Segment Information

6 Months Ended

Jun. 30, 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
June 30,	Wholesale		Retail		Total
	(Dollars in thousands)
2025
Product sales	$	45,473	$	6,773	$	52,246
Licensing revenues		157		—		157
Net sales - reportable segments		45,630		6,773		52,403
Cost of sales		28,463		2,261
Selling and administrative expenses		13,104		4,447
Earnings from operations - reportable segments	$	4,063	$	65	$	4,128
Reconciliation of reportable segment net sales to total net sales
Net sales - reportable segments					$	52,403
Other net sales (1)						5,818
Total net sales					$	58,221
Reconciliation of reportable segment earnings from operations to total earnings from operations and earnings before provision for income taxes
Earnings from operations - reportable segments					$	4,128
Other loss from operations (1)						(235)
Total earnings from operations						3,893
Interest income						785
Interest expense						(1)
Other expense, net						(59)
Earnings before provision for income taxes					$	4,618
Three Months Ended
June 30,	Wholesale		Retail		Total
	(Dollars in thousands)
2024
Product sales	$	49,741	$	7,603	$	57,344
Licensing revenues		507		—		507
Net sales - reportable segments		50,248		7,603		57,851
Cost of sales		31,055		2,472
Selling and administrative expenses		13,409		4,436
Earnings from operations - reportable segments	$	5,784	$	695	$	6,479
Reconciliation of reportable segment net sales to total net sales
Net sales - reportable segments					$	57,851
Other net sales (1)						6,081
Total net sales					$	63,932
Reconciliation of reportable segment earnings from operations to total earnings from operations and earnings before provision for income taxes
Earnings from operations - reportable segments					$	6,479
Other loss from operations (1)						182
Total earnings from operations						6,661
Interest income						964
Interest expense						—
Other expense, net						(143)
Earnings before provision for income taxes					$	7,482

Six Months Ended
June 30,	Wholesale		Retail		Total
	(Dollars in thousands)
2025
Product sales	$	99,252	$	15,439	$	114,691
Licensing revenues		651		—		651
Net sales - reportable segments		99,903		15,439		115,342
Cost of sales		61,326		5,153
Selling and administrative expenses		27,878		9,599
Earnings from operations - reportable segments	$	10,699	$	687	$	11,386
Reconciliation of reportable segment net sales to total net sales
Net sales - reportable segments					$	115,342
Other net sales (1)						10,909
Total net sales					$	126,251
Reconciliation of reportable segment earnings from operations to total earnings from operations and earnings before provision for income taxes
Earnings from operations - reportable segments					$	11,386
Other loss from operations (1)						(462)
Total earnings from operations						10,924
Interest income						1,419
Interest expense						(2)
Other expense, net						(186)
Earnings before provision for income taxes					$	12,155
Six Months Ended
June 30,	Wholesale		Retail		Total
	(Dollars in thousands)
2024
Product sales	$	105,464	$	17,422	$	122,886
Licensing revenues		1,034		—		1,034
Net sales - reportable segments		106,498		17,422		123,920
Cost of sales		65,015		5,880
Selling and administrative expenses		28,308		9,550
Earnings from operations - reportable segments	$	13,175	$	1,992	$	15,167
Reconciliation of reportable segment net sales to total net sales
Net sales - reportable segments					$	123,920
Other net sales (1)						11,570
Total net sales					$	135,490
Reconciliation of reportable segment earnings from operations to total earnings from operations and earnings before provision for income taxes
Earnings from operations - reportable segments					$	15,167
Other loss from operations (1)						(255)
Total earnings from operations						14,912
Interest income						1,869
Interest expense						—
Other expense, net						(238)
Earnings before provision for income taxes					$	16,543

⁽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, quarter and year-to-date 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 June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
	(Dollars in thousands)
Depreciation and amortization
Wholesale (2)	$	531	$	514	$	953	$	1,001
Retail (2)		2		2		4		4
Other (3)		204		171		377		332
Total depreciation and amortization	$	737	$	687	$	1,334	$	1,337

⁽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.