Weyco Reports Second Quarter 2024 Sales and Earnings
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.
- 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
- 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
The wholesale segment shows signs of recovery, with Florsheim and Nunn Bush brands posting gains. However, the BOGS brand's
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 (down5% compared to$67.0 million in Q2 2023) - Gross earnings:
43.9% of net sales (up from43.3% of net sales in Q2 2023) - Earnings from operations:
$6.7 million (flat with Q2 2023) - Net earnings: record
$5.6 million (up15% 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
Wholesale gross earnings were
North American Retail Segment
Net sales in our retail segment, which were generated mainly by our e-commerce websites, were flat at
Retail gross earnings as a percent of net sales were
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
Florsheim Australia’s gross earnings were
Other Income / (Expense)
Interest income totaled
“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
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?
How much did Weyco Group's (WEYS) earnings per share increase in Q2 2024?
What was the performance of Weyco Group's (WEYS) North American Wholesale segment in Q2 2024?
How did Weyco Group's (WEYS) gross earnings change in Q2 2024?