Business news : Bogs Sales up 8 Percent in Q4 Despite US Decline

Weyco Group, Inc. reported wholesale net sales of its Bogs brand grew 8 percent in the first quarter as sales at its newly owned Canadian subsidiary more than offset a 9 percent decline in sales in the United States.

Weyco took over the distribution of Bogs in Canada from a third party licensee on June 1, 2012. Management attributed the decline in U.S. sales of Bogs to retailers decision to continue to sell winter products carried over from the prior mild winter rather than buying new stock. Bogs specializes in waterproof, insulated, rubber footwear such as the Journeyman shown at right.

Weyco, which also owns the Florsheim and Stacy Adams brands and a retail division, reported overall sales reached $73.6 million for the first quarter ended March 31, compared to net sales of $75.3 million in the first quarter of 2012.

  

Operating earnings for the first quarter were $4.7 million in 2013 and $5.8 million in 2012. Net earnings attributable to the company were $3.2 million in 2013, compared to $3.9 million in 2012. Diluted earnings per share were $0.30 per share in 2013, compared with $0.35 per share in the first quarter of 2012.

Net earnings for last year's first quarter included approximately $301,000, or $0.03 per diluted share of income resulting from a reduction in the estimated liability for future payments to be made as a result of the 2011 acquisition of The Combs company ("Bogs"). No significant adjustment was made to the estimated liability in the first quarter 2013.

Net sales in the North American wholesale segment, which include North American wholesale sales and licensing revenues, were $55.2 million for the first quarter of 2013, compared to $56.6 million in 2012. Wholesale product sales were $54.6 million in the first quarter of 2013, compared to $55.9 million in 2012.

Wholesale net sales of the Stacy Adams, Florsheim and Bogs brands were up 2 percent, 3 percent, and 8 percent respectively, while net sales of Nunn Bush were down 11 percent for the quarter.

Nunn Bush net sales were down due to soft sales to department stores in the first quarter this year. Licensing revenues were $594,000 in the first quarter of 2013 and $725,000 in 2012. Operating earnings for the North American wholesale segment were $3.7 million in the first quarter

of 2013, compared to $4.5 million in 2012.

  

Net sales in the North American retail segment, which include sales from the company's Florsheim retail stores in the United States and its Internet business, were $5.7 million in the first quarter of 2013 and 2012. Same store sales were up 10 percent for the quarter. There were six fewer domestic retail stores at the end of the first quarter of 2013, compared to 2012. Operating earnings for the segment improved for the quarter due to higher same store sales and the closure of underperforming stores since last year.

Other net sales, which include the wholesale and retail sales of Florsheim Australia and Florsheim Europe, were $12.6 million in the first quarter of 2013, compared to $13.0 million in 2012. The majority of other net sales were generated by Florsheim Australia. Florsheim Australia's net sales decreased 2 percent. Collectively, the operating earnings of the company's other businesses in the first quarter of 2013 decreased $854,000 as compared to 2012.

"Overall, we believe our first quarter performance reflected the soft retail environment," stated Tom Florsheim, Jr., Chairman and CEO of Weyco Group, Inc. "We remain confident that as retail growth picks up, we should see a corresponding increase in our business."

No dividends were paid in the first quarter of 2013, as the company accelerated its first and second quarter 2013 dividend payments into 2012. On April 30, 2013, the company's Board of Directors declared a cash dividend of $0.18 per share to all shareholders of record on May 31, 2013, payable July 1, 2013. This represents an increase of 6 percent above the previous quarterly dividend rate of $0.17.
Source Weyco Group Through SportsOnesource