Weyco Group, Inc. (WEYS) has reported a 17.49 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $2.22 million, or $0.21 a share in the quarter, compared with $2.69 million, or $0.25 a share for the same period last year. Revenue during the quarter dropped 12.40 percent to $69.12 million from $78.90 million in the previous year period. Gross margin for the quarter expanded 212 basis points over the previous year period to 36.50 percent. Total expenses were 95 percent of quarterly revenues, up from 94.67 percent for the same period last year. That has resulted in a contraction of 33 basis points in operating margin to 5 percent.
Operating income for the quarter was $3.46 million, compared with $4.21 million in the previous year period.
"The retail environment continues to be challenging, as retailers address reduced foot traffic in their brick and mortar stores," stated Thomas Florsheim, Jr., chairman and chief executive officer. "We continue to seek growth across all trade channels and are working to reduce our costs. This quarter we saw higher gross margins and reductions in several categories of selling and administrative costs as a result of our efforts."
Operating cash flow improves significantly
Weyco Group, Inc. has generated cash of $17.25 million from operating activities during the quarter, up 27.50 percent or $3.72 million, when compared with the last year period. Cash flow from investing activities was $1.18 million for the quarter as against cash outgo of $0.95 million in the last year period.
The company has spent $10.87 million cash to carry out financing activities during the quarter as against cash outgo of $14.39 million in the last year period.
Cash and cash equivalents stood at $21.47 million as on Mar. 31, 2017, up 31.60 percent or $5.16 million from $16.32 million on Mar. 31, 2016.
Working capital increases marginally
Weyco Group, Inc. has recorded an increase in the working capital over the last year. It stood at $117.89 million as at Mar. 31, 2017, up 1.35 percent or $1.56 million from $116.32 million on Mar. 31, 2016. Current ratio was at 9.24 as on Mar. 31, 2017, up from 3.80 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 104 days for the quarter from 201 days for the last year period. Days sales outstanding went up to 66 days for the quarter compared with 65 days for the same period last year.
Days inventory outstanding has decreased to 57 days for the quarter compared with 151 days for the previous year period. At the same time, days payable outstanding went up to 19 days for the quarter from 16 for the same period last year.
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