NASDAQ$WEYS

Weyco Group Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Weyco Group's sales decreased, but earnings increased due to improved gross margins and expense control.

Weyco Group reported a decrease in net sales for the second quarter of 2023, but net earnings reached a record high due to improved gross margins and controlled expenses. The company faces headwinds in the second half of the year due to tough comparisons against the previous year's record results.

  • Consolidated net sales decreased by 10% to $67.0 million compared to the second quarter of 2022.
  • Consolidated gross earnings increased to 43.3% of net sales, up from 40.0% in the prior year.
  • Net earnings reached a record $4.9 million, or $0.50 per diluted share, an 8% increase over the previous record.
  • North American wholesale segment sales decreased, while retail segment sales reached a new record.

Headline financials

Total Revenue

$67M

Previous: $74.4M-9.9%
EPS (adj)

$0.50

Previous: $0.47+6.4%
Gross Margin

43.3%

Previous: 40.0%+8.2%
Wholesale Gross Margin

37.0%

Previous: 33.7%+9.8%
Retail Gross Margin

66.2%

Previous: 67.4%-1.8%
Capital Expenditures

-$1.38M

Previous: -$722K-91.3%
Free Cash Flow

$3.48M

Previous: $3.77M-7.7%
Net Income

$4.86M

Previous: $4.5M+8.2%
Operating Income

$6.7M

Previous: $5.67M+18.3%
Gross Profit

$29M

Previous: $29.8M-2.6%
Cash & Equivalents

$22M

Previous: $7.62M+188.1%
Total Assets

$287M

Previous: $269M+6.8%
Stock-Based Comp

$337K

Previous: $468K-28.0%

Revenue & EPS history

Weyco · Revenue · Quarterly

$67M

Q2 2023-9.9%vs Q2 2022
Beat estimate in 8 of 8 quarters(100%)
ActualEstimate

Revenue by segment

Weyco · $67M total across 3 segments · Q2 2023

  • North American Wholesale
    $51.5M-12.7%
  • Florsheim Australia
    $7.9M-1.3%
  • North American Retail
    $7.6M+2.7%

Forward guidance

Weyco Group faces headwinds in the second half of the year due to tough comparisons against last year's record third and fourth quarter results, which were lifted by pipeline fill and strong consumer demand.

Tailwinds

  • Focused on investing in and developing our core brands for success over the long-run.

Headwinds

  • Sales eased during the second quarter, after 2022 and the first quarter of 2023 exhibited record-breaking growth.
  • Reflects what is happening in the larger retail environment, as retailers are well-stocked with inventory.
  • Headwinds going up against last year’s record third and fourth quarter results, which were lifted by pipeline fill and strong consumer demand.

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 Q2 2023

Historical avgQ2 2023

-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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