Weyco Group, Inc. (WEYS): Business Model Canvas [11-2024 Updated]
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Weyco Group, Inc. (WEYS) Bundle
Weyco Group, Inc. (WEYS) stands out in the competitive footwear industry with a well-defined Business Model Canvas that highlights its strategic approach to delivering quality products and maintaining strong customer relationships. This framework encompasses
- key partnerships with manufacturers and retailers
- innovative design and marketing activities
- diverse customer segments
Weyco Group, Inc. (WEYS) - Business Model: Key Partnerships
Collaborations with third-party overseas manufacturers
Weyco Group, Inc. collaborates with various overseas manufacturers to produce its footwear lines, leveraging global supply chains to optimize production costs. As of September 30, 2024, the company reported wholesale net sales of $61.1 million, contributing to a total of $167.6 million for the North American wholesale segment for the year-to-date period. This indicates the importance of overseas manufacturing in maintaining competitive pricing and product availability.
Licensing agreements for branded apparel and accessories
The company engages in licensing agreements to extend its brand presence in the market. For the three months ended September 30, 2024, licensing revenues amounted to $0.4 million, down from $0.5 million in the same period of 2023. This reduction reflects the challenges faced in maintaining licensing revenue streams, which are critical for brand expansion and market penetration.
Partnerships with leading footwear and specialty retailers
Weyco Group partners with prominent footwear and specialty retailers to enhance distribution and sales. The total net sales for the retail segment were reported at $7.2 million for the third quarter of 2024, slightly down from $7.6 million in the prior year. The partnerships with retailers are vital for promoting their brands and driving sales through established retail channels.
| Partnership Type | Details | Financial Impact (Q3 2024) |
|---|---|---|
| Overseas Manufacturers | Collaborations for production efficiency and cost management | Wholesale net sales: $61.1 million |
| Licensing Agreements | Brand extension through licensing | Licensing revenues: $0.4 million |
| Retail Partnerships | Sales through leading footwear retailers | Retail net sales: $7.2 million |
Weyco Group, Inc. (WEYS) - Business Model: Key Activities
Designing and marketing innovative footwear
Weyco Group focuses on designing and marketing a variety of footwear brands, including Florsheim, Nunn Bush, Stacy Adams, and BOGS. In the third quarter of 2024, net sales for the North American Wholesale segment amounted to $61.1 million, a decrease of 12% from $69.5 million in the same period in 2023. The decrease in sales is attributed to soft consumer demand and reduced discretionary spending. The company reported that Florsheim brand sales remained stable, showing a slight increase of 1% in the third quarter of 2024, with net sales reaching $22.9 million. The innovative marketing strategies and product designs aim to maintain brand relevance and appeal to diverse consumer segments.
Managing wholesale and retail operations
Weyco Group operates both wholesale and retail segments, with the former generating significant revenues. For the nine months ended September 30, 2024, the North American Wholesale segment accounted for net sales of $167.6 million, down from $190.8 million in 2023, marking a 12% decline. In contrast, the Retail segment saw slight growth, with net sales reaching $24.6 million year-to-date, an increase of 2% from $24.1 million in the previous year. The company’s retail operations primarily leverage e-commerce platforms, which are integral to its distribution strategy, allowing for a broader market reach and enhanced customer engagement.
E-commerce sales through dedicated websites
Weyco Group has prioritized e-commerce as a key channel for sales growth. In the third quarter of 2024, the Retail segment, driven mainly by online sales, achieved net sales of $7.2 million, although this represented a decrease of 5% compared to $7.6 million in the third quarter of 2023. The company's dedicated websites, particularly for brands like Florsheim and Stacy Adams, have shown resilience, with Florsheim experiencing a year-to-date increase due to effective marketing and product offerings. The shift towards online sales is a strategic response to changing consumer behavior, emphasizing the importance of digital presence in Weyco Group's business model.
| Key Activity | Q3 2024 Net Sales (in $ million) | Q3 2023 Net Sales (in $ million) | Change (%) |
|---|---|---|---|
| North American Wholesale | 61.1 | 69.5 | -12% |
| North American Retail | 7.2 | 7.6 | -5% |
| Florsheim Brand Sales | 22.9 | 22.6 | +1% |
Weyco Group, Inc. (WEYS) - Business Model: Key Resources
Established brand portfolio (Florsheim, Nunn Bush, etc.)
The Weyco Group manages a diverse portfolio of well-established footwear brands, including Florsheim, Nunn Bush, Stacy Adams, BOGS, and Forsake. As of September 30, 2024, the net sales from these brands were as follows:
| Brand | Net Sales (Dollars in thousands) | Change (%) |
|---|---|---|
| Florsheim | 67,323 | (3) |
| Nunn Bush | 37,739 | (9) |
| Stacy Adams | 37,457 | (14) |
| BOGS | 22,820 | (31) |
| Forsake | 798 | (27) |
| Total Wholesale | 166,137 | (12) |
Distribution network for wholesale and retail
Weyco Group employs a robust distribution network that spans both wholesale and retail operations. The company’s North American wholesale segment generated net sales of $61.1 million in the third quarter of 2024, which is a 12% decrease from the previous year. The retail segment, primarily driven by e-commerce, reported net sales of $7.2 million, reflecting a 5% decrease compared to the same quarter in 2023. The retail segment's year-to-date sales totaled $24.6 million, marking a 2% increase year-over-year.
Financial resources including cash and marketable securities
As of September 30, 2024, Weyco Group reported a strong financial position with 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, while it paid dividends amounting to $9.6 million and repurchased $0.6 million in common stock.
| Financial Metric | Value (Dollars in millions) |
|---|---|
| Cash and Marketable Securities | 81.8 |
| Revolving Line of Credit | 40.0 |
| Cash from Operations (YTD) | 17.3 |
| Dividends Paid (YTD) | 9.6 |
| Stock Repurchase (YTD) | 0.6 |
| Capital Expenditures (YTD) | 0.9 |
Weyco Group, Inc. (WEYS) - Business Model: Value Propositions
Quality and innovative footwear for men, women, and children
Weyco Group, Inc. offers a range of high-quality footwear products that cater to men, women, and children. In the third quarter of 2024, the company reported net sales of $74.3 million, a decline of 12% compared to $84.2 million in the same quarter of 2023. The decline was attributed to a soft consumer demand, particularly affecting brands like BOGS, which saw a 18% decrease in net sales for the quarter compared to the previous year. Despite this, the company continues to emphasize quality and innovation in its product lines, which remains a cornerstone of its value proposition.
Strong brand recognition and customer loyalty
Weyco Group has established strong brand recognition through its diverse portfolio, which includes brands like Florsheim, Stacy Adams, and Nunn Bush. As of September 30, 2024, the company had cash and marketable securities totaling $81.8 million, indicating a robust financial position that supports its marketing and brand-building efforts. The retail segment, which generated $24.6 million in net sales for the nine months ended September 30, 2024, experienced a 2% increase from $24.1 million in the same period of 2023. This growth reflects the loyalty of its customer base and the effectiveness of its branding strategies.
Diverse product offerings across multiple categories
Weyco Group's product offerings are diverse, spanning various categories including dress, casual, and outdoor footwear. In the North American wholesale segment, the sales breakdown for the third quarter of 2024 showed that Florsheim contributed $22.9 million, while Nunn Bush and Stacy Adams generated $12.4 million and $11.9 million, respectively. This diversification allows the company to mitigate risks associated with market fluctuations and changing consumer preferences, thereby enhancing its overall value proposition.
| Brand | Q3 2024 Net Sales (in thousands) | Q3 2023 Net Sales (in thousands) | Percentage Change |
|---|---|---|---|
| Florsheim | $22,860 | $22,638 | 1% |
| Nunn Bush | $12,366 | $15,401 | (20%) |
| Stacy Adams | $11,920 | $14,348 | (17%) |
| BOGS/Rafters | $13,192 | $16,057 | (18%) |
| Forsake | $335 | $483 | (31%) |
This table illustrates the varying performance of Weyco Group's brands in the third quarter of 2024 compared to the same period in 2023. The mixed results highlight both challenges and opportunities within its diverse product offerings, reinforcing the company's commitment to innovation and quality across different market segments.
Weyco Group, Inc. (WEYS) - Business Model: Customer Relationships
Direct engagement through e-commerce platforms
In 2024, Weyco Group's North American Retail segment generated net sales of $24.6 million for the first nine months, reflecting a 2% increase compared to $24.1 million in the same period of 2023. This growth was primarily driven by increased sales on the Florsheim website, despite a 5% decline in the third quarter, where net sales reached $7.2 million, down from $7.6 million in the same quarter of the previous year.
Customer support via retail stores and online channels
The retail gross earnings for Weyco Group were 66.4% of net sales in the first nine months of 2024, slightly up from 66.0% in 2023. Selling and administrative expenses for the Retail segment totaled $4.0 million in the third quarter of 2024, which represented 56% of net sales, compared to 53% in the same quarter of 2023. For the nine months ended September 30, 2024, these expenses amounted to $13.6 million, or 55% of net sales, an increase from $12.6 million, or 52% of net sales, in the same period of 2023.
Loyalty programs to retain and engage customers
Weyco Group has invested in enhancing its customer engagement strategies through loyalty programs and targeted advertising. The company allocated higher web advertising costs in 2024, which were largely due to the reallocation of expenditures historically charged to the Wholesale segment. This strategic shift is aimed at improving customer retention and engagement across its e-commerce platforms.
| Metrics | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Retail Net Sales | $24.6 million | $24.1 million | 2% |
| Third Quarter Net Sales | $7.2 million | $7.6 million | -5% |
| Retail Gross Earnings (% of Net Sales) | 66.4% | 66.0% | 0.4% |
| Selling and Administrative Expenses (Q3) | $4.0 million | $4.0 million | 0% |
| Selling and Administrative Expenses (% of Net Sales) | 56% | 53% | 3% |
| Total Selling and Administrative Expenses (9 Months) | $13.6 million | $12.6 million | 8% |
Weyco Group, Inc. (WEYS) - Business Model: Channels
Wholesale distribution to department and specialty stores
Weyco Group, Inc. operates a robust wholesale distribution channel, primarily focusing on department and specialty stores across North America. For the third quarter of 2024, the North American Wholesale segment reported net sales of $61.1 million, a decrease of 12% compared to $69.5 million in the same quarter of 2023. Year-to-date, wholesale net sales totaled $167.6 million, down 12% from $190.8 million in 2023.
Wholesale operating earnings for the third quarter were $9.4 million, down 16% from $11.3 million a year earlier. For the nine months ended September 30, 2024, wholesale operating earnings were $22.6 million, down 11% from $25.4 million in 2023.
The decline in sales was attributed to soft consumer demand, influenced by reductions in discretionary spending. The company faced challenges particularly with its BOGS brand, which experienced a 31% drop in sales year-to-date.
Direct-to-consumer sales through e-commerce websites
Weyco Group has significantly invested in its direct-to-consumer sales channels through e-commerce platforms. In the third quarter of 2024, net sales from the North American Retail segment, which is largely driven by e-commerce, were $7.2 million, reflecting a 5% decrease from $7.6 million in the prior year. However, for the year-to-date, retail net sales reached a record $24.6 million, an increase of 2% compared to $24.1 million in 2023.
The gross earnings for the retail segment were 66.9% in Q3 2024, up from 65.4% in Q3 2023. Selling and administrative expenses for the retail segment were $4.0 million for Q3 2024, representing 56% of net sales.
Brick-and-mortar retail locations
Weyco Group also maintains a presence through its brick-and-mortar retail locations. Despite the growth in e-commerce, brick-and-mortar sales saw a slight decline in both the third quarter and the first nine months of 2024. The North American Retail segment's brick-and-mortar sales have been impacted by the overall market conditions.
As of September 30, 2024, Weyco's operating lease liabilities related to retail locations were $12.3 million, with total lease costs for the third quarter amounting to $1.2 million.
| Channel Type | Q3 2024 Net Sales | Q3 2023 Net Sales | Year-to-date 2024 Net Sales | Year-to-date 2023 Net Sales | Change (%) |
|---|---|---|---|---|---|
| Wholesale Distribution | $61.1 million | $69.5 million | $167.6 million | $190.8 million | -12% |
| Direct-to-Consumer (E-commerce) | $7.2 million | $7.6 million | $24.6 million | $24.1 million | +2% |
| Brick-and-Mortar Retail | Not specified | Not specified | Not specified | Not specified | Decline |
Weyco Group, Inc. (WEYS) - Business Model: Customer Segments
Primary focus on adult men for footwear
The primary market segment for Weyco Group, Inc. is adult men, specifically targeting their footwear needs. The company offers a variety of brands focused on this demographic, including Florsheim, Stacy Adams, and Nunn Bush. As of 2024, net sales for the North American Wholesale segment indicated a decline, with Florsheim generating $67.3 million for the nine months ended September 30, 2024, down from $69.3 million in the same period of 2023, reflecting a 3% decrease.
Secondary markets include women and children
While the primary focus is on men's footwear, Weyco also addresses secondary markets that include women and children. The brand BOGS, which targets outdoor footwear, reported net sales of $22.8 million for the nine months ended September 30, 2024, a significant decline of 31% compared to $33.3 million in 2023. This decline is attributed to reduced discretionary spending and unseasonably warm weather affecting seasonal sales .
E-commerce shoppers and retail customers
Weyco Group has been increasingly focused on e-commerce, with retail net sales through online platforms reaching $24.6 million for the nine months ended September 30, 2024, up 2% from $24.1 million in 2023. However, total retail sales, including brick-and-mortar, were slightly down, indicating a shift in consumer purchasing behavior towards online shopping.
| Segment | 2024 Net Sales (in millions) | 2023 Net Sales (in millions) | Change (%) |
|---|---|---|---|
| Florsheim (Men's Footwear) | $67.3 | $69.3 | -3% |
| BOGS (Children's/Outdoor Footwear) | $22.8 | $33.3 | -31% |
| North American Retail (E-commerce) | $24.6 | $24.1 | +2% |
The data reflects the challenging market conditions affecting Weyco's customer segments, with a focus on adjusting strategies to cater to the evolving preferences of both men and the broader family market through enhanced e-commerce initiatives .
Weyco Group, Inc. (WEYS) - Business Model: Cost Structure
Manufacturing costs from overseas suppliers
Weyco Group, Inc. incurs significant manufacturing costs from overseas suppliers, which are primarily associated with the production of footwear. The cost of sales does not include distribution costs, which are categorized under selling and administrative expenses. In 2024, the cost of sales for the North American Wholesale segment was reported at approximately $100 million, reflecting a decrease from previous years due to lower sales volume. The company’s gross earnings for this segment were 40.1% of net sales in the third quarter of 2024.
Marketing and advertising expenditures
Marketing and advertising expenditures have seen notable changes in 2024. The retail selling and administrative expenses, which include advertising costs, totaled $4.0 million for the third quarter of 2024, maintaining the same level as the previous year. However, as a percentage of net sales, these expenses rose to 56% in the third quarter of 2024, compared to 53% in the third quarter of 2023. Year-to-date, retail selling and administrative expenses reached $13.6 million in 2024, up from $12.6 million in 2023, primarily due to increased web freight and advertising costs.
Operating expenses for retail and e-commerce
Operating expenses for the retail and e-commerce segments include freight, employee costs, rent, and occupancy costs. For the North American Retail segment, net sales were $7.2 million in the third quarter of 2024, down 5% from $7.6 million in the same period of 2023. Retail gross earnings as a percentage of net sales were 66.9% in the third quarter of 2024. The operating lease costs for retail locations totaled $1.156 million for the third quarter of 2024. Overall, total operating expenses for the retail segment were approximately $4.0 million for the third quarter of 2024, which reflects the fixed nature of many of these costs as they do not vary significantly with sales volume.
| Cost Category | 2024 Q3 Amount (in $ millions) | 2023 Q3 Amount (in $ millions) | Year-to-Date 2024 Amount (in $ millions) | Year-to-Date 2023 Amount (in $ millions) |
|---|---|---|---|---|
| Manufacturing Costs | 100 | Not specified | Not specified | Not specified |
| Marketing and Advertising | 4.0 | 4.0 | 13.6 | 12.6 |
| Operating Expenses (Retail) | 4.0 | Not specified | Not specified | Not specified |
| Operating Lease Costs | 1.156 | 1.119 | 3.378 | 3.744 |
Weyco Group, Inc. (WEYS) - Business Model: Revenue Streams
Product sales from wholesale and retail operations
The primary revenue stream for Weyco Group, Inc. consists of product sales generated through its North American Wholesale and Retail segments. For the nine months ended September 30, 2024, the company's net sales were as follows:
| Segment | Net Sales (2024) (in thousands) | Net Sales (2023) (in thousands) | Change (%) |
|---|---|---|---|
| North American Wholesale | $167,573 | $190,833 | (12)% |
| North American Retail | $24,647 | $24,141 | 2% |
| Other | $17,599 | $22,484 | (22)% |
| Total | $209,819 | $237,458 | (12)% |
In the third quarter of 2024, the Wholesale segment reported net sales of $61,075, down 12% from $69,472 in the same quarter of 2023. The Retail segment generated $7,225 in net sales for the third quarter of 2024, a decrease of 5% compared to $7,584 in 2023.
Licensing revenues from third-party agreements
Weyco Group also earns revenue through licensing agreements. For the nine months ended September 30, 2024, licensing revenues amounted to $1,436,000, a decrease from $1,715,000 in the same period of 2023, representing a decline of 16%. In the third quarter of 2024, licensing revenues were $402,000, compared to $545,000 in the third quarter of 2023, reflecting a 26% decrease.
E-commerce sales from direct consumer purchases
The company's retail operations have increasingly shifted toward e-commerce channels, contributing significantly to revenue. For the nine months ended September 30, 2024, retail net sales reached a record $24,647,000, up 2% from $24,141,000 in 2023. In the third quarter of 2024, e-commerce sales were influenced by performance variances across different brand websites, with total retail sales at $7,225,000.
Updated on 16 Nov 2024
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.