Weyco (US:WEYS) ZACKS·2025-03-10 19:05Core 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]