NASDAQ$WEYS

Weyco Group Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported lower first quarter sales and earnings due to COVID-19 pandemic.

Weyco Group, Inc. reported a 14% decrease in net sales and a significant drop in earnings for the first quarter of 2020, primarily due to the impact of the COVID-19 pandemic, which led to widespread retail store closures and disruptions in its wholesale business.

  • Net sales decreased by 14% to $63.6 million compared to $74.1 million in Q1 2019.
  • Earnings from operations decreased to $1.3 million from $5.1 million in the same quarter last year.
  • Diluted earnings per share were $0.12, down from $0.40 in Q1 2019.
  • North American wholesale segment sales declined by 11%, while the North American retail segment saw a 15% decrease.

Headline financials

Total Revenue

$63.6M

Previous: $74.1M-14.2%
EPS (adj)

$0.12

Previous: $0.40-70.0%
Gross Margin

36.5%

No prior period
Capital Expenditures

-$1.8M

Previous: -$981K-83.2%
Free Cash Flow

-$635K

Previous: $2.99M-121.3%
Net Income

$1.16M

Previous: $3.97M-70.7%
Operating Income

$1.34M

Previous: $5.15M-73.9%
Gross Profit

$23.2M

Previous: $28.8M-19.4%
Cash & Equivalents

$14.2M

Previous: $17.3M-18.2%
Total Assets

$269M

Previous: $280M-3.9%
Stock-Based Comp

$351K

Previous: $366K-4.1%

Revenue & EPS history

Weyco · Revenue · Quarterly

$63.6M

Q1 2020-14.2%vs Q1 2019
Beat estimate in 2 of 3 quarters(67%)
ActualEstimate

Revenue by segment

Weyco · $63.6M total across 3 segments · Q1 2020

  • North American Wholesale
    $52.7M-11.4%
  • Florsheim Australia
    $6.1M-33.0%
  • North American Retail
    $4.8M-14.3%

Forward guidance

The Company anticipates that the COVID-19 pandemic and resulting global economic slowdown will continue to adversely impact its businesses during 2020, but they believe they are in a strong financial position to get through these challenges.

Tailwinds

  • Strong balance sheet
  • Operating expertise
  • Distribution center and majority of supply chain continue to operate
  • Continue shipping e-commerce orders
  • Distribution system allows quick adaptation to changes in customer demand

Headwinds

  • Uncertainty regarding retail partners reopening stores
  • Cannot presently estimate the future impact of COVID-19
  • Global economic slowdown
  • Expect adverse effect on business in 2020
  • Retail store closures

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.1%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.1%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+21.3%

Q3 2024

Best reaction

-12.8%

Q4 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.7%+2.5%+8.0%
Q4 2025+1.0%-1.6%-0.3%
Q3 2025+10.2%+15.8%+9.4%
Q1 2025+2.4%+9.8%+5.5%
Q4 2024-1.8%-5.4%-16.9%
Q3 2024+21.3%+13.7%+0.4%
Q2 2024+1.6%+2.1%+7.7%
Q1 2024-3.2%-1.9%+4.3%
Q4 2023-8.8%-11.6%-8.1%
Q3 2023-0.6%-4.4%+13.8%
Q2 2023-9.0%-7.8%-6.4%
Q1 2023-1.6%-2.2%+3.8%
Q4 2022-2.5%-11.4%+2.3%
Q3 2022-4.8%-5.0%+1.5%
Q2 2022-4.2%-5.6%-10.0%
Q1 2022+0.3%+6.6%+16.8%
Q4 2021+0.9%+1.0%+9.8%
Q3 2021+3.9%+2.8%+8.7%
Q2 2021+2.1%+4.4%+5.1%
Q1 2021-0.6%+1.0%+2.9%
Q4 2020+0.3%+9.1%+18.6%
Q3 2020-3.8%+2.5%+2.7%
Q2 2020-4.1%-1.5%-6.0%
Q1 2020+2.0%+10.3%+8.8%
Q4 2019-7.1%-1.3%-5.6%
Q3 2019-4.1%+0.6%-5.2%
Q2 2019-3.6%-4.7%-2.0%
Q1 2019+0.7%-2.3%-22.9%
Q4 2018+4.8%+6.0%+10.6%
Q3 2018+1.4%+2.9%-2.7%
Q2 2018+3.7%+6.9%+4.7%
Q1 2018+1.6%-7.6%-1.8%
Q4 2017+3.0%+7.4%+15.1%
Q3 2017-2.0%-3.5%+0.5%
Q2 2017+1.6%+1.2%+3.8%
Q1 2017+0.1%-0.8%-1.1%
Q4 2016-12.8%-11.6%+0.2%
Q3 2016+5.2%+16.6%+14.2%
Q2 2016-9.8%-7.7%-7.0%
Q1 2016-1.9%
Q4 2015-5.4%
Q3 2015+0.6%
Q2 2015+1.2%
Q1 2015+1.3%
Q4 2014+7.0%
Q3 2014-8.4%
Q2 2014+6.1%
Q1 2014-0.4%
Q4 2013-1.0%
Q3 2013+1.2%
Q2 2013-4.6%
Q1 2013+3.2%
Q4 2012+1.8%
Q3 2012-1.7%
Q2 2012-0.8%
Q1 2011-0.1%
Q1 2012+1.1%
Q4 2011+2.5%
Q4 2009+2.5%
Q3 2010-0.1%
Q3 2011-0.1%
Q2 2011+0.1%
Q4 2010+0.1%
Q2 2010+0.1%
Q1 2010+1.3%

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