Please wait while we load the requested 10-Q report or click the link below:
WEYCO REPORTS THIRD QUARTER SALES AND EARNINGS
Milwaukee, Wisconsin---November 3, 2020---Weyco Group, Inc. (NASDAQ: WEYS) (the “Company”) today announced financial results for the quarter ended September 30, 2020.
Third Quarter 2020 Review
|·||Net sales were $53.2 million compared to third quarter 2019 net sales of $82.5 million.|
|·||Loss from operations totaled $3.8 million compared to earnings from operations of $8.5 million in the third quarter of 2019. Adjusted earnings from operations were $3.6 million for the third quarter of 2020.|
|·||Net loss totaled $5.9 million, or ($0.60) per diluted share, compared to net earnings of $6.6 million, or $0.66 per diluted share, in the third quarter of 2019. Adjusted net earnings were $1.5 million, or $0.16 per diluted share, for the third quarter of 2020.|
Amounts referred to as “adjusted” are Non-GAAP and exclude items that are described under “Non-GAAP Adjustments” below and “Reconciliations of Non-GAAP Financial Measures” accompanying this release.
Third Quarter 2020 Segment Results
Net sales in the North American wholesale segment, which include North American wholesale sales and licensing revenues, were $44.0 million in the third quarter of 2020 compared to $67.8 million in the third quarter of 2019. BOGS third quarter net sales rose 6% as compared to last year due to higher sales in the farm, service, and industrial trade channel and with e-commerce retailers. Net sales of the Florsheim, Stacy Adams, and Nunn Bush brands were down 58%, 55%, and 32%, respectively, for the quarter, due mainly to the current decrease in demand for dress and dress-casual footwear as a result of the ongoing pandemic. Licensing revenues were $224,000 for the quarter compared to $630,000 in the third quarter of 2019, down in line with reductions in licensees’ sales of branded products.
Gross earnings for the North American wholesale segment were 35.7% of net sales in the third quarter of 2020 compared to 35.9% of net sales in last year’s third quarter. Earnings from operations for the wholesale segment were $2.8 million in the third quarter of 2020 compared to $9.5 million in the same period one year ago. Adjusted earnings from operations for the wholesale segment were $4.7 million in the third quarter of 2020.
Net sales in the North American retail segment, which includes sales from the Company’s Florsheim retail stores and its e-commerce businesses in the United States, were $4.4 million in the third quarter of 2020 compared to $5.2 million in the third quarter of 2019. The decrease between periods was partly due to closing three unprofitable retail stores during the quarter. E-commerce sales were up 16% for the quarter but were offset by a significant decline in brick-and-mortar same store sales, primarily due to reduced foot traffic as a result of the ongoing pandemic. Retail loss from operations totaled $2.8 million for the third quarter of 2020, compared to earnings from operations of the $365,000 for the third quarter of 2019. Adjusted loss from operations for the retail segment totaled $184,000 for the third quarter of 2020.
Other net sales, which include the wholesale and retail net sales of Florsheim Australia and Florsheim Europe, were $4.8 million in the third quarter of 2020 compared to $9.5 million in the third quarter of 2019. The decrease was due to lower net sales at both Florsheim Australia and Florsheim Europe, resulting from retail shutdowns and stay-at-home orders. Collectively, Florsheim Australia and Florsheim Europe had a combined loss from operations totaling $3.8 million in the third quarter of 2020 compared to a loss from operations of $1.4 million in last year’s third quarter. Adjusted loss from operations for the Company’s other operations was $1.0 million for the third quarter of 2020.
“While our top-line continues to be challenged by the far-reaching effects of the COVID-19 pandemic, we are encouraged by the recent pick-up in orders we experienced in our wholesale business in August and September,” stated Thomas W. Florsheim, Jr., the Company’s Chairman and CEO. “Additionally, we are pleased with the strong performance of our e-commerce websites, which underscores the strength of our brands and continued consumer demand for our products. We have taken measures to right-size our cost structure across our organization, which allowed us to return to profitability in our wholesale business in the third quarter. We look forward to building upon this momentum as we move into the final months of the year.”
On November 3, 2020, the Company’s Board of Directors declared a cash dividend of $0.24 per share to all shareholders of record on November 30, 2020, payable on January 4, 2021.
The following information was filed by Weyco Group Inc (WEYS) on Tuesday, November 3, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
View differences made from one quarter to another to evaluate Weyco Group Inc's financial trajectory
Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were
removed , and by Weyco Group Inc.