Core Insights - Weyco Group, Inc. reported a decline in earnings per share (EPS) to 84 cents for Q3 2024, down from 98 cents in the same quarter last year, representing a decrease of approximately 14% [1] - Net sales for the quarter totaled $74.3 million, reflecting a 12% decrease from $84.2 million in Q3 2023, indicating challenges in key markets due to reduced consumer demand and unseasonably warm weather [2][3] Financial Performance - Operating earnings declined 18% to $10.2 million, down from $12.4 million in the prior-year period, primarily due to lower sales volumes [7] - Gross earnings as a percentage of net sales improved slightly to 44.3% from 43% in Q3 2023, attributed to stringent cost control measures [5] - Interest income increased to $0.9 million from $0.3 million in Q3 2023, benefiting from higher cash balances [6] Segment Performance - In the North American wholesale segment, net sales were $61.1 million, a 12% decrease compared to $69.5 million in Q3 2023, with significant declines in Nunn Bush (20%), Stacy Adams (17%), and BOGS (18%) brands [8] - The Florsheim brand showed resilience with a 1% increase in sales, and gross earnings for the wholesale segment rose to 40.1% of net sales from 38.6% in Q3 2023 [9] - The North American retail segment generated $7.2 million in net sales, down 5% from $7.6 million in the previous year, with improved sales on Florsheim and Stacy Adams websites partially offsetting lower BOGS sales [10] Other Operations - Weyco's Australian and South African operations reported Q3 2024 net sales of $6 million, down 15% from $7.1 million in Q3 2023, primarily due to the cessation of Asia-Pacific operations [12][13] Balance Sheet Update - As of September 30, 2024, cash and cash equivalents totaled $75.5 million, up from $69.3 million at the end of December 2023, with total assets amounting to $314.7 million [14] Cash Flow and Dividends - Net cash provided by operating activities declined significantly to $17.3 million for the first nine months of 2024, compared to $62.9 million in the same period of 2023 [15] - The Board of Directors announced a special one-time cash dividend of $2.00 per share, alongside the regular quarterly cash dividend of 26 cents per share, reflecting a commitment to returning capital to shareholders [16]
Weyco's Q3 Earnings Fall Y/Y, Suffer From Reduced Consumer Demand