Sales of Bogs, the American specialist supplier of waterproof boots, tumbled by 17.0 percent during the first quarter of 2016 compared with the year-ago quarter, primarily due to a mild winter season. The drop followed a sudden 22 percent decrease for Bogs in North America during the last quarter of 2015, after many seasons of strong growth for the brand of outdoor boots.
Observers noted that it was the first time that Bogs and its sister brand Rafters fell for two consecutive quarters since Weyco Group acquired them in March 2011. The company reported that it made a final earn-out payment of $5.22 million to their former owners last March 22, bringing the total price paid for the assets up to $39.4 million, or about 1.5 times the sales they had generated in 2010.
Weyco Group said the first quarter proved challenging for the group as a whole, noting that while it experienced top-line sales growth, its businesses in Canada and Australia were hurt by the strong U.S. dollar. The group saw its total revenues grow by 1.0 percent to $78.9 million.
In the North American wholesale segment, sales increased by 1.8 percent to $62.2 million, thanks to strong new product sales for the Stacy Adams brand and higher sales of the Florsheim brand to department stores and national shoe retail chains. However, sales of the Nunn Bush brand were down by 3.0 percent following weaker sales to department stores and off-price retailers.
Weyco Group's operating profit declined to $3.8 million from $5.8 million in the same period a year ago. Net income fell by 33.3 percent to $2.7 million. More in Shoe Intelligence.