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Weyco Reports Second Quarter 2024 Sales and Earnings

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Weyco Group reported Q2 2024 financial results with net sales of $63.9 million, down 5% from Q2 2023. Despite the sales decline, the company achieved record net earnings of $5.6 million, up 15% year-over-year. Diluted earnings per share increased to $0.59 from $0.50 in Q2 2023.

The North American Wholesale segment saw mixed results, with Florsheim and Nunn Bush sales up 3% and 8% respectively, while Stacy Adams and BOGS experienced declines. The Retail segment's sales remained flat at $7.6 million. Florsheim Australia's net sales decreased by 23% due to the closure of Asia Pacific operations and fewer retail stores.

The company's gross earnings improved to 43.9% of net sales, up from 43.3% in Q2 2023. Weyco Group's Board of Directors declared a cash dividend of $0.26 per share, payable on September 30, 2024.

Weyco Group ha riportato i risultati finanziari del secondo trimestre 2024 con vendite nette di 63,9 milioni di dollari, in calo del 5% rispetto al secondo trimestre 2023. Nonostante il calo delle vendite, l'azienda ha conseguito utili netti record di 5,6 milioni di dollari, in aumento del 15% rispetto all'anno precedente. Gli utili per azione diluiti sono aumentati a 0,59 dollari da 0,50 dollari nel secondo trimestre 2023.

Il segmento all’ingrosso nordamericano ha visto risultati contrastanti, con le vendite di Florsheim e Nunn Bush in aumento rispettivamente del 3% e dell'8%, mentre Stacy Adams e BOGS hanno registrato un calo. Le vendite del segmento retail sono rimaste stabili a 7,6 milioni di dollari. Le vendite nette di Florsheim Australia sono diminuite del 23% a causa della chiusura delle operazioni nella regione Asia-Pacifico e della riduzione dei negozi al dettaglio.

Il margine lordo dell'azienda è migliorato al 43,9% delle vendite nette, rispetto al 43,3% nel secondo trimestre 2023. Il Consiglio di Amministrazione di Weyco Group ha dichiarato un dividendo in contante di 0,26 dollari per azione, pagabile il 30 settembre 2024.

Weyco Group reportó resultados financieros del segundo trimestre de 2024 con ventas netas de 63,9 millones de dólares, una disminución del 5% en comparación con el segundo trimestre de 2023. A pesar de la caída en las ventas, la compañía logró ganancias netas récord de 5,6 millones de dólares, un aumento del 15% en comparación con el año anterior. Las ganancias por acción diluidas aumentaron a 0,59 dólares desde 0,50 dólares en el segundo trimestre de 2023.

El segmento mayorista de América del Norte tuvo resultados mixtos, con un aumento del 3% en las ventas de Florsheim y del 8% en Nunn Bush, mientras que Stacy Adams y BOGS experimentaron declives. Las ventas del segmento minorista se mantuvieron estables en 7,6 millones de dólares. Las ventas netas de Florsheim Australia disminuyeron un 23% debido al cierre de las operaciones en Asia-Pacífico y a menos tiendas minoristas.

Las ganancias brutas de la compañía mejoraron al 43,9% de las ventas netas, en comparación con el 43,3% en el segundo trimestre de 2023. La Junta Directiva de Weyco Group declaró un dividendo en efectivo de 0,26 dólares por acción, pagadero el 30 de septiembre de 2024.

Weyco Group은 2024년 2분기 재무 결과를 보고하며 순매출 6390만 달러를 기록하였으며, 이는 2023년 2분기 대비 5% 감소한 수치입니다. 판매 감소에도 불구하고 회사는 560만 달러의 기록적인 순이익을 달성하여 전년 대비 15% 증가했습니다. 희석 주당 순이익은 2분기 0.50달러에서 0.59달러로 증가했습니다.

북미 도매 부문은 엇갈린 실적을 보였으며, Florsheim과 Nunn Bush의 판매는 각각 3% 및 8% 증가했지만, Stacy Adams와 BOGS는 감소하였습니다. 소매 부문의 판매는 760만 달러로 평탄하게 유지되었습니다. Florsheim Australia의 순매출은 아시아 태평양 운영 중단 및 소매점 감소로 인해 23% 줄어들었습니다.

회사의 총 이익률은 순매출의 43.9%로 개선되었으며, 이는 2023년 2분기 43.3%에서 증가한 수치입니다. Weyco Group의 이사회는 주당 0.26달러의 현금 배당금을 선언하였으며, 2024년 9월 30일에 지급될 예정입니다.

Weyco Group a annoncé les résultats financiers du deuxième trimestre 2024 avec un chiffre d'affaires net de 63,9 millions de dollars, en baisse de 5% par rapport au deuxième trimestre 2023. Malgré cette baisse des ventes, l'entreprise a atteint un bénéfice net record de 5,6 millions de dollars, en hausse de 15% par rapport à l'année précédente. Le bénéfice par action dilué est passé de 0,50 dollar au deuxième trimestre 2023 à 0,59 dollar.

Le segment de la vente en gros en Amérique du Nord a connu des résultats mitigés, avec une augmentation des ventes de Florsheim et Nunn Bush de 3% et 8% respectivement, tandis que Stacy Adams et BOGS ont connu des baisses. Les ventes du segment de détail sont restées stables à 7,6 millions de dollars. Les ventes nettes de Florsheim Australia ont diminué de 23% en raison de la fermeture des opérations en Asie-Pacifique et de la réduction du nombre de magasins de détail.

Les bénéfices bruts de la société se sont améliorés à 43,9% des ventes nettes, contre 43,3% au deuxième trimestre 2023. Le conseil d'administration de Weyco Group a déclaré un dividende en espèces de 0,26 dollar par action, payable le 30 septembre 2024.

Weyco Group berichtete über die Finanzzahlen für das zweite Quartal 2024 mit einem Nettoumsatz von 63,9 Millionen US-Dollar, was einem Rückgang von 5% im Vergleich zum zweiten Quartal 2023 entspricht. Trotz des Verkaufsrückgangs konnte das Unternehmen Rekordnettogewinne von 5,6 Millionen US-Dollar erzielen, ein Anstieg um 15% im Jahresvergleich. Der verwässerte Gewinn pro Aktie stieg von 0,50 US-Dollar im zweiten Quartal 2023 auf 0,59 US-Dollar.

Im nordamerikanischen Großhandelssegment gab es gemischte Ergebnisse, mit einer Umsatzsteigerung von 3% bei Florsheim und 8% bei Nunn Bush, während Stacy Adams und BOGS Rückgänge verzeichneten. Der Umsatz im Einzelhandelssegment blieb mit 7,6 Millionen US-Dollar stabil. Die Nettoumsätze von Florsheim Australia sanken um 23% aufgrund der Schließung der Aktivitäten im asiatisch-pazifischen Raum und weniger Einzelhandelsgeschäften.

Die Bruttogewinne des Unternehmens verbesserten sich auf 43,9% des Nettoumsatzes, verglichen mit 43,3% im zweiten Quartal 2023. Der Vorstand von Weyco Group erklärte eine Bardividende von 0,26 US-Dollar pro Aktie, zahlbar am 30. September 2024.

Positive
  • Record net earnings of $5.6 million, up 15% year-over-year
  • Diluted earnings per share increased to $0.59 from $0.50 in Q2 2023
  • Gross earnings improved to 43.9% of net sales, up from 43.3% in Q2 2023
  • Florsheim and Nunn Bush sales increased by 3% and 8% respectively in the North American Wholesale segment
  • Wholesale operating earnings up 8% to $5.8 million
Negative
  • Overall net sales decreased by 5% to $63.9 million compared to Q2 2023
  • Stacy Adams sales down 10% in the North American Wholesale segment
  • BOGS sales down 33% due to cautious ordering from outdoor retailers
  • Florsheim Australia net sales down 23% due to closure of Asia Pacific operations and fewer retail stores
  • Retail operating earnings decreased from $1.1 million to $0.7 million year-over-year

Insights

Weyco Group's Q2 2024 results present a mixed picture. While overall net sales decreased by 5% to $63.9 million, the company achieved record net earnings of $5.6 million, up 15% from Q2 2023. This improvement in profitability, despite lower sales, is noteworthy.

The wholesale segment shows signs of recovery, with Florsheim and Nunn Bush brands posting gains. However, the BOGS brand's 33% sales decline is concerning, although management expects improvement in the latter half of the year. The retail segment remained flat, while Florsheim Australia saw a significant 23% sales drop.

Importantly, gross margins improved across segments, indicating effective cost management. The increase in interest income also contributed positively to the bottom line. Overall, Weyco's ability to increase earnings despite sales challenges demonstrates resilience in a challenging retail environment.

Weyco's Q2 results reflect broader trends in the footwear industry. The cautious ordering patterns among U.S. retailers and the oversaturation of inventories in the outdoor market are indicative of ongoing economic uncertainties affecting consumer spending.

The performance disparity among Weyco's brands is telling. Florsheim and Nunn Bush's growth suggests resilience in certain footwear categories, while Stacy Adams' decline in dress shoes may signal shifting consumer preferences or work attire trends post-pandemic. The significant drop in BOGS sales highlights the volatility in the outdoor gear market.

The company's e-commerce performance, remaining flat year-over-year, warrants attention. As digital sales become increasingly crucial, Weyco may need to enhance its online strategies to drive growth in this channel. The reallocation of advertising expenses towards web advertising is a step in this direction but requires monitoring for effectiveness.

MILWAUKEE, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Weyco Group, Inc. (NASDAQ: WEYS) (“we,” “our,” “us” and the “Company”) today announced financial results for the quarter ended June 30, 2024.

Second Quarter 2024 Overview

  • Net sales: $63.9 million (down 5% compared to $67.0 million in Q2 2023)
  • Gross earnings: 43.9% of net sales (up from 43.3% of net sales in Q2 2023)
  • Earnings from operations: $6.7 million (flat with Q2 2023)
  • Net earnings: record $5.6 million (up 15% over previous record in Q2 2023)
  • Diluted earnings per share: $0.59 (up from $0.50 in Q2 2023)

North American Wholesale Segment
Net sales in our wholesale segment were $50.2 million, down 2% from $51.5 million in the second quarter of 2023. Second-quarter sales of the Florsheim and Nunn Bush brands were up 3% and 8%, respectively, with the increase at Nunn Bush due partly to a timing shift of shipments to a large retailer from third to second quarter. Stacy Adams sales were down 10% for the quarter, mainly in the dress-shoe category. BOGS second-quarter sales were down 33%, as outdoor retailers continued to be cautious with orders after a recent period of oversaturation of inventories in the outdoor market. However, retailer inventory levels are starting to normalize, and we believe BOGS demand will improve as we enter the prime selling season for the brand in the back half of the year.

Wholesale gross earnings were 38.2% of net sales compared to 37.0% of net sales last year. Gross margins improved as a result of lower inventory costs. Wholesale selling and administrative expenses totaled $13.4 million for the quarter compared to $13.7 million last year. As a percent of net sales, wholesale selling and administrative expenses were flat at 27% in both 2024 and 2023. Wholesale operating earnings totaled $5.8 million for the quarter, up 8% from $5.4 million in 2023, primarily due to the impact of higher gross margins.

North American Retail Segment
Net sales in our retail segment, which were generated mainly by our e-commerce websites, were flat at $7.6 million in both the second quarters of 2024 and 2023. Sales increases on the Florsheim and BOGS websites were offset by lower sales on our other brands’ websites this quarter.

Retail gross earnings as a percent of net sales were 67.5% and 66.2% in the second quarters of 2024 and 2023, respectively. Retail operating earnings were $0.7 million, down from $1.1 million in last year’s second quarter. The decrease was due to higher retail selling and administrative expenses this year, primarily web advertising and freight costs. Web advertising expenses in the second quarter of 2024 increased compared to last year’s second quarter due to the reallocation of certain expenditures historically charged to our wholesale segment that primarily benefit our websites.

Other Operations
Our other operations historically included our retail and wholesale businesses in Australia, South Africa, and Asia Pacific (collectively, “Florsheim Australia”). We ceased operations in the Asia Pacific region in 2023 and are in the final stages of winding down that business. As a result, the 2024 operating results of the “other” category primarily reflect that of Australia and South Africa.

Net sales of Florsheim Australia were $6.1 million, down 23% from $7.9 million in the second quarter of 2023, due largely to the closing of our Asia Pacific operations. Sales in Australia were also down due to three fewer retail stores operating during the quarter, compared to the same period last year, and the mid-year 2023 loss of a sizeable wholesale customer.

Florsheim Australia’s gross earnings were 62.0% of net sales for the quarter and 62.4% of net sales last year. Its operating earnings totaled $0.2 million for the period down from $0.3 million last year, as a result of lower sales.

Other Income / (Expense)
Interest income totaled $1.0 million in the second quarter of 2024 compared to $0.2 million in last year’s second quarter. This year included interest earned on higher cash balances in the U.S. and Canada.

“We are seeing signs of recovery within our wholesale business, with two of our major brands posting gains for the second quarter, and all brands’ performance improving relative to the first quarter of 2024,” stated Thomas W. Florsheim, Jr. Chairman and CEO. “We are pleased with these results in spite of inflationary pressures that persist, impacting consumer buying. Channel inventories have begun to normalize and, while ordering patterns remain conservative among U.S. retailers, we are anticipating an increase in at-once business in the second half of the year.”

On August 6, 2024, our Board of Directors declared a cash dividend of $0.26 per share to all shareholders of record on August 19, 2024, payable September 30, 2024.

Conference Call Details
Weyco Group will host a conference call on August 7, 2024, at 11:00 a.m. Eastern Time to discuss the second quarter 2024 financial results in more detail. To participate in the call, you will first need to pre-register online. Pre-registration takes only a few minutes, and you may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://register.vevent.com/register/BI0df6b3e05d40441fa61e8df12529d329.

The pre-registration process will provide the conference call phone number and a passcode required to enter the call. A replay will be available for one year beginning about two hours after the completion of the call at the following webcast link: https://edge.media-server.com/mmc/p/c4dhrphx. The conference call will also be available in the investor relations section of Weyco Group’s website at www.weycogroup.com.

About Weyco Group
Weyco Group, Inc., designs and markets quality and innovative footwear principally for men, but also for women and children, under a portfolio of well-recognized brand names including: Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters, and Forsake. The Company’s products can be found in leading footwear, department, and specialty stores, as well as on e-commerce websites worldwide. Weyco Group also operates Florsheim stores in the United States, Australia, and South Africa.

Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Various factors could cause our results to be materially different from the results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the impact of inflation generally and, specifically, increases in our costs for materials, labor and other manufacturing inputs, a slow down or contraction in the overall U.S. or Australian economies, our ability to successfully market and sell our products in a highly competitive industry and in view of changing and unpredictable consumer trends, our ability to successfully procure our products from independent manufacturers on a timely basis, consumer acceptance of products and other factors affecting retail market conditions, increased interest rates, the uncertain impact of the wars in Ukraine and Israel and the related economic and other sanctions imposed by the U.S. and European Union, and other factors detailed from time to time in our filings made with the Securities and Exchange Commission, including our annual report on Form 10-K filed on March 14, 2024, which are incorporated herein by reference. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

For more information, contact:

Judy Anderson
Vice President, Chief Financial Officer and Secretary
414‑908‑1833


WEYCO GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
(UNAUDITED)
            
  Three Months Ended June 30,  Six Months Ended June 30,
  2024   2023   2024   2023 
 (In thousands, except per share amounts)
            
Net sales$63,932  $67,014  $135,490  $153,308 
Cost of sales 35,840   38,007   75,391   87,139 
Gross earnings 28,092   29,007   60,099   66,169 
            
Selling and administrative expenses 21,431   22,307   45,187   49,083 
Earnings from operations 6,661   6,700   14,912   17,086 
            
Interest income 964   190   1,869   329 
Interest expense    (132)     (517)
Other expense, net (143)  (168)  (238)  (298)
            
Earnings before provision for income taxes 7,482   6,590   16,543   16,600 
            
Provision for income taxes 1,875   1,726   4,286   4,291 
            
Net earnings$5,607  $4,864  $12,257  $12,309 
            
Weighted average shares outstanding           
Basic 9,429   9,440   9,433   9,461 
Diluted 9,548   9,542   9,564   9,625 
            
Earnings per share           
Basic$0.60  $0.51  $1.30  $1.30 
Diluted$0.59  $0.50  $1.28   1.28 
          $ 
Cash dividends declared (per share)$0.26  $0.25  $0.51  $0.49 
            
Comprehensive income$5,741  $5,210  $11,372  $12,448 



WEYCO GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
      
 June 30, December 31,
  2024   2023 
 (Dollars in thousands)
ASSETS:     
Cash and cash equivalents$78,407  $69,312 
Marketable securities, at amortized cost    215 
Accounts receivable, net 37,338   39,275 
Income tax receivable 332   245 
Inventories 67,944   74,890 
Prepaid expenses and other current assets 3,506   6,172 
Total current assets 187,527   190,109 
      
Marketable securities, at amortized cost 6,367   6,354 
Deferred income tax benefits 1,074   1,096 
Property, plant and equipment, net 28,566   29,504 
Operating lease right-of-use assets 10,597   12,520 
Goodwill 12,317   12,317 
Trademarks 33,168   33,168 
Other assets 24,203   24,274 
Total assets$303,819  $309,342 
      
LIABILITIES AND EQUITY:     
Accounts payable$4,573  $8,845 
Dividend payable    2,352 
Operating lease liabilities 3,514   3,979 
Accrued liabilities 10,865   14,446 
Total current liabilities 18,952   29,622 
      
Deferred income tax liabilities 11,837   11,819 
Long-term pension liability 13,482   13,412 
Operating lease liabilities 7,958   9,531 
Other long-term liabilities 386   465 
Total liabilities 52,615   64,849 
      
Common stock 9,491   9,497 
Capital in excess of par value 72,346   71,661 
Reinvested earnings 187,563   180,646 
Accumulated other comprehensive loss (18,196)  (17,311)
Total equity 251,204   244,493 
Total liabilities and equity$303,819  $309,342 



WEYCO GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
      
 Six Months Ended June 30,
  2024   2023 
 (Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:     
Net earnings$12,257  $12,309 
Adjustments to reconcile net earnings to net cash provided by operating activities -     
Depreciation 1,204   1,279 
Amortization 133   137 
Bad debt (recovery) expense (2)  88 
Deferred income taxes (11)  55 
Net foreign currency transaction losses (gains) 28   (9)
Share-based compensation expense 698   675 
Pension expense 441   647 
Loss on disposal of fixed assets 20    
Increase in cash surrender value of life insurance (210)  (210)
Changes in operating assets and liabilities -     
Accounts receivable 1,948   18,982 
Inventories 6,941   24,115 
Prepaid expenses and other assets 2,800   2,167 
Accounts payable (4,264)  (9,305)
Accrued liabilities and other (4,225)  (5,273)
Accrued income taxes (90)  (2,003)
Excess tax benefits from share-based compensation    (73)
Net cash provided by operating activities 17,668   43,581 
      
CASH FLOWS FROM INVESTING ACTIVITIES:     
Proceeds from maturities of marketable securities 215   1,010 
Purchases of property, plant and equipment (344)  (1,381)
Net cash used for investing activities (129)  (371)
      
CASH FLOWS FROM FINANCING ACTIVITIES:     
Cash dividends paid (7,162)  (6,920)
Shares purchased and retired (514)  (2,134)
Net proceeds from stock options exercised    24 
Payment of contingent consideration    (500)
Taxes paid related to the net share settlement of equity awards    (173)
Proceeds from bank borrowings    63,047 
Repayments of bank borrowings    (91,613)
Net cash used for financing activities (7,676)  (38,269)
      
Effect of exchange rate changes on cash and cash equivalents (768)  145 
      
Net increase in cash and cash equivalents$9,095  $5,086 
      
CASH AND CASH EQUIVALENTS at beginning of period 69,312   16,876 
      
CASH AND CASH EQUIVALENTS at end of period$78,407  $21,962 
      
SUPPLEMENTAL CASH FLOW INFORMATION:     
Income taxes paid, net of refunds$4,337  $6,273 
Interest paid$  $808 

FAQ

What were Weyco Group's (WEYS) Q2 2024 net sales?

Weyco Group's net sales for Q2 2024 were $63.9 million, down 5% compared to $67.0 million in Q2 2023.

How much did Weyco Group's (WEYS) earnings per share increase in Q2 2024?

Weyco Group's diluted earnings per share increased to $0.59 in Q2 2024, up from $0.50 in Q2 2023.

What was the performance of Weyco Group's (WEYS) North American Wholesale segment in Q2 2024?

The North American Wholesale segment had mixed results, with Florsheim and Nunn Bush sales up 3% and 8% respectively, while Stacy Adams sales were down 10% and BOGS sales were down 33%.

How did Weyco Group's (WEYS) gross earnings change in Q2 2024?

Weyco Group's gross earnings improved to 43.9% of net sales in Q2 2024, up from 43.3% of net sales in Q2 2023.

What dividend did Weyco Group (WEYS) declare for Q2 2024?

Weyco Group's Board of Directors declared a cash dividend of $0.26 per share, payable on September 30, 2024, to shareholders of record on August 19, 2024.

Weyco Group Inc

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0.61%
Footwear & Accessories
Wholesale-apparel, Piece Goods & Notions
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