Weyco Group Inc. reported Bogs’ North American wholesale sales rose 6 percent in the third quarter as compared to last year due to higher sales in the farm, service and industrial trade channel and with e-commerce retailers.
Overall, net sales in the North American wholesale segment, which include North American wholesale sales and licensing revenues, were $44.0 million in the third quarter of 2020 compared to $67.8 million in the third quarter of 2019. Among other brands, net sales of the Florsheim, Stacy Adams, and Nunn Bush brands were down 58 percent, 55 percent and 32 percent, respectively for the quarter due mainly to the current decrease in demand for dress and dress-casual footwear as a result of COVID-19. Licensing revenues were $224,000 for the quarter compared to $630,000 in the third quarter of 2019, down in line with reductions in licensees’ sales of branded products.
Net sales were $53.2 million compared to third quarter 2019 net sales of $82.5 million.
The loss from operations totaled $3.8 million compared to earnings from operations of $8.5 million in the third quarter of 2019. Adjusted earnings from operations were $3.6 million for the third quarter of 2020. The net loss came to $5.9 million, or 60 cents per diluted share, compared to net earnings of $6.6 million, or 66 cents per diluted share, in the third quarter of 2019. Adjusted net earnings were $1.5 million, or $0.16 per diluted share, for the third quarter of 2020.
Other net sales, which include the wholesale and retail net sales of Florsheim Australia and Florsheim Europe, were $4.8 million in the third quarter of 2020 compared to $9.5 million in the third quarter of 2019. The decrease was due to lower net sales at both Florsheim Australia and Florsheim Europe, resulting from retail shutdowns and stay-at-home orders.
“While our top-line continues to be challenged by the far-reaching effects of COVID-19, we are encouraged by the recent pick-up in orders we experienced in our wholesale business in August and September,” stated Thomas W. Florsheim, Jr., the company’s Chairman and CEO. “Additionally, we are pleased with the strong performance of our e-commerce websites, which underscores the strength of our brands and continued consumer demand for our products. We have taken measures to right-size our cost structure across our organization, which allowed us to return to profitability in our wholesale business in the third quarter. We look forward to building upon this momentum as we move into the final months of the year.”
Photo courtesy Bogs
