USA: Weyco Profit Falls On Poor Wholesale Sales
Men's footwear company Weyco Group Inc has reported a decrease in second-quarter profit, affected by sliding sales volume within the wholesales business.
Second-quarter net earnings totalled USD3.0 million compared to USD4.0m in the same period in 2004, while net sales fell to USD44.7m from USD49.8m a year ago.
Sales in the wholesale division - which include wholesale sales and licensing revenue - were USD38.2m compared with USD43.3m last year. Retail sales were flat at USD6.5m, while same-store sales were up 2.7 per cent.
"Our wholesale business continues to be challenging," stated Tom Florsheim Jr., chairman and chief executive officer of Weyco Group Inc.
"While some of our volume loss was expected as a result of discontinuing our FLS business, our overall wholesale business has been impacted by cyclical fashion trends toward more contemporary and casual footwear which has negatively affected our more basic Nunn Bush and Florsheim dress and dress casual business.
"In addition, we are experiencing more competition from private label store brands which currently are absorbing a greater share of available retail dollars. While we are confident that we will be able to address these challenges, we anticipate that our wholesale business will remain under pressure for the balance of 2005."
Weyco Group Inc designs and markets moderately priced and better-grade men's branded footwear for casual, fashion, and dress lifestyles.
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