Weyco (US:WEYS)2019-11-08 16:26Financial Data and Key Metrics Changes - Net sales for Q3 2019 were $82.5 million, up 5% from $78.4 million in Q3 2018 [6] - Operating earnings increased to $8.5 million, a 5% rise compared to $8 million last year [7] - Net earnings attributable to Weyco Group rose 5% to $6.6 million, up from $6.3 million [8] - Diluted earnings per share were $0.66 this quarter, compared to $0.60 last year [9] Business Line Data and Key Metrics Changes - North American wholesale segment net sales were $67.8 million, up 7% from $63.2 million in 2018 [9] - Licensing revenues increased to $630,000 this quarter from $531,000 last year [10] - Retail segment net sales, including retail stores and U.S. e-commerce, were $5.2 million, up 4% from $4.9 million [11] - Operating earnings for the retail segment decreased to $365,000 from $428,000 last year [12] - Other operations, including Florsheim Australia and Florsheim Europe, had net sales of $9.5 million, down 7% from $10.3 million [13] Market Data and Key Metrics Changes - Florsheim business saw a 22% increase in sales, reflecting strong retail sell-throughs [21] - BOGS brand sales increased by 12% in North America [22] - Nunn Bush sales declined by 2%, primarily due to challenges in the department store channel [23] - Stacy Adams experienced a 5% sales decline, mainly from the off-price channel [24] - Overseas business was down 7%, with a 9% decrease in Florsheim Australia [26] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts by negotiating price increases with customers and reductions from suppliers [15][16] - There is an ongoing effort to diversify the supply chain and transfer some products to offset increased duties [30] - The company is investing in e-commerce growth as a key dimension of its business model [25] Management's Comments on Operating Environment and Future Outlook - Management noted that the tariff had a minimal impact on Q3 2019 results, but future impacts on gross margins and overall financials remain uncertain [16] - The company is optimistic about the momentum of the Florsheim business and plans to reset the international business for improved performance in 2020 [27] Other Important Information - Cash and marketable securities totaled $32.1 million, with $16.9 million outstanding on a $60 million line of credit [17] - The company declared a cash dividend of $0.24 per share, payable on January 2, 2020 [18] - Inventory levels increased to $81 million from $60 million year-over-year, driven by a strategy to stock up ahead of tariff impositions [28] Q&A Session Summary - No questions were raised during the Q&A session [32]