Weyco Group, Inc. (NASDAQ:WEYS) Q2 2023 Earnings Conference Call August 2, 2023 11:00 AM ET Company Participants Judy Anderson - Vice President, Chief Financial Officer and Secretary Tom Florsheim - Chairman and Chief Executive Officer Operator Good day, and thank you for standing by. Welcome to the Weyco Group Second Quarter 2023 Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] P ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________________ to _____________________________ Commission File Number: 000-09068 WEYCO GROUP, INC. (Exact name of registrant as specified in its charter) WISCONSIN 39-0702200 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 333 W. Esta ...

Financial Data and Key Metrics Changes - Net sales for Q1 2023 reached a record $86.3 million, up 6% from $81.4 million in Q1 2022 [5] - Consolidated gross earnings increased to 43.1% of net sales compared to 35.8% in the previous year [5] - Operating earnings were a record $10.4 million, up more than 90% from $5.4 million in Q1 2022 [6] - Net earnings were a record $7.4 million or $0.78 per diluted share, up 84% from $4.1 million or $0.42 per diluted share in 2022 [6] Business Line Data and Key Metrics Changes - North American wholesale segment net sales reached a record $69.9 million, up 4% from $67.1 million in 2022, driven by higher unit selling prices despite a 5% decrease in pairs shipped [7] - Florsheim brand sales grew by 15% for the quarter, achieving record quarterly sales [7] - North American retail segment net sales were a record $8.9 million, up from $7.9 million in 2022, primarily due to higher online sales [9] - Other operations, including Florsheim Australia, reported net sales of $7.5 million, up 17% compared to $6.4 million in 2022 [12] Market Data and Key Metrics Changes - Florsheim Australia's net sales increased by 17% for the quarter, with a 24% increase in local currency [25] - The overall inventory as of March 31, 2023, was $107 million, down from $128 million at December 31, 2022, indicating normalized supply chain conditions [26] Company Strategy and Development Direction - The company aims to expand the Florsheim brand into the hybrid and everyday casual market while maintaining its position in the refined footwear category [17] - The management is optimistic about long-term prospects despite current economic uncertainties, focusing on maintaining a healthy profit margin and managing expenses [20][24] - The company plans to continue paying down debt while also considering acquisitions in the long run [32] Management's Comments on Operating Environment and Future Outlook - The management expressed satisfaction with the first quarter results despite a challenging retail environment, highlighting strong sales and earnings growth [16] - There is caution regarding near-term consumer spending, but confidence remains in the brand's strength and competitive position [20] - The company anticipates a rebound in sales growth for the BOGS brand in 2024 after a temporary slowdown [22] Other Important Information - The Board of Directors declared a cash dividend of $0.25 per share, a 4% increase from the previous rate of $0.24 [15] - Cash, short-term investments, and marketable securities totaled $30.7 million, with $20.6 million outstanding on a $50 million revolving line of credit [14] Q&A Session Summary Question: Dividend increase - A participant expressed gratitude for the modest increase in the dividend [27] Question: Cash management and investment - The CFO explained that excess cash is invested in low-risk marketable securities and emphasized the focus on paying off debt rather than reinvesting [27][29] Question: Interest income and capital management - The participant inquired about the balance between cash earning lower interest and the interest paid on debt [28] Question: Capital allocation methodology - The CEO discussed the approach to dividend payout ratios and stock buybacks, emphasizing the goal of maintaining free cash flow for potential acquisitions [32]

Financial Performance - Consolidated net sales for 2022 reached a record $351.7 million, up 31% from $267.6 million in 2021[85] - Florsheim's net sales increased by 43% in 2022, while Stacy Adams and Nunn Bush saw increases of 49% and 40%, respectively[81] - The North American Wholesale segment net sales were $283.2 million, a 38% increase from $205.4 million in 2021[88] - Retail segment net sales rose 16% to $36.7 million in 2022, driven by strong e-commerce performance[93] - Operating earnings for the company reached a record $40.4 million in 2022, up 57% from $25.7 million in 2021[85] - Gross earnings for 2022 were $144.4 million, up 34.4% from $107.4 million in 2021[137] - Net earnings increased to $29.5 million in 2022, compared to $20.6 million in 2021, reflecting a 43.5% growth[137] - Comprehensive income for 2022 was $34.1 million, an increase from $23.8 million in 2021[139] - Basic earnings per share rose from $2.13 in 2021 to $3.09 in 2022, reflecting an increase of approximately 45.0%[241] - Total net sales increased from $267,641 thousand in 2021 to $351,737 thousand in 2022, marking a growth of approximately 31.4%[247] Inventory and Assets - Inventory levels increased to $128.0 million at December 31, 2022, up from $71.0 million at the end of 2021[100] - Total assets increased to $326,620,000 in 2022 from $277,667,000 in 2021, representing an increase of 17.6%[141] - Total inventories increased to $127,976,000 in 2022 from $71,026,000 in 2021, reflecting a growth of approximately 80.5%[193] - Finished shoes inventory included in-transit amounts of $33.2 million in 2022, down from $52.6 million in 2021[195] - Property, plant, and equipment net value decreased slightly to $28,812,000 in 2022 from $29,202,000 in 2021[197] Liabilities and Equity - Total current liabilities increased to $67,535,000 in 2022 from $34,508,000 in 2021, an increase of 95.9%[141] - The company had outstanding borrowings of approximately $31.1 million on its line of credit at an interest rate of 5.77%[107] - The unfunded benefit obligation decreased to $16.1 million in 2022 from $28.3 million in 2021[118] - Total equity increased to $223,905,000 in 2022 from $201,395,000 in 2021, reflecting an increase of 11.2%[141] Cash Flow and Dividends - The company paid cash dividends of $7.0 million in 2022, down from $9.3 million in 2021, due to a change in the quarterly dividend payment schedule[104] - Cash and cash equivalents decreased to $16,876,000 in 2022 from $19,711,000 in 2021, a decline of 9.3%[144] - The company believes its available liquidity will support cash needs for at least one year, including capital expenditures and acquisitions[109] Capital Expenditures and Investments - Capital expenditures were $2.3 million in 2022, with plans for 2023 expenditures between $2.0 million and $4.0 million[103] - The company acquired Forsake, Inc. for approximately $2.6 million, with an additional estimated contingent payment of $1.3 million, totaling an investment of approximately $3.9 million[183] - Forsake's net sales for the year ended December 31, 2022, totaled approximately $2.9 million, with $1.7 million recognized in the wholesale segment and $1.2 million in the retail segment[185] Taxation - The effective tax rate for 2022 was 25.7%, compared to 24.8% in 2021[99] - The total provision for income taxes increased from $6,790 thousand in 2021 to $10,199 thousand in 2022, representing an increase of approximately 50.5%[232] Pension and Employee Benefits - The projected benefit obligation for the defined benefit pension plan decreased from $52.5 million in 2021 to $39.6 million in 2022, a reduction of approximately 24.5%[221] - The funded status of the defined benefit pension plan improved from a liability of $7.9 million in 2021 to a liability of $3.7 million in 2022[221] - Contributions to the defined contribution plan were $1.0 million in 2022, up from $850,000 in 2021[229] Share Repurchase and Stock Options - The company repurchased 171,397 shares at a total cost of $4.2 million in 2022, compared to 125,204 shares for $2.5 million in 2021[106] - Share-based compensation expense recognized was approximately $1.5 million in 2022, compared to $1.6 million in 2021[252] - The total intrinsic value of stock options exercised in 2022 was $251,000, compared to $8,000 in 2021[259]

Weyco Group, Inc. (NASDAQ:WEYS) Q4 2022 Earnings Conference Call March 8, 2023 11:00 AM ET Company Participants Judy Anderson - CFO Thomas Florsheim - Chairman & CEO John Florsheim - President and COO Conference Call Participants John Deysher - Pinnacle David Wright - Henry Investment Trust Operator Good day, and thank you for standing by. Welcome to the Weyco Group Fourth Quarter 2022 Earnings Release Conference Call. At this time all participants are in a listen-only mode. After the speaker’s presentation ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________________ to _____________________________ Commission File Number: 000-09068 WEYCO GROUP, INC. (Exact name of registrant as specified in i ...

Weyco Group, Inc. (NASDAQ:WEYS) Q3 2022 Earnings Conference Call November 2, 2022 11:00 AM ET Company Participants Judy Anderson - Chief Financial Officer Thomas Florsheim - Chairman & Chief Executive Officer Conference Call Participants David Wright - Henry Investment Trust L.P. John Deysher - Pinnacle Value Fund Operator Good day, and thank you for standing by. Welcome to the Weyco Group Third Quarter 2022 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. After th ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________________ to _____________________________ Commission File Number: 000-09068 WEYCO GROUP, INC. (Exact name of registrant as specified in its ch ...

Financial Data and Key Metrics Changes - Overall net sales reached a record $74.4 million, up 29% from $57.6 million in Q2 2021 [5] - Consolidated gross earnings were 40% of net sales, an increase from 39.4% in the previous year [5] - Earnings from operations rose 25% to $5.7 million from $4.5 million in Q2 2021 [5] - Quarterly net earnings increased to a record $4.5 million or $0.47 per diluted share, compared to $3.8 million or $0.39 per diluted share in 2021 [5] Business Line Data and Key Metrics Changes - North American wholesale segment net sales were a record $59 million, up 41% from $41.9 million in 2021 [6] - Wholesale gross earnings improved to 33.7% of net sales, up from 32.4% in 2021 [6] - North American retail segment net sales reached a record $7.4 million, up 20% from $6.2 million in Q2 2021 [7] - Retail gross earnings as a percentage of net sales were 67.4%, up from 65.6% in the previous year [8] - Other operations, primarily Florsheim Australia, reported net sales of $8 million, down 16% from $9.5 million in Q2 2021 [10] Market Data and Key Metrics Changes - Florsheim Australia experienced a 4% decline in net sales, but local currency sales were up 4% [21] - The overall inventory level was $95.5 million as of June 30, 2022, compared to $39.4 million at the end of June 2021 [22] - Approximately 40% of the inventory was in transit, with 60% on hand in the distribution center [23] Company Strategy and Development Direction - The company is focused on building inventory levels to meet increased demand for products [24] - A price increase was instituted in July to return gross margins to historical levels [24] - The company is retooling the Forsake brand and diversifying its factory base to improve product availability [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the wholesale business, with a 41% sales increase compared to last year [15] - There is optimism regarding holiday sales and the second half of the year despite mixed feedback from retailers about back-to-school sales [30] - Supply chain issues are still present but have improved, with expectations for better product availability in the future [32] Other Important Information - The company declared a cash dividend of $0.24 per share, payable on September 30, 2022 [13] - The company repurchased $2.5 million of its stock during the quarter, totaling 29,600 shares [36] Q&A Session Summary Question: Feedback from retailers regarding the shoe category amid high inflation - Management noted mixed feedback from retailers about the back-to-school season, attributing it to various factors including weather and online shopping convenience [29] Question: Insights on holiday sales - Retailers remain optimistic about holiday sales and the second half of the year [30] Question: Issues with Forsake brand - Management explained that supply chain issues and the need to diversify manufacturing have delayed product availability, with a relaunch planned for fall 2023 [31] Question: Status of supply chain issues - Progress has been made, but supply chain issues are not completely resolved [32] Question: Details on stock buyback - The buyback during the quarter amounted to 29,600 shares for $2.5 million [36]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 Or ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________________ to _____________________________ Commission File Number: 000-09068 WEYCO GROUP, INC. (Exact name of registrant as specified in its c ...