Q1 2024 WEYCO Group Inc Earnings Call Transcript
Key Points
- Consolidated gross earnings increased to 44.7% of net sales, up from 43.1% in the previous year, indicating improved profitability in the North American wholesale segment.
- Interest income significantly increased to $900,000 in Q1 2024 from $100,000 in Q1 2023, benefiting from higher cash balances.
- The company has a strong liquidity position with $84.7 million in cash and marketable securities and no debt on its $40 million line of credit.
- Record first quarter net sales of $9.8 million in the North American retail segment, marking a 10% increase over the previous year.
- The company declared a cash dividend of $0.26 per share, a 4% increase over the previous quarterly rate, reflecting confidence in its financial stability and commitment to returning value to shareholders.
- Overall net sales decreased by 17% to $71.6 million in Q1 2024 from $86.3 million in Q1 2023, driven by a significant decline in the North American wholesale segment.
- Earnings from operations and net earnings both declined, with operations down 21% and net earnings down by approximately 9.5% year-over-year.
- BOGS sales dropped by 48%, significantly impacting the wholesale segment's performance due to challenging market conditions and a tough comparison to a large work boot program in the previous year.
- Florsheim Australia's sales decreased by 26% due to the closure of operations in Asia and loss of a major wholesale account, reflecting struggles in the international market.
- Despite higher retail sales, retail operating earnings remained flat due to increased selling and administrative expenses, particularly web freight costs.
Good day and thank you for standing by. Welcome to the Weyco Group First Quarter 2024 earnings release conference call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. You ask a question. During this session you will need to press star one on your telephone. You will then hear an automated message advising that your hand is Ralph to draw your question, please press star one. Once again, please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker for today, Jody Anderson, Chief Financial Officer. Please go ahead.
Thank you. Good morning and welcome to Weyco Group's conference call to discuss first quarter 2024 results on this call. With me today are Tom Florsheim, Junior Chairman and Chief Executive Officer, and John Florsheim, President and Chief Operating Officer. And before we begin to discuss the results for the quarter, I
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