Weyco Group, Inc. reported net sales for the first quarter ended March 31 were $74.9 million, an increase of 2 percent compared to 2013 net sales of $73.6 million.
Earnings from operations increased 4 percent to $4.9 million in the first quarter of 2014, compared to $4.7 million in 2013. Net earnings attributable to the company were flat at $3.2 million for the first quarters of 2014 and 2013. Diluted earnings per share were $0.29 in the first quarter 2014, compared to $0.30 per share in the same period one year ago.
Net sales in the North American wholesale segment, which include North American wholesale sales and licensing revenues, were $56.7 million for the first quarter of 2014, up 3 percent as compared to $55.2 million in 2013. Within the wholesale segment, net sales of its Bogs brand increased by 23 percent for the quarter. Florsheim and Nunn Bush sales were up 4 percent and 3 percent, respectively, while Stacy Adams sales were down 5 percent. The decline at Stacy Adams was the result of a decrease in sales with national shoe chains. Wholesale gross earnings were 30.4 percent of net sales in the first quarter of 2014, compared to 31.0 percent in the first quarter of 2013. The decrease in gross earnings as a percent of net sales was partially due to the weaker Canadian dollar relative to the U.S. dollar in 2014. Earnings from operations for the wholesale segment were $3.6 million in the first quarter of 2014, compared to $3.7 million in the same period last year.
Net sales in the North American retail segment, which include sales from the company's Florsheim retail stores and its Internet business in the United States, were $5.2 million in the first quarter of 2014, down 9 percent as compared to $5.7 million in 2013. Same store sales were down 1 percent for the quarter. There were six fewer domestic retail stores during the first quarter of 2014 than there were in last year's first quarter. Earnings from operations for the retail segment decreased 5 percent to $418,000 in the first quarter of 2014, compared to $442,000 in 2013.
Other net sales, which include the wholesale and retail net sales of Florsheim Australia and Florsheim Europe, were $13.0 million in the first quarter of 2014, up 3 percent as compared to $12.6 million in 2013. The majority of other net sales were generated by Florsheim Australia. Florsheim Australia's net sales were up 1 percent for the quarter; however, in local currency, its net sales were up 17 percent. This increase was due to higher sales volumes in both its retail businesses, where same store sales were up 19 percent, and its wholesale businesses, where sales were up 13 percent. The increase was only 1 percent in U.S. dollars due to the weaker Australian dollar relative to the U.S. dollar in 2014. Earnings from operations of these businesses were $884,000 in the first quarter of 2014, up 72 percent as compared to $514,000 in the same period last year. This increase was primarily due to improved performance of Florsheim Australia's retail businesses.
“While first quarter sales of our Bogs winter boots benefited from the long harsh winter in the U.S. and Canada, we believe the weather slowed the overall retail environment and challenged our retail and wholesale shoe businesses,” stated Thomas W. Florsheim Jr., the Company's Chairman and CEO. “We are very pleased that despite these challenges, our Nunn Bush and Florsheim brands posted gains for the quarter. We are also encouraged by the improvement in our Australian operations where we saw strong gains in both its retail and wholesale businesses.”
On April 30, 2014, the company's board of directors declared a cash dividend of $0.19 per share to all shareholders of record on May 30, 2014, payable June 30, 2014. This represents an increase of 6 percent above the previous quarterly dividend rate of $0.18.
