Segment Information

3 Months Ended

Mar. 31, 2025

Segment Information

Segment Information

6.    Segment Information

We have two reportable segments: North American wholesale operations (“Wholesale”) and North American retail operations (“Retail”). 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. 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.

Three Months Ended
March 31,	Wholesale		Retail		Total
	(Dollars in thousands)
2025
Product sales	$	53,779	$	8,666	$	62,445
Licensing revenues		494		—		494
Net sales - reportable segments		54,273		8,666		62,939
Cost of sales		32,863		2,892
Selling and administrative expenses		14,774		5,152
Earnings from operations - reportable segments	$	6,636	$	622	$	7,258
Reconciliation of reportable segment net sales to total net sales
Net sales - reportable segments					$	62,939
Other net sales (1)						5,091
Total net sales					$	68,030
Reconciliation of reportable segment earnings from operations to total earnings from operations and earnings before provision for income taxes
Earnings from operations - reportable segments					$	7,258
Other loss from operations (1)						(227)
Total earnings from operations						7,031
Interest income						634
Interest expense						(1)
Other expense, net						(127)
Earnings before provision for income taxes					$	7,537
Three Months Ended
March 31,	Wholesale		Retail		Total
	(Dollars in thousands)
2024
Product sales	$	55,723	$	9,819	$	65,542
Licensing revenues		527		—		527
Net sales - reportable segments		56,250		9,819		66,069
Cost of sales		33,960		3,408
Selling and administrative expenses		14,899		5,114
Earnings from operations - reportable segments	$	7,391	$	1,297	$	8,688
Reconciliation of reportable segment net sales to total net sales
Net sales - reportable segments					$	66,069
Other net sales (1)						5,489
Total net sales					$	71,558
Reconciliation of reportable segment earnings from operations to total earnings from operations and earnings before provision for income taxes
Earnings from operations - reportable segments					$	8,688
Other loss from operations (1)						(437)
Total earnings from operations						8,251
Interest income						905
Interest expense						—
Other expense, net						(95)
Earnings before provision for income taxes					$	9,061

⁽¹⁾ Other net sales and losses from operations were derived from our wholesale and retail operations in Australia, South Africa, and Asia Pacific (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, first quarter 2025 operating results of the other category only reflect the operations of Australia and South Africa.

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.

		Three Months Ended March 31,
	2025		2024
	(Dollars in thousands)
Depreciation and amortization
Wholesale (2)	$	422	$	487
Retail (2)		2		2
Other (3)		173		161
Total depreciation and amortization	$	597	$	650

⁽²⁾ The amounts of depreciation and amortization disclosed by reportable segment are included within segment selling and administrative expenses in the table above.

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