Weyco Reports Second Quarter Sales And Earnings

MILWAUKEE, Wis., Aug. 4, 2015 /PRNewswire/ --  Weyco Group, Inc. (NASDAQ: WEYS) (the "Company") today announced financial results for the quarter ended June 30, 2015.

Net sales for the second quarter of 2015 were $63.9 million, an increase of 2% as compared to 2014 net sales of $62.9 million. Earnings from operations were $3.3 million in the second quarter of 2015, compared to $3.4 million in 2014, a decrease of 2%. Net earnings attributable to the Company were $2.0 million in the second quarter of 2015, down 8% as compared to $2.2 million in last year's second quarter. Diluted earnings per share were $0.19 in the second quarter of 2015 and $0.20 per share in the second quarter of 2014.  

Net sales in the North American wholesale segment, which include North American wholesale sales and licensing revenues, were $48.1 million for the second quarter of 2015, up 7% as compared to $44.8 million in the second quarter of 2014.  Within the wholesale segment, net sales of our BOGS brand were up 18% for the quarter. BOGS continues to broaden its product line, which drove its sales increase this quarter. Net sales of our Stacy Adams and Nunn Bush brands were up 12% and 9%, respectively, for the quarter, driven by strong new product sales. Florsheim net sales declined 3% for the quarter. Wholesale gross earnings increased to 31.0% of net sales in the second quarter of 2015, from 30.5% in last year's second quarter, mainly due to an increase in U.S. gross margins. Gross margins in Canada continue to be affected by the weaker Canadian dollar, however, gains recorded on forward exchange contracts offset the impact of the weaker Canadian dollar this quarter.  Earnings from operations for the wholesale segment increased 26% to $2.2 million in the second quarter of 2015, from $1.7 million in the same period last year. This increase was primarily due to higher sales and gross margins.

Net sales in the North American retail segment, which include sales from the Company's Florsheim retail stores and its internet business in the U.S., were $5.0 million in the second quarter of 2015, down 5% as compared to $5.3 million in 2014. The Company's U.S. internet sales were $2.3 million this quarter, up 12% as compared to $2.1 million in last year's second quarter. Same store sales (which include U.S. internet sales) were flat for the quarter.  There were two fewer domestic retail stores operating during the second quarter of 2015 than there were in last year's second quarter. Earnings from operations for the retail segment were $489,000 in the second quarter of 2015, down 13% as compared to $563,000 in 2014. This decrease was due to lower net sales at the Company's brick and mortar stores.

Other net sales, which include the wholesale and retail net sales of Florsheim Australia and Florsheim Europe, were $10.8 million in the second quarter of 2015, down 16% as compared to $12.8 million in 2014.  This decrease was primarily due to lower net sales at Florsheim Australia, caused mainly by the translation of the weaker Australian currency into U.S. dollars. Earnings from operations of Florsheim Australia and Florsheim Europe were $650,000 in the second quarter of 2015, as compared to $1.1 million in the same period last year. This decrease was primarily due to lower operating earnings in Australia, resulting from its sluggish retail environment and lower earnings of recently opened retail stores.

Other expense for the second quarter of 2015 was $348,000, compared to income of $75,000 in last year's second quarter. This quarter's other expense included foreign currency transaction losses of approximately $240,000 compared to $69,000 of gains in the same period of 2014.

"We are pleased with the performance of our North American wholesale segment, where we saw solid growth in both sales and operating earnings this quarter," stated Thomas W. Florsheim, Jr., the Company's Chairman and CEO. "Despite the headwinds we face with weakening foreign currencies in Canada and Australia, we feel our overall business is well-positioned as we move into the second half of the year."

On August 3, 2015, the Company's Board of Directors declared a cash dividend of $0.20 per share to all shareholders of record on August 28, 2015, payable September 30, 2015. 

Conference Call Details:

Weyco Group will host a conference call on August 5, 2015, at 11:00 a.m. Eastern Time to discuss the second quarter financial results in more detail.  To participate in the call, please dial 888-680-0892 or 617-213-4858, referencing passcode 97090177, five minutes before the start of the call. A replay will be available for one year beginning about two hours after the completion of the call at the following webcast link: http://edge.media-server.com/m/p/tmwyrru2. Alternatively, the conference call will be available by visiting the investor relations section of Weyco Group's website at www.weycogroup.com.

About Weyco Group:

Weyco Group, Inc., designs and markets quality and innovative footwear for men, women and children under a portfolio of well-recognized brand names including: Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters and Umi.  The Company's products can be found in leading footwear, department, and specialty stores worldwide.  Weyco Group also operates Florsheim concept stores in the United States and Australia, as well as in a variety of international markets.

Forward-Looking Statements:

This press release contains certain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.  Various factors could cause the results of Weyco Group to be materially different from any future results expressed or implied by such forward-looking statements.  Such factors include, but are not limited to, the Company's ability to: (i) successfully market and sell its products in a highly competitive industry and in view of changing consumer trends, consumer acceptance of products and other factors affecting retail market conditions; (ii) procure its products from independent manufacturers; and (iii) other factors, including those detailed from time to time in Weyco Group's filings made with the SEC.   Weyco Group undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/weyco-reports-second-quarter-sales-and-earnings-300123510.html

SOURCE Weyco Group, Inc.