Trouble in Macau for Weyco Group

Weyco Group says higher costs in Macau dented its Asia-Pacific earnings, along with declining returns from Australia as the local currency shrank against the US dollar.
In the year to December 31, Weyco reported a global profit of US$18.2 million, down marginally on the $19 million of 2014, on sales of $320.6 million, virtually unchanged from the previous year’s $320.5 million.
Weyco Group designs and markets footwear for men, women and children under a portfolio of brands including Florsheim, Nunn Bush, Stacy Adams, Bogs, Rafters and Umi.  It also directly operates Florsheim concept stores in the US and Australia, and in a variety of international markets including in Asia.
In local currency, Florsheim Australia’s net sales were up 7 per cent for the year, but when converted to US dollars, sales revenue was down.
The company said it experienced lower operating earnings at recently opened stores in Asia, singling out Macau where it experienced increased overheads.
But CEO and chairman Thomas W Florsheim Jr remains optimistic for the 2016 financial year.
“Overall, our 2015 results were adversely impacted by the appreciation of the US dollar against the Canadian and Australian currencies,” he said.
“As we look ahead, we remain confident in the strength of our brands worldwide and are committed to making the necessary investment in our brands and business to secure profitable growth in 2016 and beyond.”

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