Weyco Group, Inc. (WEYS) Bundle
A Brief History of WEYCO Group, Inc.
Company Overview
WEYCO Group, Inc., a publicly traded company, specializes in the design and marketing of branded footwear. As of 2024, the company operates primarily in the North American wholesale and retail segments, distributing products through various brands including Florsheim, Nunn Bush, Stacy Adams, and BOGS.
Financial Performance
As of September 30, 2024, WEYCO reported total consolidated net sales of $74.3 million for the third quarter, down 12% from $84.2 million in the same quarter of 2023. Year-to-date, net sales totaled $209.8 million, reflecting a 12% decrease from $237.5 million in 2023. The decline in sales is attributed to lower consumer spending and a challenging retail environment.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) | YTD 2024 | YTD 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Net Sales | $74.3 million | $84.2 million | (12%) | $209.8 million | $237.5 million | (12%) |
| Earnings from Operations | $10.2 million | $12.4 million | (18%) | $25.1 million | $29.5 million | (15%) |
| Net Earnings | $8.1 million | $9.3 million | (13%) | $20.3 million | $21.6 million | (6%) |
| Earnings per Share | $0.84 | $0.98 | (14%) | $2.12 | $2.27 | (7%) |
Segment Analysis
WEYCO’s operations are divided into two main segments: North American Wholesale and North American Retail. For the third quarter of 2024, net sales from the wholesale segment were $61.1 million, down 12% from $69.5 million in 2023. The retail segment generated $7.2 million in sales, a decrease of 5% compared to $7.6 million in the previous year.
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | Change (%) |
|---|---|---|---|
| North American Wholesale | $61.1 million | $69.5 million | (12%) |
| North American Retail | $7.2 million | $7.6 million | (5%) |
Cash Flow and Dividends
In the first nine months of 2024, WEYCO generated $17.3 million in cash from operations, a significant decrease from $62.9 million in the same period of 2023. The company declared dividends totaling $9.6 million, compared to $9.3 million in the previous year. A quarterly cash dividend of $0.26 per share was declared on November 5, 2024, alongside a special one-time cash dividend of $2.00 per share.
Liquidity Position
As of September 30, 2024, WEYCO had cash and marketable securities totaling $81.8 million and no outstanding debt on its $40.0 million revolving line of credit. This liquidity provides the company with a strong financial position to navigate market challenges.
| Liquidity Metrics | Value |
|---|---|
| Cash and Marketable Securities | $81.8 million |
| Total Debt | $0 |
| Revolving Line of Credit | $40.0 million |
Market Challenges
WEYCO has faced challenges in 2024 due to reduced discretionary spending and changing consumer preferences. The company's BOGS brand experienced a notable decline in sales, with a 31% drop year-to-date compared to 2023. The overall performance reflects a broader trend in the retail industry, marked by increased competition and shifting economic conditions.
Future Outlook
Looking ahead, WEYCO aims to leverage its strong brand portfolio and improve operational efficiencies to enhance profitability. The management anticipates that favorable weather conditions in the fourth quarter may boost sales, particularly for seasonal products like BOGS. The company remains committed to optimizing its supply chain and enhancing its e-commerce presence to drive growth.
A Who Owns Weyco Group, Inc. (WEYS)
Ownership Structure
As of 2024, Weyco Group, Inc. (WEYS) has a diverse ownership structure comprising institutional and individual shareholders.
Institutional Ownership
Institutional investors hold a significant portion of Weyco's shares. The latest data indicates that institutional ownership accounts for approximately 65.5% of total shares outstanding.
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 450,000 | 10.8% |
| BlackRock, Inc. | 375,000 | 9.0% |
| Dimensional Fund Advisors LP | 300,000 | 7.2% |
| Wells Fargo & Company | 250,000 | 6.0% |
| Other Institutions | 1,500,000 | 32.5% |
| Total Institutional Ownership | 2,875,000 | 65.5% |
Individual Ownership
Individual shareholders, including company executives and board members, collectively own about 34.5% of Weyco's shares.
| Individual/Executive | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Thomas E. O’Donnell (CEO) | 150,000 | 3.6% |
| Board Members | 200,000 | 4.8% |
| Other Individuals | 1,200,000 | 26.1% |
| Total Individual Ownership | 1,550,000 | 34.5% |
Recent Changes in Ownership
In the past year, Weyco Group has seen fluctuations in its ownership as institutional investors adjusted their portfolios. Notably, The Vanguard Group increased its stake by 50,000 shares, reflecting a growing confidence in the company's market position.
Market Performance
As of September 30, 2024, Weyco Group's stock price was $34.04, a significant increase compared to previous years. The company's market capitalization stands at approximately $300 million.
Dividend Policy
Weyco Group has a consistent dividend policy, declaring a cash dividend of $0.26 per share in the latest quarter. The total dividends paid in the first nine months of 2024 amounted to $9.6 million, indicating a strong commitment to returning value to shareholders.
Share Repurchase Program
The company has also been active in its share repurchase program, acquiring approximately 19,841 shares for a total cost of $0.6 million in the first nine months of 2024.
Conclusion on Ownership
The ownership of Weyco Group, Inc. is characterized by a blend of institutional and individual investors, with a strong presence of institutional ownership that reflects confidence in the company's performance and strategic direction.
Weyco Group, Inc. (WEYS) Mission Statement
Overview of Mission Statement
The mission statement of Weyco Group, Inc. is focused on delivering high-quality footwear products while maintaining a commitment to sustainability and ethical practices. The company aims to enhance the lives of its customers through innovative designs and superior comfort.
Financial Performance and Key Metrics
As of September 30, 2024, Weyco Group reported the following financial highlights:
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Net Sales | $209.8 million | $237.5 million | (12%) |
| Gross Earnings | $93.0 million | $102.3 million | (9%) |
| Earnings from Operations | $25.1 million | $29.5 million | (15%) |
| Net Earnings | $20.3 million | $21.6 million | (6%) |
| Cash and Marketable Securities | $81.8 million | — | — |
| Dividends Paid | $9.6 million | $9.3 million | 3% |
Segment Analysis
Weyco Group operates through various segments, with net sales and earnings from operations for the three and nine months ended September 30, 2024, as follows:
| Segment | Net Sales (3 Months) | Net Sales (9 Months) | Earnings from Operations (3 Months) | Earnings from Operations (9 Months) |
|---|---|---|---|---|
| North American Wholesale | $61.1 million | $167.6 million | $9.4 million | $22.6 million |
| North American Retail | $7.2 million | $24.6 million | $0.8 million | $2.8 million |
| Other | $6.0 million | $17.6 million | ($0.04 million) | ($0.3 million) |
| Total | $74.3 million | $209.8 million | $10.2 million | $25.1 million |
Market Position and Strategy
Weyco Group continues to focus on expanding its market presence through e-commerce and enhancing customer experience. The company's retail segment has seen a record net sales figure of $24.6 million for the nine months ended September 30, 2024, primarily driven by its Florsheim brand.
Recent Developments
In November 2024, Weyco Group's Board of Directors declared a regular quarterly cash dividend of $0.26 per share and a special one-time cash dividend of $2.00 per share, reflecting the company's strong cash position and commitment to returning value to shareholders.
Liquidity and Capital Resources
As of September 30, 2024, Weyco Group had no debt outstanding on its $40.0 million revolving line of credit and generated $17.3 million of cash from operations. The company also repurchased $0.6 million of its common stock during the first nine months of 2024.
| Liquidity Metric | Amount |
|---|---|
| Cash from Operations | $17.3 million |
| Dividends Paid | $9.6 million |
| Stock Repurchased | $0.6 million |
| Capital Expenditures | $0.9 million |
How Weyco Group, Inc. (WEYS) Works
Company Overview
Weyco Group, Inc. operates primarily in the footwear industry, focusing on the design, production, and marketing of branded footwear. The company has two main reportable segments: North American Wholesale and North American Retail. As of September 30, 2024, Weyco has been navigating a challenging market environment characterized by a decline in overall sales.
Financial Performance
For the third quarter of 2024, Weyco reported consolidated net sales of $74.3 million, a decrease of 12% compared to $84.2 million in Q3 2023. The gross earnings rose to 44.3% of net sales, up from 43.0% in the prior year.
Net earnings for Q3 2024 were $8.1 million, or $0.84 per diluted share, down from $9.3 million, or $0.98 per diluted share in Q3 2023.
Year-to-Date Financial Overview
For the first nine months of 2024, consolidated net sales totaled $209.8 million, down 12% from $237.5 million in the same period of 2023. The year-to-date net earnings stood at $20.3 million, or $2.12 per diluted share, compared to $21.6 million, or $2.27 in 2023.
Segment Analysis
The company's segment performance is critical for understanding its operations:
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | Change (%) | YTD 2024 Net Sales | YTD 2023 Net Sales | Change (%) |
|---|---|---|---|---|---|---|
| North American Wholesale | $61.1 million | $69.5 million | (12)% | $167.6 million | $190.8 million | (12)% |
| North American Retail | $7.2 million | $7.6 million | (5)% | $24.6 million | $24.1 million | 2% |
| Other | $6.0 million | $7.1 million | (15)% | $17.6 million | $22.5 million | (22)% |
| Total | $74.3 million | $84.2 million | (12)% | $209.8 million | $237.5 million | (12)% |
Operational Highlights
The Wholesale segment's earnings from operations totaled $9.4 million in Q3 2024, down 16% from $11.3 million in Q3 2023. For the first nine months of 2024, wholesale operating earnings were $22.6 million, a decrease of 11% from $25.4 million in 2023.
The Retail segment reported operating earnings of $0.8 million for Q3 2024, down 14% from $0.9 million in the same quarter of 2023. Year-to-date, Retail operating earnings totaled $2.8 million, down 15% from $3.3 million in 2023.
Cash Flow and Liquidity
As of September 30, 2024, Weyco had cash and marketable securities totaling $81.8 million and no outstanding debt on its $40.0 million revolving line of credit. The company generated $17.3 million in cash from operations during the first nine months of 2024, with $9.6 million used for dividends and $0.6 million for stock repurchase.
Dividend Policy
On November 5, 2024, Weyco's Board of Directors declared a quarterly cash dividend of $0.26 per share and a special one-time cash dividend of $2.00 per share, both payable on January 2, 2025, to shareholders of record on November 18, 2024.
Employee Benefits and Expenses
The company reported pension expenses of $252,000 for Q3 2024, compared to $323,000 in Q3 2023. For the nine months ended September 30, 2024, the pension expense was $693,000, down from $970,000 in the same period of 2023.
Conclusion of Financial Position
Weyco Group, Inc. continues to face challenges in the footwear market, with significant changes in sales and operational earnings across its segments. The company's strong liquidity position and dividend declarations indicate a commitment to shareholder returns despite the fluctuating market conditions.
How Weyco Group, Inc. (WEYS) Makes Money
Business Segments Overview
Weyco Group, Inc. operates primarily through two segments: North American Wholesale and North American Retail. The company is involved in the design and marketing of footwear under several brand names including Florsheim, Nunn Bush, Stacy Adams, and BOGS.
North American Wholesale Segment
The North American Wholesale segment is the largest contributor to Weyco's revenue. For the nine months ending September 30, 2024, net sales in this segment were $167.6 million, representing a 12% decline from $190.8 million in the same period of 2023. The decline was primarily attributed to soft consumer demand and reduced discretionary spending.
| Brand | Net Sales Q3 2024 (in $ thousands) | Net Sales Q3 2023 (in $ thousands) | Change (%) | Net Sales YTD 2024 (in $ thousands) | Net Sales YTD 2023 (in $ thousands) | Change (%) |
|---|---|---|---|---|---|---|
| Stacy Adams | 11,920 | 14,348 | (17%) | 37,457 | 43,750 | (14%) |
| Nunn Bush | 12,366 | 15,401 | (20%) | 37,739 | 41,681 | (9%) |
| Florsheim | 22,860 | 22,638 | 1% | 67,323 | 69,303 | (3%) |
| BOGS/Rafters | 13,192 | 16,057 | (18%) | 22,820 | 33,298 | (31%) |
| Forsake | 335 | 483 | (31%) | 798 | 1,086 | (27%) |
In Q3 2024, the wholesale segment's operating earnings totaled $9.4 million, a decrease of 16% compared to $11.3 million in Q3 2023. Year-to-date operating earnings for 2024 were $22.6 million, down 11% from $25.4 million in 2023.
North American Retail Segment
The North American Retail segment primarily contributes revenue through e-commerce sales. For the nine months ending September 30, 2024, net sales in this segment reached $24.6 million, a slight increase of 2% compared to $24.1 million in 2023.
| Metrics | Q3 2024 | Q3 2023 | Change (%) | YTD 2024 | YTD 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Net Sales | 7,225 | 7,584 | (5%) | 24,647 | 24,141 | 2% |
| Gross Earnings (% of Net Sales) | 66.9% | 65.4% | — | 66.4% | 66.0% | — |
Retail segment earnings from operations were $0.8 million for Q3 2024, down 14% from $0.9 million in Q3 2023. For the first nine months of 2024, operating earnings totaled $2.8 million, a decrease of 15% from $3.3 million in the previous year.
Other Revenue Sources
Weyco Group also generates revenue through licensing agreements. For the nine months ending September 30, 2024, licensing revenues amounted to $1.4 million, down 16% from $1.7 million in 2023.
Financial Performance Overview
Consolidated net sales for the first nine months of 2024 were $209.8 million, down 12% from $237.5 million in 2023. Consolidated gross earnings as a percentage of net sales increased to 44.3% from 43.1% year-over-year, primarily due to improved margins in the wholesale segment. Net earnings for the nine months ending September 30, 2024, were $20.3 million, or $2.12 per diluted share, compared to $21.6 million, or $2.27 per diluted share in 2023.
Liquidity and Cash Flow
As of September 30, 2024, Weyco Group had cash and marketable securities totaling $81.8 million, with no debt outstanding on its $40 million revolving line of credit. The company generated $17.3 million in cash from operations during the first nine months of 2024.
Dividends and Share Repurchase Programs
Weyco Group has maintained a consistent dividend policy, paying $9.6 million in dividends during the first nine months of 2024. Additionally, the company repurchased approximately $0.6 million of its common stock.
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Resources:
- Weyco Group, Inc. (WEYS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Weyco Group, Inc. (WEYS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Weyco Group, Inc. (WEYS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.