WEYCO Group Inc (WEYS) 2022 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Weyco Group Fourth Quarter 2022 Earnings Release Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Judy Anderson, Chief Financial Officer.

美好的一天，謝謝你的支持。歡迎來到 Weyco Group 2022 年第四季度收益發布電話會議。 （操作員說明）請注意，今天的會議正在錄製中。我現在想把會議交給今天的發言人，首席財務官朱迪安德森。

Thank you. Good morning, everyone, and welcome to Weyco Group's conference call to discuss fourth quarter and full year 2022 results. On this call with me today are Tom Florsheim, Jr., Chairman and CEO; and John Florsheim, President and COO.

謝謝。大家早上好，歡迎參加 Weyco Group 的電話會議，討論第四季度和 2022 年全年業績。今天與我通電話的有董事長兼首席執行官 Tom Florsheim, Jr.；總裁兼首席運營官 John Florsheim。

Before we begin to discuss the results for the quarter and year, I will read a brief cautionary statement. During this call, we may make projections or other forward-looking statements regarding our current expectations concerning future events and the future financial performance of the company. We wish to caution you that these statements are just predictions and that actual events or results may differ materially.

在我們開始討論本季度和年度的結果之前，我將閱讀一份簡短的警告聲明。在此次電話會議中，我們可能會就我們目前對未來事件和公司未來財務業績的預期做出預測或其他前瞻性陳述。我們希望提醒您，這些陳述只是預測，實際事件或結果可能存在重大差異。

We refer you to the section entitled Risk Factors in our most recent annual report on Form 10-K and to our other filings with the Securities and Exchange Commission for a discussion of important factors and risks that could cause our actual results to differ materially from our projections, including the uncertain impact of inflation on our cost and consumer demand for our products, increased interest rates and other macroeconomic factors that may cause a slowdown or contraction in the U.S. or Australian economy.

我們建議您參閱我們最近的 10-K 表格年度報告中標題為“風險因素”的部分以及我們向美國證券交易委員會提交的其他文件，以討論可能導致我們的實際結果與我們的實際結果存在重大差異的重要因素和風險預測，包括通貨膨脹對我們的成本和消費者對我們產品的需求的不確定影響、利率上升和其他可能導緻美國或澳大利亞經濟放緩或收縮的宏觀經濟因素。

Net sales for the fourth quarter of 2022 were $99 million, down 2% compared to last year's fourth quarter net sales of $101.4 million. Consolidated gross earnings increased to 46.6% of net sales for the quarter compared to 40.2% of net sales in last year's fourth quarter due to higher gross margins in our North American wholesale segment. Quarterly operating earnings rose to a record $15.1 million, up 18% compared to $12.8 million in the fourth quarter of 2021. Fourth quarter 2022 net earnings were $10.2 million or $1.06 per diluted share, compared to $10.3 million or $1.07 per diluted share last year.

2022 年第四季度的淨銷售額為 9900 萬美元，與去年第四季度的 1.014 億美元相比下降了 2%。由於我們北美批發業務的毛利率較高，本季度綜合毛收入占淨銷售額的 46.6%，而去年第四季度占淨銷售額的 40.2%。季度營業收入增至創紀錄的 1510 萬美元，較 2021 年第四季度的 1280 萬美元增長 18%。2022 年第四季度淨收益為 1020 萬美元或攤薄後每股收益 1.06 美元，而去年為 1030 萬美元或攤薄後每股收益 1.07 美元。

In the North American wholesale segment, net sales for the quarter were $75.5 million, down 6% from $79.9 million last year. Last year's fourth quarter sales were abnormally high due to supply chain delays, which caused some third quarter orders to ship in the fourth quarter. Wholesale gross earnings were 41.3% of net sales for the quarter compared to 33.7% of net sales in last year's fourth quarter. Gross margins returned to pre-pandemic levels as a result of selling price increases implemented to address higher costs.

在北美批發市場，本季度淨銷售額為 7550 萬美元，比去年的 7990 萬美元下降 6%。去年第四季度的銷售額由於供應鏈延遲異常高，導致部分第三季度訂單在第四季度出貨。本季度批發總收入占淨銷售額的 41.3%，而去年第四季度占淨銷售額的 33.7%。由於為解決更高的成本而實施的銷售價格上漲導致毛利率恢復到大流行前的水平。

Selling and administrative expenses were $20.5 million or 27% of net sales for the quarter compared to $17.5 million or 22% of net sales, last year. The increase in 2022 was primarily due to higher advertising and pension expenses. Operating earnings rose to $10.7 million for the quarter, up 14% over $9.4 million in last year's fourth quarter, due mainly to higher gross margin.

本季度銷售和管理費用為 2050 萬美元，占淨銷售額的 27%，而去年同期為 1750 萬美元，占淨銷售額的 22%。 2022 年的增長主要是由於廣告和養老金支出增加。本季度營業收入增至 1,070 萬美元，比去年第四季度的 940 萬美元增長 14%，這主要是由於較高的毛利率。

Net sales in our North American retail segment were a record $14.2 million for the quarter, up 6% compared to $13.5 million last year. The increase was primarily due to higher sales on the Florsheim website. Sales at our 4 domestic stores were also up collectively for the quarter.

我們北美零售部門本季度的淨銷售額達到創紀錄的 1,420 萬美元，比去年的 1,350 萬美元增長 6%。增加的主要原因是弗洛爾斯海姆網站上的銷售額增加。本季度我們 4 家國內門店的銷售額也集體增長。

Retail gross earnings as a percent of net sales were 64.5% and 66.2% in the fourth quarters of '22 and '21, respectively. Selling and administrative expenses totaled $5.9 million or 41% of net sales for the quarter compared to $5.6 million or 42% of net sales last year. Retail operating earnings were $3.3 million in the fourth quarter of both 2022 and 2021 as higher sales were offset by lower gross margins and higher expenses this year.

22 年第四季度和 21 年第四季度，零售總收入占淨銷售額的百分比分別為 64.5% 和 66.2%。銷售和管理費用總計 590 萬美元，佔本季度淨銷售額的 41%，而去年為 560 萬美元，占淨銷售額的 42%。 2022 年和 2021 年第四季度的零售營業收入均為 330 萬美元，這是因為今年銷售額的增加被較低的毛利率和較高的支出所抵消。

Our other operations have historically included the wholesale and retail businesses of Florsheim Australia and Florsheim Europe. However, as previously disclosed, the company closed Florsheim Europe. As a result, the 2022 operating results of the other category reflect only that of Florsheim Australia. Other net sales were $9.2 million, up 16% compared to $8 million in the fourth quarter of 2021. In local currency, Florsheim Australia's net sales were up 29% for the quarter, with sales up in both its wholesale and retail businesses.

我們的其他業務歷來包括 Florsheim Australia 和 Florsheim Europe 的批發和零售業務。然而，正如之前披露的那樣，該公司關閉了 Florsheim Europe。因此，其他類別的 2022 年經營業績僅反映了 Florsheim Australia 的經營業績。其他淨銷售額為 920 萬美元，與 2021 年第四季度的 800 萬美元相比增長 16%。以當地貨幣計算，Florsheim Australia 本季度的淨銷售額增長了 29%，其批發和零售業務的銷售額均有所增長。

Other gross earnings were 61.8% of net sales for the quarter compared to 61.1% of net sales in the fourth quarter of 2021. Other operating earnings reached $1.1 million for the quarter compared to $41,000 last year. The increase was driven by improved performance of our retail business in Australia.

本季度其他總收入占淨銷售額的 61.8%，而 2021 年第四季度占淨銷售額的 61.1%。本季度其他營業收入達到 110 萬美元，而去年為 41,000 美元。這一增長是由於我們在澳大利亞的零售業務表現有所改善。

We will now discuss our full year 2022 results. Consolidated net sales for the full year were a record $351.7 million, up 31% compared to $267.6 million in 2021. Consolidated gross earnings as a percent of net sales were 41.1% and 40.1% in 2022 and 2021, respectively. Operating earnings were a record $40.4 million, up 57% over 2021 operating earnings of $25.7 million. 2022 net earnings were a record $29.5 million or $3.07 per diluted share, up 44% compared to $20.6 million or $2.12 per diluted share in 2021.

我們現在將討論 2022 年全年的業績。全年合併淨銷售額達到創紀錄的 3.517 億美元，比 2021 年的 2.676 億美元增長 31%。2022 年和 2021 年合併總收入占淨銷售額的百分比分別為 41.1% 和 40.1%。營業收入達到創紀錄的 4040 萬美元，比 2021 年的 2570 萬美元營業收入增長 57%。 2022 年淨收益達到創紀錄的 2950 萬美元或每股攤薄收益 3.07 美元，比 2021 年的 2060 萬美元或每股攤薄收益 2.12 美元增長 44%。

North American wholesale net sales were a record $283 million in 2022, up 38% compared to $205 million in 2021. While part of the overall increase was due to pipeline sales, sales were also up due to robust consumer demand and higher selling prices this year. Wholesale gross earnings as a percent of net sales for the year were 35.6% in '22 and 33.8% in 2021. Gross margins returned to pre-pandemic levels as a result of selling price increases implemented to address higher costs. Selling and administrative expenses were $68.2 million and $49.9 million in 2022 and '21, respectively.

2022 年北美批發淨銷售額達到創紀錄的 2.83 億美元，與 2021 年的 2.05 億美元相比增長 38%。雖然整體增長的部分原因是管道銷售，但由於強勁的消費者需求和今年更高的售價，銷售額也有所增長.全年批發毛收入占淨銷售額的百分比在 22 年為 35.6%，在 2021 年為 33.8%。由於為解決成本上升而實施的銷售價格上漲導致毛利率恢復到大流行前水平。 2022 年和 21 年的銷售和管理費用分別為 6820 萬美元和 4990 萬美元。

2021 expenses were reduced by $5.5 million in wage subsidies received from the U.S. and Canadian governments. As a percent of net sales, wholesale selling and administrative expenses remained flat at 24% of net sales in both 2022 and '21. Wholesale operating earnings reached a record $32.6 million in 2022, up 68% over $19.5 million in 2021, due mainly to higher sales and gross margins this year.

2021 年的開支因從美國和加拿大政府獲得的工資補貼減少了 550 萬美元。作為淨銷售額的百分比，批發銷售和管理費用在 2022 年和 21 年均持平於淨銷售額的 24%。批發營業收入在 2022 年達到創紀錄的 3260 萬美元，比 2021 年的 1950 萬美元增長 68%，這主要是由於今年銷售額和毛利率較高。

In the North American retail segment, net sales were a record $36.7 million in 2022, up 16% compared to $31.6 million in 2021. The increase was primarily due to higher sales across all our brands' websites fueled by strong consumer demand. Sales were also up for the year at our 4 domestic brick-and-mortar stores.

在北美零售領域，2022 年淨銷售額達到創紀錄的 3670 萬美元，與 2021 年的 3160 萬美元相比增長 16%。這一增長主要是由於強勁的消費者需求推動了我們所有品牌網站的銷售額增長。我們 4 家國內實體店的銷售額也實現了全年增長。

For the year, retail gross earnings were $65.7 million of net sales -- I'm sorry. For the year, retail gross earnings were 65.7% of net sales in 2022 and 66.4% of net sales in 2021. Retail, selling and administrative expenses were $18.1 million or 49% of net sales for the year compared to $14.3 million or 45% of net sales last year. The increase in 2022 was mainly due to higher e-commerce expenses, primarily outbound freight and advertising.

今年，零售總收入占淨銷售額的 6570 萬美元——對不起。全年，零售總收入佔 2022 年淨銷售額的 65.7%，佔 2021 年淨銷售額的 66.4%。零售、銷售和管理費用為 1810 萬美元，佔全年淨銷售額的 49%，而 1430 萬美元，佔 2021 年淨銷售額的 45%去年的淨銷售額。 2022 年的增長主要是由於電子商務費用增加，主要是出境運費和廣告費用。

The retail segment had operating earnings of $6.1 million in 2022 and $6.7 million in 2021. The decrease was primarily due to lower earnings from our e-commerce business as higher sales were offset by higher selling and administrative expenses. Our other operations had net sales of $31.8 million in 2022, up 4% from $30.7 million in 2021. Sales in U.S. dollars were up $3.5 million or 12% at Florsheim Australia. In local currency, Florsheim Australia's net sales were up 22% for the year, with sales up in both its retail and wholesale businesses. Last year's sales at Florsheim Australia were negatively impacted by COVID-related lockdowns that existed throughout much of 2021. Florsheim Europe was closed and had no sales in '22 versus $2.3 million of sales in 2021.

零售部門在 2022 年和 2021 年的營業收入分別為 610 萬美元和 670 萬美元。下降的主要原因是我們電子商務業務的收入減少，因為銷售額增加被銷售和管理費用增加所抵消。我們的其他業務在 2022 年的淨銷售額為 3180 萬美元，比 2021 年的 3070 萬美元增長 4%。Florsheim Australia 的美元銷售額增長了 350 萬美元或 12%。以當地貨幣計算，Florsheim Australia 的淨銷售額今年增長了 22%，其零售和批發業務的銷售額均有所增長。 Florsheim Australia 去年的銷售額受到了 2021 年大部分時間都存在的與 COVID 相關的封鎖的負面影響。Florsheim Europe 關閉，22 年沒有銷售額，而 2021 年的銷售額為 230 萬美元。

Other gross earnings were 61.1% of net sales in 2022 versus 55.8% of net sales in 2021. Other operating earnings recovered to $1.7 million in 2022, up from operating losses of $404,000 in 2021. The improvement in 2022 was due to stronger performance at Florsheim Australia and the shedding of losses at Florsheim Europe.

其他總收入佔 2022 年淨銷售額的 61.1%，而 2021 年占淨銷售額的 55.8%。其他營業收入從 2021 年的 404,000 美元的營業虧損恢復到 2022 年的 170 萬美元。2022 年的改善是由於 Florsheim 的強勁表現澳大利亞和 Florsheim Europe 的損失減少。

At December 31, 2022, our cash short-term investments and marketable securities totaled $25.5 million, and we had $31.1 million outstanding on our $50 million revolving line of credit. During 2022, we had net borrowings of $31.1 million on our line of credit and liquidated $8 million of investment securities. We used funds to pay $7 million in dividends and to repurchase $4.2 million of our company's stock. In addition, our operations resulted in a net $29.9 million use of cash mainly to fund inventory purchases. We also had $2.3 million of capital expenditures. We estimate that our 2023 annual capital expenditures will be between $2 million and $4 million.

截至 2022 年 12 月 31 日，我們的現金短期投資和有價證券總計 2550 萬美元，我們的 5000 萬美元循環信貸額度中有 3110 萬美元未償付。 2022 年，我們的信貸額度淨借款為 3110 萬美元，清算了 800 萬美元的投資證券。我們用資金支付了 700 萬美元的股息，並回購了 420 萬美元的公司股票。此外，我們的運營導致淨使用現金 2990 萬美元，主要用於為庫存採購提供資金。我們還有 230 萬美元的資本支出。我們估計我們 2023 年的年度資本支出將在 200 萬至 400 萬美元之間。

On March 7, 2023, our Board of Directors declared a quarterly cash dividend of $0.24 per share to all shareholders of record on March 17, 2023, payable March 31, 2023.

2023 年 3 月 7 日，我們的董事會宣布向 2023 年 3 月 17 日登記在冊的所有股東派發每股 0.24 美元的季度現金股息，將於 2023 年 3 月 31 日支付。

I would now like to turn the call over to Tom Florsheim, Jr., Chairman and CEO.

我現在想把電話轉給董事長兼首席執行官 Tom Florsheim, Jr.。

Thanks, Judy, and good morning, everyone. We are very pleased with our fourth quarter results, which capped off a record year in both sales and earnings. Our entire Weyco team worked extremely hard throughout 2022 to navigate supply chain issues and challenging market conditions, and we are proud of this accomplishment. As mentioned, part of our strong volume this year had to do with pipeline fill, as many retailers needed to get shoes back on their shelves in the first half of the year. However, we also enjoyed strong consumer demand for our brands, especially in our more traditional business, which experienced a resurgence in 2022.

謝謝，朱蒂，大家早上好。我們對第四季度的業績感到非常滿意，該季度的銷售額和收益都創下了歷史新高。我們整個 Weyco 團隊在整個 2022 年都非常努力地工作，以應對供應鏈問題和充滿挑戰的市場條件，我們為這一成就感到自豪。如前所述，我們今年強勁的銷售量部分與管道填充有關，因為許多零售商需要在今年上半年將鞋子重新上架。然而，我們也享受到消費者對我們品牌的強勁需求，尤其是在我們更傳統的業務中，這些業務在 2022 年經歷了復甦。

And our legacy business comprised of Florsheim, Stacy Adams and Nunn Bush, all 3 brands had come back [years]. Florsheim was going against a record fourth quarter last year, driven by timing of shipments and was down 14% for the fourth quarter. However, the brand was up 43% for the year and 2022 was a record year for Florsheim. Stacy Adams sales were up 5% for the quarter and 49% for the year. The Nunn Bush brand was up 18% for the quarter and 40% for the year.

我們的傳統業務包括 Florsheim、Stacy Adams 和 Nunn Bush，所有 3 個品牌都回歸 [年]。在發貨時間的推動下，Florsheim 去年第四季度創下歷史新高，第四季度下降了 14%。然而，該品牌全年增長了 43%，而 2022 年對 Florsheim 來說是創紀錄的一年。 Stacy Adams 本季度銷售額增長 5%，全年增長 49%。 Nunn Bush 品牌本季度增長 18%，全年增長 40%。

Our legacy brands benefited from the strength of the men's dress and refined casual business as consumers were once again updating their wardrobes for social occasions as well as the return to the office work environment. While the refined footwear market referred into more normalized sell-throughs during the fourth quarter, the category is healthy, and we expect to see a steady performance throughout 2023.

我們的傳統品牌受益於男裝和精緻休閒業務的實力，因為消費者再次更新他們的衣櫥以適應社交場合以及重返辦公室工作環境。雖然精製鞋類市場在第四季度出現了更正常的銷售情況，但該類別是健康的，我們預計整個 2023 年都會有穩定的表現。

As discussed in past conference calls, Florsheim, Nunn Bush and Stacy Adams are focused on diversifying their product mix, with Nunn Bush having the most success at retail with its value-oriented, comfort casual footwear. Florsheim also continued to make progress with a strong casual boot performance in the fourth quarter.

正如在過去的電話會議中所討論的那樣，Florsheim、Nunn Bush 和 Stacy Adams 專注於使他們的產品組合多樣化，其中 Nunn Bush 憑藉其以價值為導向的舒適休閒鞋在零售領域取得了最大的成功。弗洛爾斯海姆在第四季度也憑藉強勁的休閒靴表現繼續取得進步。

While BOGS was down 14% for the quarter, they were up 23% for the year, leading the brand to a record year of sales. In 2022, we delivered on a strong backlog of orders as BOGS continues to broaden its mix of footwear into less seasonal lifestyle product. In the fourth quarter, the outdoor category was oversaturated with product due to the unwinding of supply chain issues. We saw a more promotional environment, along with the softness in consumer demand, reflecting mild winter weather in certain parts of the U.S. and Canada.

雖然 BOGS 在本季度下降了 14%，但全年卻上漲了 23%，帶領該品牌創下了創紀錄的銷售額。 2022 年，隨著 BOGS 繼續將其鞋類產品組合擴展到季節性較低的生活方式產品，我們交付了大量積壓訂單。第四季度，由於供應鏈問題的解決，戶外品類的產品已經飽和。我們看到了更多的促銷環境，以及消費者需求的疲軟，反映出美國和加拿大某些地區冬季天氣溫和。

Despite these -- the changes in the market, we remain enthused about the overall performance of the BOGS brand. As we progressed through 2023, we are mindful of the more challenging environment in the outdoor category, but we are optimistic that we can navigate these changes and continue to move the brand forward and evolve the product offering.

儘管如此——市場發生了變化，我們仍然對 BOGS 品牌的整體表現充滿熱情。隨著我們邁向 2023 年，我們注意到戶外品類更具挑戰性的環境，但我們樂觀地認為，我們能夠駕馭這些變化並繼續推動品牌向前發展並改進產品供應。

In our retail segment, sales were up 6% for the quarter and 16% for the year. Given the promotional environment and some of the weather challenges impacting BOGS, we are pleased with the increase for the fourth quarter and double-digit growth for the year. We believe this reflects the strength of our e-commerce platform and the appeal of our brands.

在我們的零售部門，本季度銷售額增長 6%，全年增長 16%。考慮到促銷環境和影響 BOGS 的一些天氣挑戰，我們對第四季度的增長和全年兩位數的增長感到滿意。我們相信這反映了我們電子商務平台的實力和我們品牌的吸引力。

From a bottom line perspective, the promotional environment affected our gross margins, and we had higher expenses leading to a flat profit for the fourth quarter. However, during the quarter, we did make progress on controlling our spending in a more competitive, less efficient advertising space, and we also found creative ways to slightly reduce our freight costs, as long as we are cognizant of striking the right balance between growth in our direct-to-consumer business and maintaining profitability.

從底線的角度來看，促銷環境影響了我們的毛利率，我們的支出增加導致第四季度利潤持平。然而，在本季度，我們確實在控制更具競爭力、效率較低的廣告空間的支出方面取得了進展，而且我們還找到了創造性的方法來略微降低運費，只要我們意識到在增長與增長之間取得適當的平衡。在我們的直接面向消費者的業務中，並保持盈利能力。

Florsheim Australia's net sales in local currency were up 29% in the fourth quarter and 22% for the year. Australia was the bright spot for our business this year as we saw growth across retail, e-commerce and wholesale for Florsheim, as well as increases for BOGS via wholesale and e-commerce. This resulted in greater profitability for the division. A portion of the increase was related to comparisons with pandemic-related shutdowns in 2021, but a good part of our success had to do with our management team's strong execution in 2022, including a warehouse move and the opening of several new stores.

Florsheim Australia 第四季度以當地貨幣計算的淨銷售額增長了 29%，全年增長了 22%。澳大利亞是我們今年業務的亮點，因為我們看到了 Florsheim 零售、電子商務和批發業務的增長，以及 BOGS 通過批發和電子商務業務的增長。這為該部門帶來了更高的盈利能力。部分增長與 2021 年與大流行病相關的停工相比有關，但我們成功的很大一部分與我們管理團隊在 2022 年的強大執行力有關，包括搬遷倉庫和開設幾家新店。

Our overall inventory was $128 million as of December 31, 2022, up from $112 million at the end of September 2022. We have been building our inventories. And due to supply chain issues, we brought in much of our inventory for spring '23 early. We are at peak inventory right now and expect to see our levels come down as we move through the first half of the year. The supply chain at this point is largely back to normal and that will make it easier for us to plan our inventory levels and bring product in closer to the season that is being targeted.

截至 2022 年 12 月 31 日，我們的總庫存為 1.28 億美元，高於 2022 年 9 月底的 1.12 億美元。我們一直在增加庫存。由於供應鏈問題，我們提前為 23 年春季帶來了大部分庫存。我們現在處於庫存高峰期，預計在今年上半年我們的庫存水平會下降。此時的供應鏈已基本恢復正常，這將使我們更容易規劃庫存水平，並使產品更接近目標季節。

That concludes our formal remarks. Thank you for your interest in Weyco Group. And I would now like to open the call to your questions.

我們的正式發言到此結束。感謝您對 Weyco Group 的關注。我現在想開始回答您的問題。

(Operator Instructions) Our first question comes from the line of John Deysher with Pinnacle.

（操作員說明）我們的第一個問題來自 John Deysher 與 Pinnacle 的合作。

Just a quick -- 2 quick questions. One, where are we with the Forsake brand at this point? I know you're monitoring that pretty closely. We're coming up on a 2-year anniversary of the purchase. I just want to make sure we're on target for launching that. I think the last update was for fall of 2023. Is that still realistic?

只是快速 - 2 個快速問題。一，我們現在在哪裡使用 Forsake 品牌？我知道你正在密切監視它。我們即將迎來購買 2 週年紀念日。我只是想確保我們的目標是啟動它。我認為最後一次更新是在 2023 年秋季。這仍然現實嗎？

Yes. This is John. Yes, a couple of things on Forsake. We're just really starting to get new product out there. I think we completed the purchase in June of 2021. It's been 1.5 years. But the supply chain issues slowed us down a bit. And we're looking at more of a Weyco overhaul except for the fall of 2023. So it's kind of -- it's too early to tell, really, from a new product standpoint. That being said, the outdoor market has gotten more difficult, which we referenced in the call. And the direct-to-consumer market has become less efficient, especially for brands with lower consumer recognition. So we're moving forward. We're looking forward to getting the new product out in market, back half of the year. But the jury is still very much out.

是的。這是約翰。是的，Forsake 上有幾件事。我們才真正開始推出新產品。我想我們在 2021 年 6 月完成了購買。已經 1.5 年了。但是供應鏈問題讓我們放慢了速度。除了 2023 年秋季之外，我們正在考慮對 Weyco 進行更多的改革。因此，從新產品的角度來看，現在下結論還為時過早。話雖這麼說，戶外市場變得更加困難，我們在電話中提到了這一點。直接面向消費者的市場效率也越來越低，尤其是對於消費者認可度較低的品牌而言。所以我們向前邁進。我們期待著在今年下半年將新產品推向市場。但是陪審團仍然很不明確。

Okay. Okay, good. That's helpful. And then just a couple of questions on the cash flow statement. There's some -- looks like nonrecurring items there. And I'm just wondering where they appear on the income statement? You've got a pension settlement charge of $900,000 and an impairment of trademark for $1.2 million for the year. Where do those appear on the income statement? Did those go through SG&A? Or how did they flow through the income statement since it's not broken out?

好的。好的。這很有幫助。然後是關於現金流量表的幾個問題。那裡有一些 - 看起來像非經常性項目。我只是想知道它們出現在損益表的什麼位置？你有 900,000 美元的養老金結算費用和 120 萬美元的商標減值。這些出現在損益表的什麼地方？那些通過 SG&A 了嗎？或者他們是如何通過損益表流動的，因為它沒有被打破？

Both of those go through SG&A. The settlement loss is part of pension expense. Actually, let me change that a little bit. That pension loss, $600,000 of it goes through other income. It's just because of the accounting rules, make us split it. And the other $300,000 is in SG&A. So that's the settlement loss. And then the impairment charge is in SG&A.

兩者都通過 SG&A。結算損失是養老金費用的一部分。實際上，讓我稍微改變一下。養老金損失中有 600,000 美元用於其他收入。只是因為會計規則，讓我們拆分了。另外 300,000 美元用於 SG&A。這就是結算損失。然後減值費用在 SG&A 中。

$1.2 million?

120 萬美元？

Yes.

是的。

Okay, good. And the gains from fair value measurement of contingent consideration, I guess that's for Forsake. Where does that flow through?

好的。而或有對價的公允價值計量的收益，我想那是為了 Forsake。它從哪裡流過？

That's also in SG&A.

這也在 SG&A 中。

That's also embedded in SG&A. Okay. Great.

這也包含在 SG&A 中。好的。偉大的。

Correct.

正確的。

All right. Terrific. Thanks for the update, and good luck going forward.

好的。了不起。感謝更新，祝你好運。

Our next question comes from the line of David Wright with Henry Investment Trust.

我們的下一個問題來自 David Wright 與 Henry Investment Trust 的合作。

I have a question. You highlighted the high level of inventory. I go back 5, 6 years when you might have ended the year with $60 million of inventory. So kind of any nervousness about the absolute level of inventory?

我有個問題。您強調了高水平的庫存。我回到 5、6 年前，那時你可能以 6000 萬美元的庫存結束了這一年。對庫存的絕對水平有那麼點緊張嗎？

We overall feel like it's very manageable. We -- the situation over the last 2 years really has been, one, in which -- if you're going to deliver our shoes on time for the season, you have to bring in everything early. The transit time, and I'm going back 6 months or more, always historically from China, was about 30 days. During the supply chain issues that went up to 3 months and at times, it was longer than that. And so we basically were forced to bring in seasonal goods early and bring in everything early, so we were confident that we'd have the inventory.

我們總體上覺得它非常易於管理。我們——過去兩年的情況真的是，其中之一——如果你要在本賽季按時交付我們的鞋子，你必須儘早帶來一切。過境時間，我要回去 6 個月或更長時間，歷史上總是從中國出發，大約 30 天。在長達 3 個月的供應鏈問題中，有時甚至比這更長。所以我們基本上被迫提早引進季節性商品，提早引進所有東西，所以我們有信心我們會有庫存。

And I think that part of the reason we've been able to show such big revenue growth is that we've had the inventory and some of our competitors have not. And so we've discussed in past calls that when we are forced essentially to buy earlier, and to buy larger quantities and bring them in earlier, we focus on core merchandise.

而且我認為我們能夠顯示如此巨大的收入增長的部分原因是我們有庫存而我們的一些競爭對手沒有。因此，我們在過去的電話會議中討論過，當我們本質上被迫更早購買，購買更多數量並更早引入時，我們會專注於核心商品。

And so where the majority of that inventory is, it's on our best sellers. And so that inventory is not perishable, and it's good for several seasons. And so we -- as the supply chain unfroze, we saw what was happening. And so we cut back our buying 9 months ago. And so we feel very confident that over the first half of this year, our inventories are going to be back in line. They're not going to be down to the $60 million because our business is bigger now. But they're going to be substantially lower than the $128 million.

因此，大部分庫存都在我們的暢銷商品上。因此，庫存不易腐爛，而且適合幾個季節。所以我們——隨著供應鏈解凍，我們看到了正在發生的事情。所以我們在 9 個月前減少了購買量。因此，我們非常有信心，在今年上半年，我們的庫存將恢復正常。他們不會下降到 6000 萬美元，因為我們的業務現在更大了。但它們將大大低於 1.28 億美元。

Okay. Great. Nonfinancial question, if you don't mind. I'm curious just more as a consumer. So in your e-commerce segment, and let's just stick with Florsheim, what's the incidence of returns? A pair of shoes, you go to the store, you try on 4 or 5 different ones and this one feels best and looks okay, so fine. I can't really do that so well with e-commerce. Curious about the return rates.

好的。偉大的。非財務問題，如果你不介意的話。作為消費者，我更好奇。因此，在您的電子商務領域，讓我們繼續使用 Florsheim，退貨的發生率是多少？一雙鞋，你去商店，試穿 4 或 5 種不同的鞋，這一款感覺最好，看起來還不錯，非常好。我真的不能用電子商務做得那麼好。對回報率感到好奇。

This is John. It's about 12% to 13%, for instance, on the Florsheim brand. That's relatively low when you look at it within the context of the industry. I think we benefit from a lot of our consumers it's repeat purchases. They know what shoe they want, they know their size, how they fit our brands. And so we tend to have lower return rates than the industry, especially the multi-brand sites.

這是約翰。例如，在 Florsheim 品牌上大約佔 12% 到 13%。當你在行業背景下看它時，這個數字相對較低。我認為我們受益於很多消費者的重複購買。他們知道自己想要什麼鞋，知道尺碼，知道它們如何適合我們的品牌。因此，我們的退貨率往往低於行業，尤其是多品牌網站。

Well, thanks for giving me some insight there. Congratulations on the record results.

好吧，謝謝你給我一些見解。祝賀創紀錄的成績。

I'm showing no further questions in queue at this time. I'd like to turn the call back to Judy Anderson for closing remarks.

我現在不會在隊列中顯示更多問題。我想將電話轉回 Judy Anderson 以致閉幕詞。

I just want to say thank you, everyone, for joining our call today, and have a great day.

我只想說謝謝大家今天加入我們的電話會議，祝大家度過愉快的一天。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。