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Shares of Weyco Group, Inc. WEYS have declined 6.5% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 index’s 0.1% decline over the same time frame. Over the past month, the stock has declined 13.8% against the S&P 500’s 4.9% growth.
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For the fourth quarter of 2024, Weyco’s earnings per share increased to $1.04 from 90 cents in the fourth quarter of 2023.
The company reported net sales of $80.5 million, flat compared to the same period in 2023. Gross earnings as a percentage of net sales fell to 47.9%, down from 50.3% in the prior year’s quarter.
Operating earnings remained unchanged at $11.5 million. However, net earnings grew 17% to $10 million, up from $8.5 million a year ago.
Weyco Group, Inc. Price, Consensus and EPS Surprise
Weyco Group, Inc. price-consensus-eps-surprise-chart | Weyco Group, Inc. Quote
WEYS’ Segment Performance
North American Wholesale Segment
Wholesale net sales increased 1% year over year, reaching $60.4 million. Growth in Florsheim and Nunn Bush brands offset declines in BOGS and Stacy Adams. Florsheim sales surged 22%, driven by higher demand for dress and hybrid footwear, while Nunn Bush sales climbed 4%, benefiting from strong performance in department stores and off-price retailers. BOGS experienced a 17% sales decline due to unseasonably warm weather reducing demand for winter footwear, while Stacy Adams saw an 8% drop as dress shoe sales remained sluggish.
Wholesale gross earnings as a percentage of sales fell to 42.4% from 44.9% in the fourth quarter of 2023, reflecting margin pressures. However, selling and administrative expenses declined to $16.7 million (28% of sales) from $18.9 million (32% of sales) in the year-ago quarter, mainly due to lower advertising and employee costs. This reduction contributed to a 14% increase in wholesale operating earnings, which rose to $8.9 million.
North American Retail Segment
Retail net sales increased slightly to $14.1 million from $13.9 million in the previous year, driven by higher direct-to-consumer sales of Florsheim and BOGS. Retail gross earnings as a percentage of net sales dipped to 65% from 65.8% in the fourth quarter of 2023. Operating earnings fell 28% to $2.5 million as increased web advertising and freight costs weighed on profitability.
Florsheim Australia and Other International Operations
Florsheim Australia reported net sales of $6 million, a 15% decline from the prior-year period. The decrease was primarily attributed to the closure of Asia Pacific operations. Sales in Australia declined 3%, though same-store sales increased by 11%.