Bogs increased sales 23 percent on a wholesale basis in North America for the first quarter, according to the quarterly report from Weyco Group, Inc.
Overall, Weyco’s revenues rose 1.8 percent to $74.9 million. Net earnings were flat at $3.2 million, or 29 cents a share.
Sales in the North American wholesale segment, which include North American wholesale sales and licensing revenues, were $56.7 million for the quarter, up 2.7 percent. Along with the gains at Bogs, Florsheim and Nunn Bush grew 4 percent and 3 percent, respectively. Stacy Adams sales were down 5 percent due to softness at national shoe chains.
“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,” said Thomas W. Florsheim Jr., Weyco’s chairman and CEO.
Wholesale gross margins were 30.4 percent, down from 31.0 percent partially due to the weaker Canadian dollar relative to the U.S. dollar in 2014. Operating earnings in the wholesale segment slid 2.7 percent to $3.6 million.
Sales in the North American retail segment, which include sales from the company's Florsheim retail stores and its Internet business in the U.S, were down 8.8 percent to $5.2 million. Operating earnings declined 5.4 percent to $418,000.
In its Other net sales segment, which include the wholesale and retail net sales of Florsheim Australia and Florsheim Europe, were $13.0 million, up 3.2 percent. Operating earnings jumped 72.0 percent to $884,000.
