Weyco Group net earnings rise despite flat sales

The American footwear specialist Weyco Group has reported an increase in its first-quarter net earnings, despite net sales remaining unchanged compared to the same period last year.

According to the company's latest financial results for the quarter ended 31 March, net sales stood at 68.0 million US dollars, matching the performance of the first quarter of the previous year. Consolidated gross earnings were 44.2 per cent of net sales, representing a slight decline from 44.6 per cent in the corresponding period.

Operating efficiencies and reduced expenses contributed to a rise in profitability, with earnings from operations increasing by 7 per cent to 7.5 million US dollars. Net earnings for the period reached 6.1 million US dollars, an increase of 10 per cent compared to 5.5 million US dollars previously, while diluted earnings per share rose to 0.64 US dollars from 0.57 US dollars.

Performance across the company's primary business segments showed varied momentum, as gains in specific footwear lines were counterbalanced by lower retail demand elsewhere. Net sales within the North American wholesale segment fell by 1 per cent to 53.6 million US dollars, where higher sales of the Florsheim brand were offset by volume declines for the Stacy Adams and BOGS labels, while Nunn Bush sales remained unchanged.

The retail segment experienced a 2 per cent increase in net sales to 8.8 million US dollars, driven primarily by higher sales volumes within the company's e-commerce operations. Additionally, net sales for the company's other international operations, which include wholesale and retail distribution in Australia and South Africa, rose by 10 per cent to 5.6 million US dollars.

Following the review of the quarterly performance, the company's board of directors declared a quarterly cash dividend of 0.28 US dollars per share, representing a 4 per cent increase over the previous rate. The dividend is scheduled to be paid on 30 June to shareholders of record as of 19 May.