WEYS - Earnings call transcript Q4 2018

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Operator

Good morning, and welcome to the Fourth Quarter and Full Year 2018 Earnings Release Conference Call. My name is Anara, and I'll be the operator for today's call. [Operator Instructions] I will now turn the call over to Mr. John Wittkowske, CFO. John, you may begin.

John Wittkowske

you. Thank everyone. morning, Good Group's year to XXXX Weyco quarter our and full results. conference to discuss call fourth Welcome On this our call Jr., our with me today and and are CEO; John Florsheim, President COO. Chairman and Tom Florsheim,

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

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

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

about use million. $X.XX. fourth compared earnings and lowered our year. January per Weyco measures XXXX, XXXX federal by fourth X, to U.S. million this XX%, $X.XX diluted may quarter were SEC $XX.X and last the non-GAAP and reduced up to from million Effective XX% the XXXX. $XX.X quarter and additional by from rate tax Tax XXXXs $X.X the up million, share Diluted Act quarter were $XX.X Net for per earnings provision these Jobs to in quarter earnings which share earnings sales in compared Group million fourth we million income attributable $X.X information in sales the why XX% rose quarter $X.XX Cuts to $XX.X XXXX XX% tax $X.X increased XXXX. Net million, of Our contain Operating to were filings XX% of them. fourth

reduced earnings fourth million, of share and Company in by sales In remeasured by were XXXX were balances diluted as American include Internet Company sales XX% to quarter, retail as $X.X were sales this U.S. year. to the million online Driven those sales XX% up our Net Same the with Wholesale this Operating North last of in year. sales of XXXX fourth higher quarter, tax new due for increased result the the lower the last to million were segment, million increase store of XX.X% the $XX.X net of to compared by per net rate, increased U.S. fourth XX% sales our million However provision quarter retail $X.X revenues $XXX,XXX a the quarter tax through North XX% deferred million higher margins. Licensing for which million were year. reflect $X.X American in $X.X quarter our from Internet wholesale segment, higher mainly quarter, its the which quarter quarter, to include up XXXX, $X.X earnings last XXXX, in tax $X.XX. $XX.X and and the $X.X gross the million XXXX compared million XX% retail $XXX,XXX sales in our sales, $XX.X gross up from and from earnings last wholesale for an with stores which rose up for year. fourth earnings websites. XXXX. operations segment sales

quarter, primarily million $XX $XXX,XXX same net lower Florsheim XX% the quarter in net due Australia down U.S. to decrease the dollar Florsheim quarter period Florsheim only for Australian in X% sales the include decrease of were years losses in last weaker Florsheim as Australia. businesses. The year. Europe retail quarter. down sales other down lower at operating from local was sales both retail XX% Florsheim sales was Florsheim it's with decrease, sales the and that operating net Australia's lower to in net and of XXXX. currency This $XX.X businesses million Australia's totaling The sales Collectively, which wholesale Europe, Australia and had were Our Florsheim at and operations, wholesale in the between also compared to $XXX,XXX relative dollar to of to for contributed due the earnings the Australia. for Florsheim had

to earnings those last for were year, million, up million net sales X% through up year, from for in sales increased in website. as at XX.X% last per $XX.X rate tax For Earnings higher million XXXX $X.X retail million, from increase Company's a XXXX, due XXXX. million the earnings and in were segment X% as XX.X% in year. up our XXXX, net lower wholesale were over In XX% in segment to share up per Weyco of segment, due websites. deferred wholesale Group, increased for attributable overall $X.XX $XX.X and operations due from million net $XXX sales $XXX $XX.X $XX.X tax to million were the XX% $X.X XXXX, up from in our rose mainly XXXX, an XXXX, share XXXX, sales earnings year both XXXX X% our million in XXXX. increased to earnings in were operations XXXX. Company's per $XXX In Operating In share balances in from our earnings up lower to were X% million by and revenues mentioned segment, The reduced million, Wholesale $XXX our $XX.X XXXX. were and tax to the Diluted diluted XXXX, retail million, re-measurement for to $X.XX. our the $X.XX. year, the diluted percent $X.X Same-store compared net the from XXXX. sales our by million from $XX.X gross year XXXX. higher up before, XXXX $XX.X million the Licensing in were up gross sales of sales Earnings to of margins. this sales the mainly reduced earnings tax were provision in our million XXXX million, million by from Net by tax XX% XXXX. and reflect $X.X rate, the for $X.X $X.XX provision

sales Our other Australian of due its from down Australia's had down lower lower at due at for year. sales were had and primarily local decrease retail this of year in the Florsheim $X.X Florsheim to Australia. with $XXX,XXX The of the wholesale The were decrease down X% net XXXX. operations for sales sales the compared Europe as Australia. Again X% net operating contributed to million, sales million sales in operating and Florsheim both Florsheim Collectively XX% $XX.X Australia Florsheim earnings to was decrease weaker Australia's Florsheim net at currency lower to also was primarily businesses. dollar losses XXXX.

XX, XXXX Australia. purchased of cash shareholder our wholesale notice tendered up $X.X XX, Florsheim interest Florsheim Accordingly, the from we securities interest outstanding totaled Australia our to $XX During exchange loans company now the due in minority on equity in the was and North intercompany in million the and of December interest of $XXX,XXX company on company segment the primarily from million credit. for his the in XX% owns American provided Florsheim of XXX% line XXXX and a third Florsheim revaluation recognized the revolving represented the expense Florsheim August shares quarter Australia. Australia which and At expense year million $XXX,XXX had minority $XX.X $X.X XXXX totaled marketable of XXXX, between Australia. debt the of losses million to company's foreign increase last and Other

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

XX. Including declared $X.X corporate our in XXXX, per and continuing on we acquisitions planning I Board all and X, space accommodate March Directors dividend $X.XX to To the company's capital of payable quarterly on within Additionally, office Florsheim be capital over now of $X will to March XXXX. expenditures. in growth record expansion expenditures cash potential Jr., $X headquarters CEO. to and an on this Chairman share On shareholders million call Tom expansion, a our our XX, million turn March expect we of between future we the million of our are XXXX. spent

Thomas Florsheim

and everyone. morning you, good Thank John

the wholesale American up X% and was North Our for for XX% quarter the business year.

picking We share are we're pleased the as in in categories up with we which wholesale our market business the momentum in compete.

and Over we environment. made changes retail the last numerous in that in good we adjustments have have difficult have been tactical our few a there to enabled prosper in years strategic believe and industry that us and

product. division first two wholesale quarter success was in be year and XX% can that and Florsheim this to experienced fourth the The factors the major for important Florsheim most XX% great attributed Our year. up

as momentum categories. further footwear. us but category Florsheim the have we retail permits seasons, traditional dress several of brand dress increasingly product exceptionally continuum channels. retailers Florsheim all an across product well for market performed The and of trade the D&A remains casual beyond and casual it down choice allowed brand The the last but the new are the Florsheim introduction not the dress and casual build and that evolved has at to and in fits towards lifestyle traditional has is move gravitating growing, dress dress consumers more the relaxed Over with introduced well to brand important

into the heritage today's consumers Florsheim are to our the Florsheim pivot the out changed that The this brands. goes we history original as authenticity script strongly and bill successes our second of modern with and back fits XXXXs the to brand last have heritage driving even embraced casual that craftsmanship years, product. reinforcing seeking we factor and several associated more is over logo of positioning our the

younger XX% to year. that great are the year sales and had on/off the to for encouraged be by consumers for finish XX% BOGS. fashion in the Florsheim XXXX Florsheim. developing for conscious BOGS We rose especially among great We a fourth find quarter appears a

as at early respond needed with went Some which early and inventory business demand. lean the jumpstart was favorable positions weather boot relatively into across driven retail. of patterns. U.S. of year increase by the back of winter BOGS We category cold the the a had snow and the this to benefited part consumer insulated Canada and fall help good especially in retailers this from half this many to

XXXX new addition, product In resonated consumers. with introduction

its versatile offerings classic been its has more foundation Importantly diversify off build fashionable BOGS product. to boot and with able

in good in brand. up also styles bucked Expanding dress category. quarter long-term Stacy primarily extremely was the introduced Similar accessible to Florsheim an with Adams strong and market. X% in maintains It was Adams brand up market X% Stacy was to XXXX. year shoes this part trend year. Interestingly business record and half half extremely second Stacy share a a leadership dress in the The year fashion sluggish pick has for position Stacy and successful in an of Adams growth trade the when retailers is the the multi-season We second for this making Stacy Adams brands which area for Adams for channel on dependent of insulated point ties the and rationalize store Stacy quarter to look assortment duplication around been step Adams strong a benefit more department of sells of like that and view. a a for business. important to range lighter less unique are with our their has stands have number a difficult continues into BOGS fourth selling. in of objective

the the business Our X% Bush for and quarter X% Nunn year. decreased for

impacted in is fastest were launches. last sales America growth midtier number the few note, e-commerce with department strong Nunn and negatively Sears from and two over the been for retail channel the Weyco up As the Same-store brand. was accounts U.S. product are segment experienced in trade our the Nunn discussed E-commerce in the important fourth no bankruptcy. a includes channel the store Nunn as new all midtier XX% previous two XX% quarter consumers in brands in Internet XXXX brand year. now Bush the different sales trade last At increase to Bush filed has performance the segment XX% has North calls for product of responding positively which and Pantheon concentration brands for years. the positive Bush's in year.

limited to a and We resources impressive brick and resulted bottom while of mortar growth tourist and continue stores to top towards direct This our flagship our business. in an strategy line maintaining invest building consumer e-commerce business key markets. number

in sales to decreased good as have continue momentum our Net and head fourth e-commerce the in X% the we We for quarter XXXX. year. XX% business overseas into for

Rim businesses vast August in As Walton we January and John subsidiary as most assumed Stores of experience in the South XXX% of retail as Australia. of in last Australia. mentioned includes Florsheim in year, at Australia, our President Zealand, of Damian our Meyer executive Africa. which has recently this Pacific hired New Australian Department ownership a year, an Damian we In

a to are Florsheim Australian impressed have Australia. which industry, addition retail experiencing environment for Damian provide In will the with strong Damian's are board the we leadership wholesale in We're some on collaborative knowledge we a to to address business. excited challenges and skills this of of focused

reset growth and time take and course. time, the line We're bottom that Florsheim our and a of Europe at - strong strong XX.X% believe U.S. for a we to had increase of will bottom a and We an growth the year. channels by the where see good to While XX.X% - and and in in margins market turnaround in as versus have top new some growing Australia, we for in wholesale quarter especially us Florsheim it Florsheim North sector. gross and will Australia was we strong position we for distribution from XXXX last were tools Florsheim in focused margins year. are prospects increase in XXXX. worked very for topline the have the on for in in line processes need XX.X% This Europe top markets. some XX% other for and leverage take driven XXXX good XXXX worked the that e-commerce some it the American year Overall

has remains stayed quarter, the against stated dollar As pricing and stable where our the product. currencies strong factory source we last

compared at December $XX million inventories million were ago. Our $XX XXXX, a to XX, year

the service our Given demand. brands for of and formal interest availability strengthened shipment to to Group. brought sales high momentum your America, up Thank we levels. inventory Retailers ensure you us to I like the open in in our we've higher levels call core North have our to remarks. our expect our Weyco immediate would in your have now meet questions. And concludes position This for in-stock to sales

Thomas Florsheim

participation, Okay. have their and day. a We'd like to thank great for now. everybody Bye

Operator

Thank This today's for you and conference. participating. gentlemen. Thank ladies concludes you

disconnect. You may now

Weyco (WEYS) 6 Mar 192018 Q4 Earnings call transcript