Weyco Group suffered a 3 percent drop in sales to $48.7 million in the second quarter ended June 30, with a 40.9 percent plunge in profits to $1.3 million. The company, which owns Florsheim among other properties, blamed the weak retail sector, noting that shoppers remained cautious despite a slight increase in demand in the first quarter. Retailers are keeping a close eye on their inventories as well.
Operating earnings fell by 22.7 percent to $1.7 million. Earnings before taxes plunged by 48.6 percent to $1.9 million. Weyco recorded a loss of $344,000 for the period, compared with a gain of $870,000 for the same quarter last year.
In the North American wholesale division, which includes wholesale operations as well as licensing, revenues ticked down by 1.7 percent to $35.3 million. The Stacy Adams brand grew by 2 percent, while Nunn Bush was flat and Florsheim footwear fell by 7 percent.
The group's North American retail operations, which encompasss 35 stores plus the online business, saw sales fall by 1.9 percent to $5.3 million. One store closed during the three-month period; comparable store sales fell by 1 percent.
Wholesale and retail sales in Europe, Australia, Asia and South Africa declined by 6.9 percent to $8.1 million, largely because of weak performance in Australian wholesale.