WEYCO Group Inc (WEYS) 2023 Q4 法說會逐字稿

Good day and thank you for standing by and welcome to the Weyco Group, Inc. fourth-quarter and full-year 2023 earnings release conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持並歡迎參加 Weyco Group, Inc. 第四季和 2023 年全年收益發布電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Judy Anderson, Chief Financial Officer. Please go ahead.

現在我想將會議交給今天的發言人、財務長朱迪·安德森。請繼續。

Good morning, and welcome, everyone, to Weyco Group's conference call to discuss fourth-quarter and full-year 2023 results. On this call with me today are Tom Florsheim Jr., Chairman and Chief Executive Officer; and John Florsheim, President and Chief Operating Officer.

早安，歡迎大家參加 Weyco 集團的電話會議，討論第四季和 2023 年全年業績。今天與我一起參加電話會議的是董事長兼執行長 Tom Florsheim Jr.；以及總裁兼營運長 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和年度的結果之前，我將閱讀一份簡短的警告聲明。在這次電話會議中，我們可能會就我們對未來事件和公司未來財務表現的當前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會有重大差異。

We refer you to the section entitled Risk Factors in our most recent annual report on Form 10-K, which provides a discussion of important factors and risks that could cause our actual results to differ materially from our projections. These risk factors are incorporated herein by reference. They include, in part, the uncertain impact of inflation on our costs and consumer demand for our products, increased interest rates, and other macroeconomic factors that may cause a slowdown or contraction in the US or Australian economy.

我們建議您參閱我們最新的 10-K 表年度報告中標題為「風險因素」的部分，其中討論了可能導致我們的實際結果與我們的預測有重大差異的重要因素和風險。這些風險因素透過引用併入本文。其中部分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、利率上升以及可能導緻美國或澳洲經濟放緩或收縮的其他宏觀經濟因素。

Net sales for the fourth quarter of 2023 were $80.6 million, down 19% compared to last year's fourth quarter net sales of $99 million. Consolidated gross earnings increased to 50.3% of net sales for the quarter compared to 46.6% of net sales in last year's fourth quarter due mainly to higher gross margins in our North American wholesale segment.

2023 年第四季淨銷售額為 8,060 萬美元，比去年第四季淨銷售額 9,900 萬美元下降 19%。本季綜合毛收入佔淨銷售額的 50.3%，而去年第四季為淨銷售額的 46.6%，主要是由於北美批發部門毛利率的提高。

Quarterly operating earnings were $11.5 million, down 24% compared to record operating earnings of $15.1 million in the fourth quarter of 2022. Net earnings were $8.5 million, or $0.90 per diluted share for the quarter compared to $10.2 million or $1.6 per diluted share for the fourth quarter of 2022.

季度營業利潤為 1,150 萬美元，與 2022 年第四季創紀錄的 1,510 萬美元營業利潤相比下降 24%。本季淨利為 850 萬美元，即稀釋後每股收益 0.90 美元，而 2022 年第四季淨利為 1,020 萬美元，即稀釋後每股收益 1.6 美元。

In the North American wholesale segment, net sales for the quarter were $59.6 million, down 21% from $75.5 million last year. The decrease was primarily due to a 32% decline in BOGS sales, but also due to decreased sales across our legacy brands as a result of weaker demand.

在北美批發領域，本季淨銷售額為 5,960 萬美元，比去年的 7,550 萬美元下降 21%。下降的主要原因是 BOGS 銷售額下降 32%，但也因為需求疲軟導致我們傳統品牌的銷售下降。

Wholesale gross earnings were 44.9% of net sales for the quarter compared to 41.3% of net sales in last year's fourth quarter. Gross margins improved as a result of lower inventory costs, primarily inbound freight. Wholesale, selling, and administrative expenses totaled $18.9 million for the quarter compared to $20.5 million last year. The decrease was largely due to lower employee costs, mainly commission-based compensation. As a percent of net sales, wholesale, selling, and administrative expenses totaled 32% for the quarter versus 27% last year.

本季批發總收入佔淨銷售額的 44.9%，而去年第四季則佔淨銷售額的 41.3%。由於庫存成本（主要是入境運費）降低，毛利率有所提高。本季批發、銷售和管理費用總計 1,890 萬美元，而去年同期為 2,050 萬美元。下降的主要原因是員工成本下降，主要是基於佣金的薪酬。本季批發、銷售和管理費用佔淨銷售額的百分比總計為 32%，去年為 27%。

Wholesale operating earnings totaled $7.9 million for the quarter or down 27% compared to $10.7 million in 2022, primarily due to lower sales. Net sales in our North American retail segment were $13.9 million for the quarter, down 3% compared to record sales of $14.3 million last year. The decrease was primarily due -- was primarily on the BOGS e-commerce website as a result of lower demand.

本季批發營業利潤總計 790 萬美元，比 2022 年的 1,070 萬美元下降 27%，這主要是由於銷售額下降。本季北美零售部門的淨銷售額為 1,390 萬美元，與去年創紀錄的 1,430 萬美元銷售額相比下降了 3%。下降的主要原因是 BOGS 電子商務網站的需求下降。

Retail gross earnings as a percent of net sales were 65.8% and 64.5% in the fourth quarters of 2023 and 2022, respectively. Retail selling and administrative expenses totaled $5.6 million for the quarter compared to $5.9 million last year, down as a result of lower web advertising costs.

2023 年和 2022 年第四季零售總收入佔淨銷售額的百分比分別為 65.8% 和 64.5%。本季零售和管理費用總計 560 萬美元，而去年為 590 萬美元，由於網路廣告成本下降而有所下降。

As a percent of net sales, retail selling and administrative expenses were flat at 41% in both this year and last year. Retail operating earnings reached a record $3.5 million in the fourth quarter of 2023, up 6% over $3.3 million in 2022. The earnings improvement resulted from lower costs in the fourth quarter of 2023. Our other operations result consists of our retail and wholesale businesses in Australia, South Africa, and Asia Pacific, collectively referred to as Florsheim Australia.

零售銷售和管理費用佔淨銷售額的百分比今年和去年均持平於 41%。2023 年第四季零售營業利潤達到創紀錄的 350 萬美元，比 2022 年的 330 萬美元成長 6%。獲利改善源自於 2023 年第四季成本降低。我們的其他業務成果包括我們在澳洲、南非和亞太地區（統稱為 Florsheim Australia）的零售和批發業務。

However, as previously disclosed, we ceased operations in the Asia Pacific region in 2023 and are in the final stages of winding down this business. Net sales of Florsheim Australia were $7.2 million, down 23% from $9.2 million in the fourth quarter of 2022.

然而，正如先前所揭露的，我們於 2023 年停止了在亞太地區的業務，目前正處於結束該業務的最後階段。Florsheim Australia 的淨銷售額為 720 萬美元，比 2022 年第四季的 920 萬美元下降 23%。

In local currency, Florsheim Australia's net sales were down 22% due mainly to the loss of a sizable wholesale customer in Australia earlier this year, but also due to lower retail sales in the Asia Pacific region as a result of its wind-down.

以當地貨幣計算，Florsheim Australia 的淨銷售額下降了 22%，這主要是由於今年早些時候失去了澳大利亞的一個相當大的批發客戶，但也由於其停業而導致亞太地區的零售額下降。

Florsheim Australia's gross earnings were 65.4% of net sales for the quarter compared to 61.8% in the fourth quarter of 2022. Its operating earnings were $200,000 for the quarter compared to $1.1 million last year, down due to lower sales volumes this year.

Florsheim Australia 本季的毛收入佔淨銷售額的 65.4%，而 2022 年第四季為 61.8%。該季度營業利潤為 20 萬美元，而去年為 110 萬美元，因今年銷量下降而下降。

We will now discuss our full year 2023 results. Consolidated net sales for the full year were $318 million, down 10% compared to record sales of $351.7 million in 2022. Consolidated gross earnings increased to 44.9% of net sales in 2023 from 41.1% last year, due mainly to higher gross margins in our North American wholesale segment.

我們現在將討論 2023 年全年業績。全年綜合淨銷售額為 3.18 億美元，與 2022 年創紀錄的 3.517 億美元銷售額相比下降 10%。2023 年，合併毛收入佔淨銷售額的比例從去年的 41.1% 增加到 44.9%，主要是由於我們北美批發部門的毛利率較高。

Full-year 2023 operating earnings were a record $41 million, up 2% over our previous record of $40.4 million in 2022 despite lower sales. Net earnings were a record $30.2 million or $3.17 per diluted share in 2023, up 2% compared to $29.5 million or $3.07 per diluted share in 2022.

儘管銷售額有所下降，但 2023 年全年營業利潤達到創紀錄的 4,100 萬美元，比之前 2022 年創下的 4,040 萬美元的記錄增長了 2%。2023 年淨利潤達到創紀錄的 3,020 萬美元，即稀釋後每股收益 3.17 美元，比 2022 年的 2,950 萬美元，即稀釋後每股收益 3.07 美元增加 2%。

North American wholesale net sales were $250.4 million in 2023, down 12% compared to record sales of $283.2 million in 2022. The decrease was primarily due to a 31% decline in BOGS sales compared to record sales for the brand last year.

2023 年北美批發淨銷售額為 2.504 億美元，與 2022 年創紀錄的 2.832 億美元銷售額相比下降 12%。下降的主要原因是 BOGS 銷售額與去年該品牌創紀錄的銷售額相比下降了 31%。

Sales of Stacy Adams, Florsheim, and Nunn Bush brands were also down for the year due to lower demand following strong growth last year. Wholesale gross earnings as a percent of net sales were 39.7% in 2023 and 35.6% in 2022. Gross margins improved as a result of increased selling prices and lower inventory costs, primarily inbound freight.

Stacy Adams、Florsheim 和 Nunn Bush 品牌的銷售額今年也有所下降，因為去年強勁成長後需求下降。2023 年批發總收入佔淨銷售額的百分比為 39.7%，2022 年為 35.6%。由於銷售價格上漲和庫存成本（主要是入境運費）下降，毛利率有所改善。

Wholesale selling and administrative expenses totaled $66 million in 2023 compared to $68.2 million in 2022. The decrease in 2023 was primarily due to lower employee costs, mainly commission-based compensation. As a percent of net sales, wholesale selling and administrative expenses were 26% in 2023 and 24% in 2022. Wholesale operating earnings reached a record $33.3 million in 2023, up 2% over our previous record of $32.6 million in 2022 due to higher gross margins and lower selling and administrative expenses.

2023 年批發銷售和管理費用總計 6,600 萬美元，而 2022 年為 6,820 萬美元。2023 年的下降主要是由於員工成本下降，主要是基於佣金的薪酬。批發銷售和管理費用佔淨銷售額的百分比，2023 年為 26%，2022 年為 24%。由於毛利率提高以及銷售和管理費用降低，2023 年批發營業利潤達到創紀錄的 3,330 萬美元，比之前 2022 年 3,260 萬美元的記錄增長 2%。

In our North American retail segment, net sales were a record $38 million in 2023, up 4% over our previous record of $36.7 million in 2022. The increase was primarily due to higher sales across our legacy brands' websites, partially offset by lower sales on the BOGS website. Sales that are for domestic brick-and-mortar stores were down 4% for the year. Retail gross earnings were 65.9% of net sales in 2023 and 65.7% of net sales in 2022.

在北美零售領域，2023 年淨銷售額達到創紀錄的 3,800 萬美元，比 2022 年創下的 3,670 萬美元的紀錄增長 4%。這一成長主要是由於我們傳統品牌網站的銷售額增加，但部分被 BOGS 網站銷售額的下降所抵消。今年國內實體店的銷售額下降了 4%。2023 年零售總收入佔淨銷售額的 65.9%，2022 年佔淨銷售額的 65.7%。

Retail selling and administrative expenses totaled $18.3 million or 48% of net sales for the year compared to $18.1 million or 49% of net sales last year. The retail segment achieved record operating earnings of $6.8 million in 2023, up 11% over $6.1 million in 2022, due mainly to increase -- through the increase in web sales. Net sales at Florsheim Australia totaled $29.6 million in 2023, down 7% from $31.8 million in 2022.

零售銷售和管理費用總計 1,830 萬美元，佔當年淨銷售額的 48%，而去年為 1,810 萬美元，佔淨銷售額的 49%。零售部門在 2023 年實現創紀錄的營業利潤 680 萬美元，比 2022 年的 610 萬美元增長 11%，這主要是由於網路銷售的成長。Florsheim Australia 2023 年的淨銷售額總計 2,960 萬美元，比 2022 年的 3,180 萬美元下降 7%。

In local currency, Florsheim Australia's net sales were down 3% for the year with sales down in its wholesale businesses due to the previously mentioned mid-year loss of a wholesale customer in Australia, partially offset by higher sales across its retail businesses.

以當地貨幣計算，Florsheim Australia 今年的淨銷售額下降了3%，其批發業務的銷售額下降是由於之前提到的澳大利亞批發客戶的年中損失，但部分被其零售業務銷售額的增長所抵消。

Florsheim Australia's gross earnings were 62.5% of net sales in 2023 versus 61.1% of net sales in 2022. Its operating earnings totaled $1 million in 2023 and $1.7 million in 2022, down as a result of lower net sales. At December 31, 2023, our cash and marketable securities totaled $75.9 million, and we had no debt outstanding on our $40 million revolving line of credit.

Florsheim Australia 2023 年的總收入佔淨銷售額的 62.5%，而 2022 年則佔淨銷售額的 61.1%。由於淨銷售額下降，其 2023 年營業利潤總額為 100 萬美元，2022 年為 170 萬美元。截至 2023 年 12 月 31 日，我們的現金和有價證券總額為 7,590 萬美元，我們的 4,000 萬美元循環信貸額度沒有未償債務。

During 2023, we generated $98.6 million of cash from operations due mainly to net earnings and reductions in inventory levels. We used funds to pay out $31.1 million on our line of credit to pay $9.3 million in dividends and to repurchase $4.3 million of our common stock. We also had $3.3 million of capital expenditures. We estimate that our 2024 annual capital expenditures will be between $2 million and $4 million.

2023 年，我們從營運中產生了 9,860 萬美元的現金，主要歸功於淨利潤和庫存水準的減少。我們使用資金支付了 3,110 萬美元的信貸額度，用於支付 930 萬美元的股息，並回購了 430 萬美元的普通股。我們還有 330 萬美元的資本支出。我們預計 2024 年的年度資本支出將在 200 萬至 400 萬美元之間。

On March 5, 2024, our Board of Directors declared a cash dividend of $0.25 per share to all shareholders of record on March 15, 2024, payable March 29, 2024.

2024年3月5日，我們的董事會宣布向2024年3月15日在冊的所有股東派發每股0.25美元的現金股息，並於2024年3月29日支付。

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

我現在想將電話轉給董事長兼執行長 Tom Florsheim Jr。

Good morning, everyone. As Judy mentioned, we experienced a slowdown in sales as our overall wholesale shipments were down 21% versus a strong fourth quarter last year. The retail environment remains difficult for footwear and apparel as consumers are spending more of their discretionary income on experiences and services.

大家，早安。正如 Judy 所提到的，我們的整體批發出貨量與去年第四季的強勁表現相比下降了 21%，因此我們的銷售出現了放緩。對於鞋類和服裝來說，零售環境仍然很困難，因為消費者將更多的可自由支配收入用於體驗和服務。

Retailers in turn are being cautious in regards to their inventory levels. While we recognize we are in a challenging period for our industry, we are pleased with our overall financial performance in 2023. We achieved record wholesale operating earnings by maintaining our price integrity while taking a disciplined approach to our expenses.

零售商則對其庫存水準持謹慎態度。雖然我們意識到我們的行業正處於充滿挑戰的時期，但我們對 2023 年的整體財務表現感到滿意。透過保持價格完整性並嚴格控制開支，我們實現了創紀錄的批發營業收入。

BOGS sales were down 32% in the fourth quarter and 31% for the year, mild weather throughout the fall and early winter, in combination with an inventory clot in the outdoor market, made for a tough 2023. We believe the outdoor boot market will remain challenging throughout 2024 as retailers right-size their inventories.

BOGS 銷售額在第四季度下降了 32%，全年下降了 31%，整個秋季和初冬的溫和天氣，再加上戶外市場的庫存積壓，導致 2023 年的情況艱難。我們認為，隨著零售商調整庫存規模，戶外靴市場在 2024 年仍將充滿挑戰。

With BOGS, we are focused on moving the business forward through product innovation with an emphasis on BOGS' seamless rubber boot construction. BOGS's seamless construction is 30% lighter than comparable vulcanized rubber boots and over twice as durable as measured by the number of flexes our seamless boots can withstand without any side of cracking.

透過 BOGS，我們致力於透過產品創新推動業務發展，重點是 BOGS 的無縫橡膠靴結構。BOGS 的無縫結構比同類硫化橡膠靴輕 30%，並以我們的無縫靴可承受的彎曲次數衡量，其耐用性是其兩倍多，且不會出現任何一側開裂。

This year, we are expanding the number of seamless boots in our line across numerous price points. Consumers and retailers are excited about this technology, which positions us well for future sales growth.

今年，我們在多個價位上擴大了產品線中無縫靴子的數量。消費者和零售商對這項技術感到興奮，這為我們未來的銷售成長奠定了良好的基礎。

In addition to the expansion of our seamless collection, we are also introducing new and non-insulated and lightly insulated footwear, so the BOGS brand is less dependent on inclement weather. Our overall legacy business declined 16% for the quarter and 5% for the year. At the brand level, Florsheim, Nunn Bush, and Stacy Adams were down 13%, 18%, and 19%, respectively for the latest quarter and 4%, 2%, and 10%, respectively for the year.

除了擴大我們的無縫系列之外，我們還推出了新型非隔熱鞋和輕度隔熱鞋，因此 BOGS 品牌較少依賴惡劣天氣。我們的整體傳統業務本季下降了 16%，全年下降了 5%。在品牌層面，Florsheim、Nunn Bush 和 Stacy Adams 最近一個季度的銷售量分別下降了 13%、18% 和 19%，全年分別下降了 4%、2% 和 10%。

The decline in sales of all three brands reflects a general slowdown in the market for dress and dress casual footwear. In addition, many of our retail partners have shifted to more of a chase strategy in order to maintain greater inventory flexibility.

三個品牌銷售額的下降反映了正裝鞋和正裝休閒鞋市場的普遍放緩。此外，我們的許多零售合作夥伴已轉向更多的追逐策略，以保持更大的庫存靈活性。

We see the decrease in our legacy shipments as part of a return to a normal business cycle after a period of heightened demand and supply chain delays. We anticipate this trend will continue through the first half of 2024.

我們認為，在一段時期的需求增加和供應鏈延遲之後，我們傳統出貨量的減少是回歸正常商業週期的一部分。我們預計這一趨勢將持續到 2024 年上半年。

Our sell-throughs at retail remained solid, and we continue to diversify our product mix across all three brands to expand our casual and hybrid offerings. In our retail segment, sales were down 3% for the quarter, but up 4% for the year. The fourth-quarter decrease was driven primarily by a decline in BOGS online sales due to unseasonably warm and dry weather.

我們的零售銷售量保持穩定，我們繼續使所有三個品牌的產品組合多樣化，以擴大我們的休閒和混合產品。在我們的零售部門，本季銷售額下降 3%，但全年銷售額成長 4%。第四季度的下降主要是由於異常的溫暖和乾燥天氣導致 BOGS 在線銷售下降。

Overall, we believe the company had a strong direct-to-consumer performance with a solid increase for 2023 as well as record retail operating earnings. We view our direct-to-consumer business as a growth opportunity and continued to invest in our online platform.

整體而言，我們認為該公司直接面向消費者的業績強勁，2023 年將穩健成長，零售營業利潤也創歷史新高。我們將直接面向消費者的業務視為成長機會，並繼續投資於我們的線上平台。

Florsheim Australia's net sales in local currency were down 22% in the fourth quarter and 3% for the year. The loss of a major wholesale account as well as a soft consumer demand presented challenges in the Australian market. We anticipate headwinds through the first half of 2024 and are focused on reducing expenses while we assess opportunities to rekindle our growth.

Florsheim Australia 以當地貨幣計算的淨銷售額第四季度下降了 22%，全年下降了 3%。失去一個主要批發客戶以及疲軟的消費者需求給澳洲市場帶來了挑戰。我們預計 2024 年上半年將面臨阻力，並在評估重振成長機會的同時，重點在於減少開支。

As previously discussed, we closed our Hong Kong office in December and are in the process of transitioning the Asia Pacific wholesale business to Australia division. Our inventory level was $74.9 million at December 31, 2023, down from $128 million at December 31, 2022. As discussed in the third-quarter call, we have brought our inventories down to a level that balances availability for in-season orders with better inventory turn.

如前所述，我們於 12 月關閉了香港辦事處，並正在將亞太地區批發業務轉移到澳洲部門。截至 2023 年 12 月 31 日，我們的庫存水準為 7,490 萬美元，低於 2022 年 12 月 31 日的 1.28 億美元。正如第三季電話會議中所討論的那樣，我們已將庫存降低到平衡當季訂單的可用性和更好的庫存週轉率的水平。

For the year, overall, gross margins were 44.9% in 2023 and 41.1% in 2022. Going forward, we expect our margins to remain at a healthy level. As Judy discussed, our cash flow in 2023 was strong, resulting in a balance of $75.9 million in cash and marketable securities. We continue to look at potential acquisitions and other options to put our cash to use. We also continue to invest in the distribution platform we have built in Milwaukee.

全年整體毛利率在2023年為44.9%，在2022年為41.1%。展望未來，我們預計我們的利潤率將保持在健康的水平。正如 Judy 所討論的，我們 2023 年的現金流強勁，現金和有價證券餘額為 7,590 萬美元。我們將繼續尋找潛在的收購和其他選擇來使用我們的現金。我們也持續投資在密爾瓦基建立的分銷平台。

In the fourth quarter of 2023, we installed equipment that automates the packing and labeling process of single pairs. With the growth of our e-commerce and drop-ship business, gaining efficiency in this area allows us to get faster service with significant labor savings. This new equipment allows us to process a single zone at a rate of 30 to 40 pairs per minute, which is a processing speed approximately four times faster than previously.

2023 年第四季度，我們安裝了可自動執行單對包裝和貼標流程的設備。隨著我們電子商務和代發貨業務的成長，提高該領域的效率使我們能夠獲得更快的服務，並節省大量勞動力。這種新設備使我們能夠以每分鐘 30 至 40 對的速度處理單個區域，處理速度比以前快了大約四倍。

This 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 集團的關注，現在我想開始回答您的問題。

(Operator Instructions) David Wright, Henry Investment Trust.

（操作員說明）大衛·賴特，亨利投資信託公司。

Hi, good morning, everyone.

嗨，大家早安。

Good morning.

早安.

Good morning.

早安.

I wanted to compliment and congratulate you first off to make $30 million after tax. I mean, that would be a pretty good feeling. If you look back 10 years ago on kind of the same revenue as you were making, net sort of high tens of millions. But the last couple of years, you've really elevated the results. So as a stockholder, I say thank you.

我首先想恭維並祝賀你稅後賺了 3000 萬美元。我的意思是，那會是一種非常好的感覺。如果你回顧 10 年前，你的收入與你的收入相同，淨收入高達數千萬。但在過去的幾年裡，你確實提高了結果。所以身為股東，我說謝謝。

Thanks for that. We appreciate it.

感謝那。我們很感激。

On the cash duty, can you break down where that's held geographically?

關於現金稅，您能詳細說明現金稅的持有地點嗎？

The majority of it is in the US, and we have invested it in a money-market account. So we're earning between 5% and 5.5% on that. We also do have some cash in Canada earning about the same rate.

其中大部分在美國，我們將其投資於貨幣市場帳戶。所以我們的收入在 5% 到 5.5% 之間。我們在加拿大也有一些現金，收入水準大致相同。

Okay. Well, thanks. Those are a couple of very good places to have your money. You can get to it and your interest earnings were double your interest expense. So that's a good result too. Further on the cash, Tom, when you mentioned the Board considering acquisitions and other options, do the other options include sort of shareholder capital return?

好的。非常感謝。這些都是你花錢的好地方。你可以得到它，你的利息收入是你利息支出的兩倍。所以這也是一個很好的結果。關於現金，湯姆，當您提到董事會考慮收購和其他選擇時，其他選擇是否包括股東資本回報？

We are looking at all the different options right now because we recognize that our cash has piled up, which is a good problem. And we've had a couple investors actually ask us about a special dividend. So we're considering that. We're considering additional stock buybacks. We still want to have the flexibility for M&A. And we feel like with our balance sheet, we're in a good place for that even if we reduce our cash slightly.

我們現在正在考慮所有不同的選擇，因為我們認識到我們的現金已經堆積起來，這是一個好問題。事實上，有幾個投資者向我們詢問特別股息。所以我們正在考慮這一點。我們正在考慮額外的股票回購。我們仍然希望在併購方面有彈性。我們覺得，即使我們稍微減少現金，我們的資產負債表也處於有利位置。

So I'll just say at this point, we really recognize that we have more cash than we need on our balance sheet right now, and we're figuring out the best ways to use it. And we're trying to do that at a shareholder-friendly way.

所以我現在只想說，我們確實認識到我們現在資產負債表上的現金比我們需要的多，我們正在尋找使用它的最佳方法。我們正在努力以對股東友好的方式做到這一點。

Okay. That's great. Thanks for the on the elaboration. If you'd indulge me, I just have kind of a demographic question. You look back 25 years ago, say, when a white-collar job meant you wear a suit and tie and dress shoes, yeah? And over the decades that preceded that, you probably had pretty stable, I'm going to call it dress shoe sales, growing a little with the economy and with the fact that there's more people.

好的。那太棒了。感謝您的闡述。如果您願意的話，我只是有一個人口統計問題。回想 25 年前，當時的白領工作意味著你必須穿西裝、打領帶、穿正裝鞋，是嗎？在此之前的幾十年裡，你可能有相當穩定的，我稱之為正裝鞋銷售，隨著經濟的發展和人口的增加而略有增長。

And dress -- office dress, professional dress has changed so dramatically. Sorry to be sentimental, but I'm curious if there's any way you can quantify what -- if traditional lace-up leather dress shoes were X 25 years ago, your sales in those products today are 10% of that, or any way to quantify the decline in that particular style?

還有服裝——辦公室著裝、職業著裝已經發生了巨大的變化。對不起，我很感傷，但我很好奇是否有任何方法可以量化——如果傳統的繫帶皮正裝鞋在25 年前是X，那麼您今天這些產品的銷售額是當時的10%，或者有什麼方法可以量化該特定風格的衰退？

Yeah, I mean, we don't have the exact numbers with us right now, but I hear what you're saying. It is 100% correct. When we look at our traditional classic dress business, that has shrunken drastically over the last 10 years. And what people are wearing as dress shoes today are really completely different.

是的，我的意思是，我們現在沒有確切的數字，但我聽到你在說什麼。這是100%正確的。當我們審視我們傳統的經典服裝業務時，會發現它在過去十年中急劇萎縮。如今人們穿的正裝鞋確實完全不同了。

And in the script, we talked about hybrid. And hybrid, what that means, is a dressy kind of upper with nice -- fit with a nice kind of dressy finish but with a more casual or sporty bottom. I mean, I'm sure you've seen a lot of men wearing dressy shoes with the white bottoms, with white soles. And that's what we're referring to when we talk about hybrid.

在劇本中，我們討論了混合動力。混合型，這意味著，一種考究的鞋面，具有漂亮的合身性，具有良好的考究飾面，但具有更休閒或運動的底部。我的意思是，我相信你看過很多男人穿著白色底的考究的鞋子。這就是我們談論混合動力時所指的。

That's a huge growth category because people still -- while they look nice at the office -- but you're 100% correct. They're not wearing suits and ties. And also, they need something that goes with that clothing. And we look at shoes as an accessory to clothing. And so we pay a lot of attention to what people are wearing.

這是一個巨大的成長類別，因為人們仍然——儘管他們在辦公室裡看起來很漂亮——但你是100%正確的。他們沒有穿西裝、沒有打領帶。而且，他們需要一些與衣服相配的東西。我們將鞋子視為服裝的配件。因此，我們非常關注人們的穿著。

And over the years, really going back probably more than a decade, we've been trying to evolve our brands, so they go with the clothing. And we recognize that in order to keep growing and be successful, we have to continue to adjust our products. And so when you watch the brand like Nunn Bush, for example, 75% of what we sell in Nunn Bush is casual, like totally casual-casual, not even hybrid. We have hybrid and we have some traditional dress, but 75% casual.

多年來，實際上可能要追溯到十多年前，我們一直在努力發展我們的品牌，因此它們與服裝相匹配。我們認識到，為了保持成長並取得成功，我們必須不斷調整我們的產品。例如，當你觀察像 Nunn Bush 這樣的品牌時，我們在 Nunn Bush 銷售的產品中有 75% 是休閒的，就像完全休閒休閒，甚至不是混合休閒。我們有混合服裝，也有一些傳統服裝，但 75% 是休閒服裝。

In Florsheim, we've made good head roads into more casual offerings with -- through casuals. We have a kind of a boat-type shoe called the Lakeside. We have active casuals. We have a new one that's on our website that you could check out called Satellite. And then we have a lot of hybrid shoes like the Dash. And so we are continuing to evolve.

在弗洛爾斯海姆，我們透過休閒裝，在提供更多休閒產品方面取得了良好的進展。我們有一種船型鞋叫Lakeside。我們有活躍的休閒服。我們的網站上有一個新的衛星，您可以查看一下。然後我們有很多混合鞋，像是 Dash。因此，我們正在不斷發展。

And with Stacy Adams, Stacy Adams still skews more dressy, but we're working to develop more hybrids. We have a successful hybrid in Stacy called the Syncro right now. And so you are 100% right with your original statement, and we're very aware of it. And we continue to look at this every time we put together a new line and continue to evolve to become more and more lifestyle oriented, more casual oriented because that's the way people are addressing. And that's going to change. We are convinced it's going to continue to go down that path.

對於史黛西·亞當斯 (Stacy Adams)，史黛西·亞當斯 (Stacy Adams) 仍然偏向更加考究，但我們正在努力開發更多混合體。我們現在在 Stacy 有一個成功的混合動力車，稱為 Syncro。所以你最初的說法是100%正確的，我們也非常清楚這一點。每次我們推出新產品線時，我們都會繼續關注這一點，並不斷發展，變得越來越以生活方式為導向，更加休閒化，因為這就是人們所關注的方式。而這種情況將會改變。我們相信它將繼續沿著這條道路走下去。

Well, you've done a great job of moving the product line with the market, and the results show that. So thanks for the elaboration there. Okay. Well, listen, I really appreciate the conference calls. I'm sorry I missed the last one. I know a lot of people maybe don't show up for them, but I really appreciate you having me. And so I thank you for that, and thanks for taking my questions.

嗯，你們在根據市場調整產品線方面做得很好，結果也證明了這一點。感謝您的詳細闡述。好的。嗯，聽著，我真的很感謝電話會議。很遺憾我錯過了最後一期。我知道很多人可能不會出席，但我真的很感謝你邀請我。所以我感謝你們，也感謝你們提出我的問題。

Thank you.

謝謝。

Thank you.

謝謝。

(Operator Instructions) I'm showing no further questions at this time, and I would like to turn the conference back over to Judy Anderson for any further remarks.

（操作員說明）我目前沒有提出任何進一步的問題，我想將會議轉回給朱迪·安德森（Judy Anderson）進行進一步的評論。

Thank you. Thank you, everyone, for joining us today and for your support of our company. Have a great day.

謝謝。感謝大家今天加入我們以及對我們公司的支持。祝你有美好的一天。

This concludes today's conference call. Thank you for participating, and 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。