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Mar 31, 2024
Weyco Q1 2024 Earnings Report
Weyco Group's first quarter results were announced, with sales down but retail segment showing growth.
Key Takeaways
Weyco Group reported a decrease in consolidated net sales by 17% to $71.6 million compared to the previous year. However, the retail segment achieved a record first-quarter net sales of $9.8 million, up 10%. Net earnings were $6.7 million, or $0.69 per diluted share, compared to $7.4 million, or $0.78 per diluted share, in the first quarter of 2023.
Consolidated net sales decreased by 17% to $71.6 million.
Retail segment net sales reached a record $9.8 million, a 10% increase.
Net earnings were $6.7 million, or $0.69 per diluted share.
Wholesale segment sales decreased by 20% to $56.2 million.
Weyco
Weyco
Weyco Revenue by Segment
Weyco Revenue by Geographic Location
Revenue by Segment
North American Wholesale Revenue
CapyFin.comNorth American Retail Revenue
CapyFin.comFlorsheim Australia Revenue
CapyFin.comRevenue by Geographic Location
Australia Revenue
CapyFin.comSouth Africa Revenue
CapyFin.com Forward Guidance
The company expects sales to remain soft through the second quarter but is optimistic that demand will improve in the back half of the year.
Positive Outlook
- Retail segment posted another record quarter, which is a testament to the strength of our brands across North America.
- Sell-throughs at wholesale remain strong.
- Gross margins improved as a result of lower inventory costs, primarily inbound freight.
- The Board of Directors declared a cash dividend of $0.26 per share, representing an increase of 4% above the previous quarterly dividend rate of $0.25.
- Optimistic that demand will improve in the back half of the year.
Challenges Ahead
- Wholesale volumes were down for the quarter, compared to a record first quarter last year.
- Results are reflective of broader industry headwinds, as retailers remain reluctant to place orders after struggling with high inventories last year.
- Sales of the Florsheim, Stacy Adams, and Nunn Bush brands were down 11%, 16%, and 13%, respectively, for the quarter, due to reduced demand following record sales growth early last year.
- Net sales of Florsheim Australia were down 26% from $7.5 million in the first quarter of 2023.
- Expect sales to remain soft through the second quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income