Weyco Group Inc. reported net earnings in the first quarter declined approximately 10% to $5.1 million, or 43 cents a share, down from $5.7 million, or 47 cents, in 2007. Diluted earnings per share were $.43 per share in 2008 down 8.5% from $.47 per share in 2007. Net sales were $61.3 million, a decrease of 4% from 2007 sales of $63.9 million.
In the wholesale division, sales of the company's Nunn Bush and Stacy Adams brands were down 1% each, while sales of the Florsheim brand were down 13%. In addition to the challenging current retail environment, Florsheim sales were also impacted by the timing of new programs. In 2007, Florsheim had rolled out a number of new shoe programs with two large retailers. In 2008, there were no new product introductions of a similar scale.
Retail sales were $7.1 million for the first quarter of 2008, down 2% from $7.25 million in 2007. Same store sales were down 5%. Retail sales include four new stores which were opened in the second half of 2007.
Operating earnings were $7.6 million, down from $8.7 million in 2007. Operating earnings as a percent of sales fell from 13.6% in 2007 to 12.4% in 2008, reflecting the lower sales volume.
“While our brands remain solid performers within our industry, our financial results reflect the overall challenging retail climate and a pullback in consumer spending on apparel and footwear,” stated Tom Florsheim, Jr., chairman and CEO of Weyco Group.
The company's Board of Directors declared a quarterly cash dividend on April 29, 2008 of $.14 per share to all shareholders of record on June 2, 2008, payable July 1, 2008. This represents an increase of 27% above the previous quarterly dividend rate of $.11. The impact of this will be to increase cash dividends paid annually by approximately $1.4 million.
