US shoe group avoids leather tariffs through renegotiations
13/11/2019
The leather footwear tariffs mainly affect the group’s Florsheim, Stacy Adams and Nunn Bush brands, while the tariff on rubber and non-leather footwear that primarily impacts the BOGS brand is expected to take effect on December 15, 2019.
The company negotiated wholesale price increases with many of its customers and price reductions from many of its Chinese suppliers.
“While the tariff had a minimal impact on the company's third quarter 2019 financial results, the ultimate impact of the tariff on gross margins, results of operations and overall financial statements is unknown at this time,” it said.
Thomas Florsheim Jr, the company's CEO, said: "We are pleased with this performance and look forward to building on this momentum as we move into the winter selling season. Overseas our businesses continue to struggle in a sluggish retail environment. We are working hard to cut costs and improve gross margins in order to generate profits in this region."
Group sales for the third quarter of 2019 were $82.5 million, an increase of 5% compared with third quarter 2018 sales.
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