Weyco Group posted another disappointing quarter, as sales of its Bogs brand of boots continued to decline. Bogs' sales went down by 21.0 percent, reflecting the continued softness in the outdoor and better footwear channels.

Weyco said the brand's sales were impacted by unseasonably warm weather and a lack of precipitation. As a result, it is now focusing on diversifying the brand away from its dependence on selling insulated footwear.

Bogs' problems dragged down the group's total revenues from the wholesale segment, which fell by 15.0 percent from the year-ago quarter to $52.9 million. Sales of the Stacy Adams, Nunn Bush and Florsheim brands declined by 18.0, 16.0 and 9.0 percent respectively, due also to a decrease in foot traffic at bricks-and-mortar locations due to the growing popularity of online retailing.

Licensing revenues gained 15.0 percent to $701,000. In the North American retail segment, which includes sales from the company's Florsheim retail stores and its internet business in the U.S., sales were down by 3.0 percent to 4.9 million, or by 7.0 percent on a comparable store basis. Other net sales, which include the wholesale and retail sales of Florsheim Australia and Florsheim Europe, declined by 2.0 percent to $11.3 million.

Group revenues tumbled by 12.0 percent over the year-ago quarter to $69.1 million. However, the group managed to improve the gross margin by cutting costs. The company said that the retail environment continues to be challenging, as retailers address reduced foot traffic in their bricks-and-mortar stores.

Weyco said it has lowered its exposure to seasonal products by being more conservative in its purchases. As a result, the group's gross margin advanced by 2.1 percentage points to 36.5 percent. The operating margin dipped by 0.3 percentage points to 5.0 percent and net income dropped by 17.0 percent to $2.2 million.

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