Weyco Group Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net sales were $74.3 million, down 12% from $84.2 million in Q3 2023. Gross earnings also decreased to $32.9 million, representing 44.3% of net sales, compared to $36.2 million and 43.0% in the prior year. Earnings from operations fell to $10.2 million, an 18% decrease from $12.4 million in Q3 2023. Net earnings for the quarter were $8.1 million, or $0.84 per diluted share, down from $9.3 million, or $0.98 per diluted share, in the same quarter of the previous year.
For the nine months ended September 30, 2024, consolidated net sales totaled $209.8 million, a 12% decline from $237.5 million in 2023. Gross earnings for this period were $93.0 million, maintaining a gross margin of 44.3%, slightly up from 43.1% in the prior year. Earnings from operations decreased to $25.1 million, down 15% from $29.5 million in the same period of 2023, while net earnings were $20.3 million, or $2.12 per diluted share, compared to $21.6 million, or $2.27 per diluted share, in 2023.
The decline in sales was attributed to a challenging economic environment affecting consumer discretionary spending, particularly impacting the BOGS brand, which saw a significant 18% drop in net sales for Q3 2024 and a 31% decline year-to-date. The company is responding by focusing on reducing weather sensitivity for BOGS through increased sales efforts in the Farm & Agriculture trade channel and introducing a new Seamless Construction collection.
In terms of cash flow, Weyco generated $17.3 million from operations in the first nine months of 2024, a significant decrease from $62.9 million in the same period of 2023. The company paid $9.6 million in dividends and repurchased $0.6 million of common stock during this period. As of September 30, 2024, cash and marketable securities totaled $81.8 million, with no outstanding debt on a $40.0 million revolving line of credit.
Additionally, on September 27, 2024, Weyco amended its line of credit agreement, extending the maturity to September 26, 2025, with a maximum borrowing limit of $40.0 million. The effective income tax rate remained stable at 25.7% for Q3 2024 and 25.8% for the nine-month period, consistent with the previous year.
About WEYCO GROUP INC
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