Weyco Group, Inc. said its Bogs brand marked its sixth consecutive quarter of double-digit sales growth in the first quarter.
Companywide, Weyco achieved record first quarter net sales of $78.1 million in 2015. This represents a 4 percent increase over first quarter 2014 net sales of $74.9 million. Earnings from operations were $5.8 million in the first quarter of 2015, up 19 percent as compared to $4.9 million in 2014. Net earnings attributable to the company rose 13 percent to $3.6 million in the first quarter of 2015, from $3.2 million in last year's first quarter. Diluted earnings per share increased to $0.33 in the first quarter of 2015, up from $0.29 per share in the first quarter of 2014.
Net sales in the North American wholesale segment, which include North American wholesale sales and licensing revenues, were $61.1 million for the first quarter of 2015, up 8 percent as compared to $56.7 million in the first quarter of 2014. Within the wholesale segment, net sales of its Bogs brand were up 20 percent this quarter, driven by increased sales of women's and children's boots in the U.S. and Canada. Stacy Adams net sales increased 15 percent for the quarter, due to sales volume increases in the modern dress shoe category across all major distribution channels. Net sales of the Nunn Bush brand were up 5 percent for the quarter, primarily due to higher sales with department stores and off-price retailers, partially offset by lower sales with national shoe chains. Florsheim net sales declined 3 percent for the quarter, mainly due to lower sales with department stores and off-price retailers. Wholesale gross earnings were 31.0 percent of net sales in the first quarter of 2015, compared to 30.4 percent in the first quarter of 2014. Driven by higher sales volumes, wholesale earnings from operations increased 35 percent to $4.8 million in the first quarter of 2015, from $3.6 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 U.S., were $4.9 million in the first quarter of 2015, down 5 percent as compared to $5.2 million in the first quarter of 2014. The company's U.S. internet sales were $2.4 million this quarter, up 9 percent as compared to $2.2 million in last year's first quarter. Same store sales (which include U.S. internet sales) were down 1 percent for the quarter. There were two fewer domestic retail stores operating during the first quarter of 2015 than there were in last year's first quarter. Earnings from operations for the retail segment were $272,000 in the first quarter of 2015 compared to $418,000 in 2014. This decrease was mainly due to lower net sales at the company's brick and mortar stores.
Other net sales, which include the wholesale and retail net sales of Florsheim Australia and Florsheim Europe, were $12.0 million in the first quarter of 2015, down 8 percent as compared to $13.0 million in 2014. This decrease resulted from the translation of local currency sales into U.S. dollars. The majority of other net sales were generated by Florsheim Australia. In local currency, Florsheim Australia's net sales were up 11 percent for the quarter. This increase was due to higher sales volumes in both its retail businesses, where sales were up 11 percent (same store sales up 8 percent), and its wholesale businesses, where sales were up 12 percent. As the result of a weaker Australian dollar, when translated to U.S. dollars, Florsheim Australia's net sales were down 2 percent for the quarter. Florsheim Europe's net sales were down 9 percent in local currency and 25 percent in U.S. dollars. Earnings from operations of these other businesses were $703,000 in the first quarter of 2015, down 20 percent as compared to $884,000 in the same period last year. This decrease was primarily due to lower operating earnings at Florsheim Europe.
“We are excited to have achieved record first quarter sales,” stated Thomas W. Florsheim, Jr. the company's chairmen and CEO. “Our sales increase was spurred by our sixth consecutive quarter of double-digit sales growth for our Bogs brand, as well as strong sales of our Stacy Adams and Nunn Bush products. We look forward to building upon these successes in the second quarter.”
On May 5, 2015, the company's board of directors declared a cash dividend of $0.20 per share to all shareholders of record on May 29, 2015, payable June 30, 2015. This represents an increase of 5 percent above the previous quarterly dividend rate of $0.19.
