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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

Or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________________ to _____________________________

Commission File Number: 000-09068

WEYCO GROUP, INC.

(Exact name of registrant as specified in its charter)

WISCONSIN

   

39-0702200

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

333 W. Estabrook Boulevard

P. O. Box 1188

Milwaukee, Wisconsin 53201

(Address of principal executive offices)

(Zip Code)

(414) 908-1600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

    

Trading Symbol

    

Name of each exchange on which registered

Common Stock - $1.00 par value per share

WEYS

The Nasdaq Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated Filer

Non-Accelerated Filer

Smaller Reporting Company

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes No

As of April 29, 2024, there were 9,499,893 shares of common stock outstanding.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

The following consolidated condensed balance sheet as of December 31, 2023, which has been derived from audited financial statements, and the unaudited interim consolidated condensed financial statements have been prepared by Weyco Group, Inc. (“we,” “our,” “us,” and the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information not misleading. Please read these consolidated condensed financial statements in conjunction with the financial statements and notes thereto included in our latest Annual Report on Form 10-K.

1

WEYCO GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)

    

March 31, 

    

December 31, 

2024

2023

(Dollars in thousands)

ASSETS:

 

  

 

  

Cash and cash equivalents

$

78,348

$

69,312

Marketable securities, at amortized cost

 

 

215

Accounts receivable, net

 

42,098

 

39,275

Income tax receivable

245

Inventories

 

61,960

 

74,890

Prepaid expenses and other current assets

 

3,641

 

6,172

Total current assets

 

186,047

 

190,109

Marketable securities, at amortized cost

 

6,360

 

6,354

Deferred income tax benefits

 

1,052

 

1,096

Property, plant and equipment, net

 

28,970

 

29,504

Operating lease right-of-use assets

11,153

12,520

Goodwill

 

12,317

 

12,317

Trademarks

 

33,168

 

33,168

Other assets

 

24,204

 

24,274

Total assets

$

303,271

$

309,342

LIABILITIES AND EQUITY:

 

Accounts payable

$

5,789

$

8,845

Dividend payable

2,352

Operating lease liabilities

3,671

3,979

Accrued liabilities

 

9,718

 

14,446

Accrued income tax payable

1,950

Total current liabilities

 

21,128

 

29,622

Deferred income tax liabilities

 

11,765

 

11,819

Long-term pension liability

 

13,447

 

13,412

Operating lease liabilities

8,412

9,531

Other long-term liabilities

 

411

 

465

Total liabilities

 

55,163

 

64,849

Common stock

 

9,508

 

9,497

Capital in excess of par value

72,016

71,661

Reinvested earnings

 

184,914

 

180,646

Accumulated other comprehensive loss

 

(18,330)

 

(17,311)

Total equity

 

248,108

 

244,493

Total liabilities and equity

$

303,271

$

309,342

The accompanying notes to consolidated condensed financial statements (unaudited) are an integral part of these financial statements.

2

WEYCO GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME

(UNAUDITED)

Three Months Ended March 31, 

    

2024

    

2023

    

(In thousands, except per share amounts)

Net sales

$

71,558

$

86,294

Cost of sales

 

39,551

 

49,132

Gross earnings

 

32,007

 

37,162

Selling and administrative expenses

 

23,756

 

26,776

Earnings from operations

 

8,251

 

10,386

Interest income

 

905

 

139

Interest expense

 

 

(385)

Other expense, net

 

(95)

 

(130)

Earnings before provision for income taxes

 

9,061

 

10,010

Provision for income taxes

 

2,411

 

2,565

Net earnings

$

6,650

$

7,445

Weighted average shares outstanding

Basic

9,436

9,483

Diluted

9,580

9,545

Earnings per share

Basic

$

0.70

$

0.79

Diluted

$

0.69

$

0.78

Cash dividends declared (per share)

$

0.25

$

0.24

Comprehensive income

$

5,631

$

7,238

The accompanying notes to consolidated condensed financial statements (unaudited) are an integral part of these financial statements.

3

WEYCO GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

    

Three Months Ended March 31, 

    

2024

2023

(Dollars in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES:

 

  

 

  

 

Net earnings

$

6,650

$

7,445

Adjustments to reconcile net earnings to net cash provided by operating activities -

 

 

Depreciation

 

584

 

643

Amortization

 

66

 

69

Bad debt expense (recovery)

 

44

 

(13)

Deferred income taxes

 

(35)

 

(23)

Net foreign currency transaction gains

 

(9)

 

(48)

Share-based compensation expense

 

367

 

338

Pension expense

 

220

 

347

Loss on disposal of fixed assets

18

Increase in cash surrender value of life insurance

 

(105)

 

(105)

Changes in operating assets and liabilities -

 

 

Accounts receivable

 

(2,865)

 

520

Inventories

 

12,928

 

21,297

Prepaid expenses and other assets

 

2,633

 

1,943

Accounts payable

 

(3,053)

 

(8,411)

Accrued liabilities and other

 

(5,301)

 

(3,208)

Accrued income taxes

 

2,194

 

2,192

Net cash provided by operating activities

 

14,336

 

22,986

CASH FLOWS FROM INVESTING ACTIVITIES:

 

  

 

  

Proceeds from maturities of marketable securities

 

215

 

510

Purchases of property, plant and equipment

 

(170)

 

(659)

Net cash provided by (used for) investing activities

 

45

 

(149)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

Cash dividends paid

 

(4,664)

 

(4,561)

Shares purchased and retired

 

(5)

 

(1,540)

Net proceeds from stock options exercised

 

16

Payment of contingent consideration

 

 

(500)

Proceeds from bank borrowings

 

 

29,018

Repayments of bank borrowings

(39,514)

Net cash used for financing activities

 

(4,669)

 

(17,081)

Effect of exchange rate changes on cash and cash equivalents

 

(676)

 

(67)

Net increase in cash and cash equivalents

$

9,036

$

5,689

CASH AND CASH EQUIVALENTS at beginning of year

 

69,312

16,876

CASH AND CASH EQUIVALENTS at end of year

$

78,348

$

22,565

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

Income taxes paid, net of refunds

$

207

$

205

Interest paid

$

$

423

The accompanying notes to consolidated condensed financial statements (unaudited) are an integral part of these financial statements.

4

NOTES:

1.    Financial Statements

In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments necessary to present fairly our financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature. The results of operations for the three-month period ended March 31, 2024, may not necessarily be indicative of the results for the full year.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities at the date of the financial statements and during the reporting period. Actual results specifically related to inventory reserves, realizability of deferred tax assets, goodwill and trademarks could materially differ from those estimates, which would impact the reported amounts and disclosures in the consolidated financial statements and accompanying notes.

2.    New Accounting Pronouncements

Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The objective of ASU 2023-07 is to require entities to provide enhanced disclosures on significant segment expenses. ASU 2023-07 is effective for public companies in annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024. We are currently evaluating the impact that ASU 2023-07 will have on our consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The objective of ASU 2023-09 is to enhance disclosures related to income taxes, including specific thresholds for inclusion within the tabular disclosure of income tax rate reconciliation and specified information about income taxes paid. ASU 2023-09 is effective for public companies starting in annual periods beginning after December 15, 2024. We are currently evaluating the impact that ASU 2023-09 will have on our consolidated financial statements.

3.    Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

Three Months Ended March 31, 

2024

2023

(In thousands, except per share amounts)

Numerator:

 

  

 

  

 

Net earnings

$

6,650

$

7,445

Denominator:

 

  

 

  

Basic weighted average shares outstanding

 

9,436

 

9,483

Effect of dilutive securities:

 

  

 

  

Employee share-based awards

 

144

 

62

Diluted weighted average shares outstanding

 

9,580

 

9,545

Basic earnings per share

$

0.70

$

0.79

Diluted earnings per share

$

0.69

$

0.78

Diluted weighted average shares outstanding for the three months ended March 31, 2024, excluded anti-dilutive stock options totaling 395,000 shares of common stock at a weighted average exercise price of $30.15. Diluted weighted average shares outstanding for the three months ended March 31, 2023, excluded anti-dilutive stock options totaling 1,042,000 shares of common stock at a weighted average exercise price of $26.79.

5

4.    Investments

As noted in our Annual Report on Form 10-K for the year ended December 31, 2023, all our marketable securities are classified as held-to-maturity securities and reported at amortized cost pursuant to ASC 320, Investments – Debt and Equity Securities, as we have the intent and ability to hold all investments to maturity.

Below is a summary of the amortized cost and estimated market values of our marketable securities as of March 31, 2024, and December 31, 2023.

March 31, 2024

December 31, 2023

    

Amortized

    

Market

    

Amortized

    

Market

    

    

Cost

    

Value

    

Cost

    

Value

    

(Dollars in thousands)

Marketable securities:

 

  

 

  

 

  

 

  

 

Current

$

$

$

215

$

215

Due from one through five years

 

3,524

 

3,567

 

3,518

 

3,592

Due from six through ten years

 

2,836

 

2,800

 

2,836

 

2,830

Total

$

6,360

$

6,367

$

6,569

$

6,637

The unrealized gains and losses on marketable securities at March 31, 2024, and at December 31, 2023, were as follows:

March 31, 2024

December 31, 2023

    

Unrealized

    

Unrealized

    

Unrealized

    

Unrealized

    

    

Gains

    

Losses

    

Gains

    

Losses

    

(Dollars in thousands)

Marketable securities

$

99

$

(92)

$

118

$

(50)

The estimated market values provided are Level 2 valuations as defined by ASC 820, Fair Value Measurements and Disclosures. We reviewed our portfolio of investments as of March 31, 2024, and determined that no other-than-temporary market value impairment exists.

5.    Intangible Assets

During the three months ended March 31, 2024, there were no changes in the carrying value of our indefinite-lived intangible assets (goodwill and trademarks). Our amortizable intangible assets, which were included within other assets in the Consolidated Condensed Balance Sheets (unaudited), consisted of the following:

    

    

March 31, 2024

December 31, 2023

Weighted

Gross

Gross

Average

Carrying

Accumulated

Carrying

Accumulated

    

Life (Years)

    

Amount

    

Amortization

    

Net

    

Amount

    

Amortization

    

Net

(Dollars in thousands)

(Dollars in thousands)

Amortizable intangible assets

  

  

  

  

  

  

  

Customer relationships

 

15

$

3,500

$

(3,053)

$

447

$

3,500

$

(2,994)

$

506

Total amortizable intangible assets

$

3,500

$

(3,053)

$

447

$

3,500

$

(2,994)

$

506

Amortization expense related to the intangible assets was approximately $58,000 in both the first quarters of 2024 and 2023.

6

6.    Segment Information

We have two reportable segments: North American wholesale operations (“Wholesale”) and North American retail operations (“Retail”). Our Chief Executive Officer evaluates the performance of our segments based on earnings from operations. Therefore, interest income or expense, other income or expense, and income taxes are not allocated to the segments. As of March 31, 2024, the “other” category in the table below included our wholesale and retail operations in Australia, South Africa, and Asia Pacific, which do not meet the criteria for separate reportable segment classification. We ceased operations in Asia in 2023 and are in the final stages of winding down that business. Summarized segment data for the three-month periods ended March 31, 2024 and 2023, was as follows:

Three Months Ended

March 31, 

    

Wholesale

    

Retail

    

Other

    

Total

(Dollars in thousands)

2024

 

  

 

  

 

  

 

Product sales

$

55,723

$

9,819

$

5,489

$

71,031

Licensing revenues

 

527

 

 

 

527

Net sales

$

56,250

$

9,819

$

5,489

$

71,558

Earnings from operations

$

7,391

$

1,297

$

(437)

$

8,251

 

 

 

 

2023

 

 

 

 

Product sales

$

69,281

$

8,930

$

7,467

$

85,678

Licensing revenues

 

616

 

 

 

616

Net sales

$

69,897

$

8,930

$

7,467

$

86,294

Earnings from operations

$

8,829

$

1,282

$

275

$

10,386

7.    Employee Retirement Plans

The components of our pension expense were as follows:

Three Months Ended March 31, 

2024

    

2023

(Dollars in thousands)

Service cost

$

96

$

118

Interest cost

 

637

 

672

Expected return on plan assets

 

(612)

 

(577)

Net amortization and deferral

 

99

 

134

Pension expense

$

220

$

347

The components of pension expense other than the service cost component were included in “other expense, net” in the Consolidated Condensed Statements of Earnings and Comprehensive Income (Unaudited).

8.    Leases

We lease retail shoe stores, as well as several office and distribution facilities worldwide. These leases have original lease periods expiring between 2024 and 2029. Many leases include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of our operating lease costs were as follows:

    

Three Months Ended March 31, 

    

    

2024

2023

    

(Dollars in thousands)

Operating lease costs

 

$

1,106

$

1,362

 

Variable lease costs (1)

2

Total lease costs

 

$

1,106

$

1,364

 

(1)    Variable lease costs primarily include percentage rentals based upon sales in excess of specified amounts.

7

Short-term lease costs, which were excluded from the above table, are not material to our financial statements.

The following is a schedule of maturities of operating lease liabilities as of March 31, 2024:

    

Operating Leases

(Dollars in thousands)

2024, excluding the quarter ended March 31, 2024

 

$

3,232

2025

 

 

3,532

2026

 

 

3,115

2027

 

 

1,993

2028

953

Thereafter

 

 

379

Total lease payments

 

 

13,204

Less: imputed interest

 

 

(1,121)

Present value of lease liabilities

 

$

12,083

The operating lease liabilities were classified in the consolidated condensed balance sheets (unaudited) as follows:

    

March 31, 

December 31, 

2024

    

2023

(Dollars in thousands)

Operating lease liabilities - current

$

3,671

$

3,979

Operating lease liabilities - non-current

8,412

9,531

Total

 

$

12,083

$

13,510

We determined the present value of our lease liabilities using a weighted-average discount rate of 4.34%.  As of March 31, 2024, our leases had a weighted-average remaining lease term of 3.6 years.

Supplemental cash flow information related to our operating leases is as follows:

    

Three Months Ended March 31, 

    

    

2024

    

2023

    

(Dollars in thousands)

Cash paid for amounts included in the measurement of lease liabilities

 

$

1,141

$

1,286

 

Right-of-use assets obtained in exchange for new lease liabilities (noncash)

$

$

1,739

9.    Income Taxes

The effective income tax rates for the three months ended March 31, 2024 and 2023 were 26.6% and 25.6%, respectively. The 2024 and 2023 effective tax rates differed from the federal rate of 21% primarily because of state taxes.

10.  Share-Based Compensation Plans

During the three months ended March 31, 2024, we recognized $367,000 of compensation expense associated with stock option and restricted stock awards granted in years 2019 through 2023. During the three months ended March 31, 2023, we recognized $338,000 of compensation expense associated with stock option and restricted stock awards granted in years 2018 through 2022.

8

The following table summarizes our stock option activity for the three-month period ended March 31, 2024:

Weighted

Weighted

Average

Average

Remaining

Aggregate

Exercise

Contractual

Intrinsic

    

Shares

    

Price

    

Term (Years)

    

Value*

Outstanding at December 31, 2023

 

967,217

$

26.22

 

  

 

  

Granted

 

 

  

 

  

Exercised

 

(45,502)

24.49

 

  

 

  

Forfeited or expired

 

(3,260)

25.33

 

  

 

  

Outstanding at March 31, 2024

 

918,455

$

26.31

 

6.5

$

5,735,000

Exercisable at March 31, 2024

 

485,628

$

27.50

 

5.2

$

2,740,000

*The aggregate intrinsic value of outstanding and exercisable stock options is defined as the difference between the market value of our common stock on March 28, 2024, the last trading day of the quarter, of $31.88 and the exercise price multiplied by the number of in-the-money outstanding and exercisable stock options.

The following table summarizes our restricted stock award activity for the three-month period ended March 31, 2024:

    

    

    

    

Weighted 

Weighted

Average

Shares of

 Average

Remaining

Aggregate

Restricted

Grant Date

Contractual

Intrinsic

Stock

Fair Value

Term (Years)

Value*

Non-vested - December 31, 2023

 

69,090

$

25.54

Issued

 

 

 

 

Vested

 

(1,425)

 

24.85

 

 

Forfeited

 

 

 

 

Non-vested - March 31, 2024

 

67,665

$

25.55

2.4

$

2,157,000

*The aggregate intrinsic value of non-vested restricted stock was calculated using the market value of our common stock on March 28, 2024, the last trading day of the quarter, of $31.88 multiplied by the number of non-vested restricted shares outstanding.

11.  Short-Term Borrowings

At March 31, 2024, we had a $40.0 million revolving line of credit with a bank that is secured by a lien against our general business assets, and expires on September 28, 2024. Outstanding advances on the line of credit bear interest at the one-month term secured overnight financing rate (“SOFR”) plus 125 basis points. Our line of credit agreement contains representations, warranties and covenants (including a minimum tangible net worth financial covenant) that are customary for a facility of this type. At March 31, 2024, there were no outstanding borrowings on the line of credit, and we were in compliance with all financial covenants.

12.  Financial Instruments

At March 31, 2024, our wholly-owned subsidiary, Florsheim Australia, had a foreign exchange contract outstanding to buy $0.3 million U.S. dollars at a price of approximately $0.4 million Australian dollars. This contract expires in 2024. Based on quarter-end exchange rates, there were no significant unrealized gains or losses on the outstanding contract.

We determine the fair value of foreign exchange contracts based on the difference between the foreign currency contract rates and the widely available foreign currency rates as of the measurement date. The fair value measurements are based on observable market transactions, and thus represent a Level 2 valuation as defined by ASC 820.

9

13.  Comprehensive Income

Comprehensive income for the three months ended March 31, 2024 and 2023, was as follows:

Three Months Ended March 31, 

    

2024

    

2023

Net earnings

$

6,650

$

7,445

Foreign currency translation adjustments

 

(1,092)

 

(306)

Pension liability adjustment, net of tax of $26 and $35, respectively

 

73

 

99

Total comprehensive income

$

5,631

$

7,238

The components of accumulated other comprehensive loss as recorded in the Consolidated Condensed Balance Sheets (Unaudited) were as follows:

    

March 31, 

    

December 31, 

2024

2023

(Dollars in thousands)

Foreign currency translation adjustments

$

(9,046)

$

(7,954)

Pension liability, net of tax

 

(9,284)

 

(9,357)

Total accumulated other comprehensive loss

$

(18,330)

$

(17,311)

The following tables show changes in accumulated other comprehensive loss during the three months ended March 31, 2024 and 2023:

    

Foreign Currency

    

    

Translation

Defined Benefit

    

 Adjustments

    

Pension Items

    

Total

Balance, December 31, 2023

$

(7,954)

$

(9,357)

$

(17,311)

Other comprehensive loss before reclassifications

(1,092)

(1,092)

Amounts reclassified from accumulated other comprehensive loss

73

73

Net current period other comprehensive (loss) income

(1,092)

73

(1,019)

Balance, March 31, 2024

$

(9,046)

$

(9,284)

$

(18,330)

    

Foreign Currency

    

    

Translation

Defined Benefit

    

 Adjustments

    

Pension Items

    

Total

Balance, December 31, 2022

$

(8,596)

$

(11,597)

$

(20,193)

Other comprehensive loss before reclassifications

(306)

(306)

Amounts reclassified from accumulated other comprehensive loss

99

99

Net current period other comprehensive (loss) income

(306)

99

(207)

Balance, March 31, 2023

$

(8,902)

$

(11,498)

$

(20,400)

The following table shows reclassification adjustments out of accumulated other comprehensive loss during the three months ended March 31, 2024 and 2023:

Amounts Reclassified from Accumulated Other Comprehensive Loss

Affected line item in the

Three Months Ended March 31, 

statement where net

2024

2023

    

earnings is presented

Amortization of defined benefit pension items

  

 

  

Prior service cost

$

5

(1)

$

5

(1)

Other expense, net

Actuarial losses

94

(1)

 

129

(1)

Other expense, net

Total before tax

99

 

134

 

  

Tax benefit

(26)

 

(35)

 

  

Net of tax

$

73

$

99

 

  

(1)These amounts were included in the computation of pension expense. See Note 7 for additional details.

10

14.  Equity

The following table reconciles our equity for the three months ended March 31, 2024:

Accumulated

Capital in

Other

Common

Excess of

Reinvested

Comprehensive

    

Stock

    

Par Value

    

Earnings

    

Loss

(Dollars in thousands)

Balance, December 31, 2023

$

9,497

$

71,661

$

180,646

$

(17,311)

Net earnings

 

 

 

6,650

 

Foreign currency translation adjustments

 

 

 

 

(1,092)

Pension liability adjustment, net of tax

 

 

 

 

73

Cash dividends declared

 

 

 

(2,377)

 

Stock options exercised, net of shares withheld for employee taxes and strike price

11

(12)

Share-based compensation expense

 

 

367

 

 

Shares purchased and retired

(5)

Balance, March 31, 2024

$

9,508

72,016

$

184,914

(18,330)

The following table reconciles our equity for the three months ended March 31, 2023:

Accumulated

Capital in

Other

Common

Excess of

Reinvested

Comprehensive

    

Stock

    

Par Value

    

Earnings

    

Loss

(Dollars in thousands)

Balance, December 31, 2022

$

9,584

$

70,475

$

164,039

$

(20,193)

Net earnings

 

 

 

7,445

 

Foreign currency translation adjustments

 

 

 

 

(306)

Pension liability adjustment, net of tax

 

 

 

 

99

Cash dividends declared

 

 

 

(2,289)

 

Stock options exercised, net of shares withheld for employee taxes and strike price

1

15

Share-based compensation expense

338

Shares purchased and retired

(62)

(1,478)

Balance, March 31, 2023

$

9,523

$

70,828

$

167,717

$

(20,400)

11

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

FORWARD-LOOKING STATEMENTS

This report contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  These statements represent our good faith judgment with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially. Such statements can be identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “likely,” “plans,” “predicts,” “projects,” “should,” “will,” or variations of such words, and similar expressions. Forward-looking statements, by their nature, address matters that are, to varying degrees, uncertain. Therefore, the reader is cautioned that these forward-looking statements are subject to a number of risks, uncertainties or other factors that may cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, the risk factors described under Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the year-ended December 31, 2023, filed on March 14, 2024, which information is incorporated herein by reference. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

GENERAL

The Company designs, markets, and distributes quality and innovative footwear principally for men, but also for women and children, under a portfolio of well-recognized brand names including: Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters, and Forsake. Inventory is purchased from third-party overseas manufacturers. Almost all of these foreign-sourced purchases are denominated in U.S. dollars.

We have two reportable segments, North American wholesale operations (“Wholesale”) and North American retail operations (“Retail”).  In the Wholesale segment, our products are sold to leading footwear, department, and specialty stores, as well as e-commerce retailers, primarily in the United States and Canada. We also have licensing agreements with third parties who sell our branded apparel, accessories, and specialty footwear in the United States, as well as our footwear in Mexico and certain markets overseas. Licensing revenues are included in our Wholesale segment. Our Retail segment consists of e-commerce businesses and four brick and mortar retail stores in the United States. Retail sales are made directly to consumers on our websites, or by our employees in our stores. Our “other” operations include our wholesale and retail businesses in Australia, South Africa, and Asia Pacific (collectively, “Florsheim Australia”). We ceased operations in Asia in 2023, and are in the final stages are winding down that business. The majority of our operations are in the United States and our results are primarily affected by the economic conditions and the retail environment in the United States.

EXECUTIVE OVERVIEW

Sales in our Wholesale segment were down 20% versus record first-quarter sales in 2023. Our performance reflected industry headwinds, as retailers are taking a conservative approach to inventory management given the soft sales trend in the footwear and apparel categories and their focus on maintaining lower inventory levels. While our sales were down, we remain encouraged by solid retail sell-throughs, especially in our legacy men’s brands.

Our legacy business was collectively down 13%, with Stacy Adams, Nunn Bush and Florsheim brands down 16%, 13% and 11%, respectively. After working though high inventories for much of 2023, retailers are reducing their upfront buys and placing more orders on an as-needed basis. We did see a meaningful increase in our at-once business during the quarter, but it was not enough to make up the deficit. We anticipate this conservative trend among retailers will continue through the second quarter, but are optimistic that demand will improve in the second half of 2024. We remain focused on evolving our brands to fit a more relaxed lifestyle and continue to expand our offerings in the true casual and hybrid footwear categories. While there is uncertainty in the current retail environment due to a variety of factors, we feel confident about the long-term trajectory of our legacy brands.

BOGS sales were down 48% for the quarter, as the outdoor boot market remains challenging. Additionally, BOGS’ decline in sales was driven by a tough comparison to last year’s first quarter sales.  In early 2023, BOGS shipped a large work boot program to a key account which did not recur in 2024. The loss of this program made up the majority of BOGS’ sales decline for the quarter. After multiple seasons of solid growth, the BOGS business lost momentum in the back half of 2023 due to the oversaturation of boots at retail, in combination with mild Fall and Winter weather.  We believe the market is slowly normalizing as retailers work down their inventories. We are rolling out a wide range of boots that utilize BOGS’ seamless construction, which is 30% lighter and over twice as durable than the standard vulcanized rubber boot. We believe the expansion of our seamless collection will be a difference-maker as the outdoor boot market resets with cleaner inventories this Fall.

12

Our Retail segment had record first-quarter sales and a 10% increase over last year.  The increase was driven primarily by higher web sales for both Florsheim and BOGS. The growth in our direct-to-consumer business reflects the strength of our brand portfolio as well as the investment we have made in our e-commerce platform.

Our overseas business, which consists of Australia, New Zealand, Asia Pacific, and South Africa, collectively known as Florsheim Australia, had a sales decrease of 26% for the quarter. Sales were lower, in part, due to the closure of our Florsheim Asia retail locations at the end of 2023, and the loss of an important wholesale account in Australia. In addition, overall retail and wholesale sales have been lackluster throughout much of the region, reflecting general macro-economic pressures.  For the second half of the year, we are focused on expense management while we identify opportunities to get our overseas business back on a growth track.

First Quarter Highlights

Consolidated net sales were $71.6 million, down 17% compared to record first-quarter sales of $86.3 million in 2023. Consolidated gross earnings increased to 44.7% of net sales compared to 43.1% of net sales in last years first quarter, due to higher gross margins in our Wholesale segment. Earnings from operations were $8.3 million, down 21% from record first-quarter operating earnings of $10.4 million in 2023. First-quarter 2024 net earnings were $6.7 million, or $0.69 per diluted share, compared to record first-quarter net earnings of $7.4 million, or $0.78 per diluted share, last year.

Financial Position Highlights

At March 31, 2024, our cash and marketable securities totaled $84.7 million and we had no debt outstanding on our $40.0 million revolving line of credit. During the first three months of 2024, we generated $14.3 million of cash from operations and used funds to pay $4.7 million in dividends. We also had $0.2 million of capital expenditures during the period.

SEGMENT ANALYSIS

Net sales and earnings from operations for our segments for the three months ended March 31, 2024 and 2023, were as follows:

Three Months Ended March 31, 

%

    

2024

    

2023

    

 Change

 

    

(Dollars in thousands)

 

Net Sales

  

  

  

 

North American Wholesale

$

56,250

$

69,897

 

(20)

%

North American Retail

 

9,819

 

8,930

 

10

%

Other

 

5,489

 

7,467

 

(26)

%

Total

$

71,558

$

86,294

 

(17)

%

Earnings from Operations

 

 

 

  

North American Wholesale

$

7,391

$

8,829

 

(16)

%

North American Retail

 

1,297

 

1,282

 

1

%

Other

 

(437)

 

275

 

NM

Total

$

8,251

$

10,386

 

(21)

%

NM – Not meaningful        

North American Wholesale Segment

Net Sales

Net sales in our Wholesale segment for the three months ended March 31, 2024 and 2023, were as follows:

Three Months Ended March 31, 

%

 

    

2024

    

2023

    

 Change

 

    

(Dollars in thousands)

 

North American Wholesale Net Sales

  

  

  

 

Stacy Adams

$

13,758

$

16,300

 

(16)

%

Nunn Bush

 

12,690

 

14,546

 

(13)

%

Florsheim

 

22,395

 

25,209

 

(11)

%

BOGS/Rafters

 

6,659

 

12,820

 

(48)

%

Forsake

 

221

 

406

 

(46)

%

Total North American Wholesale

$

55,723

$

69,281

 

(20)

%

Licensing

 

527

 

616

 

(14)

%

Total North American Wholesale Segment

$

56,250

$

69,897

 

(20)

%

13

Wholesale net sales for the quarter were down across all brands due to reduced demand following record growth early last year. Our BOGS brand experienced the largest decrease, with sales down 48% for the quarter, as retailers reduced orders due to the current surplus of product in the outdoor footwear market.

Earnings from Operations

Wholesale gross earnings were 39.6% of net sales for the quarter compared to 38.2% of net sales last year. Gross margins improved as a result of lower inventory costs, primarily inbound freight.  Freight costs normalized in the first half of 2022, but because of the large buildup of inventories in 2022, it was not until late 2023 that we sold through inventory with higher freight and were able to begin realizing the full benefit of these lower freight costs.

Wholesale selling and administrative expenses consist primarily of distribution costs, salaries and commissions, advertising costs, employee benefit costs, and depreciation. Wholesale selling and administrative expenses totaled $14.9 million for the quarter compared to $17.9 million last year. The decrease was primarily due to lower employee costs, including commission-based compensation. As a percent of net sales, wholesale selling and administrative expenses were 27% in 2024 and 26% in 2023. Wholesale operating earnings totaled $7.4 million for the quarter, down 16% from $8.8 million in 2023, primarily due to lower sales.  

Our cost of sales does not include distribution costs (e.g., receiving, inspection, warehousing, shipping, and handling costs) which are included in selling and administrative expenses. Wholesale distribution costs were $3.7 million and $4.2 million in the first quarters of 2024 and 2023, respectively.

North American Retail Segment

Net Sales

Net sales in our retail segment were a first-quarter record of $9.8 million, up 10% over our previous record of $8.9 million in the first quarter of 2023. The increase was primarily due to higher sales on our BOGS and Florsheim websites.

Earnings from Operations

Retail gross earnings as a percent of net sales were 65.3% and 66.3% in the first quarters of 2024 and 2023, respectively. Selling and administrative expenses for the retail segment consist primarily of freight, advertising expense, employee costs, rent and occupancy costs. Retail selling and administrative expenses were $5.1 million in the first quarter of 2024 versus $4.6 million in the first quarter of 2023. The increase was primarily due to higher freight costs associated with the increase in web shipments this year. As a percent of net sales, retail selling and administrative expenses were flat at 52% in both 2024 and 2023.

Retail operating earnings were flat at $1.3 million in both the first quarters of 2024 and 2023. Higher retail sales were offset by increased selling and administrative expenses this year.

Other

Operating results reported in the other category historically included our retail and wholesale businesses in Australia, South Africa, and Asia Pacific (collectively, Florsheim Australia). We ceased operations in Asia in 2023, and are in the final stages of winding down that business. As a result, the 2024 operating results of the other category primarily reflect that of Australia and South Africa.

Net sales of Florsheim Australia were $5.5 million in the first quarter of 2024, down 26% from $7.5 million in the first quarter of 2023. In local currency, its net sales were down 24%, due mainly to lower sales in Asia as a result of the closing of our Asia operations, and the mid-year 2023 loss of a sizeable wholesale customer in Australia. Retail sales in Australia were also down for the quarter due to the challenging retail environment.

Florsheim Australias gross earnings were 60.2% of net sales for the quarter and 60.5% of net sales last year. Florsheim Australia generated operating losses of $0.4 million for the period, down compared to operating earnings of $0.3 million in last years first quarter. The decrease was primarily due to lower sales.

Other income and expense

Interest income totaled $0.9 million in the first quarter of 2024 compared to $0.1 million in last year’s first quarter. Interest expense was $0 for the quarter compared to $0.4 million last year.  This year included interest earned on cash in the U.S. and Canada while prior year included interest expense incurred on outstanding debt balances during the period.

Other expense, net, totaled $0.1 million in both the first quarters of 2024 and 2023.

14

The effective income tax rates for the three months ended March 31, 2024 and 2023 were 26.6% and 25.6%, respectively. The 2024 and 2023 effective tax rates differed from the federal rate of 21% primarily because of state taxes.

LIQUIDITY AND CAPITAL RESOURCES

Our primary sources of liquidity are cash, short-term marketable securities, and our revolving line of credit. During the first three months of 2024, we generated $14.3 million of cash from operations compared $23.0 million in the same period one year ago. The decrease in 2024 was primarily due to changes in operating assets and liabilities, principally inventory. Our consolidated inventory balance as of March 31, 2024 was $62.0 million, down from $74.9 million at December 31, 2023.  Our inventory is at a seasonal low point and is expected to return to year-end 2023 levels by the end of the second quarter 2024. We are building inventories to support “at once” business on our core styles.

We paid dividends totaling $4.7 million and $4.6 million in the first three months of 2024 and 2023, respectively. On May 7, 2024, our Board of Directors declared a cash dividend of $0.26 per share to all shareholders of record on May 17, 2024, payable June 28, 2024. This represents an increase of 4% above the previous quarterly dividend rate of $0.25.  

We repurchase our common stock under our share repurchase program when we believe market conditions are favorable. During the first three months of 2024, we repurchased 200 shares for a total cost of approximately $5,000.  As of March 31, 2024, there were 868,557 authorized shares available for repurchase under the program. See Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds below for more information.

Capital expenditures totaled $0.2 million in the first three months of 2024.  Management estimates that total capital expenditures for 2024 will be between $2.0 million and $4.0 million.

At March 31, 2024, we had a $40.0 million revolving line of credit with a bank that is secured by a lien against our general business assets, and expires on September 28, 2024. Outstanding advances on the line of credit bear interest at SOFR plus 125 basis points. Our line of credit agreement contains representations, warranties and covenants (including a minimum tangible net worth financial covenant) that are customary for a facility of this type. At March 31, 2024 and December 31, 2023, there were no outstanding borrowings on the line of credit, and we were in compliance with all financial covenants.

As of March 31, 2024, approximately $4.7 million of cash and cash equivalents was held by our foreign subsidiaries.

We will continue to evaluate the best uses for our available liquidity, including, among other uses, capital expenditures, continued stock repurchases and acquisitions. We believe that available cash, marketable securities, cash provided by operations, and available borrowing facilities will provide adequate support for the cash needs of the business for at least one year, although there can be no assurances.

15

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

Item 4. Controls and Procedures

Attached as exhibits to this Quarterly Report are certifications of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), which are required in accordance with Rule 13a-14 of the Exchange Act. This "Controls and Procedures" section includes information concerning the controls and procedures evaluation referred to in the certifications and it should be read in conjunction with the certifications for a more complete understanding of the topics presented in the section titled Evaluation of Disclosure Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

 

The Company’s management, with the participation of the CEO and CFO, conducted an evaluation of the effectiveness of the design and operation of the Company’s “disclosure controls and procedures” (as such term is defined in the Exchange Act Rules 13a-15(e) and 15d-15(e)) (“Disclosure Controls”) as of the end of the period covered by this Quarterly Report.  Our Disclosure Controls are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act, such as this Quarterly Report, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Our Disclosure Controls are also designed to ensure that such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. Based upon the controls evaluation, our CEO and CFO have concluded that as of the end of the period covered by this Quarterly Report, our Disclosure Controls were not effective due to the material weakness in internal control over financial reporting, described below in “Remediation.”

Changes in Internal Control Over Financial Reporting

Other than the material weakness described below in “Remediation,” there have been no significant changes in our internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Remediation

As previously disclosed in Part II, Item 9A of our Annual Report on Form 10-K for the year ended December 31, 2023, we determined a material weakness existed relating to the design, implementation, and monitoring of general information technology controls in the areas of program change management, user assess, and segregation of duties for systems supporting certain internal control processes.  Related controls are dependent upon the information derived from the information systems and therefore could have been adversely impacted.

With respect to the material weakness, our management, under the oversight of our Audit Committee, has begun evaluating and implementing measures designed to remediate the material weakness. These measures have or will include implementing controls, procedures, and software relating to program change management, user access and segregation of duties for systems supporting the related internal control processes and developing monitoring controls and protocols that will allow us to timely assess the design and the operating effectiveness of the new and redesigned controls. The Company has engaged a third-party service provider to assist with the remediation of the material weakness and the implementation of the required controls.

We believe the above actions will be effective in remediating the material weakness and we will continue to devote time and attention to these remedial efforts. Our remediation efforts will not be considered complete until the applicable controls operate for a sufficient period of time and our management has concluded, through testing, that these controls are operating effectively. We anticipate the remediation of the material weakness will be completed during 2024. We are committed to improving our internal control processes, and, as we evaluate and work to improve our internal control over financial reporting, we may take additional measures to address control deficiencies, or we may modify certain of our remediation measures.

16

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we are engaged in legal proceedings in the ordinary course of business. We are not presently party to any legal proceedings the resolution of which we believe would have a material adverse effect on our business, financial condition, operating results or cash flows.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

In 1998, our stock repurchase program was established and approved by the Board of Directors. On several occasions since the program’s inception, our Board of Directors has increased the number of shares authorized for repurchase under the program. In total, 8.5 million shares have been authorized for repurchase over the life of the program. The table below presents information regarding the repurchases of our common stock in the three-month period ended March 31, 2024.

    

    

    

    

    

    

Maximum Number

Total

Average

Total Number of

of Shares

Number

Price

Shares Purchased as

that May Yet Be

of Shares

Paid

Part of the Publicly

Purchased Under

Period

Purchased

Per Share

Announced Program

the Program

01/01/2024 - 01/31/2024

 

$

 

 

868,757

02/01/2024 - 02/29/2024

 

$

 

 

868,757

03/01/2024 - 03/31/2024

 

200

$

28.74

 

200

 

868,557

Total

 

200

$

28.74

 

200

 

Item 5. Other Information

During the three months ended March 31, 2024, no director or Section 16 officer of the Company adopted or terminated a “Rule 10b5-1 trading agreement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits.

Exhibit

    

Description

    

Incorporation Herein By Reference To

    

Filed
Herewith

31.1

Certification of Chief Executive Officer

X

31.2

Certification of Chief Financial Officer

X

32

Section 906 Certification of Chief Executive Officer and Chief Financial Officer

X

101

The following financial information from Weyco Group, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Condensed Balance Sheets (Unaudited); (ii) Consolidated Condensed Statements of Earnings and Comprehensive Income (Unaudited); (iii) Consolidated Condensed Statements of Cash Flows (Unaudited); and (iv) Notes to Consolidated Condensed Financial Statements

X

104

The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, formatted in iXBRL (included in Exhibit 101).

X

17

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

    

WEYCO GROUP, INC.

 

Dated: May 9, 2024

/s/ Judy Anderson

 

Judy Anderson

 

Vice President, Chief Financial Officer, and Secretary

(Duly Authorized Officer and Principal Financial Officer)

18

EXHIBIT 31.1

CERTIFICATION

I, Thomas W. Florsheim, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Weyco Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 9, 2024

/s/ Thomas W. Florsheim, Jr.

Thomas W. Florsheim, Jr.

Chief Executive Officer


EXHIBIT 31.2

CERTIFICATION

I, Judy Anderson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Weyco Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 9, 2024

/s/ Judy Anderson

Judy Anderson

Chief Financial Officer


EXHIBIT 32

CERTIFICATION OF PERIODIC FINANCIAL REPORTS

We, Thomas W. Florsheim, Jr., Chief Executive Officer, and Judy Anderson, Chief Financial Officer, of Weyco Group, Inc. each certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of our knowledge:

(1)

The Periodic Report on Form 10-Q for the quarter ended March 31, 2024 (the Periodic Report), to which this statement is an exhibit fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and

(2)

The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of Weyco Group, Inc.

Dated: May 9, 2024

/s/ Thomas W. Florsheim, Jr.

Thomas W. Florsheim, Jr.

Chief Executive Officer

/s/ Judy Anderson

Judy Anderson

Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in type form within the electronic version of this written statement required by Section 906, has been provided to Weyco Group, Inc. and will be retained by Weyco Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.


v3.24.1.u1
Document and Entity Information - shares
3 Months Ended
Mar. 31, 2024
Apr. 29, 2024
Document and Entity Information    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2024  
Document Transition Report false  
Entity File Number 000-09068  
Entity Registrant Name WEYCO GROUP, INC.  
Entity Incorporation, State or Country Code WI  
Entity Tax Identification Number 39-0702200  
Entity Address, Address Line One 333 W. Estabrook Boulevard  
Entity Address, Address Line Two P. O. Box 1188  
Entity Address, City or Town Milwaukee  
Entity Address, State or Province WI  
Entity Address, Postal Zip Code 53201  
City Area Code 414  
Local Phone Number 908-1600  
Title of 12(b) Security Common Stock - $1.00 par value per share  
Trading Symbol WEYS  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   9,499,893
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0000106532  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
v3.24.1.u1
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
ASSETS:    
Cash and cash equivalents $ 78,348 $ 69,312
Marketable securities, at amortized cost   215
Accounts receivable, net 42,098 39,275
Income tax receivable   245
Inventories 61,960 74,890
Prepaid expenses and other current assets 3,641 6,172
Total current assets 186,047 190,109
Marketable securities, at amortized cost 6,360 6,354
Deferred income tax benefits 1,052 1,096
Property, plant and equipment, net 28,970 29,504
Operating lease right-of-use assets 11,153 12,520
Goodwill 12,317 12,317
Trademarks 33,168 33,168
Other assets 24,204 24,274
Total assets 303,271 309,342
LIABILITIES AND EQUITY:    
Accounts payable 5,789 8,845
Dividend payable   2,352
Operating lease liabilities 3,671 3,979
Accrued liabilities 9,718 14,446
Accrued income tax payable 1,950  
Total current liabilities 21,128 29,622
Deferred income tax liabilities 11,765 11,819
Long-term pension liability 13,447 13,412
Operating lease liabilities 8,412 9,531
Other long-term liabilities 411 465
Total liabilities 55,163 64,849
Common stock 9,508 9,497
Capital in excess of par value 72,016 71,661
Reinvested earnings 184,914 180,646
Accumulated other comprehensive loss (18,330) (17,311)
Total equity 248,108 244,493
Total liabilities and equity $ 303,271 $ 309,342
v3.24.1.u1
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED)    
Net sales $ 71,558 $ 86,294
Cost of sales 39,551 49,132
Gross earnings 32,007 37,162
Selling and administrative expenses 23,756 26,776
Earnings from operations 8,251 10,386
Interest income 905 139
Interest expense   (385)
Other expense, net (95) (130)
Earnings before provision for income taxes 9,061 10,010
Provision for income taxes 2,411 2,565
Net earnings $ 6,650 $ 7,445
Basic weighted average shares outstanding (in shares) 9,436 9,483
Diluted weighted average shares outstanding (in shares) 9,580 9,545
Basic earnings per share (in dollars per share) $ 0.70 $ 0.79
Diluted earnings per share (in dollars per share) 0.69 0.78
Cash dividends declared (per share) (in dollars per share) $ 0.25 $ 0.24
Comprehensive income $ 5,631 $ 7,238
v3.24.1.u1
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net earnings $ 6,650 $ 7,445
Adjustments to reconcile net earnings to net cash provided by operating activities -    
Depreciation 584 643
Amortization 66 69
Bad debt expense (recovery) 44 (13)
Deferred income taxes (35) (23)
Net foreign currency transaction gains (9) (48)
Share-based compensation expense 367 338
Pension expense 220 347
Loss on disposal of fixed assets 18  
Increase in cash surrender value of life insurance (105) (105)
Changes in operating assets and liabilities -    
Accounts receivable (2,865) 520
Inventories 12,928 21,297
Prepaid expenses and other assets 2,633 1,943
Accounts payable (3,053) (8,411)
Accrued liabilities and other (5,301) (3,208)
Accrued income taxes 2,194 2,192
Net cash provided by operating activities 14,336 22,986
CASH FLOWS FROM INVESTING ACTIVITIES:    
Proceeds from maturities of marketable securities 215 510
Purchases of property, plant and equipment (170) (659)
Net cash provided by (used for) investing activities 45 (149)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (4,664) (4,561)
Shares purchased and retired (5) (1,540)
Net proceeds from stock options exercised   16
Payment of contingent consideration   (500)
Proceeds from bank borrowings   29,018
Repayments of bank borrowings   (39,514)
Net cash used for financing activities (4,669) (17,081)
Effect of exchange rate changes on cash and cash equivalents (676) (67)
Net increase in cash and cash equivalents 9,036 5,689
CASH AND CASH EQUIVALENTS at beginning of year 69,312 16,876
CASH AND CASH EQUIVALENTS at end of year 78,348 22,565
SUPPLEMENTAL CASH FLOW INFORMATION:    
Income taxes paid, net of refunds $ 207 205
Interest paid   $ 423
v3.24.1.u1
Financial Statements
3 Months Ended
Mar. 31, 2024
Financial Statements  
Financial Statements

1.    Financial Statements

In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments necessary to present fairly our financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature. The results of operations for the three-month period ended March 31, 2024, may not necessarily be indicative of the results for the full year.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities at the date of the financial statements and during the reporting period. Actual results specifically related to inventory reserves, realizability of deferred tax assets, goodwill and trademarks could materially differ from those estimates, which would impact the reported amounts and disclosures in the consolidated financial statements and accompanying notes.

v3.24.1.u1
New Accounting Pronouncements
3 Months Ended
Mar. 31, 2024
New Accounting Pronouncements  
New Accounting Pronouncements

2.    New Accounting Pronouncements

Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The objective of ASU 2023-07 is to require entities to provide enhanced disclosures on significant segment expenses. ASU 2023-07 is effective for public companies in annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024. We are currently evaluating the impact that ASU 2023-07 will have on our consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The objective of ASU 2023-09 is to enhance disclosures related to income taxes, including specific thresholds for inclusion within the tabular disclosure of income tax rate reconciliation and specified information about income taxes paid. ASU 2023-09 is effective for public companies starting in annual periods beginning after December 15, 2024. We are currently evaluating the impact that ASU 2023-09 will have on our consolidated financial statements.

v3.24.1.u1
Earnings Per Share
3 Months Ended
Mar. 31, 2024
Earnings Per Share  
Earnings Per Share

3.    Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

Three Months Ended March 31, 

2024

2023

(In thousands, except per share amounts)

Numerator:

 

  

 

  

 

Net earnings

$

6,650

$

7,445

Denominator:

 

  

 

  

Basic weighted average shares outstanding

 

9,436

 

9,483

Effect of dilutive securities:

 

  

 

  

Employee share-based awards

 

144

 

62

Diluted weighted average shares outstanding

 

9,580

 

9,545

Basic earnings per share

$

0.70

$

0.79

Diluted earnings per share

$

0.69

$

0.78

Diluted weighted average shares outstanding for the three months ended March 31, 2024, excluded anti-dilutive stock options totaling 395,000 shares of common stock at a weighted average exercise price of $30.15. Diluted weighted average shares outstanding for the three months ended March 31, 2023, excluded anti-dilutive stock options totaling 1,042,000 shares of common stock at a weighted average exercise price of $26.79.

v3.24.1.u1
Investments
3 Months Ended
Mar. 31, 2024
Investments  
Investments

4.    Investments

As noted in our Annual Report on Form 10-K for the year ended December 31, 2023, all our marketable securities are classified as held-to-maturity securities and reported at amortized cost pursuant to ASC 320, Investments – Debt and Equity Securities, as we have the intent and ability to hold all investments to maturity.

Below is a summary of the amortized cost and estimated market values of our marketable securities as of March 31, 2024, and December 31, 2023.

March 31, 2024

December 31, 2023

    

Amortized

    

Market

    

Amortized

    

Market

    

    

Cost

    

Value

    

Cost

    

Value

    

(Dollars in thousands)

Marketable securities:

 

  

 

  

 

  

 

  

 

Current

$

$

$

215

$

215

Due from one through five years

 

3,524

 

3,567

 

3,518

 

3,592

Due from six through ten years

 

2,836

 

2,800

 

2,836

 

2,830

Total

$

6,360

$

6,367

$

6,569

$

6,637

The unrealized gains and losses on marketable securities at March 31, 2024, and at December 31, 2023, were as follows:

March 31, 2024

December 31, 2023

    

Unrealized

    

Unrealized

    

Unrealized

    

Unrealized

    

    

Gains

    

Losses

    

Gains

    

Losses

    

(Dollars in thousands)

Marketable securities

$

99

$

(92)

$

118

$

(50)

The estimated market values provided are Level 2 valuations as defined by ASC 820, Fair Value Measurements and Disclosures. We reviewed our portfolio of investments as of March 31, 2024, and determined that no other-than-temporary market value impairment exists.

v3.24.1.u1
Intangible Assets
3 Months Ended
Mar. 31, 2024
Intangible Assets  
Intangible Assets

5.    Intangible Assets

During the three months ended March 31, 2024, there were no changes in the carrying value of our indefinite-lived intangible assets (goodwill and trademarks). Our amortizable intangible assets, which were included within other assets in the Consolidated Condensed Balance Sheets (unaudited), consisted of the following:

    

    

March 31, 2024

December 31, 2023

Weighted

Gross

Gross

Average

Carrying

Accumulated

Carrying

Accumulated

    

Life (Years)

    

Amount

    

Amortization

    

Net

    

Amount

    

Amortization

    

Net

(Dollars in thousands)

(Dollars in thousands)

Amortizable intangible assets

  

  

  

  

  

  

  

Customer relationships

 

15

$

3,500

$

(3,053)

$

447

$

3,500

$

(2,994)

$

506

Total amortizable intangible assets

$

3,500

$

(3,053)

$

447

$

3,500

$

(2,994)

$

506

Amortization expense related to the intangible assets was approximately $58,000 in both the first quarters of 2024 and 2023.

v3.24.1.u1
Segment Information
3 Months Ended
Mar. 31, 2024
Segment Information  
Segment Information

6.    Segment Information

We have two reportable segments: North American wholesale operations (“Wholesale”) and North American retail operations (“Retail”). Our Chief Executive Officer evaluates the performance of our segments based on earnings from operations. Therefore, interest income or expense, other income or expense, and income taxes are not allocated to the segments. As of March 31, 2024, the “other” category in the table below included our wholesale and retail operations in Australia, South Africa, and Asia Pacific, which do not meet the criteria for separate reportable segment classification. We ceased operations in Asia in 2023 and are in the final stages of winding down that business. Summarized segment data for the three-month periods ended March 31, 2024 and 2023, was as follows:

Three Months Ended

March 31, 

    

Wholesale

    

Retail

    

Other

    

Total

(Dollars in thousands)

2024

 

  

 

  

 

  

 

Product sales

$

55,723

$

9,819

$

5,489

$

71,031

Licensing revenues

 

527

 

 

 

527

Net sales

$

56,250

$

9,819

$

5,489

$

71,558

Earnings from operations

$

7,391

$

1,297

$

(437)

$

8,251

 

 

 

 

2023

 

 

 

 

Product sales

$

69,281

$

8,930

$

7,467

$

85,678

Licensing revenues

 

616

 

 

 

616

Net sales

$

69,897

$

8,930

$

7,467

$

86,294

Earnings from operations

$

8,829

$

1,282

$

275

$

10,386

v3.24.1.u1
Employee Retirement Plans
3 Months Ended
Mar. 31, 2024
Employee Retirement Plans  
Employee Retirement Plans

7.    Employee Retirement Plans

The components of our pension expense were as follows:

Three Months Ended March 31, 

2024

    

2023

(Dollars in thousands)

Service cost

$

96

$

118

Interest cost

 

637

 

672

Expected return on plan assets

 

(612)

 

(577)

Net amortization and deferral

 

99

 

134

Pension expense

$

220

$

347

The components of pension expense other than the service cost component were included in “other expense, net” in the Consolidated Condensed Statements of Earnings and Comprehensive Income (Unaudited).

v3.24.1.u1
Leases
3 Months Ended
Mar. 31, 2024
Leases  
Leases

8.    Leases

We lease retail shoe stores, as well as several office and distribution facilities worldwide. These leases have original lease periods expiring between 2024 and 2029. Many leases include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of our operating lease costs were as follows:

    

Three Months Ended March 31, 

    

    

2024

2023

    

(Dollars in thousands)

Operating lease costs

 

$

1,106

$

1,362

 

Variable lease costs (1)

2

Total lease costs

 

$

1,106

$

1,364

 

(1)    Variable lease costs primarily include percentage rentals based upon sales in excess of specified amounts.

Short-term lease costs, which were excluded from the above table, are not material to our financial statements.

The following is a schedule of maturities of operating lease liabilities as of March 31, 2024:

    

Operating Leases

(Dollars in thousands)

2024, excluding the quarter ended March 31, 2024

 

$

3,232

2025

 

 

3,532

2026

 

 

3,115

2027

 

 

1,993

2028

953

Thereafter

 

 

379

Total lease payments

 

 

13,204

Less: imputed interest

 

 

(1,121)

Present value of lease liabilities

 

$

12,083

The operating lease liabilities were classified in the consolidated condensed balance sheets (unaudited) as follows:

    

March 31, 

December 31, 

2024

    

2023

(Dollars in thousands)

Operating lease liabilities - current

$

3,671

$

3,979

Operating lease liabilities - non-current

8,412

9,531

Total

 

$

12,083

$

13,510

We determined the present value of our lease liabilities using a weighted-average discount rate of 4.34%.  As of March 31, 2024, our leases had a weighted-average remaining lease term of 3.6 years.

Supplemental cash flow information related to our operating leases is as follows:

    

Three Months Ended March 31, 

    

    

2024

    

2023

    

(Dollars in thousands)

Cash paid for amounts included in the measurement of lease liabilities

 

$

1,141

$

1,286

 

Right-of-use assets obtained in exchange for new lease liabilities (noncash)

$

$

1,739

v3.24.1.u1
Income Taxes
3 Months Ended
Mar. 31, 2024
Income Taxes  
Income Taxes

9.    Income Taxes

The effective income tax rates for the three months ended March 31, 2024 and 2023 were 26.6% and 25.6%, respectively. The 2024 and 2023 effective tax rates differed from the federal rate of 21% primarily because of state taxes.

v3.24.1.u1
Share-Based Compensation Plans
3 Months Ended
Mar. 31, 2024
Share-Based Compensation Plans  
Share-Based Compensation Plans

10.  Share-Based Compensation Plans

During the three months ended March 31, 2024, we recognized $367,000 of compensation expense associated with stock option and restricted stock awards granted in years 2019 through 2023. During the three months ended March 31, 2023, we recognized $338,000 of compensation expense associated with stock option and restricted stock awards granted in years 2018 through 2022.

The following table summarizes our stock option activity for the three-month period ended March 31, 2024:

Weighted

Weighted

Average

Average

Remaining

Aggregate

Exercise

Contractual

Intrinsic

    

Shares

    

Price

    

Term (Years)

    

Value*

Outstanding at December 31, 2023

 

967,217

$

26.22

 

  

 

  

Granted

 

 

  

 

  

Exercised

 

(45,502)

24.49

 

  

 

  

Forfeited or expired

 

(3,260)

25.33

 

  

 

  

Outstanding at March 31, 2024

 

918,455

$

26.31

 

6.5

$

5,735,000

Exercisable at March 31, 2024

 

485,628

$

27.50

 

5.2

$

2,740,000

*The aggregate intrinsic value of outstanding and exercisable stock options is defined as the difference between the market value of our common stock on March 28, 2024, the last trading day of the quarter, of $31.88 and the exercise price multiplied by the number of in-the-money outstanding and exercisable stock options.

The following table summarizes our restricted stock award activity for the three-month period ended March 31, 2024:

    

    

    

    

Weighted 

Weighted

Average

Shares of

 Average

Remaining

Aggregate

Restricted

Grant Date

Contractual

Intrinsic

Stock

Fair Value

Term (Years)

Value*

Non-vested - December 31, 2023

 

69,090

$

25.54

Issued

 

 

 

 

Vested

 

(1,425)

 

24.85

 

 

Forfeited

 

 

 

 

Non-vested - March 31, 2024

 

67,665

$

25.55

2.4

$

2,157,000

*The aggregate intrinsic value of non-vested restricted stock was calculated using the market value of our common stock on March 28, 2024, the last trading day of the quarter, of $31.88 multiplied by the number of non-vested restricted shares outstanding.

v3.24.1.u1
Short-Term Borrowings
3 Months Ended
Mar. 31, 2024
Short-Term Borrowings  
Short-Term Borrowings

11.  Short-Term Borrowings

At March 31, 2024, we had a $40.0 million revolving line of credit with a bank that is secured by a lien against our general business assets, and expires on September 28, 2024. Outstanding advances on the line of credit bear interest at the one-month term secured overnight financing rate (“SOFR”) plus 125 basis points. Our line of credit agreement contains representations, warranties and covenants (including a minimum tangible net worth financial covenant) that are customary for a facility of this type. At March 31, 2024, there were no outstanding borrowings on the line of credit, and we were in compliance with all financial covenants.

v3.24.1.u1
Financial Instruments
3 Months Ended
Mar. 31, 2024
Financial Instruments  
Financial Instruments

12.  Financial Instruments

At March 31, 2024, our wholly-owned subsidiary, Florsheim Australia, had a foreign exchange contract outstanding to buy $0.3 million U.S. dollars at a price of approximately $0.4 million Australian dollars. This contract expires in 2024. Based on quarter-end exchange rates, there were no significant unrealized gains or losses on the outstanding contract.

We determine the fair value of foreign exchange contracts based on the difference between the foreign currency contract rates and the widely available foreign currency rates as of the measurement date. The fair value measurements are based on observable market transactions, and thus represent a Level 2 valuation as defined by ASC 820.

v3.24.1.u1
Comprehensive Income
3 Months Ended
Mar. 31, 2024
Comprehensive Income  
Comprehensive Income

13.  Comprehensive Income

Comprehensive income for the three months ended March 31, 2024 and 2023, was as follows:

Three Months Ended March 31, 

    

2024

    

2023

Net earnings

$

6,650

$

7,445

Foreign currency translation adjustments

 

(1,092)

 

(306)

Pension liability adjustment, net of tax of $26 and $35, respectively

 

73

 

99

Total comprehensive income

$

5,631

$

7,238

The components of accumulated other comprehensive loss as recorded in the Consolidated Condensed Balance Sheets (Unaudited) were as follows:

    

March 31, 

    

December 31, 

2024

2023

(Dollars in thousands)

Foreign currency translation adjustments

$

(9,046)

$

(7,954)

Pension liability, net of tax

 

(9,284)

 

(9,357)

Total accumulated other comprehensive loss

$

(18,330)

$

(17,311)

The following tables show changes in accumulated other comprehensive loss during the three months ended March 31, 2024 and 2023:

    

Foreign Currency

    

    

Translation

Defined Benefit

    

 Adjustments

    

Pension Items

    

Total

Balance, December 31, 2023

$

(7,954)

$

(9,357)

$

(17,311)

Other comprehensive loss before reclassifications

(1,092)

(1,092)

Amounts reclassified from accumulated other comprehensive loss

73

73

Net current period other comprehensive (loss) income

(1,092)

73

(1,019)

Balance, March 31, 2024

$

(9,046)

$

(9,284)

$

(18,330)

    

Foreign Currency

    

    

Translation

Defined Benefit

    

 Adjustments

    

Pension Items

    

Total

Balance, December 31, 2022

$

(8,596)

$

(11,597)

$

(20,193)

Other comprehensive loss before reclassifications

(306)

(306)

Amounts reclassified from accumulated other comprehensive loss

99

99

Net current period other comprehensive (loss) income

(306)

99

(207)

Balance, March 31, 2023

$

(8,902)

$

(11,498)

$

(20,400)

The following table shows reclassification adjustments out of accumulated other comprehensive loss during the three months ended March 31, 2024 and 2023:

Amounts Reclassified from Accumulated Other Comprehensive Loss

Affected line item in the

Three Months Ended March 31, 

statement where net

2024

2023

    

earnings is presented

Amortization of defined benefit pension items

  

 

  

Prior service cost

$

5

(1)

$

5

(1)

Other expense, net

Actuarial losses

94

(1)

 

129

(1)

Other expense, net

Total before tax

99

 

134

 

  

Tax benefit

(26)

 

(35)

 

  

Net of tax

$

73

$

99

 

  

(1)These amounts were included in the computation of pension expense. See Note 7 for additional details.
v3.24.1.u1
Equity
3 Months Ended
Mar. 31, 2024
Equity  
Equity

14.  Equity

The following table reconciles our equity for the three months ended March 31, 2024:

Accumulated

Capital in

Other

Common

Excess of

Reinvested

Comprehensive

    

Stock

    

Par Value

    

Earnings

    

Loss

(Dollars in thousands)

Balance, December 31, 2023

$

9,497

$

71,661

$

180,646

$

(17,311)

Net earnings

 

 

 

6,650

 

Foreign currency translation adjustments

 

 

 

 

(1,092)

Pension liability adjustment, net of tax

 

 

 

 

73

Cash dividends declared

 

 

 

(2,377)

 

Stock options exercised, net of shares withheld for employee taxes and strike price

11

(12)

Share-based compensation expense

 

 

367

 

 

Shares purchased and retired

(5)

Balance, March 31, 2024

$

9,508

72,016

$

184,914

(18,330)

The following table reconciles our equity for the three months ended March 31, 2023:

Accumulated

Capital in

Other

Common

Excess of

Reinvested

Comprehensive

    

Stock

    

Par Value

    

Earnings

    

Loss

(Dollars in thousands)

Balance, December 31, 2022

$

9,584

$

70,475

$

164,039

$

(20,193)

Net earnings

 

 

 

7,445

 

Foreign currency translation adjustments

 

 

 

 

(306)

Pension liability adjustment, net of tax

 

 

 

 

99

Cash dividends declared

 

 

 

(2,289)

 

Stock options exercised, net of shares withheld for employee taxes and strike price

1

15

Share-based compensation expense

338

Shares purchased and retired

(62)

(1,478)

Balance, March 31, 2023

$

9,523

$

70,828

$

167,717

$

(20,400)

v3.24.1.u1
Financial Statements (Policies)
3 Months Ended
Mar. 31, 2024
Financial Statements  
Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities at the date of the financial statements and during the reporting period. Actual results specifically related to inventory reserves, realizability of deferred tax assets, goodwill and trademarks could materially differ from those estimates, which would impact the reported amounts and disclosures in the consolidated financial statements and accompanying notes.

v3.24.1.u1
New Accounting Pronouncements (Policies)
3 Months Ended
Mar. 31, 2024
Financial Statements  
New Accounting Pronouncements

Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The objective of ASU 2023-07 is to require entities to provide enhanced disclosures on significant segment expenses. ASU 2023-07 is effective for public companies in annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024. We are currently evaluating the impact that ASU 2023-07 will have on our consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The objective of ASU 2023-09 is to enhance disclosures related to income taxes, including specific thresholds for inclusion within the tabular disclosure of income tax rate reconciliation and specified information about income taxes paid. ASU 2023-09 is effective for public companies starting in annual periods beginning after December 15, 2024. We are currently evaluating the impact that ASU 2023-09 will have on our consolidated financial statements.

v3.24.1.u1
Earnings Per Share (Tables)
3 Months Ended
Mar. 31, 2024
Earnings Per Share  
Schedule of computation of basic and diluted earnings per share

Three Months Ended March 31, 

2024

2023

(In thousands, except per share amounts)

Numerator:

 

  

 

  

 

Net earnings

$

6,650

$

7,445

Denominator:

 

  

 

  

Basic weighted average shares outstanding

 

9,436

 

9,483

Effect of dilutive securities:

 

  

 

  

Employee share-based awards

 

144

 

62

Diluted weighted average shares outstanding

 

9,580

 

9,545

Basic earnings per share

$

0.70

$

0.79

Diluted earnings per share

$

0.69

$

0.78

v3.24.1.u1
Investments (Tables)
3 Months Ended
Mar. 31, 2024
Investments  
Schedule of marketable securities

March 31, 2024

December 31, 2023

    

Amortized

    

Market

    

Amortized

    

Market

    

    

Cost

    

Value

    

Cost

    

Value

    

(Dollars in thousands)

Marketable securities:

 

  

 

  

 

  

 

  

 

Current

$

$

$

215

$

215

Due from one through five years

 

3,524

 

3,567

 

3,518

 

3,592

Due from six through ten years

 

2,836

 

2,800

 

2,836

 

2,830

Total

$

6,360

$

6,367

$

6,569

$

6,637

Schedule of unrealized gains and losses on marketable securities

March 31, 2024

December 31, 2023

    

Unrealized

    

Unrealized

    

Unrealized

    

Unrealized

    

    

Gains

    

Losses

    

Gains

    

Losses

    

(Dollars in thousands)

Marketable securities

$

99

$

(92)

$

118

$

(50)

v3.24.1.u1
Intangible Assets (Tables)
3 Months Ended
Mar. 31, 2024
Intangible Assets  
Schedule of company's amortizable intangible assets

    

    

March 31, 2024

December 31, 2023

Weighted

Gross

Gross

Average

Carrying

Accumulated

Carrying

Accumulated

    

Life (Years)

    

Amount

    

Amortization

    

Net

    

Amount

    

Amortization

    

Net

(Dollars in thousands)

(Dollars in thousands)

Amortizable intangible assets

  

  

  

  

  

  

  

Customer relationships

 

15

$

3,500

$

(3,053)

$

447

$

3,500

$

(2,994)

$

506

Total amortizable intangible assets

$

3,500

$

(3,053)

$

447

$

3,500

$

(2,994)

$

506

v3.24.1.u1
Segment Information (Tables)
3 Months Ended
Mar. 31, 2024
Segment Information  
Schedule of segment reporting information

Three Months Ended

March 31, 

    

Wholesale

    

Retail

    

Other

    

Total

(Dollars in thousands)

2024

 

  

 

  

 

  

 

Product sales

$

55,723

$

9,819

$

5,489

$

71,031

Licensing revenues

 

527

 

 

 

527

Net sales

$

56,250

$

9,819

$

5,489

$

71,558

Earnings from operations

$

7,391

$

1,297

$

(437)

$

8,251

 

 

 

 

2023

 

 

 

 

Product sales

$

69,281

$

8,930

$

7,467

$

85,678

Licensing revenues

 

616

 

 

 

616

Net sales

$

69,897

$

8,930

$

7,467

$

86,294

Earnings from operations

$

8,829

$

1,282

$

275

$

10,386

v3.24.1.u1
Employee Retirement Plans (Tables)
3 Months Ended
Mar. 31, 2024
Employee Retirement Plans  
Schedule of company's pension expense

Three Months Ended March 31, 

2024

    

2023

(Dollars in thousands)

Service cost

$

96

$

118

Interest cost

 

637

 

672

Expected return on plan assets

 

(612)

 

(577)

Net amortization and deferral

 

99

 

134

Pension expense

$

220

$

347

v3.24.1.u1
Leases (Tables)
3 Months Ended
Mar. 31, 2024
Leases  
Schedule of operating lease costs

    

Three Months Ended March 31, 

    

    

2024

2023

    

(Dollars in thousands)

Operating lease costs

 

$

1,106

$

1,362

 

Variable lease costs (1)

2

Total lease costs

 

$

1,106

$

1,364

 

(1)    Variable lease costs primarily include percentage rentals based upon sales in excess of specified amounts.

Schedule of maturities of operating lease liabilities

    

Operating Leases

(Dollars in thousands)

2024, excluding the quarter ended March 31, 2024

 

$

3,232

2025

 

 

3,532

2026

 

 

3,115

2027

 

 

1,993

2028

953

Thereafter

 

 

379

Total lease payments

 

 

13,204

Less: imputed interest

 

 

(1,121)

Present value of lease liabilities

 

$

12,083

Schedule of supplemental information

    

March 31, 

December 31, 

2024

    

2023

(Dollars in thousands)

Operating lease liabilities - current

$

3,671

$

3,979

Operating lease liabilities - non-current

8,412

9,531

Total

 

$

12,083

$

13,510

    

Three Months Ended March 31, 

    

    

2024

    

2023

    

(Dollars in thousands)

Cash paid for amounts included in the measurement of lease liabilities

 

$

1,141

$

1,286

 

Right-of-use assets obtained in exchange for new lease liabilities (noncash)

$

$

1,739

v3.24.1.u1
Share-Based Compensation Plans (Tables)
3 Months Ended
Mar. 31, 2024
Share-Based Compensation Plans  
Schedule of stock option activity

Weighted

Weighted

Average

Average

Remaining

Aggregate

Exercise

Contractual

Intrinsic

    

Shares

    

Price

    

Term (Years)

    

Value*

Outstanding at December 31, 2023

 

967,217

$

26.22

 

  

 

  

Granted

 

 

  

 

  

Exercised

 

(45,502)

24.49

 

  

 

  

Forfeited or expired

 

(3,260)

25.33

 

  

 

  

Outstanding at March 31, 2024

 

918,455

$

26.31

 

6.5

$

5,735,000

Exercisable at March 31, 2024

 

485,628

$

27.50

 

5.2

$

2,740,000

*The aggregate intrinsic value of outstanding and exercisable stock options is defined as the difference between the market value of our common stock on March 28, 2024, the last trading day of the quarter, of $31.88 and the exercise price multiplied by the number of in-the-money outstanding and exercisable stock options.

Schedule of restricted stock award activity

    

    

    

    

Weighted 

Weighted

Average

Shares of

 Average

Remaining

Aggregate

Restricted

Grant Date

Contractual

Intrinsic

Stock

Fair Value

Term (Years)

Value*

Non-vested - December 31, 2023

 

69,090

$

25.54

Issued

 

 

 

 

Vested

 

(1,425)

 

24.85

 

 

Forfeited

 

 

 

 

Non-vested - March 31, 2024

 

67,665

$

25.55

2.4

$

2,157,000

*The aggregate intrinsic value of non-vested restricted stock was calculated using the market value of our common stock on March 28, 2024, the last trading day of the quarter, of $31.88 multiplied by the number of non-vested restricted shares outstanding.

v3.24.1.u1
Comprehensive Income (Tables)
3 Months Ended
Mar. 31, 2024
Comprehensive Income  
Schedule of comprehensive income

Three Months Ended March 31, 

    

2024

    

2023

Net earnings

$

6,650

$

7,445

Foreign currency translation adjustments

 

(1,092)

 

(306)

Pension liability adjustment, net of tax of $26 and $35, respectively

 

73

 

99

Total comprehensive income

$

5,631

$

7,238

Schedule of accumulated other comprehensive loss

    

March 31, 

    

December 31, 

2024

2023

(Dollars in thousands)

Foreign currency translation adjustments

$

(9,046)

$

(7,954)

Pension liability, net of tax

 

(9,284)

 

(9,357)

Total accumulated other comprehensive loss

$

(18,330)

$

(17,311)

Schedule of changes in accumulated other comprehensive loss

    

Foreign Currency

    

    

Translation

Defined Benefit

    

 Adjustments

    

Pension Items

    

Total

Balance, December 31, 2023

$

(7,954)

$

(9,357)

$

(17,311)

Other comprehensive loss before reclassifications

(1,092)

(1,092)

Amounts reclassified from accumulated other comprehensive loss

73

73

Net current period other comprehensive (loss) income

(1,092)

73

(1,019)

Balance, March 31, 2024

$

(9,046)

$

(9,284)

$

(18,330)

    

Foreign Currency

    

    

Translation

Defined Benefit

    

 Adjustments

    

Pension Items

    

Total

Balance, December 31, 2022

$

(8,596)

$

(11,597)

$

(20,193)

Other comprehensive loss before reclassifications

(306)

(306)

Amounts reclassified from accumulated other comprehensive loss

99

99

Net current period other comprehensive (loss) income

(306)

99

(207)

Balance, March 31, 2023

$

(8,902)

$

(11,498)

$

(20,400)

Schedule of reclassification adjustments out of accumulated other comprehensive loss

Amounts Reclassified from Accumulated Other Comprehensive Loss

Affected line item in the

Three Months Ended March 31, 

statement where net

2024

2023

    

earnings is presented

Amortization of defined benefit pension items

  

 

  

Prior service cost

$

5

(1)

$

5

(1)

Other expense, net

Actuarial losses

94

(1)

 

129

(1)

Other expense, net

Total before tax

99

 

134

 

  

Tax benefit

(26)

 

(35)

 

  

Net of tax

$

73

$

99

 

  

(1)These amounts were included in the computation of pension expense. See Note 7 for additional details.
v3.24.1.u1
Equity (Tables)
3 Months Ended
Mar. 31, 2024
Equity  
Schedule of reconciliation of company's equity

The following table reconciles our equity for the three months ended March 31, 2024:

Accumulated

Capital in

Other

Common

Excess of

Reinvested

Comprehensive

    

Stock

    

Par Value

    

Earnings

    

Loss

(Dollars in thousands)

Balance, December 31, 2023

$

9,497

$

71,661

$

180,646

$

(17,311)

Net earnings

 

 

 

6,650

 

Foreign currency translation adjustments

 

 

 

 

(1,092)

Pension liability adjustment, net of tax

 

 

 

 

73

Cash dividends declared

 

 

 

(2,377)

 

Stock options exercised, net of shares withheld for employee taxes and strike price

11

(12)

Share-based compensation expense

 

 

367

 

 

Shares purchased and retired

(5)

Balance, March 31, 2024

$

9,508

72,016

$

184,914

(18,330)

The following table reconciles our equity for the three months ended March 31, 2023:

Accumulated

Capital in

Other

Common

Excess of

Reinvested

Comprehensive

    

Stock

    

Par Value

    

Earnings

    

Loss

(Dollars in thousands)

Balance, December 31, 2022

$

9,584

$

70,475

$

164,039

$

(20,193)

Net earnings

 

 

 

7,445

 

Foreign currency translation adjustments

 

 

 

 

(306)

Pension liability adjustment, net of tax

 

 

 

 

99

Cash dividends declared

 

 

 

(2,289)

 

Stock options exercised, net of shares withheld for employee taxes and strike price

1

15

Share-based compensation expense

338

Shares purchased and retired

(62)

(1,478)

Balance, March 31, 2023

$

9,523

$

70,828

$

167,717

$

(20,400)

v3.24.1.u1
Earnings Per Share - Basic and diluted (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Numerator:    
Net earnings $ 6,650 $ 7,445
Denominator:    
Basic weighted average shares outstanding (in shares) 9,436 9,483
Effect of dilutive securities:    
Employee share-based awards (in shares) 144 62
Diluted weighted average shares outstanding (in shares) 9,580 9,545
Basic earnings per share (in dollars per share) $ 0.70 $ 0.79
Diluted earnings per share (in dollars per share) $ 0.69 $ 0.78
v3.24.1.u1
Earnings Per Share - Additional Information (Details) - $ / shares
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Earnings Per Share    
Anti-dilutive share-based awards (in shares) 395,000 1,042,000
Weighted average price of anti-dilutive share-based awards (in dollars per share) $ 30.15 $ 26.79
v3.24.1.u1
Investments - Marketable Securities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Investments    
Amortized Cost, Current   $ 215
Amortized Cost, Due from one through five years $ 3,524 3,518
Amortized Cost, Due from six through ten years 2,836 2,836
Amortized Cost, Total 6,360 6,569
Market Value, Current   215
Market Value, Due from one through five years 3,567 3,592
Market Value, Due from six through ten years 2,800 2,830
Market Value, Total $ 6,367 $ 6,637
v3.24.1.u1
Investments - Unrealized gains and losses (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Investments    
Unrealized Gains $ 99 $ 118
Unrealized Losses $ (92) $ (50)
v3.24.1.u1
Intangible Assets - Amortizable intangible assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Amortizable intangible assets    
Gross Carrying Amount $ 3,500 $ 3,500
Accumulated Amortization (3,053) (2,994)
Net $ 447 506
Customer relationships    
Amortizable intangible assets    
Weighted Average Life (Years) 15 years  
Gross Carrying Amount $ 3,500 3,500
Accumulated Amortization (3,053) (2,994)
Net $ 447 $ 506
v3.24.1.u1
Intangible Assets - Additional Information (Details) - USD ($)
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Intangible Assets    
Amortization of intangible assets $ 58,000 $ 58,000
Change in carrying value of indefinite-lived intangible assets $ 0  
v3.24.1.u1
Segment Information - Additional Information (Details)
3 Months Ended
Mar. 31, 2024
segment
Segment Information  
Number of reportable segments 2
v3.24.1.u1
Segment Information - Schedule of segment data (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
SEGMENT INFORMATION    
Net sales $ 71,558 $ 86,294
Earnings from operations 8,251 10,386
Product sales    
SEGMENT INFORMATION    
Net sales 71,031 85,678
Licensing revenues    
SEGMENT INFORMATION    
Net sales 527 616
Wholesale    
SEGMENT INFORMATION    
Net sales 56,250 69,897
Earnings from operations 7,391 8,829
Wholesale | Product sales    
SEGMENT INFORMATION    
Net sales 55,723 69,281
Wholesale | Licensing revenues    
SEGMENT INFORMATION    
Net sales 527 616
Retail    
SEGMENT INFORMATION    
Net sales 9,819 8,930
Earnings from operations 1,297 1,282
Retail | Product sales    
SEGMENT INFORMATION    
Net sales 9,819 8,930
Other    
SEGMENT INFORMATION    
Net sales 5,489 7,467
Earnings from operations (437) 275
Other | Product sales    
SEGMENT INFORMATION    
Net sales $ 5,489 $ 7,467
v3.24.1.u1
Employee Retirement Plans (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Employee Retirement Plans    
Service cost $ 96 $ 118
Interest cost 637 672
Expected return on plan assets (612) (577)
Net amortization and deferral 99 134
Pension expense $ 220 $ 347
v3.24.1.u1
Leases - Operating lease costs (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Leases    
Operating lease costs $ 1,106 $ 1,362
Variable lease costs   2
Total lease costs $ 1,106 $ 1,364
v3.24.1.u1
Leases - Maturities of operating lease liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Leases    
2024, excluding the quarter ended March 31, 2024 $ 3,232  
2025 3,532  
2026 3,115  
2027 1,993  
2028 953  
Thereafter 379  
Total lease payments 13,204  
Less imputed interest (1,121)  
Present value of lease liabilities $ 12,083 $ 13,510
v3.24.1.u1
Leases - Operating lease liabilities classification (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Leases    
Operating lease liabilities - current $ 3,671 $ 3,979
Operating lease liabilities - non-current 8,412 9,531
Total $ 12,083 $ 13,510
v3.24.1.u1
Leases - Additional Information (Details)
Mar. 31, 2024
Leases  
Weighted-average discount rate (percent) 4.34%
Weighted-average remaining lease term 3 years 7 months 6 days
v3.24.1.u1
Leases - Supplemental cash flow information (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Leases    
Cash paid for amounts included in the measurement of lease liabilities $ 1,141 $ 1,286
Right-of-use assets obtained in exchange for new lease liabilities (noncash)   $ 1,739
v3.24.1.u1
Income Taxes - Effective tax rate (Details)
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Income Taxes    
U.S. federal statutory income tax rate 21.00% 21.00%
Effective tax rate 26.60% 25.60%
v3.24.1.u1
Share-Based Compensation Plans - Additional information (Details) - USD ($)
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Mar. 28, 2024
Share-Based Compensation Plans      
Share-based compensation expense $ 367,000 $ 338,000  
Restricted stock      
Share-Based Compensation Plans      
Share Price     $ 31.88
v3.24.1.u1
Share-Based Compensation Plans - Company's stock option activity (Details) - Employee Stock Option - USD ($)
3 Months Ended
Mar. 31, 2024
Mar. 28, 2024
Share-Based Compensation Plans    
Shares, Outstanding at beginning of period 967,217  
Shares, Exercised (45,502)  
Shares, Forfeited or expired (3,260)  
Shares, Outstanding at end of period 918,455  
Shares, Exercisable at end of period 485,628  
Weighted Average Exercise Price, Outstanding at beginning of period (in dollars per share) $ 26.22  
Weighted Average Exercise Price, Exercised (in dollars per share) 24.49  
Weighted Average Exercise Price, Forfeited or expired (in dollars per share) 25.33  
Weighted Average Exercise Price, Outstanding at end of period (in dollars per share) 26.31  
Weighted Average Exercise Price, Exercisable at end of period (in dollars per share) $ 27.50  
Weighted Average Remaining Contractual Term (Years), Outstanding 6 years 6 months  
Weighted Average Remaining Contractual Term (Years), Exercisable, Outstanding 5 years 2 months 12 days  
Aggregate Intrinsic Value, Outstanding $ 5,735,000  
Aggregate Intrinsic Value, Exercisable $ 2,740,000  
Market value of common stock (in dollars per share)   $ 31.88
v3.24.1.u1
Share-Based Compensation Plans - Company's restricted stock award activities (Details) - Restricted stock - USD ($)
3 Months Ended
Mar. 31, 2024
Mar. 28, 2024
Share-Based Compensation Plans    
Shares of Restricted Stock, Non-vested beginning of period 69,090  
Shares of Restricted Stock, Vested (1,425)  
Shares of Restricted Stock, Non-vested end of period 67,665  
Weighted Average Grant Date Fair Value, Non-vested beginning of period (in dollars per share) $ 25.54  
Weighted Average Grant Date Fair Value, Vested (in dollars per share) 24.85  
Weighted Average Grant Date Fair Value, Non-vested end of period (in dollars per share) $ 25.55  
Weighted Average Remaining Contractual Term (Years) 2 years 4 months 24 days  
Aggregate intrinsic value $ 2,157,000  
Market value of common stock (in dollars per share)   $ 31.88
v3.24.1.u1
Short-Term Borrowings (Details)
$ in Millions
3 Months Ended
Mar. 31, 2024
USD ($)
Line of credit facility  
Short-Term Borrowings  
Short-term borrowings $ 0.0
Revolving credit facility  
Short-Term Borrowings  
Line of credit with a bank $ 40.0
Line of credit facility, expiration date Sep. 28, 2024
Revolving credit facility | Secured overnight financing rate (SOFR)  
Short-Term Borrowings  
Spread on variable rate 1.25%
v3.24.1.u1
Financial Instruments (Details) - Mar. 31, 2024
$ in Millions, $ in Millions
USD ($)
AUD ($)
Foreign exchange contracts Australian    
Foreign exchange contract outstanding $ 0.3 $ 0.4
v3.24.1.u1
Comprehensive Income (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Comprehensive Income    
Net earnings $ 6,650 $ 7,445
Foreign currency translation adjustments (1,092)  
Pension liability adjustment, net of tax of $26 and $35, respectively 73 99
Total comprehensive income 5,631 7,238
Pension liability, net of tax $ 26 $ 35
v3.24.1.u1
Comprehensive Income - Accumulated other comprehensive loss (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Comprehensive Income        
Foreign currency translation adjustments $ (9,046) $ (7,954) $ (8,902) $ (8,596)
Pension liability, net of tax (9,284) (9,357) $ (11,498) $ (11,597)
Total accumulated other comprehensive loss $ (18,330) $ (17,311)    
v3.24.1.u1
Comprehensive Income - Changes in accumulated other comprehensive loss (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Comprehensive Income    
Foreign Currency Translation Adjustments, Beginning balance $ (7,954) $ (8,596)
Foreign Currency Translation Adjustments, Other comprehensive income (loss) before reclassifications (1,092) (306)
Foreign Currency Translation Adjustments, Net current period other comprehensive (loss) income (1,092) (306)
Foreign Currency Translation Adjustments, Ending balance (9,046) (8,902)
Defined Benefit Pension Items, Beginning balance (9,357) (11,597)
Defined Benefit Pension Items, Amounts reclassified from accumulated other comprehensive loss 73 99
Defined Benefit Pension Items, Net current period other comprehensive (loss) income 73 99
Defined Benefit Pension Items, Ending balance (9,284) $ (11,498)
Beginning balance (17,311)  
Ending balance $ (18,330)  
v3.24.1.u1
Comprehensive Income - Reclassification adjustments out of accumulated other comprehensive loss (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Amortization of defined benefit pension items    
Prior service cost $ 5 $ 5
Actuarial losses 94 129
Total before tax 99 134
Tax benefit [1] (26) (35)
Net of tax $ 73 $ 99
[1] These amounts were included in the computation of pension expense. See Note 7 for additional details.
v3.24.1.u1
Equity (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Equity    
Balance at beginning $ 244,493  
Net earnings 6,650 $ 7,445
Foreign currency translation adjustments (1,092)  
Pension liability adjustments 73 99
Balance at ending 248,108  
Common stock    
Equity    
Balance at beginning 9,497 9,584
Stock options exercised, net of shares withheld for employee taxes and strike price 11 1
Shares purchased and retired   (62)
Balance at ending 9,508 9,523
Capital in excess of par value    
Equity    
Balance at beginning 71,661 70,475
Stock options exercised, net of shares withheld for employee taxes and strike price (12) 15
Share-based compensation expense 367 338
Balance at ending 72,016 70,828
Reinvested earnings    
Equity    
Balance at beginning 180,646 164,039
Net earnings 6,650 7,445
Cash dividends declared (2,377) (2,289)
Shares purchased and retired (5) (1,478)
Balance at ending 184,914 167,717
Accumulated other comprehensive loss    
Equity    
Balance at beginning (17,311) (20,193)
Foreign currency translation adjustments (1,092) (306)
Pension liability adjustments 73 99
Balance at ending $ (18,330) $ (20,400)
v3.24.1.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Pay vs Performance Disclosure    
Net Income (Loss) $ 6,650 $ 7,445
v3.24.1.u1
Insider Trading Arrangements
3 Months Ended
Mar. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false

Weyco (NASDAQ:WEYS)
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