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Jun 30, 2023
Weyco Q2 2023 Earnings Report
Weyco Group's sales decreased, but earnings increased due to improved gross margins and expense control.
Key Takeaways
Weyco Group reported a decrease in net sales for the second quarter of 2023, but net earnings reached a record high due to improved gross margins and controlled expenses. The company faces headwinds in the second half of the year due to tough comparisons against the previous year's record results.
Consolidated net sales decreased by 10% to $67.0 million compared to the second quarter of 2022.
Consolidated gross earnings increased to 43.3% of net sales, up from 40.0% in the prior year.
Net earnings reached a record $4.9 million, or $0.50 per diluted share, an 8% increase over the previous record.
North American wholesale segment sales decreased, while retail segment sales reached a new record.
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
Weyco Group faces headwinds in the second half of the year due to tough comparisons against last year's record third and fourth quarter results, which were lifted by pipeline fill and strong consumer demand.
Positive Outlook
- Focused on investing in and developing our core brands for success over the long-run.
Challenges Ahead
- Sales eased during the second quarter, after 2022 and the first quarter of 2023 exhibited record-breaking growth.
- Reflects what is happening in the larger retail environment, as retailers are well-stocked with inventory.
- Headwinds going up against last year’s record third and fourth quarter results, which were lifted by pipeline fill and strong consumer demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income