Milwaukee, WI, Jan. 15, 2026 (GLOBE NEWSWIRE) -- WEYCO Group, Inc. (NASDAQ: WEYS), a global marketer of footwear, plans to announce fourth quarter and full year 2025 financial results after the close on Tuesday, March 3, 2026. Additionally, Thomas W. Florsheim, Jr., Chairman and CEO, will host a conference call on Wednesday, March 4, 2026, at 11:00 a.m. Eastern Time to discuss the financial results in more detail. To participate in the call, you will first need to pre-register online. Pre-registration takes ...

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Core Insights - Weyco Group, Inc. (WEYS) shares increased by 12.8% following the earnings report for Q3 2025, contrasting with a 1.8% decline in the S&P 500 index during the same period [1] - The company reported earnings per share of 69 cents, down from 84 cents in Q3 2024 [1] Financial Performance - Net sales for Q3 2025 were $73.1 million, a 2% decrease from $74.3 million in the same quarter last year, attributed to tariffs and lower sales volume [2] - Gross earnings as a percentage of net sales fell to 40.7% from 44.3% year-over-year, with operating earnings decreasing by 21% to $8.1 million [2] - Net earnings dropped 18% year-over-year to $6.6 million [2] North American Wholesale Performance - The North American wholesale segment recorded net sales of $60.2 million, a 2% decrease from $61.1 million in the prior year, with a 7% drop in sales volume [3] - Price increases implemented on July 1, 2025, partially offset the volume decline, which was primarily due to disruptions with a key wholesale customer [3] Brand-Level Performance - Florsheim sales increased by 8%, supported by pricing, while Nunn Bush saw a 1% sales increase [4] - Stacy Adams experienced a 5% sales decline, and BOGS sales fell sharply by 17% due to reduced shipments [4] - Wholesale gross margins declined to 35.7% from 40.1% due to tariffs, with operating earnings for the wholesale segment falling 20% to $7.5 million [4] Retail and International Operations - The North American retail segment reported net sales of $7 million, down 4% from $7.2 million, driven by weaker demand on e-commerce sites [5] - Retail gross earnings as a percentage of net sales slipped to 66.4% from 66.9%, with operating income declining to $0.6 million [5] - International operations generated net sales of $6 million, unchanged from the prior year, but local currency sales grew 2% [6] Management Commentary - CEO Thomas Florsheim Jr. highlighted that the sales decline was influenced by the wholesale customer issue and tariffs, particularly a 30% tariff on goods from China [7] - Management noted that price increases were insufficient to fully offset the tariff burden, leading to margin erosion [7] Strategic Initiatives - The company is diversifying its factory base beyond China and strengthening relationships with manufacturing partners to mitigate tariff exposure [8][9] - Management expressed confidence in adapting to the changing trade landscape, with potential signs of tariff relief from U.S.-China trade talks [11] Other Developments - Weyco decided to wind down its Forsake brand due to lack of growth and profitability, aiming to optimize its brand portfolio [12] - The Board of Directors declared a special cash dividend of $2.00 per share and a regular quarterly dividend of 27 cents per share, reflecting a strong liquidity position with $78.5 million in cash and no debt [13]

Sales Performance - Wholesale net sales decreased by 2% in dollars and 7% in volume for Q3 2025 compared to Q3 2024, with a 10% price increase implemented on July 1, 2025[52]. - Consolidated net sales for Q3 2025 were $73.1 million, down 2% from $74.3 million in Q3 2024, while year-to-date net sales totaled $199.4 million, a decrease of 5% from $209.8 million in 2024[61][62]. - The BOGS brand experienced a 17% sales decline in Q3 2025, attributed to an oversaturated outdoor footwear market and mild winters[57]. - Florsheim brand sales increased by 8% in Q3 2025, benefiting from its positioning in the traditional dress and dress-casual footwear market[55]. - Retail segment net sales declined by 4% in Q3 2025, driven by a decrease in e-commerce sales and increased price sensitivity among consumers[59]. - North American Wholesale segment net sales decreased by 2% to $60.151 million for Q3 2025, compared to $61.075 million in Q3 2024[74]. - Retail segment net sales totaled $6.953 million for Q3 2025, a decline of 4% from $7.225 million in Q3 2024[82]. - For the nine months ending September 30, 2025, total net sales decreased by 5% to $199.372 million compared to $209.819 million in the same period of 2024[74]. - Florsheim Australia's net sales remained flat at $6.0 million for Q3 2025, with a year-to-date decline of $0.7 million or 4% compared to the same period in 2024[87]. Earnings and Profitability - Consolidated gross earnings as a percentage of net sales fell to 40.7% in Q3 2025 from 44.3% in Q3 2024, primarily due to higher costs from incremental tariffs[67]. - Net earnings for Q3 2025 were $6.6 million, or $0.69 per diluted share, down 18% from $8.1 million, or $0.84 per diluted share, in Q3 2024[61]. - Consolidated earnings from operations decreased by 21% in Q3 2025, totaling $8.1 million compared to $10.2 million in Q3 2024[61]. - Earnings from operations for the North American Wholesale segment fell by 20% to $7.544 million in Q3 2025, down from $9.406 million in Q3 2024[74]. - Retail operating earnings declined by $1.4 million for the nine months ending September 30, 2025, compared to the same period in 2024[85]. - Gross earnings for the North American Wholesale segment were 35.7% of net sales in Q3 2025, down from 40.1% in Q3 2024[78]. Cash Flow and Liquidity - Cash and marketable securities totaled $78.5 million as of September 30, 2025, with no debt outstanding on the $40.0 million revolving line of credit[63]. - Net cash provided by operating activities totaled $13.2 million for the first nine months of 2025, down from $17.3 million in the same period last year[94]. - Cash dividends paid in the first nine months of 2025 totaled $7.7 million, compared to $9.6 million in the same period of 2024[97]. - Approximately $4.3 million of cash and cash equivalents was held by foreign subsidiaries as of September 30, 2025[103]. - The company believes that available cash, marketable securities, and cash provided by operations will support business cash needs for at least one year[103]. Tax and Financial Agreements - The effective tax rate for Q3 2025 was 26.3%, compared to 25.7% in Q3 2024[71]. - The effective tax rate for the nine months ending September 30, 2025, was 31.8%, compared to 25.8% in 2024, primarily due to a valuation allowance on deferred tax assets[92]. - The Amended Credit Agreement extended the maturity of the credit facility to September 25, 2026, with a maximum available borrowing limit of $40.0 million[100]. - The interest rate margin applicable to amounts outstanding was reduced by 15 basis points, now at SOFR plus 110 basis points[100]. - As of September 30, 2025, there were no outstanding borrowings on the line of credit, and the company was in compliance with all financial covenants[101]. Shareholder Returns - A total of $21.6 million in special cash dividends was prefunded in December 2024 and paid to shareholders in January 2025[102]. - The company continues to evaluate the best uses for available liquidity, including capital expenditures, stock repurchases, and acquisitions[103].

Financial Data and Key Metrics Changes - Overall net sales for Q3 2025 were $73.1 million, down 2% from $74.3 million in Q3 2024 [4] - Consolidated gross earnings were 40.7% of net sales compared to 44.3% in the previous year [4] - Earnings from operations were $8.1 million, down 21% from $10.2 million in Q3 2024 [4] - Net earnings totaled $6.6 million, down 18% from $8.1 million last year [4] - Diluted earnings per share were $0.69, compared to $0.84 in Q3 2024 [5] Business Line Data and Key Metrics Changes - North American wholesale segment net sales were $60.2 million, down 2% from $61.1 million last year [5] - Sales volumes in the wholesale segment were down 7%, but a price increase of 10% helped mitigate the impact [5] - Retail segment net sales were $7 million, down 4% from $7.2 million in 2024, primarily due to softer demand [8] - Florsheim Australia net sales remained flat at $6 million, but were up 2% in local currency [9] Market Data and Key Metrics Changes - The overall inventory as of September 30, 2025, was $67.2 million, down from $74 million at December 31, 2024 [17] - The incremental tariff on goods sourced from China remained at 30% throughout Q3 2025, impacting gross margins [7] Company Strategy and Development Direction - The company is diversifying its factory base to reduce manufacturing concentration in China while maintaining quality [11] - A strategic decision was made to wind down operations of the Forsake brand due to lack of growth and profitability [16] - The company is focused on expanding casual offerings for the Stacy Adams brand to regain growth [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the unsettled tariff environment and weak consumer sentiment continue to create midterm challenges [11] - The company remains confident in the strength of its brands and the resilience of its business model despite current challenges [12] - Future strategies include shifting supply chains and assessing the need for additional price increases based on tariff developments [18] Other Important Information - The Board of Directors declared a quarterly cash dividend of $0.27 per share and a special cash dividend of $2 per share [10] - The company generated $13.2 million in cash from operations during the first nine months of 2025 [9] Q&A Session Summary Question: Margin deterioration attributable to tariffs - Management indicated that the margin erosion is primarily due to tariffs, with a 10% price increase not fully covering the 30% incremental duties from China [24] Question: Consumer behavior across demographics - Management observed that higher-income customers are performing well, while lower middle-income customers are facing challenges [26]

Financial Performance - Third quarter 2025 net sales were $73.1 million, down 2% from $74.3 million in Q3 2024[8] - Gross earnings as a percentage of net sales decreased to 40.7% in Q3 2025 from 44.3% in Q3 2024[8] - Earnings from operations for the quarter totaled $8.1 million, down 21% compared to $10.2 million in Q3 2024[8] - Net earnings were $6.6 million, an 18% decrease from $8.1 million in Q3 2024[8] - Diluted earnings per share decreased to $0.69 from $0.84 in Q3 2024[8] - Net earnings for the nine months ended September 30, 2025, were $14,385,000, a decrease of 29.5% compared to $20,320,000 in 2024[21] Sales Performance - Wholesale net sales in North America were $60.2 million, down 2% from $61.1 million in Q3 2024[3] - Florsheim brand sales increased by 8% for the quarter, while BOGS sales decreased by 17%[4] Dividends and Shareholder Returns - The company declared a special cash dividend of $2.00 per share, alongside a regular quarterly cash dividend of $0.27 per share[12][13] - Cash dividends paid amounted to $7,731,000, down 19.5% from $9,614,000 in the previous year[21] - The company repurchased and retired shares worth $4,065,000, significantly higher than $567,000 in 2024[21] Operational Changes - The company decided to wind down operations of the Forsake brand due to lack of growth and profitability[7] Cash Flow and Financial Position - Net cash provided by operating activities decreased to $13,247,000 from $17,294,000, reflecting a decline of 23.6%[21] - The cash and cash equivalents at the end of the period were $72,915,000, compared to $75,455,000 at the end of the same period in 2024[21] - The effect of exchange rate changes on cash and cash equivalents resulted in an increase of $865,000, contrasting with a decrease of $281,000 in 2024[21] Accounts and Inventory Management - Accounts receivable increased by $9,113,000, compared to an increase of $7,534,000 in the previous year[21] - Inventories rose to $6,803,000, significantly higher than $2,728,000 in 2024[21] - The company reported a bad debt expense of $167,000, a notable increase from $19,000 in the previous year[21] Cost and Tariff Impact - Incremental tariffs on goods sourced from China remained at 30%, contributing to margin compression[6] Interest Expense - Interest paid was minimal at $1,000, down from $15,000 in 2024[21]

Core Insights - Weyco Group, Inc. reported financial results for the third quarter of 2025, showing a decline in both wholesale and retail segments, primarily due to reduced sales volumes and increased costs from tariffs [1][2][12]. North American Wholesale Segment - Wholesale net sales were $60.2 million, down 2% from $61.1 million in Q3 2024, with sales volumes decreasing by 7% [3]. - Florsheim brand saw an 8% sales increase, while BOGS and Stacy Adams experienced declines of 17% and 5%, respectively [4]. - Wholesale gross earnings as a percentage of net sales decreased to 35.7% from 40.1% year-over-year, impacted by incremental tariffs [5]. - Operating earnings fell by 20% to $7.5 million due to lower sales volumes and margin erosion [5]. Incremental Tariffs - The U.S. government maintained a 30% tariff on goods sourced from China, with ongoing trade talks potentially affecting future tariff rates [6]. - The tariff environment remains unpredictable, creating uncertainty regarding its impact on gross margins [6]. North American Retail Segment - Retail segment net sales totaled $73.1 million, down 2% from $74.3 million in Q3 2024, with gross earnings at 40.7% of net sales [8][10]. - Net earnings decreased by 18% to $6.6 million, with diluted earnings per share dropping to $0.69 from $0.84 [8][22]. Other Operations - Florsheim Australia reported flat net sales of $6.0 million, with gross earnings as a percentage of net sales increasing to 61.0% [11]. Strategic Decisions - The company decided to wind down operations of the Forsake brand due to lack of growth and profitability, with no material impact expected on consolidated financial statements [7]. Dividend Declarations - The Board of Directors declared a regular quarterly cash dividend of $0.27 per share and a special cash dividend of $2.00 per share, reflecting a return of capital to shareholders [13][14].

Core Viewpoint - WEYCO Group, Inc. is set to announce its third quarter 2025 financial results on November 4, 2025, followed by a conference call on November 5, 2025, to discuss the results in detail [1]. Company Overview - WEYCO Group, Inc. designs and markets quality and innovative footwear primarily for men, but also for women and children, under well-recognized brand names such as Florsheim, Nunn Bush, Stacy Adams, and BOGS [4]. - The company's products are available in leading footwear, department, and specialty stores, as well as on e-commerce platforms globally [4]. - WEYCO Group operates Florsheim concept stores in the United States, Australia, and various international markets [4].

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Core Viewpoint - Weyco Group, Inc. has faced significant challenges in its recent earnings report, with declines in both sales and earnings attributed to economic uncertainty and increased tariffs [1][5]. Financial Performance - The company reported a second-quarter 2025 EPS of 24 cents, down from 59 cents in the prior-year quarter [1]. - Net sales decreased by 9% to $58.2 million from $63.9 million year-over-year [2]. - Net earnings fell 60% to $2.3 million compared to $5.6 million in the same quarter last year [2]. - Gross earnings as a percentage of net sales declined to 43.3% from 43.9% [2]. Segment Performance - In the North American Wholesale segment, sales dropped 9% to $45.6 million, with major brands like Nunn Bush, Stacy Adams, Florsheim, and BOGS experiencing declines of 11%, 10%, 5%, and 14% respectively [3]. - Retail sales fell 11% to $6.8 million, driven by weaker demand on Florsheim and Stacy Adams websites [3]. - The "Other" category, which includes operations in Australia and South Africa, saw a 4% sales decline to $5.8 million, resulting in an operating loss of $0.2 million [3]. Management Commentary - The CEO described the quarter as facing "headwinds" from tariffs and reduced consumer spending, with expectations of continued economic uncertainty [4]. - Management highlighted the company's strong financial position, which they believe will support long-term growth despite current challenges [4]. - Efforts to diversify sourcing away from China to countries like Vietnam, Cambodia, and India were emphasized [4]. Influencing Factors - The earnings decline was primarily due to reduced consumer spending and higher import costs from tariffs, with the China-specific tariff peaking at 145% in April 2025 [5]. - Weyco has taken measures to mitigate cost pressures, including pre-purchasing inventory and negotiating supplier cost reductions [5]. Guidance - Management anticipates ongoing top-line pressure in the coming months due to tariffs and weak consumer sentiment, with potential seasonal softness in casual and dress footwear [6]. Other Developments - On August 5, 2025, the board declared a quarterly cash dividend of 27 cents per share, payable on September 30, 2025 [7]. - The company allocated $3.1 million for share repurchases and approximately $0.7 million for capital expenditures in the first half of 2025 [7].