Weyco Q1 2022 Earnings Report
Key Takeaways
Weyco Group reported record first-quarter net sales of $81.4 million, a significant increase compared to $46.9 million in 2021. Net earnings rose to $4.1 million, or $0.42 per diluted share, up from $1.3 million, or $0.14 per diluted share, last year.
Consolidated net sales reached a first-quarter record of $81.4 million, surpassing 2019 levels by 10%.
Wholesale segment net sales were a first-quarter record of $67.1 million, exceeding 2019 levels by 13%.
Retail segment net sales were a first-quarter record of $7.9 million, surpassing 2019 levels by 41%.
The Board of Directors declared a cash dividend of $0.24 per share, payable on June 30, 2022.
Weyco
Weyco
Weyco Revenue by Segment
Forward Guidance
The company anticipates continued headwinds in the near to medium term due to ongoing supply chain delays. However, the wholesale backlog remains strong, and the company looks forward to carrying on this positive momentum throughout the year.
Positive Outlook
- Strong demand in North American wholesale and retail segments.
- Wholesale backlog remains very strong.
- Supply chain shows indications of improving as inflows of product into the U.S. are increasing.
- Record first-quarter sales in wholesale and retail segments.
- Company received a large number of containers during the quarter which enabled it to fulfill much of the increased demand.
Challenges Ahead
- Anticipated continued headwinds in the near to medium term due to supply chain delays.
- Decrease in gross margins due to lower wholesale margins.
- Higher inbound freight costs impacted wholesale gross margins.
- Florsheim Australia's net sales fell 8% for the quarter.
- The weakening of the Australian dollar relative to the U.S. dollar also contributed to the decrease in Florsheim Australia's sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income