Weyco Reports Second Quarter Sales And Earnings

About this update from Weyco Group, Inc.

[{"type":"text","content":"MILWAUKEE, Aug. 4, 2020 /PRNewswire/ -- Weyco Group, Inc. (NASDAQ: WEYS) (the \"Company\") today announced financial results for the quarter ended June 30, 2020.\nThe COVID-19 pandemic significantly impacted the Company's second quarter results. The majority of retailers, including our retail stores, were closed for a majority of the quarter due to government orders, and business recovery has been slow. As a result, the Company experienced significant sales volume losses during the quarter, which led to substantially lower second quarter earnings. \nNet sales for the second quarter of 2020 were $16.7 million, down as compared to second quarter 2019 net sales of $60.5 million. Operating losses totaled $13.0 million for the quarter, down from operating earnings of $1.9 million in the second quarter of 2019. The Company's net loss totaled $8.9 million for the quarter, compared to net earnings of $1.5 million in last year's second quarter. Diluted loss per share was $0.91 in the second quarter of 2020, compared to diluted earnings per share of $0.15 in the second quarter of 2019. \nNet sales in the North American wholesale segment, which include North American wholesale sales and licensing revenues, were $9.3 million in the second quarter of 2020, compared to $46.1 million in the second quarter of 2019. Net sales across all of the Company's brands were down significantly in all major categories as a result of retail shutdowns due to the pandemic. Licensing revenues declined to $141,000 in the second quarter of 2020, from $636,000 in last year's second quarter, in line with reductions in licensees' sales of branded products. \nGross earnings for the North American wholesale segment were 34.7% of net sales in the second quarter of 2020, compared to 35.1% of net sales in last year's second quarter. The wholesale segment had operating losses totaling $10.2 million for the quarter, compared to operating earnings of $2.2 million in last year's second quarter. The losses this quarter included the write-off of approximately $3.3 million in receivables as a result of the J.C. Penney bankruptcy filing in May 2020, offset by $1.4 million of income from U.S. and Canada government wage subsidies. \nNet sales in the North American retail segment, which include sales from the Company's Florsheim retail stores and its e-commerce businesses in the U...

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