SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2025

SEGMENT INFORMATION

SEGMENT INFORMATION

17. SEGMENT INFORMATION

We have two reportable segments: North American wholesale operations (“Wholesale”) and North American retail operations (“Retail”). This structure organizes the business into distinct categories based on sales channels. Our chief operating decision maker (our CEO) regularly reviews segment-level earnings from operations to assess segment performance and to allocate capital and personnel resources to the segments.

In the Wholesale segment, shoes are marketed through more than 10,000 footwear, department and specialty stores, primarily in the United States and Canada.  Licensing revenues are also included in our Wholesale segment.  We have licensing agreements with third parties who sell our branded apparel, accessories, and specialty footwear in the United States, as well as our footwear in Mexico and certain markets overseas. In 2025 and 2024, there was no single customer that accounted for or exceeded 10% of our total sales.

In the Retail segment, we operate e-commerce businesses and four brick and mortar retail stores in the United States. Retail sales are made directly to consumers on our websites, or by our employees in our stores.  Retail stores sell our branded footwear, primarily Florsheim, and accessories.

The tables below present net sales, significant expenses, and earnings from operations by reportable segment, reconciled to total net sales, earnings from operations, and earnings before provision for income taxes. The significant expense categories and amounts align with the segment-level information that is regularly provided to the CEO. Corporate expenses are included in our Wholesale segment. The accounting policies of the segments are the same as those described in Note 2, Summary of Significant Accounting Policies.

	Wholesale		Retail		Total
	(Dollars in thousands)
2025
Product sales	$	215,012	$	35,716	$	250,728
Licensing revenues		1,742		—		1,742
Net sales - reportable segments		216,754		35,716		252,470
Cost of Sales		135,561		12,249
Selling and administrative expenses		54,579		20,189
Earnings from operations - reportable segments	$	26,614	$	3,278	$	29,892
Reconciliation of reportable segment net sales to total net sales
Net sales - reportable segments					$	252,470
Other net sales (1)						23,699
Total net sales					$	276,169
Reconciliation of reportable segment earnings from operations to total earnings from operations and earnings before provision for income taxes
Earnings from operations - reportable segments					$	29,892
Other loss from operations (1)						(720)
Total earnings from operations						29,172
Interest income						2,967
Interest expense						(2)
Other expense, net						(105)
Earnings before provision for income taxes					$	32,032
	Wholesale		Retail		Total
	(Dollars in thousands)
2024
Product sales	$	225,907	$	38,701	$	264,608
Licensing revenues		2,033		—		2,033
Net sales - reportable segments		227,940		38,701		266,641
Cost of Sales		136,354		13,184
Selling and administrative expenses		60,072		20,210
Earnings from operations - reportable segments	$	31,514	$	5,307	$	36,821
Reconciliation of reportable segment net sales to total net sales
Net sales - reportable segments					$	266,641
Other net sales (1)						23,649
Total net sales					$	290,290
Reconciliation of reportable segment earnings from operations to total earnings from operations and earnings before provision for income taxes
Earnings from operations - reportable segments					$	36,821
Other loss from operations (1)						(207)
Total earnings from operations						36,614
Interest income						3,681
Interest expense						(15)
Other expense, net						(444)
Earnings before provision for income taxes					$	39,836

(1) ^{Other net sales and losses from operations were derived from our wholesale and retail operations in Australia and South Africa (collectively, “Florsheim Australia”), which do not meet the criteria for separate reportable segment classification. We ceased operations in the Asia-Pacific region in 2023 and completed the wind down of that business in 2024. Accordingly, 2025 operating results of the Other category only reflect the operations of Australia and South Africa.}

Transactions between segments consist of sales from the Wholesale to Retail segment. Intersegment sales are valued at the cost of inventory plus an estimated cost to ship the products. Intersegment sales were $12.5 million in 2025. Intersegment sales have been eliminated and are excluded from net sales in the above table.

Other financial data by segment is disclosed below. Total assets and capital expenditures are not disclosed because our CEO does not review or allocate resources based on such information.

	2025		2024
	(Dollars in thousands)
Depreciation and amortization(1)
Wholesale(2)	$	2,107	$	1,802
Retail(2)		29		7
Other(3)		745		674
Total Depreciation and amortization	$	2,881	$	2,483

^{(1) The 2025 amount includes $.3 million of amortization expense related to Wholesale, whereas the 2024 amounts exclude amortization expense.}

^{(2) The amounts of depreciation and amortization disclosed by reportable segment are included within segment selling and administrative expenses in the tables above.} ​

^{(3) Other depreciation and amortization expense was incurred by Florsheim Australia’s operating segments which are not reportable segments.}​

Geographic Segments

Financial information relating to our business by geographic area was as follows for the years ended December 31, 2025 and 2024:

	2025		2024
	(Dollars in thousands)
Net Sales
United States	$	235,256	$	248,577
Canada		17,214		18,064
Australia		21,299		20,826
Asia		—		438
South Africa		2,400		2,385
Total	$	276,169	$	290,290
Long-Lived Assets
United States	$	26,632	$	73,980
Other(1)		12,768		11,867
	$	39,400	$	85,847

(1) ^{In 2025, Other long-lived assets included $10.3 million of assets related to Florsheim Australia.}

Net sales attributed to geographic locations are based on the location of the assets producing the sales. Long-lived assets by geographic location consist of property, plant and equipment (net), operating lease ROU assets, and an investment in real estate. In 2025, long-lived assets excluded goodwill and trademarks, whereas in 2024 such assets were included.