Revenues for the Weyco group declined by 14 percent to $63.6 million in the first quarter after having to close its domestic U.S. retail locations on March 18 due to the Covid-19 pandemic. Wholesale and retail businesses in Australia, Asia, South Africa, and Europe were similarly affected by retail store closures and lockdowns requiring consumers to stay at home.
Revenues from the North American wholesale segment, which includes wholesale and licensing revenues, dropped by 11 percent to $52.7 million. Within the wholesale segment, the Florsheim brand was a bright spot, recording growth of 4 percent, due to strong sales in January and February before the retail shutdowns went into effect.
Sales of the Bogs footwear brand, best known for its waterproof boots, declined by 22 percent. Stacy Adams’ sales were down by 23 percent, while Nunn Bush dropped by 8 percent, with sales down in most major categories as a result of the retail shutdown. The segment’s gross margin was down by 2.5 percentage points to 31.8 percent.
In the North American retail segment, which includes sales at the company’s Florsheim retail stores and internet business in the U.S., sales declined by 15 percent to $4.8 million. Same-store sales dropped by 13 percent offline and online, due to retail store closings late in the quarter and lower sales on the company’s websites.
Other net sales, which include the wholesale and retail revenues of Florsheim Australia and Florsheim Europe, dropped by 32 percent to $6.1 million, weighed down by lower net sales at both Florsheim Australia and Florsheim Europe also resulting from retail shutdowns and government orders for consumers to stay at home.
Overall, net income tumbled to $1.2 million, down from $4.0 million for last year’s first quarter.
The company expects the shutdowns and global economic slowdown caused by the pandemic to continue to adversely impact its businesses during 2020.