Weyco Q1 Up on Florsheim Growth

NEW YORK – Accelerating sales of its Florsheim brand helped Weyco Group expand its sales and earnings during the first quarter.

During the three months ended March 31, the Milwaukee, Wisc.-based footwear company reported net income of $5.7 million, or $0.47 a diluted share, matching the consensus estimate and exceeding by 7.3% the year-ago result of $5.3 million, or $0.44.

Net sales grew 7.7% to $63.9 million from $59.3 million in last year’s quarter as wholesale revenues grew 8% to $55.5 million, licensing revenues were flat at $1.1 million and retail sales, aided by the addition of four stores, grew 3.5% to $7.3 million.

The company reported that sales of the Florsheim brand were up 19% in the quarter while those for the Stacy Adams label grew 10%. Hampered by the loss of a “significant customer,” Nunn Bush sales were down 4%. At retail, same-store sales were flat, the company said.

The sales figure for the quarter exceeded analysts’ expectations of $62 million. Gross margin grew to 36.1% of sales from 35.5% a year ago.

The company attributed growth at Florsheim to the addition of sales in Canada, previously handled by a licensee, as well as to the penetration of more contemporary and casual styles.

“We are very pleased with our overall first quarter wholesale performance, which resulted in record sales and earnings for the company,” said Tom Florsheim Jr, chairman and chief executive officer.

The company declared a quarterly cash dividend of $0.11 a share payable on July 2 to shareholders of record June 1. This represents a 22% increase in the quarterly dividend, which previously was $0.09.

Last week, the company appointed Steele Davidoff to the new post of vice president of licensing. He was previously CEO of Keepers International, the men’s hosiery licensee for Stacy Adams.