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 ...

Financial Performance - Net sales for Q4 2024 were $80.5 million, flat compared to Q4 2023[11] - Gross earnings as a percentage of net sales decreased to 47.9% in Q4 2024 from 50.3% in Q4 2023[11] - Net earnings for Q4 2024 increased by 17% to $10.0 million compared to $8.5 million in Q4 2023[11] - North American wholesale segment net sales were $227.9 million for 2024, down 9% from $250.4 million in 2023[13] - Retail segment net sales reached a record $38.7 million in 2024, up 2% from $38.0 million in 2023[15] - Florsheim Australia net sales totaled $23.6 million in 2024, down 20% from $29.6 million in 2023[17] - Wholesale operating earnings for 2024 were $31.5 million, down 5% from $33.3 million in 2023[14] - Florsheim's sales increased by 2% for the year, contrasting with declines in other brands[13] Earnings and Dividends - The company declared a quarterly cash dividend of $0.26 per share, payable on March 31, 2025[22] - Cash dividends paid increased to $9,688 thousand in 2024 from $9,286 thousand in 2023, representing an increase of 4.3%[29] Assets and Liabilities - Total assets increased to $324,086 thousand in 2024, up from $309,342 thousand in 2023, representing a growth of 4.8%[28] - Total current liabilities rose significantly to $47,263 thousand in 2024, compared to $29,622 thousand in 2023, marking a substantial increase of 59.5%[28] - The company experienced a decrease in accounts receivable, net, to $37,464 thousand in 2024 from $39,275 thousand in 2023, a decline of 4.6%[28] - Total equity increased to $245,585 thousand in 2024, up from $244,493 thousand in 2023, showing a growth of 0.4%[28] Cash Flow - The company reported a net cash provided by operating activities of $16,150 thousand in 2024, a decrease of 83.7% from $98,631 thousand in 2023[29] - Cash and cash equivalents at the end of 2024 were $70,963 thousand, compared to $69,312 thousand at the end of 2023, reflecting an increase of 2.4%[29] - The company reported a net increase in cash and cash equivalents of $1,651 thousand in 2024, down from $52,436 thousand in 2023, indicating a significant decline of 96.9%[29] Inventory - The company’s inventories decreased slightly to $74,012 thousand in 2024 from $74,890 thousand in 2023, a reduction of 1.2%[28]

Core Insights - Weyco Group, Inc. reported its financial results for the fourth quarter and full year ended December 31, 2024, highlighting mixed performance across its segments and brands [1][11]. Fourth Quarter 2024 Overview - North American wholesale segment net sales reached $60.4 million, a 1% increase from $59.6 million in Q4 2023, driven by a 22% increase in Florsheim sales, while BOGS and Stacy Adams saw declines of 17% and 8% respectively [3][4]. - Retail segment net sales were $14.1 million, up 1% from $13.9 million in Q4 2023, primarily due to increased direct-to-consumer sales of BOGS and Florsheim [5][6]. - Florsheim Australia reported net sales of $6.0 million, down 15% from $7.2 million in Q4 2023, attributed to the closure of Asia Pacific operations [8][9]. Full Year 2024 Overview - Total net sales for 2024 were $290.3 million, a 9% decrease from $318.0 million in 2023, with wholesale net sales down 9% to $227.9 million [12][22]. - Retail segment achieved record net sales of $38.7 million, a 2% increase from $38.0 million in 2023, driven by higher direct-to-consumer sales [15][16]. - Florsheim Australia net sales totaled $23.6 million, down 20% from $29.6 million in 2023, with a 10% decline in sales in Australia due to fewer operating retail stores [17][18]. Earnings and Expenses - Gross earnings as a percentage of net sales were 45.3% for 2024, up from 44.9% in 2023, while earnings from operations decreased by 11% to $36.6 million [22]. - Retail operating earnings fell 21% to $5.3 million in 2024, primarily due to increased selling and administrative expenses [16]. - Interest income increased to $3.7 million in 2024 from $1.1 million in 2023, reflecting higher cash balances [19]. Future Outlook - The company faces increased costs due to new tariffs imposed on goods sourced from China and is negotiating price reductions with suppliers to mitigate these impacts [20]. - The CEO emphasized the benefits of a diversified brand portfolio and expressed confidence in the company's position for future growth despite macroeconomic uncertainties [21][23].

Core Viewpoint - Weyco Group, Inc. is set to announce its fourth quarter and full year 2024 financial results on March 4, 2025, followed by a conference call on March 5, 2025, to discuss these results in detail [1]. Company Overview - Weyco Group, Inc. designs and markets quality and innovative footwear primarily for men, but also for women and children, under well-recognized brand names such as Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters, and Forsake [4]. - The company's products are available in leading footwear, department, and specialty stores, as well as on e-commerce platforms globally [4]. - Weyco Group operates Florsheim concept stores in the United States, Australia, and various international markets [4].

Sales Performance - Consolidated net sales for Q3 2024 were $74.3 million, down 12% from $84.2 million in Q3 2023[49] - BOGS net sales decreased by 18% for the quarter, with e-commerce sales down 31% due to mild and dry weather conditions[41] - North American Wholesale segment net sales were $61.1 million, a 12% decline compared to $69.5 million in the same quarter last year[54] - Retail sales fell by 5% for the quarter, primarily driven by the decrease in BOGS e-commerce sales[47] - Year-to-date consolidated net sales for 2024 were $209.8 million, down 12% from $237.5 million in 2023[50] - Florsheim brand sales increased by 1% in Q3 2024, while Stacy Adams and Nunn Bush saw declines of 17% and 20%, respectively[43] - Florsheim Australia's net sales were $6.0 million in Q3 2024, down 15% from $7.1 million in Q3 2023, primarily due to the closure of Asia Pacific operations[65] Earnings and Expenses - Earnings from operations for Q3 2024 totaled $10.2 million, down 18% from $12.4 million in Q3 2023[49] - Wholesale operating earnings totaled $9.4 million for the quarter, down 16% from $11.3 million in the same quarter last year[58] - Retail selling and administrative expenses totaled $4.0 million in both Q3 2024 and Q3 2023, but as a percent of net sales, these expenses increased to 56% from 53%[62] Gross Earnings and Margins - Gross earnings as a percentage of net sales improved to 44.3% in Q3 2024 from 43.0% in Q3 2023, mainly due to higher gross margins in the Wholesale segment[49] - Retail gross earnings as a percent of net sales improved to 66.9% in Q3 2024 from 65.4% in Q3 2023[61] Cash and Investments - Cash and marketable securities totaled $81.8 million as of September 30, 2024, with no debt outstanding[51] - Interest income increased to $0.9 million in Q3 2024 from $0.3 million in Q3 2023, driven by higher cash balances[68] - Cash generated from operations was $17.3 million in the first nine months of 2024, a decrease from $62.9 million in the same period last year[71] - Dividends paid totaled $9.6 million in the first nine months of 2024, compared to $9.3 million in 2023[72] - Capital expenditures totaled $0.9 million in the first nine months of 2024, with an estimated total for the year between $1.0 million and $2.0 million[74] - The company has a maximum available borrowing limit of $40.0 million under the amended credit agreement, with no outstanding borrowings as of September 30, 2024[75] Strategic Focus - The company is focusing on reducing weather sensitivity in the BOGS business by expanding sales efforts in the Farm & Agriculture trade channel[42]

Group 1 - Weyco Group, Inc. (NASDAQ: WEYS) reported challenging Q3 2024 earnings but announced a one-time $2 dividend for shareholders of record as of November 18, 2024 [1] - The announcement of the dividend coincided with a post-election rally, which may influence investor sentiment [1] - The investment approach discussed focuses on operational aspects and long-term earnings potential rather than market-driven dynamics [1] Group 2 - The article emphasizes the importance of understanding competitive dynamics within industries for making informed investment decisions [1] - It highlights that most investment calls will be holds, indicating a cautious approach to buying opportunities [1] - The article aims to provide valuable information for future investors while maintaining a skeptical view of a bullish market [1]

Weyco Group, Inc. (NASDAQ:WEYS) Q3 2024 Earnings Conference Call November 6, 2024 11:00 AM ET Company Participants Judy Anderson - Chief Financial Officer Tom Florsheim - Chairman and Chief Executive Officer John Florsheim - President and Chief Operating Officer Conference Call Participants David Wright - Henry Investment Trust John Deysher - Pinnacle Operator Good day, and thank you for standing by. Welcome to Weyco Group, Incorporated Third Quarter 2024 Earnings Release Conference Call. At this time, all ...