Weyco Group Inc., parent company of footwear brands such as Stacy Adams, Florsheim and Bogs, today posted second-quarter results that showed year-over-year declines in both earnings and revenues.
The Milwaukee-based firm said net earnings for the quarter tumbled 50 percent, to $1 million, or 9 cents per diluted share, from $2 million, or 19 cents per diluted share, in last year’s second quarter. Earnings from operations were $1.6 million in the second quarter of 2016, compared with $3.3 million in 2015.
Weyco Chairman and CEO Thomas W. Florsheim Jr. said last year’s mild winter continued to depress orders for the Bogs brand into Q2, while overall sales declines in retail created a trickle-down effect throughout the company’s portfolio.
“Our second quarter was challenging,” Florsheim Jr. said in a statement. “In addition to reduced demand for our Bogs product following last year’s mild winter, our retail partners saw a slowdown in traffic and a weaker sales trend, which resulted in a general concern about inventory levels, impacting our other three brands.”
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Weyco’s net sales declined 11 percent, to $56.9 million, from $63.9 million in the comparable period, while sales for the Bogs brand fell 47 percent.
Looking forward to the second half of 2016 for Bogs, order backlogs remain down, and the company estimates the brand’s annual sales will slide 25 percent.
“We feel [inventory issues] may continue in the back half of 2016, but we believe our brands are well-positioned for future growth when the retail environment for footwear improves,” Florsheim Jr. said.
Weyco shares ended the day down 4.68 percent, to $24.87.
