Weyco Group Inc. reported lower profits for the first quarter as margins were lowered in part by the costs of the men’s footwear company’s acquisition of The Combs Co., owner of the BOGS and Rafters footwear brands. Net income for the quarter was $3.4 million, or 30 cents per share, down from $3.9 million, or 34 cents per share, the year before. Net sales were up 6.7 percent at $65.1 million from $61 million.
Weyco management believe they will begin to start seeing additional profits from Bogs in the third and fourth quarters, when the majority of Bogs business occurs.
“We are excited about the addition of more casual brands to our portfolio at Weyco,” stated Tom Florsheim, Jr., chairman and CEO of Weyco Group. “Our earnings have decreased during this transitional period, but we believe that as we continue through 2011, we will start to leverage our operational efficiencies and see the positive impact of our new businesses.”
Net sales in the North American wholesale segment, which include North American wholesale sales and licensing revenues, were $48.1 million for the quarter, compared with $44.7 million in 2010. Wholesale sales were $47.6 million in the first quarter of 2011, up from $44.1 million in 2010. Wholesale net sales for 2011 included of $2.3 million in Bogs sales since the date of acquisition on March 3. Wholesale sales of the Nunn Bush and Florsheim brands were up 1 percent and 5 percent, respectively, while Stacy Adams footwear sales were down 4 percent.
