WEYS Stock Down 7% Despite Q4 Earnings Rising Y/Y

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.See the Zacks Earnings Calendar to stay ahead of market-making news.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. QuoteWEYS’ Segment PerformanceNorth American Wholesale SegmentWholesale 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 SegmentRetail 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 OperationsFlorsheim 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%.Management Commentary for WEYSChairman and CEO Thomas Florsheim Jr. acknowledged the challenges faced in 2024, particularly within the wholesale segment. He attributed the decline in BOGS sales to mild winter conditions, which dampened demand for insulated footwear. However, he expressed optimism about renewed interest in the brand for the fall of 2025 as retailers move through existing inventory. Additionally, he highlighted Florsheim’s strong performance and efforts to diversify Stacy Adams’ product range to include more hybrid and casual styles.Florsheim also noted that the company is proactively addressing cost pressures stemming from newly imposed U.S. tariffs on Chinese imports. Negotiations are underway with Chinese suppliers to mitigate cost increases, and the company is reviewing its pricing strategy in response.Liquidity and Financial PositionAs of Dec. 31, 2024, the company had $77.3 million in cash and marketable securities and no debt on its $40 million revolving credit line. Management highlighted its disciplined approach to cost control and its ongoing investments in brand innovation and direct-to-consumer channels.Other DevelopmentsIn early 2025, the company declared a quarterly dividend of 26 cents per share, payable on March 31, 2025. Additionally, on Jan. 2, 2025, Weyco paid out a one-time special dividend of $2 per share, resulting in a total dividend payment of $21.6 million.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Weyco Group, Inc. (WEYS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks