Weyco Group (WEYS) Q1 2025 Earnings Call May 07, 2025 11:00 AM ET Speaker0 Thank you for standing by. My name is Gail, and I will be your operator for today. At this time, I would like to welcome each and every one of you to the Weyco Group Inc. First Quarter twenty twenty five Earnings Release Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. It is now my pleasure to turn today's call over to Weyco ...

Exhibit 99.1 WEYCO REPORTS FIRST QUARTER SALES AND EARNINGS Milwaukee, Wisconsin---May 6, 2025---Weyco Group, Inc. (NASDAQ: WEYS) ("we," "our," "us" and the "Company") today announced financial results for the quarter ended March 31, 2025. Retail gross earnings as a percent of net sales were 66.6% and 65.3% in the first quarters of 2025 and 2024, respectively. Retail operating earnings totaled $0.6 million for the quarter, down 52% from $1.3 million last year. The decrease was primarily due to lower sales. ...

MILWAUKEE, May 06, 2025 (GLOBE NEWSWIRE) -- Weyco Group, Inc. (NASDAQ: WEYS) (“we,” “our,” “us” and the “Company”) today announced financial results for the quarter ended March 31, 2025. First Quarter 2025 Overview Net sales: $68.0 million (down 5% compared to $71.6 million in Q1 2024)Gross earnings: 44.6% of net sales (compared to 44.7% of net sales in Q1 2024)Earnings from operations: $7.0 million (down 15% compared to $8.3 million in Q1 2024)Net earnings: $5.5 million (down 17% compared to $6.7 million i ...

Milwaukee, WI, April 09, 2025 (GLOBE NEWSWIRE) -- WEYCO Group, Inc. (NASDAQ: WEYS), a global marketer of footwear, plans to announce first quarter 2025 financial results after the close on Tuesday, May 6, 2025. Additionally, Thomas W. Florsheim, Jr., Chairman and CEO, will host a conference call on Wednesday, May 7, 2025, at 11:00 a.m. Eastern Time to discuss the financial results in more detail. To participate in the call, please dial 1-888-596-4144 or 1-646-968-2525, using passcode 6441034# at least fifte ...

Sales Performance - Consolidated net sales for 2024 were $290.3 million, down 9% from $318.0 million in 2023[95]. - The North American Wholesale segment experienced a 9% decline in net sales, totaling $227.9 million in 2024 compared to $250.4 million in 2023[97]. - BOGS sales declined 27% in 2024, primarily due to reduced retailer orders and mild weather impacting boot sales[89]. - Florsheim's sales increased by 2% in 2024, while Stacy Adams and Nunn Bush saw declines of 13% and 6%, respectively[90]. - Retail segment sales rose 2% to a record $38.7 million in 2024, driven by higher direct-to-consumer sales[93]. - Florsheim Australia's sales decreased by 20% to $23.6 million in 2024, largely due to the closure of Asia Pacific operations[94]. - Net sales decreased to $290,290,000 in 2024 from $318,048,000 in 2023, representing a decline of approximately 8.7%[140]. - Total net sales decreased from $318.048 million in 2023 to $290.290 million in 2024, with a notable decline in U.S. net sales from $266.515 million to $248.577 million[238]. - The Wholesale segment generated $227.940 million in net sales in 2024, while the Retail segment contributed $38.701 million[237]. Financial Performance - Operating earnings for the Wholesale segment were $31.5 million in 2024, down 5% from $33.3 million in 2023[99]. - Gross earnings fell to $131,525,000 in 2024, down from $142,883,000 in 2023, a decrease of about 7.9%[140]. - Net earnings increased slightly to $30,320,000 in 2024 compared to $30,188,000 in 2023, reflecting a growth of 0.4%[142]. - Basic earnings per share rose to $3.21 in 2024 from $3.19 in 2023, an increase of 0.6%[140]. - The company reported a net cash provided by operating activities of $37,729,000 in 2024, down from $98,631,000 in 2023, a decrease of about 61.8%[148]. - Cash dividends declared increased to $3.03 per share in 2024 from $0.99 per share in 2023, representing a significant increase[146]. - The total provision for income taxes for 2024 was $9,516,000, compared to $10,676,000 in 2023[220]. - The effective tax rate decreased from 26.1% in 2023 to 23.9% in 2024, with foreign income tax rate differences contributing 0.9% in 2024 compared to 0.3% in 2023[221]. Cash and Investments - The company's cash and marketable securities totaled $77.3 million at the end of 2024, with no debt outstanding[96]. - Cash and cash equivalents at the end of 2024 were $70,963,000, a slight increase from $69,312,000 in 2023[148]. - Marketable securities total increased to $6,381,000 in 2024 from $6,274,000 in 2023, with unrealized gains of $5,000 and losses of $(112,000) in 2024 compared to gains of $118,000 and losses of $(50,000) in 2023[190]. - The company held investments in marketable securities, primarily tax-exempt municipal bonds, classified as held-to-maturity and reported at amortized cost[154]. Shareholder Returns - Cash dividends paid totaled $9.7 million in 2024, with a special cash dividend of $2.00 per share amounting to $21.6 million prefunded for shareholders[110]. - In 2024, the company repurchased 19,841 shares for a total cost of $0.6 million, compared to 170,422 shares for $4.3 million in 2023[111]. - The company has 848,916 authorized shares available for repurchase under the share repurchase program as of December 31, 2024[111]. Pension and Benefits - The expected rate of return on pension plan assets was maintained at 6.75% for both 2024 and 2023[119]. - The projected benefit obligation for the defined benefit pension plan decreased from $40,411,000 in 2023 to $38,493,000 in 2024, while the supplemental pension plan decreased from $11,609,000 to $10,940,000[214]. - The fair value of plan assets increased from $38,041,000 in 2023 to $39,017,000 in 2024, with a notable actual return on plan assets of $4,151,000 in 2024[214]. - The pension expense for 2024 was reported at $962,000, down from $1,293,000 in 2023[215]. - The company aims to maintain at least an 80% funding percentage in its defined benefit retirement plan in future years[216]. Operational Costs - Consolidated distribution costs were $21.5 million in 2024, slightly down from $21.9 million in 2023, reflecting a decrease of approximately 1.8%[173]. - Total advertising costs were $12.6 million in 2024, compared to $12.8 million in 2023, showing a decrease of about 1.6%[174]. - Operating lease costs decreased to $4,421,000 in 2024 from $4,912,000 in 2023, with total lease costs at $4,421,000 compared to $5,113,000 in the previous year[196]. Impairments and Write-offs - The company recorded impairment charges of $0.3 million for the Forsake trademark in 2024, down from $0.5 million in 2023, indicating a reduction of 40%[165]. - The company recorded a write-off of $300,000 for the Forsake trademark in 2024, following a $500,000 impairment charge in 2023[203]. - The reserve for doubtful accounts includes specific reserves for potentially uncollectible accounts, with historical write-offs remaining within expectations[115]. Tax and Deferred Liabilities - The company reported net deferred income tax liabilities of $12.885 million in 2024, an increase from $10.723 million in 2023[222]. - Unrecognized tax benefits increased to $640,000 in 2024 from $608,000 in 2023, with $90,000 and $30,000 of interest related to such positions in 2024 and 2023, respectively[224][225]. Inventory and Commitments - Total inventories decreased to $74,012,000 in 2024 from $74,890,000 in 2023, with finished shoes inventory in-transit rising to $20.7 million in 2024 from $16.7 million in 2023[191]. - The company had commitments to purchase $38.1 million of inventory, all due within less than one year as of December 31, 2024[227].

Group 1 - The company Weyco Group (NASDAQ: WEYS) is a small player in the footwear design and distribution space, with a reaffirmed 'buy' rating as of late March 2024 [1] - The investment service Crude Value Insights focuses on cash flow and companies in the oil and natural gas sector, highlighting their value and growth prospects [1] - Subscribers to Crude Value Insights benefit from a 50+ stock model account and in-depth cash flow analyses of exploration and production firms [2]

Core Insights - Weyco Group, Inc. (WEYS) shares have declined 6.5% since the earnings report for the quarter ended December 31, 2024, contrasting with a 0.1% decline in the S&P 500 index during the same period [1] - The company's earnings per share for Q4 2024 increased to $1.04 from $0.90 in Q4 2023, while net sales remained flat at $80.5 million compared to the previous year [2] - Gross earnings as a percentage of net sales fell to 47.9%, down from 50.3% in the prior year's quarter [2] Financial Performance - Operating earnings remained unchanged at $11.5 million, but net earnings grew 17% to $10 million, up from $8.5 million a year ago [3] - Wholesale net sales in North America increased by 1% year over year to $60.4 million, with Florsheim and Nunn Bush brands driving growth [4] - Wholesale gross earnings as a percentage of sales fell to 42.4% from 44.9% in Q4 2023, reflecting margin pressures, while selling and administrative expenses decreased to $16.7 million from $18.9 million [5] Segment Analysis - Retail net sales slightly increased to $14.1 million from $13.9 million, driven by higher direct-to-consumer sales [6] - Florsheim Australia reported net sales of $6 million, a 15% decline from the prior year, primarily due to the closure of Asia Pacific operations [7] Management Commentary - The CEO acknowledged challenges in 2024, particularly in the wholesale segment, and attributed the decline in BOGS sales to mild winter conditions [8] - The company is addressing cost pressures from U.S. tariffs on Chinese imports and is negotiating with suppliers to mitigate cost increases [9] Liquidity and Financial Position - As of December 31, 2024, the company had $77.3 million in cash and marketable securities with no debt on its $40 million revolving credit line [10] - The company declared a quarterly dividend of 26 cents per share, payable on March 31, 2025, and paid a one-time special dividend of $2 per share in early 2025 [11]

Group 1 - The article highlights that it was the first quarter of flat sales after three consecutive quarters of declines, indicating a potential stabilization in performance [1] - The positive sales performance is attributed to a long-only investment strategy that evaluates companies from an operational and buy-and-hold perspective, focusing on long-term earnings power and competitive dynamics [1] - The approach emphasizes that most calls will be holds, suggesting that only a small fraction of companies are considered a buy at any given time, which provides important information for future investors [1] Group 2 - The article does not provide any specific stock recommendations or investment advice, emphasizing the need for readers to conduct their own due diligence [2][3] - It is noted that past performance is not indicative of future results, reinforcing the importance of careful consideration before making investment decisions [3]

Financial Data and Key Metrics Changes - Overall net sales for Q4 2024 were $80.5 million, slightly down from $80.6 million in Q4 2023 [5] - Consolidated gross earnings were 47.9% of net sales for the quarter, down from 50.3% in the previous year [5] - Net earnings for Q4 2024 were $10 million or $1.04 per diluted share, compared to $8.5 million or $0.90 per diluted share in Q4 2023 [6] - Full-year consolidated net sales were $290 million, down 9% from $318 million in 2023 [14] - Full-year net earnings were a record $30.3 million or $3.16 per diluted share, compared to $30.2 million or $3.17 per diluted share in 2023 [14] Business Line Data and Key Metrics Changes - In the North American wholesale segment, Q4 net sales were $60.4 million, up 1% from $59.6 million last year [6] - North American retail segment net sales were $14.1 million for Q4, up 1% from $13.9 million in 2023 [8] - Florsheim Australia net sales were $6 million, down 15% from $7.2 million in Q4 2023 [11] - For the full year, North American wholesale net sales were $228 million, down 9% from $250 million in 2023 [14] - Retail operating earnings totaled $5.3 million in 2024, down 21% from $6.8 million in 2023 [18] Market Data and Key Metrics Changes - BOGS sales declined 17% in Q4 due to mild winter weather impacting demand [27] - Florsheim brand sales increased by 22% in Q4, while Stacy Adams faced challenges in the dress footwear market [30][31] - Nunn Bush grew 4% in Q4, benefiting from its Comfortech line [33] - Florsheim Australia's sales were down 10% for the year, primarily due to fewer operating retail stores [20] Company Strategy and Development Direction - The company is focused on evolving its portfolio of brands to position for future growth despite short-term pressures [26] - Product innovation and expanding retail presence are key strategies for revitalizing the BOGS brand [30] - The company is negotiating price reductions with suppliers to mitigate the impact of new tariffs [22][37] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers remain cautious amid economic uncertainty, affecting discretionary spending [26] - The company is optimistic about renewed interest in the BOGS category for fall 2025 [28] - Management expressed confidence in maintaining gross margins despite tariff impacts [37] Other Important Information - The company generated $16.2 million in cash from operations in 2024 and paid $9.7 million in dividends [23] - A special dividend of $2 per share was paid in early 2025, totaling $21.6 million [24] - The company has no debt outstanding on its $40 million revolving line of credit [23] Q&A Session Summary Question: Can someone walk me through the mechanics of a tariff for Weyco Group? - Management explained that they must post a bond equal to the average tariffs paid monthly and pay customs upon clearance of goods [46][47] Question: What percentage of your cost of goods sold came from China last year? - Approximately 75% of purchases are from China, with India being the second largest source at about 15% [66] Question: What are the tariffs today on those other countries? - The tariff on leather shoes from China is currently 36%, while other countries have lower tariffs, typically around 8.5% [71][72] Question: Are your offshore vendors receptive to sharing part of the cost of the tariffs? - Management confirmed that long-term relationships with factories have led to cooperation in mitigating some costs, but price increases will still be necessary [83][89]

Weyco Group, Inc. (NASDAQ:WEYS) Q4 2024 Earnings Conference Call March 5, 2025 11:00 AM ET Company Participants Judy Anderson - Chief Financial Officer Tom Florsheim - Chairman & Chief Executive Officer Conference Call Participants David Wright - Henry Investment Trust John Deysher - Pinnacle Operator Thanks for standing by, and welcome to the Weyco Group Fourth Quarter and Full Year 2024 Earnings Conference Release Conference Call. At this time, all participants are in a listen-only mode. After the speaker ...