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Mar 31, 2020
Weyco Q1 2020 Earnings Report
Reported lower first quarter sales and earnings due to COVID-19 pandemic.
Key Takeaways
Weyco Group, Inc. reported a 14% decrease in net sales and a significant drop in earnings for the first quarter of 2020, primarily due to the impact of the COVID-19 pandemic, which led to widespread retail store closures and disruptions in its wholesale business.
Net sales decreased by 14% to $63.6 million compared to $74.1 million in Q1 2019.
Earnings from operations decreased to $1.3 million from $5.1 million in the same quarter last year.
Diluted earnings per share were $0.12, down from $0.40 in Q1 2019.
North American wholesale segment sales declined by 11%, while the North American retail segment saw a 15% decrease.
Weyco
Weyco
Weyco Revenue by Segment
Revenue by Segment
North American Wholesale Revenue
CapyFin.comNorth American Retail Revenue
CapyFin.comFlorsheim Australia Revenue
CapyFin.com Forward Guidance
The Company anticipates that the COVID-19 pandemic and resulting global economic slowdown will continue to adversely impact its businesses during 2020, but they believe they are in a strong financial position to get through these challenges.
Positive Outlook
- Strong balance sheet
- Operating expertise
- Distribution center and majority of supply chain continue to operate
- Continue shipping e-commerce orders
- Distribution system allows quick adaptation to changes in customer demand
Challenges Ahead
- Uncertainty regarding retail partners reopening stores
- Cannot presently estimate the future impact of COVID-19
- Global economic slowdown
- Expect adverse effect on business in 2020
- Retail store closures
Revenue & Expenses
Visualization of income flow from segment revenue to net income