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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2024
SEGMENT INFORMATION  
SEGMENT INFORMATION

18. SEGMENT INFORMATION

We have two reportable segments: North American wholesale operations (“Wholesale”) and North American retail operations (“Retail”).  The “other” category in the table below included our wholesale and retail operations in Australia, South Africa, and Asia Pacific, 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.  The accounting policies of the segments are the same as those described in Note 2, Summary of Significant Accounting Policies.

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 2024 and 2023, 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.  Retail stores sell our branded footwear, primarily Florsheim, and accessories.

Our chief operating decision maker is Thomas W. Florsheim, Jr., Chief Executive Officer.  Mr. Florsheim, Jr. regularly reviews and evaluates segment-level net sales, gross margins, and operating earnings to assess segment performance and to allocate capital and personnel resources to the segments. The following is a summary of certain key financial measures for the respective fiscal periods indicated. The significant expense categories and amounts align with the segment-level information that is regularly provided to Mr. Florsheim, Jr. Total assets and capital expenditures are not presented because Mr. Florsheim, Jr. does not review or allocate resources based on such information.

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Wholesale

    

Retail

    

Other

    

Total

​

​

(Dollars in thousands)

2024

 

​

  

 

​

  

 

​

  

 

​

  

Product sales

​

$

225,907

​

$

38,701

​

$

23,649

​

$

288,257

Licensing revenues

​

 

2,033

​

 

—

​

 

—

​

 

2,033

Net sales

​

 

227,940

​

 

38,701

​

 

23,649

​

 

290,290

Cost of sales

​

​

136,354

​

​

13,184

​

​

9,227

​

​

158,765

Selling and administrative expenses

​

​

60,072

​

​

20,210

​

​

14,629

​

​

94,911

Earnings (loss) from operations

​

$

31,514

​

$

5,307

​

$

(207)

​

$

36,614

Interest income

​

​

​

​

​

​

​

​

​

​

​

3,681

Interest expense

​

​

​

​

​

​

​

​

​

​

​

(15)

Other expense, net

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​

​

​

​

​

​

​

​

​

​

(444)

Earnings before provision for income taxes

​

​

​

​

​

​

​

​

​

​

$

39,836

​

​

​

​

​

​

​

​

​

​

​

​

​

Depreciation

​

$

1,802

​

$

7

​

$

674

​

$

2,483

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​

​

​

​

​

​

​

​

​

​

​

​

2023

​

 

  

​

 

  

​

 

  

​

 

​

Product sales

​

$

247,896

​

$

38,012

​

$

29,636

​

$

315,544

Licensing revenues

​

 

2,504

​

 

—

​

 

—

​

 

2,504

Net sales

​

 

250,400

​

 

38,012

​

 

29,636

​

 

318,048

Cost of sales

​

​

151,077

​

​

12,964

​

​

11,124

​

​

175,165

Selling and administrative expenses

​

​

66,035

​

​

18,296

​

​

17,528

​

​

101,859

Earnings from operations

​

$

33,288

​

$

6,752

​

$

984

​

$

41,024

Interest income

​

​

​

​

​

​

​

​

​

​

​

1,107

Interest expense

​

​

​

​

​

​

​

​

​

​

​

(529)

Other expense, net

​

​

​

​

​

​

​

​

​

​

​

(738)

Earnings before provision for income taxes

​

​

​

​

​

​

​

​

​

​

$

40,864

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​

​

​

​

​

​

​

​

​

​

​

​

Depreciation

​

$

1,942

​

$

7

​

$

630

​

$

2,579

​

All North American corporate office assets are included in the Wholesale segment. Transactions between segments primarily consist of sales between the Wholesale and Retail segments. Intersegment sales are valued at the cost of inventory plus an estimated cost to ship the products. Intersegment sales have been eliminated and are excluded from net sales in the above table.

Geographic Segments

Financial information relating to our business by geographic area was as follows for the years ended December 31, 2024 and 2023:

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2024

    

2023

​

​

(Dollars in thousands)

Net Sales

 

​

  

 

​

  

United States

​

$

248,577

​

$

266,515

Canada

​

 

18,064

​

 

21,897

Australia

​

 

20,826

​

 

23,012

Asia

​

 

438

​

 

4,143

South Africa

​

 

2,385

​

 

2,481

Total

​

$

290,290

​

$

318,048

​

​

​

​

​

​

​

Long-Lived Assets

​

 

  

​

 

  

United States

​

$

73,980

​

$

75,274

Other

​

 

11,867

​

 

14,650

​

​

$

85,847

​

$

89,924

​

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, goodwill, trademarks, investment in real estate and amortizable intangible assets.