Q2 2024 WEYCO Group Inc Earnings Call Transcript
Key Points
- Net earnings for the second quarter reached a record $5.6 million, up 15% from the previous year.
- Consolidated gross earnings improved to 43.9% of net sales, driven by higher gross margins in the North American wholesale segment.
- Wholesale operating earnings increased by 8% due to improved gross margins.
- Interest income significantly increased to $1 million from $200,000 in the previous year, benefiting from higher cash balances.
- The company maintains a strong cash position with $84.8 million in cash and marketable securities and no debt on its $40 million revolving line of credit.
- Overall net sales decreased by 5% compared to the previous year, with specific declines in the BOGS and Stacy Adams brands.
- Retail operating earnings decreased due to higher selling and administrative expenses, particularly in web advertising and freight costs.
- Florsheim Australia's net sales dropped by 23%, impacted by the closure of the Asia Pacific business and the loss of a major wholesale customer.
- The BOGS brand experienced a 33% decline in sales, attributed to oversaturation in the outdoor weather boot market and mild winters.
- Retail sales remained flat, facing a competitive and price-sensitive environment.
Good day, and thank you for standing by. Welcome to the Weyco second-quarter 2024 earnings 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. Judy?
Good morning, and welcome to Weyco Group's conference call to discuss second-quarter 2024 results. On the call with me today are Tom Florsheim, Jr., Chairman and Chief Executive Officer; and John Florsheim, President and Chief Operating Officer. Before we begin to discuss the results for the quarter, I will read a brief cautionary statement.
During this call, we may make projections or other forward-looking statements regarding our current expectations concerning future events and the future financial performance of the company. We wish to caution you that these statements are just predictions and that actual events or results may differ materially.
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