Weyco Reports Fourth Quarter and Full Year 2024 Results
Rhea-AI Summary
Weyco Group (NASDAQ: WEYS) reported Q4 2024 financial results with net sales remaining flat at $80.5 million compared to Q4 2023. The company achieved net earnings of $10.0 million, up 17% from $8.5 million in Q4 2023, with diluted EPS increasing to $1.04 from $0.90.
In the North American Wholesale segment, Florsheim sales grew 22% and Nunn Bush rose 4%, while BOGS declined 17% due to warm weather, and Stacy Adams dropped 8%. The retail segment saw a 1% increase to $14.1 million, driven by higher direct-to-consumer sales.
For full-year 2024, total net sales decreased 9% to $290.3 million, though the company achieved record net earnings of $30.3 million. The company faces new challenges in 2025 with additional U.S. tariffs on Chinese goods, prompting negotiations with suppliers and pricing reviews.
Positive
- Record net earnings of $30.3 million for full-year 2024
- Q4 net earnings up 17% to $10.0 million
- Florsheim sales grew 22% in Q4
- Retail segment achieved record sales of $38.7 million in 2024
- Interest income increased to $3.7 million from $1.1 million in 2023
Negative
- Overall net sales down 9% to $290.3 million in 2024
- BOGS sales declined 27% for full-year 2024
- Gross earnings decreased to 47.9% from 50.3% in Q4
- New tariffs on Chinese goods will increase costs
- Retail operating earnings down 21% to $5.3 million in 2024
News Market Reaction – WEYS
On the day this news was published, WEYS declined 1.77%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
MILWAUKEE, March 04, 2025 (GLOBE NEWSWIRE) -- Weyco Group, Inc. (NASDAQ: WEYS) (“we,” “our,” “us” and the “Company”) today announced financial results for the quarter and year ended December 31, 2024.
Fourth Quarter 2024 Overview
- Net sales:
$80.5 million (flat with Q4 2023) - Gross earnings:
47.9% of net sales (down compared to50.3% of net sales in Q4 2023) - Earnings from operations:
$11.5 million (flat with Q4 2023) - Net earnings:
$10.0 million (up17% compared to$8.5 million in Q4 2023) - Diluted earnings per share:
$1.04 (up from$0.90 in Q4 2023)
North American Wholesale Segment
Net sales in our wholesale segment totaled
Wholesale gross earnings as a percent of net sales were
North American Retail Segment
Net sales in our retail segment, which were generated mainly by our e-commerce websites, were
Retail gross earnings as a percent of net sales were
Other Operations
Our other operations historically included our retail and wholesale businesses in Australia, South Africa, and Asia Pacific (collectively, “Florsheim Australia”). We ceased operations in the Asia Pacific region in 2023 and completed the wind down of that business. Accordingly, fourth-quarter 2024 results of the “other” category only reflect the operations of Australia and South Africa.
Net sales of Florsheim Australia were
Florsheim Australia’s gross earnings as a percent of net sales were
Interest Income and Taxes
Interest income totaled
Full Year 2024 Overview
- Net sales:
$290.3 million (down9% compared to$318.0 million in 2023) - Gross earnings:
45.3% of net sales (up from44.9% of net sales in 2023) - Earnings from operations:
$36.6 million (down11% compared to$41.0 million in 2023) - Net earnings: record
$30.3 million (slight increase over 2023) - Diluted earnings per share:
$3.16 (versus$3.17 in 2023)
North American Wholesale Segment
Wholesale net sales were
Wholesale gross earnings as a percent of net sales were
North American Retail Segment
Retail net sales were a record
Retail gross earnings as a percent of net sales were flat at
Other Operations
Net sales at Florsheim Australia totaled
Florsheim Australia’s gross earnings were
Interest Income and Taxes
Interest income totaled
In early 2025, the U.S. government imposed additional tariffs on goods sourced from China. These tariffs will increase our cost of goods across all our brands. In an effort to mitigate the impact of the tariff cost increases, we have already begun negotiating price reductions with a number of our Chinese suppliers, and are in the process of reviewing our wholesale pricing for Fall.
“The benefits of a diversified, multi-brand portfolio were evident in the fourth quarter, as double-digit sales growth in our Florsheim business offset declines of our other brands, enabling us to uphold profitability for the period. All brands’ fourth-quarter performance improved relative to earlier quarters this year,” stated Thomas W. Florsheim, Jr., Chairman and CEO. “Looking forward to 2025, after three consecutive years of record-breaking net earnings and armed with a strong balance sheet, we believe we are in the best possible position to face current macroeconomic and geopolitical uncertainty. Our strategy is to continue to focus on the long-term health and growth of our business.”
Dividend Declaration
On March 4, 2025, our Board of Directors declared a regular quarterly cash dividend of
Conference Call Details
Weyco Group will host a conference call on March 5, 2025, at 11:00 a.m. Eastern Time to discuss the fourth quarter and full year 2024 financial results in more detail. To participate in the call, you will first need to pre-register online. Pre-registration takes only a few minutes, and you may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://register.vevent.com/register/BI7b39539564ca47b2b1f681b9b8062af2.
The pre-registration process will provide the conference call phone number and a passcode required to enter the call. A replay will be available for one year beginning about two hours after the completion of the call at the following webcast link: https://edge.media-server.com/mmc/p/g9efoyf2. The conference call will also be available in the investor relations section of Weyco Group’s website at www.weycogroup.com.
About Weyco Group
Weyco Group, Inc., designs and markets quality and innovative footwear principally for men, but also for women and children, under a portfolio of well-recognized brand names including: Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters, and Forsake. The Company’s products can be found in leading footwear, department, and specialty stores, as well as on e-commerce websites worldwide. Weyco Group also operates Florsheim stores in the United States, Australia, and South Africa.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Various factors could cause our results to be materially different from the results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the impact of inflation generally and, specifically, increases in our costs for materials, labor and other manufacturing inputs; the impacts of changes in trade policy, including tariffs imposed by the U.S. on goods sourced from China and other countries; a slow down or contraction in the overall U.S. or Australian economies; our ability to successfully market and sell our products in a highly competitive industry and in view of changing and unpredictable consumer trends; the effect of unseasonable weather conditions on the demand for certain of our products; our ability to successfully procure our products from independent manufacturers on a timely basis; consumer acceptance of products and other factors affecting retail market conditions, changes in interest rates, the uncertain impact of the wars in Ukraine and Israel and the related economic and other sanctions imposed by the U.S. and European Union; and other factors detailed from time to time in our filings made with the Securities and Exchange Commission, including our annual report on Form 10-K filed on March 14, 2024, which are incorporated herein by reference. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
For more information, contact:
Judy Anderson
Vice President, Chief Financial Officer and Secretary
414-908-1833
| WEYCO GROUP, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||
| Net sales | $ | 80,471 | $ | 80,590 | $ | 290,290 | $ | 318,048 | ||||||||
| Cost of sales | 41,947 | 40,029 | 158,765 | 175,165 | ||||||||||||
| Gross earnings | 38,524 | 40,561 | 131,525 | 142,883 | ||||||||||||
| Selling and administrative expenses | 26,985 | 29,056 | 94,911 | 101,859 | ||||||||||||
| Earnings from operations | 11,539 | 11,505 | 36,614 | 41,024 | ||||||||||||
| Interest income | 918 | 509 | 3,681 | 1,107 | ||||||||||||
| Interest expense | — | (7 | ) | (15 | ) | (529 | ) | |||||||||
| Other expense, net | (21 | ) | (307 | ) | (444 | ) | (738 | ) | ||||||||
| Earnings before provision for income taxes | 12,436 | 11,700 | 39,836 | 40,864 | ||||||||||||
| Provision for income taxes | 2,436 | 3,158 | 9,516 | 10,676 | ||||||||||||
| Net earnings | $ | 10,000 | $ | 8,542 | $ | 30,320 | $ | 30,188 | ||||||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 9,514 | 9,422 | 9,455 | 9,449 | ||||||||||||
| Diluted | 9,668 | 9,523 | 9,599 | 9,535 | ||||||||||||
| Earnings per share | ||||||||||||||||
| Basic | $ | 1.06 | $ | 0.90 | $ | 3.21 | $ | 3.19 | ||||||||
| Diluted | $ | 1.04 | $ | 0.90 | $ | 3.16 | $ | 3.17 | ||||||||
| Cash dividends declared (per share) | $ | 2.26 | $ | 0.25 | $ | 3.03 | $ | 0.99 | ||||||||
| Comprehensive income | $ | 9,270 | $ | 11,966 | $ | 29,697 | $ | 33,070 | ||||||||
| WEYCO GROUP, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) | ||||||||
| December 31, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (Dollars in thousands) | ||||||||
| ASSETS: | ||||||||
| Cash and cash equivalents | $ | 70,963 | $ | 69,312 | ||||
| Marketable securities, at amortized cost | 852 | 215 | ||||||
| Accounts receivable, net | 37,464 | 39,275 | ||||||
| Income tax receivable | 1,086 | 245 | ||||||
| Inventories | 74,012 | 74,890 | ||||||
| Prepaid dividend | 21,579 | 2,352 | ||||||
| Prepaid expenses and other current assets | 3,435 | 3,820 | ||||||
| Total current assets | 209,391 | 190,109 | ||||||
| Marketable securities, at amortized cost | 5,529 | 6,354 | ||||||
| Deferred income tax benefits | 1,037 | 1,096 | ||||||
| Property, plant and equipment, net | 28,180 | 29,504 | ||||||
| Operating lease right-of-use assets | 10,504 | 12,520 | ||||||
| Goodwill | 12,317 | 12,317 | ||||||
| Trademarks | 32,868 | 33,168 | ||||||
| Other assets | 24,260 | 24,274 | ||||||
| Total assets | $ | 324,086 | $ | 309,342 | ||||
| LIABILITIES AND EQUITY: | ||||||||
| Accounts payable | $ | 8,378 | $ | 8,845 | ||||
| Dividend payable | 21,579 | 2,352 | ||||||
| Operating lease liabilities | 4,033 | 3,979 | ||||||
| Accrued liabilities | 13,273 | 14,446 | ||||||
| Total current liabilities | 47,263 | 29,622 | ||||||
| Deferred income tax liabilities | 13,922 | 11,819 | ||||||
| Long-term pension liability | 9,888 | 13,412 | ||||||
| Operating lease liabilities | 7,034 | 9,531 | ||||||
| Other long-term liabilities | 394 | 465 | ||||||
| Total liabilities | 78,501 | 64,849 | ||||||
| Common stock | 9,643 | 9,497 | ||||||
| Capital in excess of par value | 72,577 | 71,661 | ||||||
| Reinvested earnings | 181,299 | 180,646 | ||||||
| Accumulated other comprehensive loss | (17,934 | ) | (17,311 | ) | ||||
| Total equity | 245,585 | 244,493 | ||||||
| Total liabilities and equity | $ | 324,086 | $ | 309,342 | ||||
| WEYCO GROUP, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
| Year Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| (Dollars in thousands) | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net earnings | $ | 30,320 | $ | 30,188 | ||||
| Adjustments to reconcile net earnings to net cash provided by operating activities - | ||||||||
| Depreciation | 2,483 | 2,579 | ||||||
| Amortization | 264 | 271 | ||||||
| Bad debt expense | 110 | 519 | ||||||
| Deferred income taxes | 1,057 | 2,462 | ||||||
| Net foreign currency transaction (gains) losses | (12 | ) | 99 | |||||
| Share-based compensation expense | 1,450 | 1,352 | ||||||
| Pension expense | 962 | 1,293 | ||||||
| Impairment of trademark | 300 | 450 | ||||||
| Loss on disposal of fixed assets | 36 | 59 | ||||||
| Increase in cash surrender value of life insurance | (738 | ) | (684 | ) | ||||
| Changes in operating assets and liabilities - | ||||||||
| Accounts receivable | 1,780 | 13,531 | ||||||
| Inventories | 821 | 53,047 | ||||||
| Prepaid expenses and other assets | (18,329 | ) | (358 | ) | ||||
| Accounts payable | (419 | ) | (6,074 | ) | ||||
| Accrued liabilities and other | (3,078 | ) | (982 | ) | ||||
| Income tax receivable | (857 | ) | 879 | |||||
| Net cash provided by operating activities | 16,150 | 98,631 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Proceeds from maturities of marketable securities | 215 | 1,960 | ||||||
| Proceeds from sale of investment securities | — | 107 | ||||||
| Purchases of property, plant and equipment | (1,386 | ) | (3,309 | ) | ||||
| Net cash used for investing activities | (1,171 | ) | (1,242 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Cash dividends paid | (9,688 | ) | (9,286 | ) | ||||
| Shares purchased and retired | (586 | ) | (4,338 | ) | ||||
| Net proceeds from stock options exercised | 51 | 103 | ||||||
| Payment of contingent consideration | — | (500 | ) | |||||
| Taxes paid related to the net share settlement of equity awards | (419 | ) | (186 | ) | ||||
| Proceeds from bank borrowings | — | 70,060 | ||||||
| Repayments of bank borrowings | — | (101,196 | ) | |||||
| Net cash used for financing activities | (10,642 | ) | (45,343 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (2,686 | ) | 390 | |||||
| Net increase in cash and cash equivalents | $ | 1,651 | $ | 52,436 | ||||
| CASH AND CASH EQUIVALENTS at beginning of year | 69,312 | 16,876 | ||||||
| CASH AND CASH EQUIVALENTS at end of year | $ | 70,963 | $ | 69,312 | ||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
| Income taxes paid, net of refunds | $ | 9,401 | $ | 7,115 | ||||
| Interest paid | $ | 15 | $ | 977 | ||||
