Weyco (WEYS) 6 Nov 242024 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to Weyco Group Inc.

Third Quarter 2024 Earnings Release Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Judy Anderson, Chief Financial Officer. ahead. go Please .

morning, to Good to Group's Weyco Thank third and quarter call discuss XXXX conference you. welcome results.

and and On the Chairman Florsheim, Officer; Jr., Tom are Officer. President John call with and me Chief today Chief Operating Florsheim, Executive

results Before the will statement. quarter, cautionary for we brief discuss a I to begin the read

caution concerning statements make the the and future just performance of we During other that or statements events this may actual call, these regarding materially. results future forward-looking We you wish predictions and may to company. or are projections our that current expectations events financial differ

factors We entitled XX-K These by results materially herein products. and from most part, which our factors in impact to of could factors refer reference. Form on the slowdown the discussion our U.S. to uncertain recent macroeconomic in differ are may They and a rates that or you actual Changes for inflation incorporated important contraction Australian of or consumers that the Risk Factors risk interest our projections. provides economies. on cause our and in cost section annual a report our risks include, in other cause

XX.X% $XX.X $X.X totaled from million million Quarterly to diluted were in XX% segment. were gross our million, net diluted sales earnings due Quarterly $XX.X operations to third net the last . Net last XXXX. third year. compared XXXX. in to year's per per $X.XX share XX.X% last million, sales $XX.X were or of selling a in increased XXXX, higher North compared a margins year, earnings North our were Wholesale to quarter sales to XX.X% expenses quarter $X.X compared mainly in were quarter wholesale million, American for as share for $XX.X as American percent earnings XX% in down to as in commission-based Overall million million our a quarter of segment gross net gross last million exceeded last to lower from from Consolidated year mainly segment while or $XX.X $XX.X compared Wholesale XX% percent from million Florsheim in down increased administrative XX% sales $X.XX earnings of million compared net prior down result wholesale other of lower year. $XX.X the XXXX. to third brands employee sales costs, the down compensation. and year. segment $XX.X

our costs million operating last year the totaled selling percent nature in The fixed the $X.X Wholesale many as of of and As XX% vary for a of were a and in not lower sales. quarter from XX% administrative XX% $XX.X earnings down are result sales, sales increase third as was quarter net percent respectively. XXXX, and sales. million of and because net do expenses a with XXXX of

partially on Net $X.X sales of e-commerce in million Lower mainly on Florsheim and by as year. retail our mild Stacy $X.X sales our last from were X% million were website American higher for website our by the websites, offset this quarter, North down segment, the our quarter. result generated fall a which BOGS Adams were sales

respectively. Retail $XXX,XXX last were in versus of quarter segment earnings sales XX.X% the as the net Retail a for third and and of $XXX,XXX gross XX.X% XXXX earnings quarters totaled XXXX, year. percent operating

include Asia the Florsheim Australia Africa. down substantially and Asia as XXXX Pacific completed referred South retail businesses results wholesale Pacific, Africa to Australia. Therefore, Australia, in operations and have other Our historically and region and We wind operating the ceased operations collectively that XXXX in business. third of in South included quarter our only

operations. period the last million, impact operating fewer $X Sales closing sales net The and last in entirely third X% $X.X X earnings decrease quarter Asia were the same-store year. was in X of XXXX. the XX.X% $XXX,XXX for of quarter Florsheim Australia XX% to almost X% to Its down the the sales Pacific stores compared year. earnings to earnings gross net for million of year. the due XX.X% from were quarter last were Australia quarter. sales Australia same due were were of up Net of down from Florsheim for Australia's of of down operating sales the period, the operating our for

cash $XXX,XXX third our on totaled no balances to September million, income cash included the At on quarter. line outstanding our securities quarter year marketable $XX.X Interest and XXXX, of XXXX and credit. in million totaled year's higher This of interest revolving Canada. XX, $XXX,XXX third in in had debt earned and compared last U.S. $XX the we

the first used we earnings, to cash mainly XXXX, $XX.X from net of months million generated million from funds $X.X During of operations, X in pay and dividends.

between and of also and $XXX,XXX stock $X of expenditures We We capital million. annual XXXX company $XXX,XXX be $X had repurchased estimate expenditures. million will that capital

XXXX. of Directors a dividend $X.XX per record our shareholders to XXXX, XX, XXXX, Board January X, declared payable November On X, share November cash of all of on

our over would call Additionally, dividend share shareholders Jr., our of all per a XX, turn of XXXX, X, payable to January on Tom XXXX, record and declared The CEO. to now $X and on Board Directors of the Florsheim, November X, like XXXX. November I Chairman cash special to onetime

in everyone. down morning, as quarter North good our It business was XX%. and sales a wholesale challenging American Judy, were Thanks,

sales limited are We being consumers and have accordingly. an market funds which economic are impacted footwear facing discretionary in environment

improve. growth division, BOGS outlook the category retail our belief when remain down its quarter. While near-term in conditions the that confident well were XX% is for Outdoor sales uncertain, we our brand respective each in . In is for positioned

particularly previous pressure boot outdoor for years. in been calls, better of has discussed under the X market conference weather As category, the the part

an alike reached equilibrium finally up excess in During XXXX. industry record for been brands, the has since gear BOGS, fall pandemic, including then, inventory, retailers resulted believe for working and consumers on sales loaded we many outdoor the and through we

the need inventory, wholesale which if effects impacted they of country XX% premise operating negatively be the business. extended a throughout have affected our quarter. it adverse However, by are our weather dry to wait-and-see BOGS available we many for regarding has result down is will was The advanced the taking market. retailers seen that in approach and orders, the under demand mild which the weather The business, e-commerce that the

While our success XXXX returning brand weather balance the for of depends with the fall BOGS winter and to on normal.

on term, weather the are business. focused of sensitivity the For long we the reducing

construction our the category. and of Towards our twice sales our XX% commonly used in the is we lighter down ag have collection, vulcanized construction durable as that channel goal, farm trade in as which and introduction with effort built seamless more the

to our and weather products and penetration in less this retailers farm is that it trade this market. take utilizes expand progress are ag to channel making The will but BOGS dependent year-round, time cater in we category,

We and are X-season kids women's of make also us to help for introducing seamless brand a collections, our in which BOGS base. will this construction less insulated lifestyle lighter, products more customer

stretch brand, has that long-term for rightsized forward. the with built move BOGS It partners our match weather inventory to changes. products the rekindling BOGS are help challenging retail been demand What's will having agenda on with a is next

Nunn Florsheim Our Bush combined Stacy up X%, and down was legacy XX%, down with XX% down business XX%. Adams

of for dress brief some trending resulted time, This and As weddings from emerging when more in for away a categories. except retailers toward for category, downtrend period occasions. footwear dress down and a has a funding other shifting pandemic there the been dressy footwear burst was

has is context, good footwear market. in share true this of strides refined over Given last continues quarter, the few segments performance the made including years, Florsheim's pick and category Florsheim the to this the solid. very and in hybrid up market casual

that brand maintain Adams had footwear dress-oriented accounts the The brand product of consideration is footwear for hybrid assortment. part in the Stacy Adams in in lineup is accessible market and well, especially performing challenge refined remains contemporary fashion as an dress that retail the evolving The Stacy difficult Our footwear. is leader casual more quarter. a with the important segment so

take it lifestyle While are particularly will traction hybrid at category. in product, the getting we with retail time, casual

consumer. brand consumers on cut Our in as value-oriented more purchases. back Nunn the caters discretionary quarter these to saw reduced Bush a third demand price-sensitive We

a third quarter. large to Nunn significant the sales due decrease shift second to quarter a Bush's addition, from In a in in was shipments of portion retailer to of third timing

volume of the about Nunn good we feel trajectory Bush business. drop, the Despite future the

the We sales. the have The brand driven market within price well decrease in in promotionally been positioned Retail a down Nunn sensitive in X% e-commerce direct-to-consumer legacy business compared sales Overall, also for is most Bush by as casual value primarily Bush the Nunn to reinvented has last the BOGS proposition sales were quarter retail our strong comfort portfolio. year. with technology. decline oriented. more our and was innovative and

the operations South closing were for at referenced, Judy Australia Pacific sales the remaining As include Asia closing result Sales New our region. Africa of Australia, the operations period. markets, Florsheim the and the Zealand in was in which of our drop flat in --

finding Australia consumers are environment that the very America, very pressure We similar economic with to discretionary under purchases. be North in to conservative of their in and

balances $XX.X XXXX, XX, June million, of as inventory million overall at September $XX.X Our from was up XX.

to that our our have call, inventory last customers in meet are fourth support conference demand our explained quarter to during both businesses. the to bring our make enough from up for wholesale items As we core e-commerce and inventories sure our we to continuing

from are with We an are where we comfortable standpoint. inventory

to XX% last margin gross compared Our overall was year. XX.X%

focused on in comfortable keeping also are We our are this them and margins with range.

As This fund years, necessary directors yesterday, of of regular amount dividend and result of performance our led for capital Board dividend. Judy expenditures declared the is the which past full a our to financial capital alongside few the special return cash our corporate in a of over buildup quarterly strong our to operations, shareholders obligations. cash mentioned excess onetime to of

future our sheet in for to opportunistic the to our now your Group, open you believe interest Weyco with to business organic questions. concludes us we invest in formal repurchases. our remarks. allow liquidity ahead, opportunities and respect Looking balance like for call your strategic I would growth, will to This Thank fund to and share and strong continue remain

Our Trust. first of the question Henry from comes Instructions] of [Operator you. Wright line Thank Investment David

Judy, surprise Thank I the with a Board special management the you, capital Tom, shareholders. to nice morning. and good want say for dividend, to to John thanks and returning

thank you excellent governance and there in with mind another think a job very appreciated. much. I shareholders example does the and it's and that the everyone disclosures lots It's of that running of company just

that's a Okay. fair Well, trade.

went how talk brands terms less Forsake really the wondered could is all fits and one But of revenue You Forsake. take more balanced your talk don't their if we different about sizes. are I that -- that talk the you of about well pretty that's minute over brands about a And or in. in and small

X% sense the than that it Forsake, It is a oversaturated would in had less we And bought John. became market factor do, of mean of be outdoor the future. gear out trouble doesn't gear sales. to be performance in has Everybody we will company. our thought brand. little it's similar I into hiking growing that the of really Sure. A the pandemic. you, bit with XXXX. honest BOGS our This outdoor be It's outdoor and that to the people buying coming the into of to lot

the just came is what oversaturated we bought of pandemic, that and created And XXXX. brand became outdoor market product. as Forsake growing with we But the the in had terms out us that some challenges of happened in that for shifted

up. challenges. We're it's opens keep But brand challenging the date, for situation. trying moving new working with a forward to through out Forsake, these been products this to as outdoor we're the So market coming

thing I talking that has hard to -- time, part last outdoor tough And performance. market just around, been just he We do It's were the is said, been couple it's little to brand very we been and the to of not that going because it great. standpoint of cited, has we hard turning make add that bit so to been to the reasons is the about the brand because the that Yes. us us is to it's say absorbed. what of years, give judge with going where feel whole BOGS brand's of to that for want the John would from for inventory or going this this market a not it outdoor

that boot a more We younger that really Forsake consumer. a But still interesting It's sneaker a need a we positioning. It's place BOGS. think some winter different has appeals brand of than to in weather.

product. so out building a said, as sales the really and force, And spent we've time updating this John

really up said, and we like -- can't small, very, so very than John And business, -- it's a chance we that opens less though X% a market we this as to even give of happen until the bit. that, want it feel and

of Okay. ready which up the the And fourth hard building a sort season. season? business Kind But a then, Tom, -- you the little for bit be as holiday were as is to related of give back wonder quarter, much . less. how about holiday or of talking your to the shoes but present to somebody more to quantifiable I being is inventory

That's a good question.

is because coats and I good think winter they more people see is to fall. typically it's a that weather. the what fall that boots just we pretty for us need and the month for buying October gear are related

so it's parties that, to. and we more period, also they're see things holiday in And that during think the like people for -- buying going I

of seasonal and you all of during kind But I parties agree gift-giving we type So trend period. the that just see of aspect not pickup the there's item. parties. more do year-end of and a holiday with it it's big a then a that of dress because

the just And public might great. think any for shareholder-friendly a corporation company I act. who emulate you Well, of And to you really good should other model it. said a want standard are corporation,

So . thanks very much.

Our John Deysher Pinnacle. next comes of line question of the from

holidays. of color you're for is X A One, terms just quick up up couple from holiday of the weeks of is wondering Thanksgiving we're kind season I'm getting away. what retailers about on shaping brands? your coming the questions. how this in

space is to a been I in conference the good But brands, calendar, limited, about fall mean through retail everyone these which of footwear talked that sort Thanksgiving think that -- challenge. is couple the market of discretionary athletic kind for working challenges. it's week market end call, spending the There's of impacting having are more run. we're month, the the is about very a another This of market. holiday in actually I else, at has been a and cuts season, which of the Yes. we what the sluggish the be seems

that's we're help So we retail if get will things the to weather environment -- hopeful up, group very especially around weather now, right business, some outdoor But our turn is that and business. soft. pick going really it's

Okay.

wait So at this of it's kind see . and point

. Yes.

the revolver in it? the to that what's able for maturity sounds million? And rate The new you if it expired September, renew so, were like what's Okay. the new and $XX

All the remain same. terms the

So it just XXX another days. for renews

a SOFR, points. that is margin at I -- the the it's same. it's same. for you. based So that's what XXX otherwise, a . I disclosure basis short-term I check in It's But instrument. forget But renewing believe the on and can on stayed it, our all terms

Okay. Who lender the is again?

. Bank. Associated

Bay. Green Based in .

So you keep an basis. just . annual on sounds It like that renewing

That's correct. .

Okay. All good . And holidays. luck right. with Great.

no at am questions this showing time. further I

Officer, So turn I Anderson, would for to closing back to Chief Financial Judy it like remarks.

by today thank you I great everyone a us just close joining saying for -- your wanted everyone rest to . have and of to day. for

participation Thank in the you program. conclude your This for today's conference. does

disconnect. now may You