Weyco Group, Inc. produced $80.6 million in consolidated net sales in the 2023 fourth quarter, a 19 percent decline from $99.0 million in the fourth quarter of 2022.

North American Segment
Net sales in the company’s Wholesale segment were $59.6 million in Q4, down 21 percent compared to $75.5 million in Q4 2022.

  • The Bogs brand posted the largest decline for the period, with sales down 32 percent for the quarter, reportedly due to retailers reducing orders amid the current saturation of product in the outdoor footwear market, in addition to the mild Fall and Winter weather.
  • Legacy Brand sales of the Stacy Adams, Nunn Bush, and Florsheim brands were down 19 percent, 18 percent, and 13 percent, respectively, for the quarter. Sales volumes were down across the legacy brands as a result of weaker demand following a period of strong growth in 2022.
  • Owned-retail (DTC) net sales were $13.9 million in Q4, down 3 percent compared to record sales of $14.3 million in the fourth quarter of 2022. The decrease was primarily on the Bogs website, as a result of lower demand.

International
Other Operations consist of the company’s retail and wholesale businesses in Australia, South Africa, and Asia Pacific,  collectively known as Florsheim Australia. Weyco ceased operations in the Asia Pacific region in 2023 and is in the final stages of winding down the business.

  • Net sales of Florsheim Australia were $7.2 million in Q4, down 23 percent from $9.2 million in the fourth quarter of 2022. In local currency, Florsheim Australia’s net sales were down 22 percent, due mainly to the loss of a sizeable wholesale customer in Australia earlier in 2023, but also due to lower retail sales in the Asia Pacific region as a result of its wind-down.

Income Statement
Consolidated gross profit increased to 50.3 percent of net sales in the fourth quarter, compared to 46.6 percent of net sales in the prior-year fourth quarter, due mainly to higher gross margins in the North American wholesale segment.

Quarterly earnings from operations were $11.5 million, down 24 percent compared to record operating earnings of $15.1 million in 2022.

Fourth-quarter 2023 net earnings were $8.5 million, or 90 cents per diluted share, compared to $10.2 million, or $1.06 per diluted share, in Q4 2022.

Image courtesy Bogs