Weyco Group Inc. reported sales of its Bogs footwear brand increased 18 percent in the second quarter ended June 30, 2015, reflecting a broadening of the brand's product line beyond boots.
Bogs sales are reported under Weyco Group's North American Wholesale segment, where sales and licensing revenues reached $48.1 million for the second quarter, up 7 percent as compared to $44.8 million in the second quarter of 2014.
The segment also includes the Stacy Adams and Nunn Bush brands where sales grew 12 percent and 9 percent, respectively, for the quarter, driven by strong new product sales. Florsheim net sales declined 3 percent for the quarter.
Wholesale gross earnings increased to 31.0 percent of net sales in the second quarter of 2015, from 30.5 percent in last year's second quarter, mainly due to an increase in U.S. gross margins. Gross margins in Canada continue to be affected by the weaker Canadian dollar, however, gains recorded on forward exchange contracts offset the impact of the weaker Canadian dollar this quarter. Earnings from operations for the wholesale segment increased 26 percent to $2.2 million in the second quarter of 2015, from $1.7 million in the same period last year. This increase was primarily due to higher sales and gross margins.
“We are pleased with the performance of our North American wholesale segment, where we saw solid growth in both sales and operating earnings this quarter,” stated Thomas W. Florsheim, Jr., Weyco Group's Chairman and CEO. “Despite the headwinds we face with weakening foreign currencies in Canada and Australia, we feel our overall business is well-positioned as we move into the second half of the year.”
Weyco Group, Inc., designs and markets quality and innovative footwear for men, women and children under a portfolio of well-recognized brand names including: Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters and Umi. The Company's products can be found in leading footwear, department, and specialty stores worldwide. Weyco Group also operates Florsheim concept stores in the United States and Australia, as well as in a variety of international markets.
