Weyco Group Inc. reported slightly higher profits for the fourth quarter, despite flat retail sales and declining U.S. sales of the key Florsheim brand. Net income increased 1% to $7.8 million, or 66 cents per share, compared with $7.7 million, or 64 cents per share, for the same period the year before. Net sales increased to $62.2 million from $60.6 million for the quarter.
Wholesale sales of the company's Florsheim and Stacy Adams brands grew 5% and 11%, respectively, but the Florsheim sales increase was entirely due to sales in Canada, where sales transitioned from a licensing business to a wholesale business. Nunn Bush brand sales declined 3%.
Retail sales were flat for the quarter compared with a year ago. Same-store sales were down 2%.
Weyco chairman and CEO Tom Florsheim Jr. blamed a slowdown in sales in the second half of 2007 on “general economic factors.”
For the year, net income increased to $22.9 million, or $1.91 per share, compared with $21.9 million, or $1.81 per share, the year before. Sales rose to $232.6 million from $221 million.