Weyco (US:WEYS)2025-03-14 16:40Sales 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].