0000106532false00001065322024-08-062024-08-06

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):  August 6, 2024

WEYCO GROUP, INC.

(Exact name of registrant as specified in its charter)

Wisconsin

 

0-9068

 

39-0702200

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

333 W. Estabrook Blvd.

P. O. Box 1188

Milwaukee, WI

 

53201

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: (414) 908-1600

(Former name or former address, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock - $1.00 par value per share

WEYS

The Nasdaq Stock Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.02 Results of Operations and Financial Condition

The following information is being furnished under Item 2.02 of Form 8-K:

On August 6, 2024 Weyco Group, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2024. A copy of this press release is attached as Exhibit 99.1 to this Form 8-K. The information under this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

99.1

Press release issued by the registrant on August 6, 2024.

 

 

104

Cover Page Interactive Data File (formatted as inline XBRL)

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: August 6, 2024

WEYCO GROUP, INC.

 

 

 

/s/ Judy Anderson

 

Judy Anderson

 

Vice President, Chief Financial Officer and Secretary

Exhibit 99.1

WEYCO REPORTS SECOND QUARTER 2024 SALES AND EARNINGS

Milwaukee, Wisconsin---August 6, 2024---Weyco Group, Inc. (NASDAQ: WEYS) (“we,” “our,” “us” and the “Company”) today announced financial results for the quarter ended June 30, 2024.

Second Quarter 2024 Overview

Net sales: $63.9 million (down 5% compared to $67.0 million in Q2 2023)
Gross earnings: 43.9% of net sales (up from 43.3% of net sales in Q2 2023)
Earnings from operations: $6.7 million (flat with Q2 2023)
Net earnings: record $5.6 million (up 15% over previous record in Q2 2023)
Diluted earnings per share: $0.59 (up from $0.50 in Q2 2023)

North American Wholesale Segment

Net sales in our wholesale segment were $50.2 million, down 2% from $51.5 million in the second quarter of 2023. Second-quarter sales of the Florsheim and Nunn Bush brands were up 3% and 8%, respectively, with the increase at Nunn Bush due partly to a timing shift of shipments to a large retailer from third to second quarter.  Stacy Adams sales were down 10% for the quarter, mainly in the dress-shoe category. BOGS second-quarter sales were down 33%, as outdoor retailers continued to be cautious with orders after a recent period of oversaturation of inventories in the outdoor market. However, retailer inventory levels are starting to normalize, and we believe BOGS demand will improve as we enter the prime selling season for the brand in the back half of the year.

Wholesale gross earnings were 38.2% of net sales compared to 37.0% of net sales last year. Gross margins improved as a result of lower inventory costs. Wholesale selling and administrative expenses totaled $13.4 million for the quarter compared to $13.7 million last year. As a percent of net sales, wholesale selling and administrative expenses were flat at 27% in both 2024 and 2023. Wholesale operating earnings totaled $5.8 million for the quarter, up 8% from $5.4 million in 2023, primarily due to the impact of higher gross margins.  

North American Retail Segment

Net sales in our retail segment, which were generated mainly by our e-commerce websites, were flat at $7.6 million in both the second quarters of 2024 and 2023. Sales increases on the Florsheim and BOGS websites were offset by lower sales on our other brands’ websites this quarter.

Retail gross earnings as a percent of net sales were 67.5% and 66.2% in the second quarters of 2024 and 2023, respectively. Retail operating earnings were $0.7 million, down from $1.1 million in last year’s second quarter. The decrease was due to higher retail selling and administrative expenses this year, primarily web advertising and freight costs. Web advertising expenses in the second quarter of 2024 increased compared to last year’s second quarter due to the reallocation of certain expenditures historically charged to our wholesale segment that primarily benefit our websites.

Other Operations

Our other operations historically included our retail and wholesale businesses in Australia, South Africa, and Asia Pacific (collectively, “Florsheim Australia”). We ceased operations in the Asia Pacific region in 2023 and are in the final stages of winding down that business. As a result, the 2024 operating results of the “other” category primarily reflect that of Australia and South Africa.

Net sales of Florsheim Australia were $6.1 million, down 23% from $7.9 million in the second quarter of 2023, due largely to the closing of our Asia Pacific operations.  Sales in Australia were also down due to three fewer retail stores operating during the quarter, compared to the same period last year, and the mid-year 2023 loss of a sizeable wholesale customer.

Florsheim Australia’s gross earnings were 62.0% of net sales for the quarter and 62.4% of net sales last year.  Its operating earnings totaled $0.2 million for the period down from $0.3 million last year, as a result of lower sales.


Other Income / (Expense)

Interest income totaled $1.0 million in the second quarter of 2024 compared to $0.2 million in last year’s second quarter. This year included interest earned on higher cash balances in the U.S. and Canada.

“We are seeing signs of recovery within our wholesale business, with two of our major brands posting gains for the second quarter, and all brands’ performance improving relative to the first quarter of 2024,” stated Thomas W. Florsheim, Jr. Chairman and CEO. “We are pleased with these results in spite of inflationary pressures that persist, impacting consumer buying. Channel inventories have begun to normalize and, while ordering patterns remain conservative among U.S. retailers, we are anticipating an increase in at-once business in the second half of the year.”

On August 6, 2024, our Board of Directors declared a cash dividend of $0.26 per share to all shareholders of record on August 19, 2024, payable September 30, 2024.

Conference Call Details

Weyco Group will host a conference call on August 7, 2024, at 11:00 a.m. Eastern Time to discuss the second quarter 2024 financial results in more detail.  To participate in the call, you will first need to pre-register online. Pre-registration takes only a few minutes, and you may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://register.vevent.com/register/BI0df6b3e05d40441fa61e8df12529d329.

The pre-registration process will provide the conference call phone number and a passcode required to enter the call. A replay will be available for one year beginning about two hours after the completion of the call at the following webcast link: https://edge.media-server.com/mmc/p/c4dhrphx. The conference call will also be available in the investor relations section of Weyco Group’s website at www.weycogroup.com.

About Weyco Group

Weyco Group, Inc., designs and markets quality and innovative footwear principally for men, but also for women and children, under a portfolio of well-recognized brand names including: Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters, and Forsake. The Company’s products can be found in leading footwear, department, and specialty stores, as well as on e-commerce websites worldwide.  Weyco Group also operates Florsheim stores in the United States, Australia, and South Africa.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Various factors could cause our results to be materially different from the results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the impact of inflation generally and, specifically, increases in our costs for materials, labor and other manufacturing inputs, a slow down or contraction in the overall U.S. or Australian economies, our ability to successfully market and sell our products in a highly competitive industry and in view of changing and unpredictable consumer trends, our ability to successfully procure our products from independent manufacturers on a timely basis, consumer acceptance of products and other factors affecting retail market conditions, increased interest rates, the uncertain impact of the wars in Ukraine and Israel and the related economic and other sanctions imposed by the U.S. and European Union, and other factors detailed from time to time in our filings made with the Securities and Exchange Commission, including our annual report on Form 10-K filed on March 14, 2024, which are incorporated herein by reference. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

For more information, contact:

Judy Anderson

Vice President, Chief Financial Officer and Secretary

414-908-1833


WEYCO GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
(UNAUDITED)

Three Months Ended June 30, 

Six Months Ended June 30, 

    

2024

    

2023

    

2024

    

2023

    

(In thousands, except per share amounts)

Net sales

$

63,932

$

67,014

$

135,490

$

153,308

Cost of sales

 

35,840

 

38,007

 

75,391

 

87,139

Gross earnings

 

28,092

 

29,007

 

60,099

 

66,169

Selling and administrative expenses

 

21,431

 

22,307

 

45,187

 

49,083

Earnings from operations

 

6,661

 

6,700

 

14,912

 

17,086

Interest income

 

964

 

190

 

1,869

 

329

Interest expense

 

 

(132)

 

 

(517)

Other expense, net

 

(143)

 

(168)

 

(238)

 

(298)

Earnings before provision for income taxes

 

7,482

 

6,590

 

16,543

 

16,600

Provision for income taxes

 

1,875

 

1,726

 

4,286

 

4,291

Net earnings

$

5,607

$

4,864

$

12,257

$

12,309

Weighted average shares outstanding

 

Basic

9,429

9,440

9,433

9,461

Diluted

9,548

9,542

9,564

9,625

Earnings per share

Basic

$ 0.60

$ 0.51

$ 1.30

$ 1.30

Diluted

$ 0.59

$ 0.50

$ 1.28

$ 1.28

Cash dividends declared (per share)

$ 0.26

$ 0.25

$ 0.51

$ 0.49

Comprehensive income

$

5,741

$

5,210

$

11,372

$

12,448


WEYCO GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)

    

June 30, 

    

December 31, 

2024

2023

(Dollars in thousands)

ASSETS:

 

  

 

  

Cash and cash equivalents

$

78,407

$

69,312

Marketable securities, at amortized cost

 

 

215

Accounts receivable, net

 

37,338

39,275

Income tax receivable

332

245

Inventories

 

67,944

 

74,890

Prepaid expenses and other current assets

 

3,506

 

6,172

Total current assets

 

187,527

 

190,109

Marketable securities, at amortized cost

 

6,367

 

6,354

Deferred income tax benefits

 

1,074

 

1,096

Property, plant and equipment, net

 

28,566

 

29,504

Operating lease right-of-use assets

10,597

12,520

Goodwill

 

12,317

 

12,317

Trademarks

 

33,168

 

33,168

Other assets

 

24,203

 

24,274

Total assets

$

303,819

$

309,342

LIABILITIES AND EQUITY:

 

Accounts payable

$

4,573

$

8,845

Dividend payable

2,352

Operating lease liabilities

3,514

3,979

Accrued liabilities

 

10,865

 

14,446

Total current liabilities

 

18,952

 

29,622

Deferred income tax liabilities

 

11,837

 

11,819

Long-term pension liability

 

13,482

 

13,412

Operating lease liabilities

7,958

9,531

Other long-term liabilities

 

386

 

465

Total liabilities

 

52,615

 

64,849

Common stock

 

9,491

9,497

Capital in excess of par value

72,346

71,661

Reinvested earnings

 

187,563

 

180,646

Accumulated other comprehensive loss

 

(18,196)

 

(17,311)

Total equity

 

251,204

 

244,493

Total liabilities and equity

$

303,819

$

309,342


WEYCO GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

    

Six Months Ended June 30, 

    

2024

2023

(Dollars in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES:

 

  

 

  

 

Net earnings

$

12,257

$

12,309

Adjustments to reconcile net earnings to net cash provided by operating activities -

 

 

Depreciation

 

1,204

 

1,279

Amortization

 

133

 

137

Bad debt (recovery) expense

 

(2)

 

88

Deferred income taxes

 

(11)

 

55

Net foreign currency transaction losses (gains)

 

28

 

(9)

Share-based compensation expense

 

698

 

675

Pension expense

 

441

 

647

Loss on disposal of fixed assets

20

Increase in cash surrender value of life insurance

 

(210)

 

(210)

Changes in operating assets and liabilities -

 

 

Accounts receivable

 

1,948

 

18,982

Inventories

 

6,941

 

24,115

Prepaid expenses and other assets

 

2,800

 

2,167

Accounts payable

 

(4,264)

 

(9,305)

Accrued liabilities and other

 

(4,225)

 

(5,273)

Accrued income taxes

 

(90)

 

(2,003)

Excess tax benefits from share-based compensation

(73)

Net cash provided by operating activities

 

17,668

 

43,581

CASH FLOWS FROM INVESTING ACTIVITIES:

 

  

 

  

Proceeds from maturities of marketable securities

 

215

 

1,010

Purchases of property, plant and equipment

 

(344)

 

(1,381)

Net cash used for investing activities

 

(129)

 

(371)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

Cash dividends paid

 

(7,162)

 

(6,920)

Shares purchased and retired

 

(514)

 

(2,134)

Net proceeds from stock options exercised

 

24

Payment of contingent consideration

 

 

(500)

Taxes paid related to the net share settlement of equity awards

 

(173)

Proceeds from bank borrowings

 

 

63,047

Repayments of bank borrowings

(91,613)

Net cash used for financing activities

 

(7,676)

 

(38,269)

Effect of exchange rate changes on cash and cash equivalents

 

(768)

 

145

Net increase in cash and cash equivalents

$

9,095

$

5,086

CASH AND CASH EQUIVALENTS at beginning of period

 

69,312

16,876

CASH AND CASH EQUIVALENTS at end of period

$

78,407

$

21,962

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

Income taxes paid, net of refunds

$

4,337

$

6,273

Interest paid

$

$

808


v3.24.2.u1
Document and Entity Information
Aug. 06, 2024
Document and Entity Information [Abstract]  
Document Type 8-K
Document Period End Date Aug. 06, 2024
Entity Registrant Name WEYCO GROUP, INC.
Entity Incorporation, State or Country Code WI
Entity File Number 0-9068
Entity Tax Identification Number 39-0702200
Entity Address, Address Line One 333 W. Estabrook Blvd.
Entity Address, Adress Line Two P. O. Box 1188
Entity Address, City or Town Milwaukee
Entity Address State Or Province WI
Entity Address, Postal Zip Code 53201
City Area Code 414
Local Phone Number 908-1600
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock - $1.00 par value per share
Trading Symbol WEYS
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0000106532
Amendment Flag false

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