Core Viewpoint - Weyco Group, Inc. reported a decline in financial performance for the first quarter of 2025, with net sales down 5% compared to the same period in 2024, primarily due to lower sales across major brands and reduced consumer spending on non-athletic footwear [3][11]. Financial Performance - Net sales for the first quarter of 2025 were $68.0 million, down from $71.6 million in Q1 2024 [11]. - Gross earnings as a percentage of net sales were 44.6%, slightly down from 44.7% in Q1 2024 [11]. - Earnings from operations decreased by 15% to $7.0 million compared to $8.3 million in Q1 2024 [11]. - Net earnings fell by 17% to $5.5 million from $6.7 million in the previous year [11]. - Diluted earnings per share decreased to $0.57 from $0.69 in Q1 2024 [11]. Segment Performance North American Wholesale Segment - Wholesale net sales were $54.3 million, a 4% decrease from $56.2 million in Q1 2024 [3]. - Florsheim's sales increased by 7% due to new product launches, but this was offset by declines in other brands: Stacy Adams down 7% and Nunn Bush down 16% [3]. - Wholesale operating earnings decreased by 10% to $6.6 million from $7.4 million in 2024 [4]. North American Retail Segment - Retail segment net sales were $8.7 million, down 12% from $9.8 million in 2024 [5]. - Retail operating earnings fell by 52% to $0.6 million from $1.3 million in the previous year [6]. Other Operations - Florsheim Australia reported net sales of $5.1 million, down 7% from $5.5 million in Q1 2024, impacted by a weaker Australian dollar [8]. - In local currency, net sales in Australia increased by 6%, with higher sales in both wholesale and retail [8][9]. Tariff Impact - The effective total tariff rate on goods sourced from China has risen to 161% from 16% in 2024, which may significantly increase future costs of goods sold [10]. - The company has negotiated cost reductions with several Chinese suppliers to mitigate the impact of these tariffs [10][12]. Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.27 per share, a 4% increase from the previous rate of $0.26 [14]. Conference Call - A conference call is scheduled for May 7, 2025, to discuss the first quarter 2025 financial results in detail [15].

Core Viewpoint - Weyco Group, Inc. is set to announce its first quarter 2025 financial results on May 6, 2025, followed by a conference call on May 7, 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, and Forsake [4]. - The company's products are available in leading footwear, department, and specialty stores, as well as on e-commerce websites globally [4]. - Weyco Group operates Florsheim concept stores in the United States, Australia, and various international markets [4].

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, compared to 50.3% in the same quarter last year [5] - Net earnings for Q4 2024 were $10 million or $1.04 per diluted share, up from $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, net sales for Q4 were $60.4 million, up 1% from $59.6 million last year [6] - Retail segment net sales were $14.1 million for Q4, also up 1% from $13.9 million in 2023 [8] - Florsheim brand sales increased by 22% in Q4, while BOGS sales declined by 17% due to mild winter weather [27][30] - Nunn Bush grew by 4% in Q4, supported by a strong value proposition and innovative products [33] - Florsheim Australia's net sales were $6 million in Q4, down 15% from $7.2 million in Q4 2023 [11] Market Data and Key Metrics Changes - North American wholesale net sales for the full year were $228 million, down 9% from $250 million in 2023, primarily due to a 27% decline in BOGS sales [14][15] - Florsheim Australia's sales were down 20% for the year, largely due to the closure of the Asia Pacific operations [19][20] Company Strategy and Development Direction - The company is focused on evolving its portfolio of brands to position for future growth, particularly through product innovation and expanding retail presence [26][30] - The introduction of new products, such as the BOGS BOGA, aims to reenergize the BOGS brand [29] - The company is negotiating price reductions with Chinese 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 as winter weather improves [28] - Management expressed confidence in maintaining gross margins despite tariff-related cost increases [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 amount of tariffs paid and clear goods through customs, paying the applicable tariffs [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 suppliers have led to cooperation in mitigating some costs, although price increases will still be necessary [83][89]

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]

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].