Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective [1] - The approach does not prioritize market-driven dynamics or future price action, instead emphasizing long-term earnings power and competitive dynamics [1] - Most recommendations will be holds, indicating a cautious approach to market conditions, with only a small fraction of companies deemed suitable for purchase at any given time [1] Group 2 - The articles aim to provide valuable information for future investors and introduce skepticism in a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, emphasizing the need for readers to conduct their own due diligence [2][3]

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].

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 Or UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________________ to _____________________________ Commission File Number: 000-09068 WEYCO GROUP, INC. (Exact name of registrant as specified in its ch ...

Financial Data and Key Metrics Changes - Overall net sales for Q2 2025 were $58.2 million, down 9% from $63.9 million in Q2 2024 [5] - Consolidated gross earnings were 43.3% of net sales compared to 43.9% in the previous year [5] - Earnings from operations were $3.9 million, down 42% from $6.7 million in Q2 2024 [6] - Net earnings totaled $2.3 million, down 60% from $5.6 million last year [6] - Diluted earnings per share were $0.24 in Q2 2025, compared to $0.59 in Q2 2024 [6] Business Line Data and Key Metrics Changes - North American wholesale segment net sales were $45.6 million, down 9% from $50.3 million last year [6] - Retail segment net sales were $6.8 million, down 11% from $7.6 million in 2024 [12] - Florsheim Australia net sales were $5.8 million, down 4% from $6.1 million in 2024 [14] - Retail gross earnings as a percentage of net sales were 66.6% in 2025 compared to 67.5% in 2024 [12] Market Data and Key Metrics Changes - The overall men's dress, dress casual, and basic casual markets are under pressure, with the traditional men's business being one of the first categories impacted in a slowing footwear market [20] - BOGS brand sales were down 14% compared to 2024 due to sluggish consumer demand in the outdoor category [21] - Retailer inventories for outdoor footwear are now very clean, indicating cautious inventory management [22] Company Strategy and Development Direction - The company is actively working to diversify its supply chain away from reliance on China, which previously accounted for 75% of its factory base [18] - The focus is on maintaining quality and value across all brands while adapting to the evolving tariff environment [19] - The company aims to grow its wholesale business in Australia and South Africa while managing retail operations carefully [54][58] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer sentiment is cautious due to affordability issues and uncertainty around tariffs, leading to reduced discretionary spending [17] - The expectation is that the challenging environment will persist through the second half of the year [21] - The company is optimistic about new product introductions and expanding its product line to be less dependent on cold weather demand [21] Other Important Information - The consolidated effective tax rate was 51.1% for the quarter, up from 25.1% in the previous year due to a valuation allowance on deferred tax assets [15] - Cash and marketable securities totaled $83.8 million with no debt outstanding on the revolving line of credit [15] - The Board of Directors declared a cash dividend of $0.27 per share, payable on September 30, 2025 [16] Q&A Session Summary Question: Can you quantify the change in inventory due to pre-purchasing? - Management indicated that inventory levels are returning to normal, expected to be in the $70 to $75 million range, but the dollar value may increase due to tariffs [31][32] Question: What is the approach if warning flags arise regarding wholesale customers' creditworthiness? - Management stated they monitor the situation closely and aim to work with retailers while being realistic about market changes [50] Question: What is the strategic importance of Florsheim Australia? - Management emphasized the long-standing presence in Australia, the dominance in the market, and the potential for profitability through careful management of retail and wholesale operations [52][54]

Exhibit 99.1 WEYCO REPORTS SECOND QUARTER SALES AND EARNINGS Milwaukee, Wisconsin---August 5, 2025---Weyco Group, Inc. (NASDAQ: WEYS) ("we," "our," "us" and the "Company") today announced financial results for the quarter ended June 30, 2025. Second Quarter 2025 Overview North American Wholesale Segment Incremental Tariffs In early 2025, the U.S. government enacted reciprocal and retaliatory tariffs ("incremental tariffs") on goods imported into the United States. The incremental tariff on goods sourced fro ...

Core Viewpoint - Weyco Group, Inc. reported a decline in financial performance for the second quarter of 2025, attributed to reduced consumer spending and increased tariffs impacting gross margins and profitability [1][15]. Financial Performance Summary - Net sales for the second quarter of 2025 were $58.2 million, down 9% from $63.9 million in the same quarter of 2024 [10]. - Gross earnings as a percentage of net sales decreased to 43.3% from 43.9% year-over-year [10]. - Earnings from operations fell to $3.9 million, a 42% decrease compared to $6.7 million in Q2 2024 [10]. - Net earnings were $2.3 million, down 60% from $5.6 million in Q2 2024 [10]. - Diluted earnings per share decreased to $0.24 from $0.59 in Q2 2024 [10]. Segment Performance North American Wholesale Segment - Wholesale net sales were $45.6 million, down 9% from $50.3 million in Q2 2024 [3]. - Sales for major brands such as Nunn Bush, Stacy Adams, Florsheim, and BOGS decreased by 11%, 10%, 5%, and 14%, respectively [3]. - Wholesale gross earnings as a percentage of net sales were 37.6%, down from 38.2% in Q2 2024 [4]. - Operating earnings in this segment totaled $4.1 million, a 30% decline from $5.8 million in 2024 [4]. North American Retail Segment - Retail segment net sales were $6.8 million, down 11% from $7.6 million in 2024 [8]. - Retail gross earnings as a percentage of net sales decreased to 66.6% from 67.5% in the previous year [9]. - Operating earnings in the retail segment fell to $0.1 million from $0.7 million in Q2 2024 [9]. Other Operations - Net sales from Florsheim Australia were $5.8 million, down 4% from $6.1 million in Q2 2024 [12]. - Operating losses in Florsheim Australia totaled $0.2 million, compared to operating earnings of $0.2 million in the previous year [13]. Tariff Impact - The U.S. government enacted incremental tariffs on imported goods, with tariffs on goods sourced from China reaching 145% before being temporarily reduced to 30% [5]. - The company has implemented measures to mitigate the impact of these tariffs, including increasing inventory ahead of tariff changes and negotiating cost reductions with suppliers [6][7]. Tax Provision - The effective tax rate for Q2 2025 was 51.1%, up from 25.1% in Q2 2024, primarily due to a valuation allowance on deferred tax assets [14]. Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.27 per share, payable on September 30, 2025 [16].

Core Viewpoint - Weyco Group, Inc. is set to announce its second quarter 2025 financial results on August 5, 2025, followed by a conference call on August 6, 2025, to discuss these 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, BOGS, and Forsake [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].

Core Insights - Weyco Group, Inc. (WEYS) shares have increased by 6.2% since the earnings report for Q1 2025, outperforming the S&P 500 index, which declined by 0.2% during the same period [1] - The company reported a decline in earnings per share to 57 cents, down 17% from 69 cents in Q1 2024, with net sales decreasing by 5% to $68 million [2] Financial Performance - Net earnings fell 17% year-over-year to $5.5 million, while earnings from operations decreased by 15% to $7 million [2] - The North American Wholesale segment experienced a 4% decline in sales to $54.3 million, with mixed performance across brands [3] - The North American Retail segment saw a 12% drop in sales to $8.7 million, attributed to reduced promotional activity [4] - International sales from Florsheim Australia and South Africa decreased by 7% to $5.1 million, primarily due to foreign exchange issues [5] Management Commentary - The CEO highlighted challenges such as geopolitical risks and macroeconomic uncertainty, while noting proactive measures taken by the company [6] - Future risks include significantly higher tariffs on goods sourced from China, with the effective tariff rate increasing from 16% in 2024 to 161% in 2025 [7] Strategic Developments - To address rising costs from tariffs, the company plans to raise prices starting in summer 2025 and diversify sourcing efforts [7] - The board approved a 4% increase in the quarterly dividend to 27 cents per share, payable on June 30, 2025 [8]

Core Viewpoint - Weyco Group, Inc. is conducting a conference call to discuss its first quarter 2025 earnings results, indicating a focus on financial performance and future expectations [1][3]. Company Overview - The conference call features key company participants including Judy Anderson (CFO), Tom Florsheim (Chairman & CEO), and John Florsheim (President & COO), highlighting the leadership team involved in the discussion [3]. Financial Performance - The call aims to provide insights into the financial results for the first quarter of 2025, although specific financial metrics have not yet been disclosed in the provided text [3]. Forward-Looking Statements - The company will make forward-looking statements regarding future events and financial performance, emphasizing that these are predictions and actual results may differ materially [4]. - A cautionary note is included regarding the uncertainty of U.S. trade and tariff policies, inflation impacts on costs, and consumer demand, which are factors that could affect future performance [5].

Part I. Financial Information [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements.) This section presents the unaudited condensed consolidated financial statements as of March 31, 2025, showing declines in net sales and net income compared to the prior year, with total assets decreasing from **$324.1 million** to **$299.3 million**, and a declared dividend of **$0.26 per share** [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Total assets decreased from **$324.1 million** at year-end 2024 to **$299.3 million** by March 31, 2025, driven by reduced current assets, while net sales fell to **$68.0 million** from **$71.6 million**, leading to a decline in net income from **$6.7 million** to **$5.5 million** and diluted EPS from **$0.69** to **$0.57**, alongside a significant drop in operating cash flow Condensed Consolidated Balance Sheets (in thousands of USD) | Financial Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets:** | | | | Cash and cash equivalents | $71,546 | $70,963 | | Inventory | $68,186 | $74,012 | | Total current assets | $183,700 | $209,391 | | Total assets | $299,295 | $324,086 | | **Liabilities and Equity:** | | | | Total current liabilities | $19,114 | $47,263 | | Total liabilities | $50,745 | $78,501 | | Total equity | $248,550 | $245,585 | Condensed Consolidated Statements of Operations (in thousands of USD, except per share amounts) | Financial Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net sales | $68,030 | $71,558 | | Gross profit | $30,375 | $32,007 | | Operating earnings | $7,031 | $8,251 | | Net income | $5,543 | $6,650 | | Diluted earnings per share | $0.57 | $0.69 | Condensed Consolidated Statements of Cash Flows (in thousands of USD) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,129 | $14,336 | | Net cash (used in)/provided by investing activities | ($417) | $45 | | Net cash used in financing activities | ($3,214) | ($4,669) | [Notes to Financial Statements](index=7&type=section&id=Notes%20to%20Financial%20Statements) The notes detail accounting policies and financial conditions, highlighting two reporting segments (North America Wholesale and Retail), **$11.8 million** in operating lease liabilities, a **$40 million** revolving credit facility with no outstanding borrowings, and a stable effective tax rate around **26.5%** Segment Operating Performance (for the three months ended March 31, 2025, in thousands of USD) | Segment | Net Sales | Operating Earnings | | :--- | :--- | :--- | | North America Wholesale | $54,273 | $6,636 | | North America Retail | $8,666 | $622 | | Other | $5,091 | ($227) | | **Total** | **$68,030** | **$7,031** | - As of March 31, 2025, total operating lease liabilities amounted to **$11.844 million**, with a weighted-average remaining lease term of **3.2 years** and a weighted-average discount rate of **4.87%**[33](index=33&type=chunk) - The company maintains a **$40 million** revolving credit facility expiring on September 26, 2025, with no outstanding borrowings as of March 31, 2025[39](index=39&type=chunk) - The effective income tax rate for Q1 2025 was **26.5%**, consistent with **26.6%** in Q1 2024, primarily differing from the **21%** U.S. federal rate due to state taxes[35](index=35&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=15&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management attributes the **5%** decline in Q1 2025 net sales to geopolitical and macroeconomic uncertainties impacting consumer and retailer confidence, noting weak performance in traditional brands like Nunn Bush and Stacy Adams, strong Florsheim sales, and significant challenges from increased tariffs on Chinese imports, which are being addressed through price adjustments and sourcing diversification [Results of Operations](index=15&type=section&id=Results%20of%20Operations) Consolidated net sales for Q1 2025 decreased **5%** to **$68.0 million**, with North America Wholesale sales down **4%** due to Stacy Adams (**-7%**) and Nunn Bush (**-16%**) offset by Florsheim's **7%** growth, while North America Retail sales fell **12%** due to reduced promotions, and operating earnings declined **15%** to **$7.0 million**, facing significant challenges from new US tariffs on Chinese imports - Overall net sales for Q1 2025 decreased by **5%**, primarily due to geopolitical and macroeconomic uncertainties impacting consumer and retailer confidence, leading to declines in both wholesale and direct-to-consumer businesses[46](index=46&type=chunk) - Incremental tariffs imposed by the U.S. government have increased the current effective total tariff rate on goods sourced from China from **16%** in 2024 to **161%**, prompting the company to negotiate lower costs with Chinese suppliers, plan price increases starting Summer 2025, and accelerate sourcing diversification to mitigate impact[53](index=53&type=chunk) Wholesale Net Sales Year-over-Year Change by Brand (for the three months ended March 31) | Brand | 2025 Net Sales (in thousands of USD) | 2024 Net Sales (in thousands of USD) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Stacy Adams | $12,771 | $13,758 | -7% | | Nunn Bush | $10,611 | $12,690 | -16% | | Florsheim | $23,918 | $22,395 | +7% | | BOGS | $6,302 | $6,659 | -5% | - North America Retail segment net sales decreased by **12%**, primarily due to reduced promotional activities on the BOGS website in 2025 compared to the prior year[68](index=68&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company maintained strong liquidity with **$77.9 million** in cash and marketable securities and no debt under its **$40 million** credit facility, despite a significant drop in net cash from operating activities to **$4.1 million** from **$14.3 million** due to proactive inventory build-up ahead of tariff increases, while paying **$2.5 million** in dividends and repurchasing **$0.7 million** in stock - As of March 31, 2025, the company held **$77.9 million** in cash and marketable securities, with no outstanding debt under its **$40 million** revolving credit facility[55](index=55&type=chunk) - Net cash provided by operating activities decreased from **$14.3 million** in the prior year to **$4.1 million**, primarily due to increased inventory-related cash outflows from proactive stocking in anticipation of incremental tariffs[77](index=77&type=chunk)[78](index=78&type=chunk) - During Q1 2025, the company paid **$2.5 million** in cash dividends and repurchased **$0.7 million** worth of common stock[80](index=80&type=chunk) - The Board of Directors declared a cash dividend of **$0.27 per share** on May 6, 2025, representing a **4%** increase from the previous quarter's **$0.26 per share**[82](index=82&type=chunk) [Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures.) Company management, including the CEO and CFO, assessed and concluded that disclosure controls and procedures were effective as of March 31, 2025, with no significant changes in internal control over financial reporting during the quarter that materially affected or were reasonably likely to materially affect them - The company's Chief Executive Officer and Chief Financial Officer assessed and concluded that disclosure controls and procedures were effective as of the end of the reporting period[89](index=89&type=chunk)[91](index=91&type=chunk) - No significant changes in the company's internal control over financial reporting occurred during the three months ended March 31, 2025, that have materially affected or are reasonably likely to materially affect them[92](index=92&type=chunk) Part II. Other Information [Legal Proceedings](index=24&type=section&id=Item%201.%20Legal%20Proceedings.) The company may be involved in legal proceedings in the ordinary course of business but is not currently party to any litigation deemed to have a material adverse effect on its business, financial condition, results of operations, or cash flows - The company is not currently facing any legal proceedings that are likely to have a material adverse effect on its business[94](index=94&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) The company identifies a new significant risk: additional US tariffs on imported products, especially from China, which could substantially increase costs, reduce profit margins, and decrease consumer demand due to higher prices, with mitigation strategies under review but uncertain overall impact - A new significant risk involves additional U.S. tariffs imposed on imported goods, particularly a substantial volume of products sourced from China[96](index=96&type=chunk) - Tariffs could lead to significantly increased costs, reduced profit margins, and negatively impact consumer demand and sales volume due to higher product prices[97](index=97&type=chunk) - The company is evaluating strategies such as adjusting sourcing countries, negotiating with suppliers, and modifying pricing to mitigate tariff impacts, though the success of these measures is not guaranteed[97](index=97&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=24&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) During Q1 2025, the company repurchased **24,253** shares of common stock at an average price of **$30.14 per share**, totaling approximately **$0.7 million**, with **824,663** shares remaining available for repurchase under the existing plan as of March 31, 2025 Stock Repurchase Details for Q1 2025 | Period | Total Shares Repurchased | Average Price Paid per Share | | :--- | :--- | :--- | | March 1 - March 31, 2025 | 24,253 | $30.14 | - As of March 31, 2025, **824,663** shares remain authorized for repurchase under the stock repurchase plan[100](index=100&type=chunk)