| Segment Information |
7. 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 | | | | | | | | | | September 30, | | Wholesale | | Retail | | Total | | | | (Dollars in thousands) | 2026 | | | | | | | | | | Product sales | | $ | 63,550 | | $ | 7,180 | | $ | 70,730 | Licensing revenues | | | 458 | | | — | | | 458 | Net sales - reportable segments | | | 64,008 | | | 7,180 | | | 71,188 | Cost of sales | | | 37,751 | | | 2,245 | | | | IEEPA tariff refunds (1) | | | (3,202) | | | (141) | | | | Selling and administrative expenses | | | 16,019 | | | 4,352 | | | | Earnings from operations - reportable segments | | $ | 13,440 | | $ | 724 | | $ | 14,164 | | | | | | | | | | | Reconciliation of reportable segment net sales to total net sales | | | | | | | | | | Net sales - reportable segments | | | | | | | | $ | 71,188 | Other net sales (2) | | | | | | | | | 5,836 | Total net sales | | | | | | | | $ | 77,024 | | | | | | | | | | | Reconciliation of reportable segment earnings from operations to total earnings from operations and earnings before provision for income taxes | | | | | | | | | | Earnings from operations - reportable segments | | | | | | | | $ | 14,164 | Other loss from operations (2) | | | | | | | | | (423) | Total earnings from operations | | | | | | | | | 13,741 | Interest income | | | | | | | | | 882 | Interest expense | | | | | | | | | — | Other income, net | | | | | | | | | 33 | Earnings before provision for income taxes | | | | | | | | $ | 14,656 | | | | | | | | | | | Three Months Ended | | | | | | | | | | September 30, | | Wholesale | | Retail | | Total | | | | (Dollars in thousands) | 2025 | | | | | | | | | | Product sales | | $ | 59,811 | | $ | 6,953 | | $ | 66,764 | Licensing revenues | | | 340 | | | — | | | 340 | Net sales - reportable segments | | | 60,151 | | | 6,953 | | | 67,104 | Cost of sales | | | 38,649 | | | 2,338 | | | | Selling and administrative expenses | | | 13,958 | | | 3,965 | | | | Earnings from operations - reportable segments | | $ | 7,544 | | $ | 650 | | $ | 8,194 | | | | | | | | | | | Reconciliation of reportable segment net sales to total net sales | | | | | | | | | | Net sales - reportable segments | | | | | | | | $ | 67,104 | Other net sales (2) | | | | | | | | | 6,017 | Total net sales | | | | | | | | $ | 73,121 | | | | | | | | | | | Reconciliation of reportable segment earnings from operations to total earnings from operations and earnings before provision for income taxes | | | | | | | | | | Earnings from operations - reportable segments | | | | | | | | $ | 8,194 | Other income from operations (2) | | | | | | | | | (139) | Total earnings from operations | | | | | | | | | 8,055 | Interest income | | | | | | | | | 828 | Interest expense | | | | | | | | | — | Other income, net | | | | | | | | | 57 | Earnings before provision for income taxes | | | | | | | | $ | 8,940 |
| | | | | | | | | | Nine Months Ended | | | | | | | | | | September 30, | | Wholesale | | Retail | | Total | | | | (Dollars in thousands) | 2026 | | | | | | | | | | Product sales | | $ | 164,962 | | $ | 23,016 | | $ | 187,978 | Licensing revenues | | | 1,438 | | | — | | | 1,438 | Net sales - reportable segments | | | 166,400 | | | 23,016 | | | 189,416 | Cost of sales | | | 99,574 | | | 7,669 | | | | IEEPA tariff refunds (1) | | | (17,537) | | | (1,116) | | | | Selling and administrative expenses | | | 47,922 | | | 13,978 | | | | Earnings from operations - reportable segments | | $ | 36,441 | | $ | 2,485 | | $ | 38,926 | | | | | | | | | | | Reconciliation of reportable segment net sales to total net sales | | | | | | | | | | Net sales - reportable segments | | | | | | | | $ | 189,416 | Other net sales (2) | | | | | | | | | 17,829 | Total net sales | | | | | | | | $ | 207,245 | | | | | | | | | | | Reconciliation of reportable segment earnings from operations to total earnings from operations and earnings before provision for income taxes | | | | | | | | | | Earnings from operations - reportable segments | | | | | | | | $ | 38,926 | Other loss from operations (2) | | | | | | | | | (661) | Total earnings from operations | | | | | | | | | 38,265 | Interest income | | | | | | | | | 3,086 | Interest expense | | | | | | | | | (4) | Other income, net | | | | | | | | | 241 | Earnings before provision for income taxes | | | | | | | | $ | 41,588 | | | | | | | | | | | Nine Months Ended | | | | | | | | | | September 30, | | Wholesale | | Retail | | Total | | | | (Dollars in thousands) | 2025 | | | | | | | | | | Product sales | | $ | 159,063 | | $ | 22,392 | | $ | 181,455 | Licensing revenues | | | 991 | | | — | | | 991 | Net sales - reportable segments | | | 160,054 | | | 22,392 | | | 182,446 | Cost of sales | | | 99,975 | | | 7,491 | | | | Selling and administrative expenses | | | 41,836 | | | 13,564 | | | | Earnings from operations - reportable segments | | $ | 18,243 | | $ | 1,337 | | $ | 19,580 | | | | | | | | | | | Reconciliation of reportable segment net sales to total net sales | | | | | | | | | | Net sales - reportable segments | | | | | | | | $ | 182,446 | Other net sales (2) | | | | | | | | | 16,926 | Total net sales | | | | | | | | $ | 199,372 | | | | | | | | | | | Reconciliation of reportable segment earnings from operations to total earnings from operations and earnings before provision for income taxes | | | | | | | | | | Earnings from operations - reportable segments | | | | | | | | $ | 19,580 | Other loss from operations (2) | | | | | | | | | (601) | Total earnings from operations | | | | | | | | | 18,979 | Interest income | | | | | | | | | 2,247 | Interest expense | | | | | | | | | (2) | Other expense, net | | | | | | | | | (129) | Earnings before provision for income taxes | | | | | | | | $ | 21,095 | | | | | | | | | | |
(1) In accordance with ASC 280, we have separately reported cost recoveries related to IEEPA tariff refunds for both the three and nine months ended September 30, 2026, as these amounts represent significant segment items that align with segment-level information provided to the CEO. There were no IEEPA tariff refunds recognized in the three and nine months ended September 30, 2025. (2) Other net sales and losses from operations were derived from our retail and wholesale operations in Australia and South Africa (collectively, “Florsheim Australia”), which do not meet the criteria for separate reportable segment classification. Transactions between segments consist of sales from the Wholesale segment to Retail segment. Intersegment sales are valued at the cost of inventory, plus an estimated cost to ship the products. Intersegment sales for the three and nine months ended September 30, 2026 were $2.2 million and $7.7 million, respectively. Intersegment sales have been eliminated and are excluded from net sales in the above tables. 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 September 30, | | | Nine Months Ended September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | (Dollars in thousands) | Depreciation and amortization | | | | | | | | | | | | | Wholesale (3) | | $ | 480 | | $ | 526 | | $ | 1,438 | | $ | 1,479 | Retail (3) | | | — | | | 12 | | | 24 | | | 16 | Other (4) | | | 178 | | | 185 | | | 530 | | | 562 | Total depreciation and amortization | | $ | 658 | | $ | 723 | | $ | 1,992 | | $ | 2,057 |
(3) The amounts of depreciation and amortization disclosed by reportable segment are included within segment selling and administrative expenses in the tables above. (4) Other depreciation and amortization was incurred by Florsheim Australia’s operating segments which are not reportable segments.
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