Weyco Group reported wholesale net sales its Bogs and Rafters brands collectively decreased 7 percent for the fourth quarter. The decrease was primarily due to lower fourth quarter 2012 sales of the Bogs brand in the U.S. due to the mild winter.

 

The decrease in Bogs U.S. business was partially offset by $2.5 million of Bogs net sales in Canada in the 2012 fourth quarter, following the company’s June 1, 2012 takeover of the Canadian distribution of the Bogs and Rafters brands from a third party licensee.

 

For the full year, sales of the Bogs and Rafters brands were $36 million in 2012 compared to $28 million in 2011. The company’s 2012 results included Bogs operations for the full year, while 2011 only included Bogs operations from the March 2, 2011 acquisition date through December 31, 2011.  In addition, Bogs had $6.9 million of sales in Canada in 2012, following the takeover of Canadian distribution.

 

Overall, Weyco’s sales for the fourth quarter increased 4.8 percent to $78.4 million. The decline in Bogs was offset by North American wholesale gains of 9 percent each for its Stacy Adams and Florsheim brands. Nunn Bush was flat.

 

Net earnings climbed 40.0 percent to $7.7 million, or 71 cents a share. Earnings for the quarter included $1.8 million ($1.1 million after tax, or 10 cents per diluted share) of income resulting from a reduction in the liability for  future payments to be made as a result of the 2011 acquisition of The Combs Co., the owner of the Bogs and Rafters brands. Excluding the benefit, earnings were up 20.0 percent.