Weyco Group Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Weyco Group Inc. filed its 2023 10-K, detailing revenue growth and customer concentration risks.</b>

AI Summary

WEYCO GROUP INC (WEYS) filed a Annual Report (10-K) with the SEC on March 14, 2024. Weyco Group Inc. reported revenues of $95,843,160 for the fiscal year ended December 31, 2023, an increase from $94,967,290 in the prior year. The company's financial statements indicate a concentration of revenue and accounts receivable with a single customer in both 2023 and 2022. Weyco Group Inc. had a line of credit available as of September 28, 2023, and December 31, 2023. Sales returns and allowances were recorded for the fiscal years 2023, 2022, and as of December 31, 2023 and 2022. The company's equity structure includes common stock, reinvested earnings, capital in excess of par value, and accumulated other comprehensive income for fiscal years 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking WEYCO GROUP INC, this filing contains several important signals. The filing highlights a slight increase in revenue for 2023, indicating continued business activity and market presence. The disclosure of customer concentration risk is crucial for investors to understand potential revenue volatility and dependency on key clients.

Risk Assessment

Risk Level: medium — WEYCO GROUP INC shows moderate risk based on this filing. The company's reliance on a single customer for a significant portion of its revenue and accounts receivable presents a medium risk, as the loss of this customer could materially impact financial performance.

Analyst Insight

Investors should monitor Weyco Group Inc.'s customer diversification strategies and the financial health of its key clients.

Financial Highlights

revenue

9584316

revenue Growth

0.93%

Key Numbers

• 9584316 — Revenue (Fiscal Year Ended 2023)
• 9496729 — Revenue (Fiscal Year Ended 2022)
• 2023-12-31 — Fiscal Year End (Current Filing Period)
• 2024-03-14 — Filing Date (Current Filing)

Key Players & Entities

• WEYCO GROUP INC (company) — Filer
• WEYS (company) — Ticker Symbol
• WI (company) — State of Incorporation
• 333 W ESTABROOK BOULEVARD (company) — Business Address Street 1
• GLENDALE (company) — Business Address City
• 43312 (company) — Business Address Zip
• 4149081600 (company) — Business Phone
• WEYENBERG SHOE MANUFACTURING CO (company) — Former Company Name

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company's revenue and accounts receivable are significantly concentrated with a single customer, posing a risk to financial performance if this relationship is disrupted.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-14: Filing Date — Date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $1.00 — nge on which registered Common Stock - $1.00 par value per share WEYS The Nasdaq
• $26.69 — This was based on the closing price of $26.69 per share as reported by Nasdaq on June

Filing Documents

• weys-20231231x10k.htm (10-K) — 2224KB
• weys-20231231xex21.htm (EX-21) — 17KB
• weys-20231231xex23d1.htm (EX-23.1) — 2KB
• weys-20231231xex31d1.htm (EX-31.1) — 9KB
• weys-20231231xex31d2.htm (EX-31.2) — 9KB
• weys-20231231xex32.htm (EX-32) — 8KB
• weys-20231231xex97.htm (EX-97) — 47KB
• 0001558370-24-003196.txt (&nbsp;) — 11761KB
• weys-20231231.xsd (EX-101.SCH) — 68KB
• weys-20231231_cal.xml (EX-101.CAL) — 99KB
• weys-20231231_def.xml (EX-101.DEF) — 239KB
• weys-20231231_lab.xml (EX-101.LAB) — 590KB
• weys-20231231_pre.xml (EX-101.PRE) — 506KB
• weys-20231231x10k_htm.xml (XML) — 2580KB

BUSINESS

BUSINESS 2 ITEM 1A.

RISK FACTORS

RISK FACTORS 3 ITEM 1B. UNRESOLVED STAFF COMMENTS 7 ITEM 1C. CYBERSECURITY 7 ITEM 2.

PROPERTIES

PROPERTIES 8 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 9 ITEM 4. MINE SAFETY DISCLOSURES 9 INFORMATION ABOUT EXECUTIVE OFFICERS 9 PART II. ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 10 ITEM 6. RESERVED 10 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 10 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 15 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 16 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 43 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 43 ITEM 9B. OTHER INFORMATION 44 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 44 PART III. ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 44 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 44 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 45 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 45 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 45 PART IV. ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 45 ITEM 16. FORM 10-K SUMMARY 47 Table of Contents [This page intentionally left blank.] Table of Contents CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION 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 in this report under Item 1A, "Risk Factors." 1 Table of Contents PART 1

BUSINESS

ITEM 1 BUSINESS The Company is a Wisconsin corporation incorporated in the year 1906 as Weyenberg Shoe Manufacturing Company. Effective April 25, 1990, the name of the corporation was changed to Weyco Group, Inc. Weyco Group, Inc., and its subsidiaries (collectively, "we," "our," "us," and 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. Trademarks we maintain on our brands are important to our business. Our products consist primarily of mid-priced leather dress shoes, casual footwear composed of man-made materials and leather, and outdoor boots, shoes, and sandals. Our footwear is available in a broad range of sizes and widths, primarily designed to meet the needs and desires of the general American population. We purchase finished shoes from outside suppliers, primarily located in China and India, and we have recently begun contracting with suppliers located in Cambodia, Vietnam, and the Dominican Republic. Almost all of these foreign-sourced purchases are denominated in U.S. dollars. While we source from more than 80 suppliers, our two largest suppliers each accounted for more than 10% of our total inventory purchases in 2023. Costs from our suppliers have historically been relatively stable, although in recent years there have been upward cost pressures due to higher freight, labor, and material costs, as well as due to tariffs and other trade protection measures. Since the pandemic in 2020, there have been worldwide supply chain challenges that first caused inbound freight costs to increase, and more recently returned to just above pre-pandemic levels. Our business is separated into two reportable segments – the North American wholesale segment ("Wholesale") and the North American retail segment ("Retail"). We also have other wholesale and retail bus

RISK FACTORS

ITEM 1A RISK FACTORS There are various factors that affect or might affect our business, results of operations and financial condition, many of which are beyond our control. The following is a description of some of the material factors that could materially and adversely affect our reputation, business, results of operations and financial condition. Risk factors related to our operations We rely on independent foreign sources of production and the availability of leather, rubber and other raw materials; a deterioration in our relationships, or other issues affecting such manufacturers and/or issues with the availability of raw materials could have unfavorable effects on our business. We purchase all our products from independent foreign manufacturers, primarily in China and India. Although we believe that we have good working relationships with our manufacturers, we do not have long-term contracts with them. Thus, we could experience increases in manufacturing costs, disruptions in the timely supply of products or unanticipated reductions in manufacturing capacity, any of which could negatively impact our business, results of operations and financial condition. We can move production to different suppliers; however, the transition may not occur smoothly or quickly, or at the same cost, which could result in us missing customer delivery date requirements and, consequently, we could lose future orders and our reputation may be harmed. Our use of foreign sources of production results in relatively long production and delivery lead times. Therefore, we typically forecast demand at least five months in advance. If our forecasts are wrong or there are significant changes in demand, it would result in a loss of sales if we do not have enough product on hand or in reduced margins if we have excess inventory that needs to be sold at discounted prices. Our ability to import products in a timely and cost-effective manner may be affected by disruptions at U.S. or fo

View Full Filing

View this 10-K filing on SEC EDGAR