 22% for the quarter. There were six fewer domestic retail stores during the third quarter of 2011 compared to 2010. Operating earnings for the segment improved by approximately $622,000 for the quarter. This was the result of a higher sales volume and slightly lower selling and administrative expenses.
Other net sales, which include the wholesale and retail sales of Florsheim Australia and Florsheim Europe, were $12.2 million in the third quarter of 2011, compared to $10.6 million in 2010. The majority of other net sales are generated by Florsheim Australia. Florsheim Australia's net sales were up 18%. In local currency, net sales were flat. The increase in U.S. dollars was caused by the weaker U.S. dollar relative to the Australian dollar this year. Collectively, the operating earnings of the company's other businesses in the third quarter of 2011 were relatively flat with last year.
“The third quarter marked the beginning of the main selling season for the Bogs brand, and consequently, as we expected, we are now experiencing accretion from our March acquisition,” stated Tom Florsheim, Jr., Chairman and CEO of Weyco Group, Inc. “In addition, our other wholesale brands and our U.S. retail business posted sales gains for the quarter, and our overseas sales remained level with last year.”
WEYCO GROUP, INC. AND SUBSIDIARIES | |||||||||
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS | |||||||||
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010 (UNAUDITED) | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||
2011 | 2010 | 2011 | 2010 | ||||||
(In thousands, except per share amounts) | |||||||||
Net sales | $ 74,601 | $ 57,136 | $ 196,297 | $ 166,898 | |||||
Cost of sales | 46,061 | 34,985 | 120,269 | 102,681 | |||||
Gross earnings | 28,540 | 22,151 | 76,028 | 64,217 | |||||
Selling and administrative expenses | 21,823 | 17,660 | 61,769 | 52,599 | |||||
Earnings from operations | 6,717 | 4,491 | 14,259 | 11,618 | |||||
Interest income | 543 | 597 | 1,719 | 1,703 | |||||
Interest expense | (124) | (7) | (351) | (95) | |||||
Other income and expense, net | (62) | 539 | 46 | 321 | |||||
Earnings before provision for income taxes | 7,074 | 5,620 | 15,673 | 13,547 | |||||
Provision for income taxes | 2,525 | 1,831 | 5,334 | 4,695 | |||||
Net earnings | 4,549 | 3,789 | |||||||
