Bogs’ wholesale sales surged 72 percent in the first quarter on top of the 17 percent annual increase in 2021, officials of Weyco Group Inc. said on an analyst call.
On the call, Tom Florsheim, Jr., chairman and CEO, said part of the reason for the strong increase Bogs is in a “much better overall inventory position” on classic products versus 2021.
“Sales would actually have been higher if not for some supply chain delays on lighter-weight spring product,” said Florsheim. “Bogs has been on a very strong run and we feel good about the mix of classic and lifestyle product and our backlog and look forward to a strong second half of the year.”
Companywide, sales for Weyco, which also owns the Florsheim, Stacy Adam, and Nunn Bush footwear brands, were a first-quarter record of $81.4 million, up 73.6 percent year over year. The prior year’s sales were depressed due to restrictions to social gatherings and work office environments that restrained sales across its dressier Florsheim, Stacy Adam, and Nunn Bush brands. Sales for the first quarter of 2022 exceeded 2019 levels by 10 percent.
Earnings from operations totaled $5.4 million compared to $1.6 million in the first quarter of 2021. Compared to the 2019 first quarter, operating earnings improved 6 percent.
Quarterly net earnings rose to $4.1 million, or 42 cents per share, up three-fold from $1.3 million, or 14 cents, last year.
Net sales in the wholesale segment were a first-quarter record of $67.1 million compared to $33.4 million in the first quarter of 2021, with sales up across all of the company’s brands. Net wholesale sales surpassed 2019 levels by 13 percent.
Not only did Florsheim and Bogs achieve record first-quarter sales, but sales of the Nunn Bush brand beat 2019 levels by 24 percent. Stacy Adams sales reached 80 percent of 2019 sales levels for the quarter.
Net sales in the retail segment were a first-quarter record of $7.9 million compared to $5.6 million in 2021. Same-store sales rose 39 percent, due to a 38 percent increase in e-commerce sales (with online sales up for all brands) and higher brick-and-mortar sales. Last year’s brick-and-mortar sales were down as a result of the pandemic. Retail net sales in the first quarter of 2022 surpassed the 2019 level by 41 percent. While most of this increase was driven by e-commerce growth, brick-and-mortar sales at Weyco’s four remaining locations collectively exceeded 2019 levels.
Other net sales for the quarter totaled $6.4 million compared to $7.9 million in 2021. The decrease was due to the closing of Florsheim Europe and lower sales at Florsheim Australia. Florsheim Australia’s net sales fell eight percent for the quarter, with sales down in its wholesale and retail businesses. The weakening of the Australian dollar relative to the U.S. dollar also contributed to the decrease, as Florsheim Australia’s net sales in local currency were only down 2 percent for the quarter.
Florsheim said that beyond Bog’s momentum and the recovery in sales of dress and dress-casual footwear, supply chain improvement helped the performance. He said, “We received a large number of containers during the quarter which enabled us to fulfill much of the increased demand, despite supply chain delays. While the supply chain shows indications of improving as inflows of product into the U.S. are increasing, we still anticipate continued headwinds in the near to medium term. Our wholesale backlog currently remains very strong, and we look forward to carrying on this positive momentum as we move throughout the year.”
Photo courtesy Bogs
