WEYS - Earnings call transcript Q3 2018

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Operator

Hello, and welcome to the Third Quarter 2018 Earnings Release Conference Call. My name is Anara, and I'll be the operator for today's call. At this time, all participants are in a listen-only mode. Later we'll conduct a question-and-answer session [Operator Instructions] I will now turn the call over to Mr. John Wittkowske, CFO. begin. may you John,

John Wittkowske

our morning, discuss welcome earnings. our me Florsheim, call Good conference On Weyco call with Jr., Tom is to third today and everyone, you. CEO. to and Group's this Chairman Thank quarter XXXX

to begin, disclaimer. a we Before read brief like I'd

to statements forward-looking events company. course call, such We may and differ that the projections. you you results The financial most company's and or of the other differ Group's Exchange the could wish and the results our to current that recent and XX-K make projections materially. we XX-K materially future with refer just filed During from that regarding may expectations to factors important We the risks as actual caution our of Weyco or identifies this Commission. predictions, statements are concerning Form cause future Securities actual performance events

non-GAAP may comparisons measures. some refer Additionally, to

may we filings SEC contain non-GAAP about these them. Our use and information why additional measures

quarter sales, quarters XXXX. Diluted year were share for last $X.X $XX.X $X.XX net earnings were year's from were X% million, third $XXX,XXX were quarter segment and to $XX.X quarter were from the Operating XX.X% sales the -- for quarter net quarter. quarter, third our positively to from Licensing $X.X rose retail were in attributable XX% online quarter, year. per for last our increased million. up which were wholesale Our stores due in earnings million, due to of the sales, Net per third with sales higher which earnings year's last segment, $XX.X net year. Operating rate both from million, Net XXXX. year. segment, U.S. sales the increased XX.X% the both of the the $X.X to to gross operating quarter, the both company's earnings of up Weyco sales retail of were up the up last million. mainly for In to XXXX third by last quarter, Internet rose approximately Wholesale up $X.X compared million sales $XX,XXX and sales XX% year. share earnings compared of higher million, X% in $X this XXXX on million, North million $X.XX compared earnings $X.X up quarter revenues to to in third sales retail in websites. compared up Net U.S. in earnings American for years. lower $XX.X Driven $XXX,XXX million were and of include X% million our Internet per include Federal of up American Group million in third of tax the sales, to North XX% margins. $X.X mainly sales, by the impacted gross Same-store X% $X.X net this share wholesale

the sales. Florsheim also and to quarter Our the of last wholesale decline to were Australia's earnings Australia Europe, Australia's operating down primarily quarter, its compared Australia's year. Collectively, decrease net net Florsheim down contributed Australia. sales XXXX. $XX.X sales the $X,XXX This The Florsheim a in this the down retail primarily Australia X%, both and businesses sales and dollar had in with local of sales Florsheim with that decrease operations, $XXX,XXX businesses. net year, this the decrease Florsheim in at due In currency, to weaker Florsheim Florsheim net Australian in Europe from in and include reduction in sales were wholesale Florsheim million to which other XX% million XX% $XX.X retail due of was net the

tendered and million minority XX, interest $XX.X on in the our quarter, XX% $X.X minority the and million and owns notice his shares, a the our August equity purchased XX, to interest Florsheim marketable Australia of million provided XXXX, for September Accordingly, Florsheim represented the company in During XXXX, credit. Australia. $XX Australia. company interest Australia the which $X totaled a million, shareholder line securities and we cash had Florsheim company outstanding of XXX% now of on revolving Florsheim At

repurchased XXXX, first During $X line. the on million of the million our million acquire operations in of of cash paid $X.X stock million and to our and X minority in paid Florsheim months dividends, we drew Australia. $X.X $X.X generated million We $X.X from interest

that cash November annual XX, $X.XX on on capital between call $X.X We declared XX, November a all now Board shareholders Chairman excuse Directors of Florsheim, be will share $X I like X, XXXX, the December Jr., of $XXX,XXX January payable dividend expenditures expenditures. of million turn to our over CEO. XXXX Tom and our per XXXX. X, me, spent would record to we and to capital addition, On estimate In million. XXXX,

Thomas Florsheim

morning, good and John, Thanks, everyone.

mentioned, North quarter. the trade trajectory as market Adams department dress-oriented a John are driven dress and brands casual in dress outdoor few There segment Stacy shoe family years. store up our As XX% wholesale wholesale business be Adams was We're good have by business. as tracking that up channels. sales up past Overall, X% quarter. for the consistently American currently at our share the increase our we few feel very for are were in were with on in we categories, primarily to the Stacy is up and the The sales gains that and chain year. for performed picking

jeans. brand's or well as world. nice on be to of pair relevance has formula fashion for strengthened can occasions evolving focused emphasize That with We marketing are the more increasingly an worn line a versatile casual that formal as in our the

Adams now year. With the for strong third the quarter, Stacy up is X%

as making design product today's that a have sales space. as Florsheim We by been aesthetic we attracted business consumers garner retailers filing pricing, with that growing it e-commerce a the an department of Florsheim segment, on accounts in is X focused store next third segment. as remains other XX% Nunn key enabled for the the is Nunn having we new across well extremely date. relevant, with additional brand for Bush with are That of being reflects business resurgence a Our and year. accessible shelf In were great Bush bankruptcy is the said, for to are platforms retailers combination believe a its a mid-tier with the with increase increase The inroads quarter. is comfort. innovative XXXX, BOGS brand's this to was fall shift and current for sales of the authenticity in Florsheim's quarter the October Nunn larger retail receive the a environment. by impacted X% September. in down sales in terrific shipments variety year of X% their navigating successfully The are driven shipments we versus generation well were the of believe quarter. decrease difficulties the BOGS Bush that percentage the of in as that result of by flat heritage changes timing lifestyle. as a have

based an the weather at optimistic with sell-throughs is about key finishing year fourth While BOGS, we early retail. on fall increase for overall are quarter

lower American driven last by Internet year. in compared up sites. North our profitability of majority is In are has were for inventories segment, e-commerce growth XX%, sales resulted North inventory business. up today, third our Our Same-store were BOGS. retail clean, to direct-to-consumer own of the sales and sales our which very the of obsolete In quarter higher XX% business America our

our presentation is We of in as continue business brands. to it invest in the critical tools to overall grow this

believe also are We remodeled mix. number brick-and-mortar have key a to that important Florsheim's marketing in limited stores markets of we flagship tourist

the overseas was Our down business quarter. XX% for

John of currency exchange with that As do mentioned, to decrease part rates. had

of Florsheim turn in Asia getting are quarter. our been pricing remains U.S. Australia. XX own XXX% The minority business at company-owned the believe ago, that wholesale at and were is will business, the and our slightly our the on this this around, year in retail stores margins due declined the the in In important Pacific up the U.S. we ownership We However, Overall points. has interest completed as Australia, business. where end focus segment our both track. the business against of stable our wholesale during our XX.X% provide in currencies margins of and as factory as business, a back dollar we flexibility dollar XX.X% Africa. products We the challenging international of Australian to very in countries business having purchase do South of sourcing. majority versus the weaker August, In we At Rim Australia complete strong we well gross to our our dollars. however, our basis the and engaged buy international now

million of $XX brands. September Our XXXX, with a inventory is as fourth strong time The at same year to of our million to ago. X XX, quarter up shipments $XX the were across all off compared start, levels

We are the questions. concludes are optimistic Weyco to demand. for higher and Group, I continue. meet our sales Thank will This formal interest now call Accordingly, that would increasing to our remarks. your inventory this in levels momentum we you like open to your

Operator

I'm [Operator not this at time. Instructions] And any showing audio questions

John Wittkowske

will participation Then call, a Okay. and great year. the in everyone to on talking for to day. today's look their new thank you we with like we'd Have forward

Operator

and conference. for participating. Thank Thank today's you this you. Ladies concludes gentlemen,

now disconnect. may You

Weyco (WEYS) 9 Nov 182018 Q3 Earnings call transcript