Weyco (WEYS) - 2024 Q3 - Quarterly Report

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]