After a strong second quarter that saw a return to growth after many months of decline, Bogs posted lower sales for the third quarter. The brand's revenues for the three months to Sept. 30 fell by 5 percent from the year-ago quarter.
The brand's parent company, the Weyco Group, said that the decrease in Bogs was a result of a shift in the timing of shipments for the autumn season as retailers receive a larger percentage of their deliveries in October instead of September. However, Weyco remains optimistic about finishing the year with an overall sales increase for Bogs based on early sell-throughs at retail during the season.
Weyco's total revenues improved by 2 percent to $78.4 million. Sales from the North American wholesale segment, which include North American wholesale sales and licensing revenues, advanced by 4 percent to $63.2 million.
The Florsheim business recorded a growth of 8 percent, driven by great new product across a variety of platforms that has enabled Florsheim to garner additional shelf space. Nunn Bush sales were flat for the quarter, impacted by the difficulties of the mid-tier department store segment, with two key accounts filing for bankruptcy this year.
In the North American retail segment, which includes sales at the company's Florsheim retail stores and its internet business in the U.S., sales soared by 15 percent to $4.9 million, or by 20 percent on a comparable store basis, due mainly to increased sales on the company's websites.
Other net sales, which include the wholesale and retail revenues of Florsheim Australia and Florsheim Europe, declined by 14 percent to $10.3 million. The decrease was caused by a drop at Florsheim Australia of 16 percent in U.S. dollars and 9 percent in the local currency.
Overall, Weyco's gross margin advanced by 0.5 percentage points to 38.8 percent. Net income rose by 27.2 percent to $6.3 million,
Moving forward, the management said it will focus on growing its core brands, as well as improving the profitability of its international businesses, which have been struggling in a tepid retail environment.