Glendale-based Weyco Group Inc. reported an increased profit in the quarter despite sales declines in a challenging retail environment.
The designer and marketer of footwear brands including Florsheim, Nunn Bush and Stacy Adams reported net income of $4.9 million, up 7 percent from the same period last year. Earnings improved from 44 to 48 cents per diluted share
Revenue was down by 2.7 percent to $79.1 million. The North American wholesale segment, the company’s largest, was down 2 percent to $60.7 million.
“While the changing retail environment continues to impact our top-line sales growth, we are pleased to announce a bottom line earnings increase for the quarter,” said Thomas W. Florsheim, Jr., Weyco chairman and chief executive officer. “This earnings increase reflects our ongoing efforts to improve gross margins and control costs in our wholesale business.”
The wholesale segment did see improved gross earnings and the Florsheim brand increased sales by 9 percent with higher sales to department stores and national shoe chains. The Stacy Adams and Nunn Bush brands, however, were down 3 percent and 9 percent respectively.
The company’s North American retail segment saw sales decline 9 percent to $4.3 million. The majority of Weyco’s retail locations are in Florida and Texas so hurricanes hurt sales during the quarter.
Other net sales, which includes business in Australia and Europe, were down 3 percent to $11.9 million.
