Weyco Group Inc. (WEYS), a global leader in the footwear industry, has reached a new 52-week high, with its stock price soaring to $33.85. This milestone reflects the company's robust performance and strong market position, underlining its continued growth trajectory. Over the past year, Weyco Group has seen a significant uptick in its stock value, with a 1-year change of 22.96%. This impressive growth rate underscores the company's resilience and adaptability in a challenging market environment. The new 52-week high serves as a testament to Weyco Group's strategic initiatives and its commitment to delivering shareholder value.
In other recent news, Weyco Group faced a challenging first quarter of 2024, marked by a 17% decrease in net sales, which totaled $71.6 million. Despite this, the company reported an increase in consolidated gross earnings to 44.7% of net sales. However, earnings from operations saw a decline of 21% to $8.3 million, and net earnings were reported at $6.7 million, or $0.69 per diluted share. The company's North American wholesale segment saw a 20% drop in net sales, but the North American retail segment reached a record high with sales of $9.8 million, up 10% from last year.
In other developments, Florsheim Australia, another segment of Weyco Group, experienced a 26% decrease in net sales, largely due to retail location closures in Asia and a lost wholesale account in Australia. On a positive note, Weyco Group's inventory levels decreased to $62 million, and gross margins improved, largely due to reduced inbound freight costs. The company generated $14.3 million in cash from operations and distributed $4.7 million in dividends during the quarter.
In a recent move, Weyco Group's Board of Directors announced a cash dividend of $0.26 per share, marking a 4% increase from the previous quarter. Despite facing a challenging retail environment, the company maintains its optimism about the long-term prospects of its legacy brands and its emphasis on product innovation in the outdoor footwear sector.
InvestingPro Insights
Weyco Group Inc.'s (WEYS) recent achievement of a new 52-week high is complemented by several positive indicators highlighted by InvestingPro. The company's financial health is underlined by its ability to hold more cash than debt on its balance sheet, providing a strong liquidity position. Additionally, Weyco's valuation suggests a robust free cash flow yield, an attractive feature for investors seeking companies with the potential for good cash generation relative to their share price.
InvestingPro Data reveals a market capitalization of $317.77 million and a price-to-earnings (P/E) ratio of 10.83, which adjusts slightly to 10.69 when looking at the last twelve months as of Q1 2024. Despite a decrease in revenue growth during this period, the company has maintained a healthy gross profit margin of 45.41%. Furthermore, the dividend yield of 3.16% is noteworthy, especially considering Weyco Group's impressive track record of having increased its dividend for 54 consecutive years, a testament to its commitment to returning value to shareholders.
For those interested in deeper analysis, InvestingPro offers additional tips on Weyco Group, including insights on its strong returns over the last month and three months, as well as its profitability over the last twelve months. To explore these tips and more, visit https://www.investing.com/pro/WEYS. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and discover the full range of additional tips available on InvestingPro for informed investment decisions.
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