MILWAUKEE - Weyco Group, Inc. (NASDAQ:WEYS), a designer and marketer of footwear, has declared a special one-time cash dividend of $2.00 per share. The dividend, totaling approximately $19 million based on the current number of outstanding shares, is slated for payment on January 2, 2025, to shareholders of record as of November 18, 2024.
The announcement was made today by Thomas W. Florsheim, Jr., Chairman and CEO of Weyco Group, who highlighted the company's robust financial performance in recent years. This strong performance has led to a significant cash reserve, prompting the decision to distribute a portion of these funds to shareholders. This special dividend will be in addition to the company's regular quarterly dividends.
Florsheim pointed out that Weyco's solid financial foundation and liquidity position the company well for future growth, further investments in the business, and the flexibility to pursue strategic opportunities or share repurchases as they arise.
Weyco Group's portfolio includes well-known brands such as Florsheim, Nunn Bush, Stacy Adams, BOGS, Rafters, and Forsake. The company's products are distributed across various retail channels, including department and specialty stores, as well as online platforms. Weyco also operates Florsheim stores in the United States, Australia, and South Africa.
In the press release, Weyco Group also included forward-looking statements, cautioning that actual results could vary due to factors such as inflation, manufacturing costs, consumer trends, and market conditions. The company also acknowledged external uncertainties, including economic impacts from wars and sanctions, which could affect performance.
Investors are reminded that this news is based on a press release statement from Weyco Group, Inc.
In other recent news, Weyco Group, Inc. reported mixed results in its second-quarter 2024 financial results, with a 5% decrease in net sales to $63.9 million compared to the previous year. Despite this dip, the company achieved a record net earnings increase of 15% to $5.6 million. The North American wholesale segment saw a minor 2% decrease in net sales, and Florsheim Australia reported a more significant 23% decline.
However, Weyco Group's consolidated gross earnings improved, and operational cash flow remained robust. The company also declared a cash dividend of $0.26 per share to shareholders. The firm anticipates annual capital expenditures to be between $1 million and $3 million in 2024 and is introducing more hybrid and athleisure styles to meet consumer demand.
Investments continue in the online platform to fuel future retail growth, and cost control and a turnaround strategy are in focus for the Australian retail and wholesale segments. These are part of Weyco Group's recent developments.
InvestingPro Insights
Weyco Group's decision to issue a special dividend aligns with its strong financial position, as highlighted by several InvestingPro metrics and tips. The company's market cap stands at $321.32 million, with a P/E ratio of 10.66, indicating a relatively attractive valuation compared to its earnings.
An InvestingPro Tip reveals that Weyco "holds more cash than debt on its balance sheet," which supports the company's ability to distribute this special dividend while maintaining financial flexibility. This is further reinforced by another tip stating that "liquid assets exceed short-term obligations," suggesting a healthy liquidity position.
The company's commitment to shareholder returns is evident not only in this special dividend but also in its track record. An InvestingPro Tip notes that Weyco "has maintained dividend payments for 54 consecutive years," demonstrating a long-standing dedication to returning value to shareholders.
Weyco's profitability is also noteworthy, with the company being "profitable over the last twelve months" according to InvestingPro. This is reflected in its revenue of $300.23 million and an operating income margin of 12.87% for the last twelve months as of Q2 2024.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and metrics beyond those mentioned here. In fact, there are 7 more InvestingPro Tips available for Weyco Group, providing deeper insights into the company's financial health and market position.
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