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Weyco Group Inc (WEYS)
NASDAQ:WEYS
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Weyco Group
(NASDAQ:WEYS)
64Neutral
Weyco Group (WEYS) vs. S&P 500 (SPY)
Market Cap
$293.93M
Dividend Yield3.38%
Average Volume (3M)12.80K
Price to Earnings (P/E)9.6
Beta (1Y)0.87
Revenue Growth-8.73%
EPS Growth0.31%
CountryUS
Employees413
SectorConsumer Cyclical
Sector Strength54
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)3.15
Shares Outstanding9,643,389
10 Day Avg. Volume15,278
30 Day Avg. Volume12,803
Financial Highlights & Ratios
PEG Ratio31.46
Price to Book (P/B)N/A
Price to Sales (P/S)0.96
Price to Cash Flow (P/CF)3.40
P/FCF Ratio3.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Weyco Group Business Overview & Revenue Model
Company DescriptionWeyco Group, Inc. designs and distributes footwear for men, women, and children. It operates through two segments, North American Wholesale Operations and North American Retail Operations. The company offers mid-priced leather dress shoes and casual footwear of man-made materials or leather; and outdoor boots, shoes, and sandals under the Florsheim, Nunn Bush, Stacy Adams, BOGS, and Rafters brand names. It is also involved in the wholesale of its products to approximately 10,000 footwear, department, and specialty stores, as well as e-commerce retailers. As of December 31, 2021, the company had four brick and mortar retail stores in the United States. In addition, it has licensing agreements with third parties, who sell its branded apparel, accessories, and specialty footwear. It serves in the United States, Canada, Europe, Australia, Asia, and South Africa. The company was formerly known as Weyenberg Shoe Manufacturing Company and changed its name to Weyco Group, Inc. in April 1990. Weyco Group, Inc. was incorporated in 1906 and is based in Milwaukee, Wisconsin.
How the Company Makes MoneyWeyco Group generates revenue primarily through the sale of footwear across various distribution channels, including wholesale, retail, and e-commerce. The company's wholesale segment involves selling footwear to department stores, specialty retailers, and online retailers, which represents a significant portion of its revenue. The retail segment contributes through direct-to-consumer sales via company-owned retail stores and online platforms. Additionally, Weyco Group's international operations and licensing agreements with third parties for certain brands also provide supplementary revenue streams. The company's diversified brand portfolio and strategic partnerships with retailers enhance its market presence and drive its earnings.
Weyco Group Financial Statement Overview
Summary
Weyco Group shows financial stability with a strong balance sheet and a high gross profit margin. However, challenges in revenue growth and cash flow generation could impact future profitability and liquidity.Income Statement
The company shows a mixed performance with a decrease in total revenue from the previous fiscal year. Gross profit margin is high due to low cost of goods sold, but the net profit margin is slightly lower than before. The EBIT and EBITDA margins indicate consistent operational efficiency, although there's a marked decrease in revenue growth compared to previous years.70
Positive
Balance Sheet
The balance sheet reflects a strong equity position with a low debt-to-equity ratio, indicating limited leverage. The equity ratio is quite robust, demonstrating financial stability. However, the return on equity has slightly decreased, suggesting a need for improved profitability relative to shareholder equity.75
Positive
Cash Flow
Cash flow from operations has substantially decreased, impacting free cash flow growth negatively. The company maintains a solid operating cash flow to net income ratio, but free cash flow to net income has declined due to reduced operational cash generation.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 290.29M | 318.05M | 351.74M | 267.64M | 195.38M | Gross Profit |
| 131.53M | 142.88M | 144.39M | 107.45M | 78.56M | EBIT |
| 36.61M | 41.02M | 40.37M | 25.70M | -7.60M | EBITDA |
| 36.61M | 44.17M | 43.17M | 30.15M | -3.84M | Net Income Common Stockholders |
| 30.32M | 30.19M | 29.54M | 20.55M | -8.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 71.81M | 69.53M | 18.37M | 28.05M | 34.69M | Total Assets |
| 324.09M | 309.34M | 326.62M | 277.67M | 256.72M | Total Debt |
| 11.07M | 13.51M | 45.82M | 11.11M | 11.98M | Net Debt |
| -59.90M | -55.80M | 28.95M | -8.60M | -20.50M | Total Liabilities |
| 78.50M | 64.85M | 102.72M | 76.27M | 68.79M | Stockholders Equity |
| 245.59M | 244.49M | 223.91M | 201.40M | 187.93M |
| Cash Flow | Free Cash Flow | |||
| 36.34M | 95.32M | -32.25M | 5.38M | 36.61M | Operating Cash Flow |
| 37.73M | 98.63M | -29.90M | 6.39M | 39.98M | Investing Cash Flow |
| -1.17M | -1.24M | 7.43M | -7.00M | 3.16M | Financing Cash Flow |
| -10.64M | -45.34M | 20.27M | -11.87M | -20.89M |
Weyco Group Technical Analysis
Negative
30.08
Price Trends
33.33
Negative
34.38
Negative
32.34
Negative
Market Momentum
-0.91
Negative
42.07
Neutral
71.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEYS, the sentiment is Negative. The current price of 30.08 is below the 20-day moving average (MA) of 30.16, below the 50-day MA of 33.33, and below the 200-day MA of 32.34, indicating a bearish trend. The MACD of -0.91 indicates Negative momentum. The RSI at 42.07 is Neutral, neither overbought nor oversold. The STOCH value of 71.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WEYS.
Weyco Group Risk Analysis
Weyco Group disclosed 17 risk factors in its most recent earnings report. Weyco Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Weyco Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.95B | 6.83 | 57.76% | ― | 3.53% | 24.55% | |
76 Outperform | $16.97B | 18.40 | 39.80% | ― | 19.40% | 32.70% | |
73 Outperform | $8.48B | 13.85 | 15.42% | ― | 12.11% | 19.16% | |
73 Outperform | $1.98B | 11.65 | 20.20% | 3.06% | 15.03% | 1.51% | |
64 Neutral | $293.93M | 9.65 | 12.37% | 3.38% | -8.73% | 0.31% | |
59 Neutral | $1.13B | 24.03 | 15.57% | 2.88% | -21.75% | ― | |
59 Neutral | $12.17B | 11.04 | -1.10% | 3.77% | 1.26% | -19.70% |
* Consumer Cyclical Sector Average
Performance Comparison
WEYS
Weyco Group
30.68
3.26
11.89%
CROX
Crocs
111.54
-27.22
-19.62%
DECK
Deckers Outdoor
117.98
-32.14
-21.41%
SKX
Skechers USA
59.03
0.50
0.85%
SHOO
Steven Madden
28.28
-11.99
-29.77%
WWW
Wolverine World Wide
14.60
4.65
46.73%
Weyco Group Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: -7.33% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment with record net earnings and growth in specific segments like Florsheim and the North American retail segment. However, significant challenges such as a decline in overall net sales, the impact of new tariffs, and underperformance in the BOGS brand and Florsheim Australia offset these achievements.Highlights
Record Net Earnings
Net earnings reached a record $30.3 million or $3.16 per diluted share in 2024, compared to $30.2 million or $3.17 per diluted share in 2023.
Increase in Gross Earnings
Consolidated gross earnings increased to 45.3% of net sales in 2024, up from 44.9% of net sales in the previous year.
North American Retail Segment Growth
Net sales in the North American retail segment were a record $38.7 million in 2024, up 2% over the previous record of $38 million in 2023.
Strong Performance of Florsheim Brand
Florsheim led the company's legacy business growth with a 22% increase in the fourth quarter and a 2% increase for the year.
Improved Wholesale Operating Earnings
Wholesale operating earnings increased 14% to $8.9 million for the quarter from $7.9 million due to higher sales and lower expenses.
Lowlights
Overall Net Sales Decline
Consolidated net sales for the full year were $290 million, down 9% compared to $318 million in 2023.
BOGS Sales Decline
BOGS sales declined 17% in the fourth quarter and 27% for the year due to mild winter weather and reduced demand for insulated footwear.
Challenges in Florsheim Australia
Florsheim Australia's net sales declined 15% for the quarter and 20% for the year, primarily due to the closure of Asia Pacific operations.
Impact of New Tariffs
The US government imposed additional tariffs on goods sourced from China, increasing costs across all brands and necessitating price negotiations and potential price increases.
Decrease in Retail Operating Earnings
Retail operating earnings totaled $5.3 million in 2024, down 21% compared to $6.8 million in 2023, due to higher retail selling and administrative expenses.
Company Guidance
During the Weyco Group Fourth Quarter and Full Year 2024 Earnings Conference Call, the company reported flat net sales for the fourth quarter at $80.5 million and a 9% decline in full-year sales to $290 million compared to 2023. For the quarter, consolidated gross earnings were 47.9% of net sales, down from 50.3% the previous year. Despite a decrease in consolidated gross earnings for the fourth quarter, net earnings increased to $10 million, or $1.04 per diluted share, up from $8.5 million, or $0.90 per diluted share, in 2023. The North American wholesale segment experienced a 1% increase in net sales to $60.4 million, although wholesale gross earnings as a percentage of net sales decreased to 42.4% from 44.9% the previous year. The retail segment saw a 1% rise in net sales to $14.1 million, but retail operating earnings dropped 28% to $2.5 million due to increased expenses. Interest income rose to $900,000 from $500,000 in the prior year, and the provision for income taxes decreased by $700,000 due to a lower effective tax rate. The full year saw a record net earnings of $30.3 million or $3.16 per diluted share, with an increase in consolidated gross earnings to 45.3% of net sales from 44.9% in 2023. The company reported that its cash and marketable securities stood at $77.3 million at the end of 2024, with no debt on its $40 million revolving line of credit. Additionally, they announced a regular cash dividend of $0.26 per share payable on March 31, 2025. The company is addressing challenges such as new tariffs imposed by the US government, which will increase costs, and is negotiating price reductions with Chinese suppliers to counteract these tariffs.Weyco Group Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Weyco Group Amends Bylaws Following Board Resignation
Neutral
Mar 5, 2025
On February 28, 2025, Robert Feitler resigned from Weyco Group’s Board of Directors after serving since 1964, with his resignation not stemming from any disagreements with the company. His unvested stock options and restricted stock will vest on March 4, 2025. Additionally, effective March 4, 2025, Weyco Group’s Board amended its bylaws to adjust the number of directors to between six and eight, and removed language regarding the phased declassification of the Board, completed in 2023.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.