Financial Data and Key Metrics Changes - Overall net sales for Q1 2025 were $68 million, down 5% from $71.6 million in Q1 2024 [5] - Consolidated gross earnings were 44.6% of net sales for the quarter, compared to 44.7% in the previous year [5] - Operating earnings totaled $7 million, down 15% from $8.3 million in Q1 2024 [6] - Net earnings were $5.5 million or $0.57 per diluted share, compared to $6.7 million or $0.69 per diluted share in the same quarter last year [6] Business Line Data and Key Metrics Changes - In the North American wholesale segment, net sales were $54.3 million, down 4% from $56.2 million last year [6] - Wholesale gross earnings were 39.4% of net sales, compared to 39.6% in the previous year [6] - North American retail segment net sales were $8.7 million, down 12% from $9.8 million in Q1 2024 [7] - Retail gross earnings as a percentage of net sales were 66.6% in Q1 2025, down from 65.3% in Q1 2024 [8] - Florsheim Australia's net sales were $5.1 million, down 7% from $5.5 million in Q1 2024 [9] Market Data and Key Metrics Changes - Florsheim Australia's net sales declined 7% for the quarter or 3% in local currency [10] - Net sales in Australia were up 6% in local currency, with higher sales in both wholesale and retail businesses [10] - Overall inventory as of March 31, 2025, was $68.2 million, down from $74 million at the end of 2024 [18] Company Strategy and Development Direction - The company is focusing on mitigating the impact of increased tariffs by negotiating cost reductions with suppliers and planning to raise selling prices [12] - There is an ongoing effort to diversify sourcing to reduce reliance on China, with plans to reorganize the supply chain [25] - The company remains optimistic about its innovative product offerings and market share growth despite current economic challenges [15][20] Management's Comments on Operating Environment and Future Outlook - Management highlighted significant geopolitical and macroeconomic uncertainties affecting consumer and retailer confidence [14] - The company is optimistic about new product launches and expects improved inventory management to create opportunities for growth [15][17] - Management expressed confidence in their operational execution and ability to navigate the turbulent environment [20] Other Important Information - Cash and marketable securities totaled $77.9 million with no debt outstanding on the revolving line of credit [12] - A cash dividend of $0.27 per share was declared, representing a 4% increase from the previous rate [13] Q&A Session Summary Question: How long can the pause on imports from China last before impacting inventories? - Management indicated they are covered through part of Q3 but will face inventory issues thereafter, while continuing to manufacture in China and shipping to a distribution center in Montreal [23][24] Question: What is the current duty going into Canada? - The duty into Canada is 19%, which is less complicated than the U.S. duty structure [31]

Financial Data and Key Metrics Changes - Overall net sales for Q1 2025 were $68 million, down 5% from $71.6 million in Q1 2024 [4] - Consolidated gross earnings were 44.6% of net sales for the quarter, compared to 44.7% in the previous year [4] - Operating earnings totaled $7 million, down 15% from $8.3 million in Q1 2024 [5] - Net earnings were $5.5 million or $0.57 per diluted share, compared to $6.7 million or $0.69 per diluted share in the same quarter last year [5] Business Line Data and Key Metrics Changes - In the North American wholesale segment, net sales were $54.3 million, down 4% from $56.2 million last year [5] - North American retail segment net sales were $8.7 million, down 12% from record sales of $9.8 million in 2024 [6] - Florsheim Australia's net sales were $5.1 million, down 7% from $5.5 million in Q1 2024 [8] Market Data and Key Metrics Changes - Florsheim Australia's net sales declined 7% for the quarter or 3% in local currency, with a 6% increase in local currency sales in Australia [9] - Overall inventory as of March 31, 2025, was $68.2 million, compared to $74 million at the end of 2024 [18] Company Strategy and Development Direction - The company is focusing on mitigating the impact of increased tariffs by negotiating cost reductions with suppliers and planning to raise selling prices [11] - There is an emphasis on diversifying sourcing to reduce reliance on China, with plans to source from countries like Cambodia, Vietnam, and India [25] - The company remains optimistic about its innovative product lines and is investing in data-driven tools for long-term growth in e-commerce [16] Management's Comments on Operating Environment and Future Outlook - Management noted significant geopolitical and macroeconomic uncertainties affecting consumer and retailer confidence, leading to declines in wholesale and direct-to-consumer businesses [13] - Despite challenges, management expressed confidence in operational execution and the ability to manage supply chain disruptions [20] Other Important Information - Cash and marketable securities totaled $77.9 million with no debt outstanding on the revolving line of credit [11] - A cash dividend of $0.27 per share was declared, representing a 4% increase from the previous rate [12] Q&A Session Summary Question: How long can the pause on imports from China be maintained before impacting inventories? - Management indicated they are covered through part of Q3 but will face inventory issues thereafter, while continuing to manufacture in China and shipping to a distribution center in Montreal [23][24] Question: What is the current duty going into Canada? - The duty into Canada is 19%, which is less complicated than the U.S. duty structure [29]

[Q1 2025 Financial Highlights](index=1&type=section&id=WEYCO%20REPORTS%20FIRST%20QUARTER%20SALES%20AND%20EARNINGS) Weyco Group reported a **5% decline** in Q1 2025 net sales to **$68.0 million**, with net earnings down **17%** to **$5.5 million** Q1 2025 Financial Performance | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $68.0 million | $71.6 million | -5% | | Gross Earnings % | 44.6% | 44.7% | -0.1 pps | | Earnings from Operations | $7.0 million | $8.3 million | -15% | | Net Earnings | $5.5 million | $6.7 million | -17% | | Diluted EPS | $0.57 | $0.69 | -17.4% | [Segment Performance](index=1&type=section&id=First%20Quarter%202025%20Overview) The company's segments experienced varied performance in Q1 2025, with declines in wholesale and retail, and a narrowed loss in other operations [North American Wholesale Segment](index=1&type=section&id=North%20American%20Wholesale%20Segment) Wholesale net sales decreased **4%** to **$54.3 million** due to non-athletic footwear softness, leading to a **10%** drop in operating earnings Brand Sales Performance | Brand | Q1 2025 vs Q1 2024 Sales Change | Reason | | :--- | :--- | :--- | | Florsheim | +7% | New product launches | | Stacy Adams | -7% | Softness in non-athletic footwear | | Nunn Bush | -16% | Softness in non-athletic footwear | | BOGS | -5% | Lower retailer demand | Wholesale Segment Financials | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $54.3 million | $56.2 million | | Gross Margin | 39.4% | 39.6% | | Operating Earnings | $6.6 million | $7.4 million | [North American Retail Segment](index=1&type=section&id=North%20American%20Retail%20Segment) Retail net sales declined **12%** to **$8.7 million**, primarily due to reduced promotional activities, impacting operating earnings - The sales decrease was mainly due to lower sales on the BOGS website, resulting from reduced promotional activities in 2025 compared to a strong Q1 2024[5](index=5&type=chunk) Retail Segment Financials | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $8.7 million | $9.8 million | | Gross Margin | 66.6% | 65.3% | | Operating Earnings | $0.6 million | $1.3 million | [Other Operations (Florsheim Australia)](index=1&type=section&id=Other%20Operations) This segment's net sales decreased **7%** to **$5.1 million**, influenced by a weaker AUD, though operating loss narrowed - The company ceased operations in the Asia Pacific region in 2023, with the wind-down completed in 2024, so Q1 2025 results for this category only reflect Australia and South Africa[7](index=7&type=chunk) - The decline in USD net sales was partly due to a weaker Australian dollar, with local currency sales down **3%**, but net sales within Australia alone were up **6%**[8](index=8&type=chunk) Other Operations Financials | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $5.1 million | $5.5 million | | Gross Margin | 62.7% | 60.2% | | Operating Loss | ($0.2 million) | ($0.4 million) | [Management Discussion and Outlook](index=1&type=section&id=Management%20Discussion%20and%20Outlook) Management addresses significant new U.S. tariffs on Chinese goods and outlines strategies to mitigate their impact on future costs [Tariffs and Outlook](index=1&type=section&id=Tariffs) New U.S. tariffs on Chinese goods increased the effective rate to **161%**, prompting mitigation efforts like price increases and sourcing diversification - The effective total tariff rate on goods sourced from China has increased from **16%** in 2024 to **161%** in 2025 due to new incremental tariffs[10](index=10&type=chunk) - Mitigation strategies include negotiating cost reductions with suppliers, planning to raise selling prices in Summer 2025, and accelerating sourcing diversification[10](index=10&type=chunk) - The company brought in a large amount of inventory ahead of the tariff effective dates, allowing time to evaluate plans and temporarily halt China imports[12](index=12&type=chunk) [Shareholder Information](index=3&type=section&id=Shareholder%20Information) The company announced a quarterly cash dividend increase and provided details for an upcoming conference call [Dividend Declaration](index=3&type=section&id=Dividend%20Declaration) The Board declared a quarterly cash dividend of **$0.27 per share**, a **4% increase**, payable on June 30, 2025 Dividend Details | Dividend Detail | Information | | :--- | :--- | | Dividend per Share | $0.27 | | Increase vs. Prior Quarter | 4% (from $0.26) | | Record Date | May 16, 2025 | | Payment Date | June 30, 2025 | [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) A conference call is scheduled for May 7, 2025, at 11:00 a.m. ET to discuss Q1 2025 financial results - A conference call will be held on May 7, 2025, at 11:00 a.m. Eastern Time to discuss Q1 2025 results[14](index=14&type=chunk) - Participation details: Dial 1-888-596-4144 or 1-646-968-2525, with passcode 6441034[14](index=14&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) Key financial statements provide a detailed overview of the company's balance sheet, earnings, and cash flows for Q1 2025 [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets decreased to **$299.3 million**, while total liabilities significantly reduced to **$50.7 million** as of March 31, 2025 Balance Sheet Summary (in thousands) | Balance Sheet Item (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $71,546 | $70,963 | | Inventories | $68,186 | $74,012 | | Total current assets | $183,700 | $209,391 | | **Total assets** | **$299,295** | **$324,086** | | Accounts payable | $4,801 | $8,378 | | Total current liabilities | $19,114 | $47,263 | | **Total liabilities** | **$50,745** | **$78,501** | | **Total equity** | **$248,550** | **$245,585** | [Condensed Consolidated Statements of Earnings](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20EARNINGS) Q1 2025 net sales were **$68.0 million**, resulting in net earnings of **$5.5 million**, or **$0.57 per diluted share** Income Statement Summary (in thousands) | Income Statement Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $68,030 | $71,558 | | Gross earnings | $30,375 | $32,007 | | Earnings from operations | $7,031 | $8,251 | | **Net earnings** | **$5,543** | **$6,650** | | Diluted EPS | $0.57 | $0.69 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash provided by operating activities significantly decreased to **$4.1 million** in Q1 2025, ending with **$71.5 million** cash Cash Flow Summary (in thousands) | Cash Flow Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,129 | $14,336 | | Net cash (used for) investing activities | ($417) | $45 | | Net cash used for financing activities | ($3,214) | ($4,669) | | **Net increase in cash** | **$583** | **$9,036** | | **Cash at end of period** | **$71,546** | **$78,348** |

Core Viewpoint - Weyco Group, Inc. reported a decline in financial performance for the first quarter of 2025, with net sales down 5% compared to the same period in 2024, primarily due to lower sales across major brands and reduced consumer spending on non-athletic footwear [3][11]. Financial Performance - Net sales for the first quarter of 2025 were $68.0 million, down from $71.6 million in Q1 2024 [11]. - Gross earnings as a percentage of net sales were 44.6%, slightly down from 44.7% in Q1 2024 [11]. - Earnings from operations decreased by 15% to $7.0 million compared to $8.3 million in Q1 2024 [11]. - Net earnings fell by 17% to $5.5 million from $6.7 million in the previous year [11]. - Diluted earnings per share decreased to $0.57 from $0.69 in Q1 2024 [11]. Segment Performance North American Wholesale Segment - Wholesale net sales were $54.3 million, a 4% decrease from $56.2 million in Q1 2024 [3]. - Florsheim's sales increased by 7% due to new product launches, but this was offset by declines in other brands: Stacy Adams down 7% and Nunn Bush down 16% [3]. - Wholesale operating earnings decreased by 10% to $6.6 million from $7.4 million in 2024 [4]. North American Retail Segment - Retail segment net sales were $8.7 million, down 12% from $9.8 million in 2024 [5]. - Retail operating earnings fell by 52% to $0.6 million from $1.3 million in the previous year [6]. Other Operations - Florsheim Australia reported net sales of $5.1 million, down 7% from $5.5 million in Q1 2024, impacted by a weaker Australian dollar [8]. - In local currency, net sales in Australia increased by 6%, with higher sales in both wholesale and retail [8][9]. Tariff Impact - The effective total tariff rate on goods sourced from China has risen to 161% from 16% in 2024, which may significantly increase future costs of goods sold [10]. - The company has negotiated cost reductions with several Chinese suppliers to mitigate the impact of these tariffs [10][12]. Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.27 per share, a 4% increase from the previous rate of $0.26 [14]. Conference Call - A conference call is scheduled for May 7, 2025, to discuss the first quarter 2025 financial results in detail [15].

Core Viewpoint - Weyco Group, Inc. is set to announce its first quarter 2025 financial results on May 6, 2025, followed by a conference call on May 7, 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 websites globally [4]. - Weyco Group operates Florsheim concept stores in the United States, Australia, and various international markets [4].

Sales Performance - Consolidated net sales for 2024 were $290.3 million, down 9% from $318.0 million in 2023[95]. - The North American Wholesale segment experienced a 9% decline in net sales, totaling $227.9 million in 2024 compared to $250.4 million in 2023[97]. - BOGS sales declined 27% in 2024, primarily due to reduced retailer orders and mild weather impacting boot sales[89]. - Florsheim's sales increased by 2% in 2024, while Stacy Adams and Nunn Bush saw declines of 13% and 6%, respectively[90]. - Retail segment sales rose 2% to a record $38.7 million in 2024, driven by higher direct-to-consumer sales[93]. - Florsheim Australia's sales decreased by 20% to $23.6 million in 2024, largely due to the closure of Asia Pacific operations[94]. - Net sales decreased to $290,290,000 in 2024 from $318,048,000 in 2023, representing a decline of approximately 8.7%[140]. - Total net sales decreased from $318.048 million in 2023 to $290.290 million in 2024, with a notable decline in U.S. net sales from $266.515 million to $248.577 million[238]. - The Wholesale segment generated $227.940 million in net sales in 2024, while the Retail segment contributed $38.701 million[237]. Financial Performance - Operating earnings for the Wholesale segment were $31.5 million in 2024, down 5% from $33.3 million in 2023[99]. - Gross earnings fell to $131,525,000 in 2024, down from $142,883,000 in 2023, a decrease of about 7.9%[140]. - Net earnings increased slightly to $30,320,000 in 2024 compared to $30,188,000 in 2023, reflecting a growth of 0.4%[142]. - Basic earnings per share rose to $3.21 in 2024 from $3.19 in 2023, an increase of 0.6%[140]. - The company reported a net cash provided by operating activities of $37,729,000 in 2024, down from $98,631,000 in 2023, a decrease of about 61.8%[148]. - Cash dividends declared increased to $3.03 per share in 2024 from $0.99 per share in 2023, representing a significant increase[146]. - The total provision for income taxes for 2024 was $9,516,000, compared to $10,676,000 in 2023[220]. - The effective tax rate decreased from 26.1% in 2023 to 23.9% in 2024, with foreign income tax rate differences contributing 0.9% in 2024 compared to 0.3% in 2023[221]. Cash and Investments - The company's cash and marketable securities totaled $77.3 million at the end of 2024, with no debt outstanding[96]. - Cash and cash equivalents at the end of 2024 were $70,963,000, a slight increase from $69,312,000 in 2023[148]. - Marketable securities total increased to $6,381,000 in 2024 from $6,274,000 in 2023, with unrealized gains of $5,000 and losses of $(112,000) in 2024 compared to gains of $118,000 and losses of $(50,000) in 2023[190]. - The company held investments in marketable securities, primarily tax-exempt municipal bonds, classified as held-to-maturity and reported at amortized cost[154]. Shareholder Returns - Cash dividends paid totaled $9.7 million in 2024, with a special cash dividend of $2.00 per share amounting to $21.6 million prefunded for shareholders[110]. - In 2024, the company repurchased 19,841 shares for a total cost of $0.6 million, compared to 170,422 shares for $4.3 million in 2023[111]. - The company has 848,916 authorized shares available for repurchase under the share repurchase program as of December 31, 2024[111]. Pension and Benefits - The expected rate of return on pension plan assets was maintained at 6.75% for both 2024 and 2023[119]. - The projected benefit obligation for the defined benefit pension plan decreased from $40,411,000 in 2023 to $38,493,000 in 2024, while the supplemental pension plan decreased from $11,609,000 to $10,940,000[214]. - The fair value of plan assets increased from $38,041,000 in 2023 to $39,017,000 in 2024, with a notable actual return on plan assets of $4,151,000 in 2024[214]. - The pension expense for 2024 was reported at $962,000, down from $1,293,000 in 2023[215]. - The company aims to maintain at least an 80% funding percentage in its defined benefit retirement plan in future years[216]. Operational Costs - Consolidated distribution costs were $21.5 million in 2024, slightly down from $21.9 million in 2023, reflecting a decrease of approximately 1.8%[173]. - Total advertising costs were $12.6 million in 2024, compared to $12.8 million in 2023, showing a decrease of about 1.6%[174]. - Operating lease costs decreased to $4,421,000 in 2024 from $4,912,000 in 2023, with total lease costs at $4,421,000 compared to $5,113,000 in the previous year[196]. Impairments and Write-offs - The company recorded impairment charges of $0.3 million for the Forsake trademark in 2024, down from $0.5 million in 2023, indicating a reduction of 40%[165]. - The company recorded a write-off of $300,000 for the Forsake trademark in 2024, following a $500,000 impairment charge in 2023[203]. - The reserve for doubtful accounts includes specific reserves for potentially uncollectible accounts, with historical write-offs remaining within expectations[115]. Tax and Deferred Liabilities - The company reported net deferred income tax liabilities of $12.885 million in 2024, an increase from $10.723 million in 2023[222]. - Unrecognized tax benefits increased to $640,000 in 2024 from $608,000 in 2023, with $90,000 and $30,000 of interest related to such positions in 2024 and 2023, respectively[224][225]. Inventory and Commitments - Total inventories decreased to $74,012,000 in 2024 from $74,890,000 in 2023, with finished shoes inventory in-transit rising to $20.7 million in 2024 from $16.7 million in 2023[191]. - The company had commitments to purchase $38.1 million of inventory, all due within less than one year as of December 31, 2024[227].

Group 1 - The company Weyco Group (NASDAQ: WEYS) is a small player in the footwear design and distribution space, with a reaffirmed 'buy' rating as of late March 2024 [1] - The investment service Crude Value Insights focuses on cash flow and companies in the oil and natural gas sector, highlighting their value and growth prospects [1] - Subscribers to Crude Value Insights benefit from a 50+ stock model account and in-depth cash flow analyses of exploration and production firms [2]

Core Insights - Weyco Group, Inc. (WEYS) shares have declined 6.5% since the earnings report for the quarter ended December 31, 2024, contrasting with a 0.1% decline in the S&P 500 index during the same period [1] - The company's earnings per share for Q4 2024 increased to $1.04 from $0.90 in Q4 2023, while net sales remained flat at $80.5 million compared to the previous year [2] - Gross earnings as a percentage of net sales fell to 47.9%, down from 50.3% in the prior year's quarter [2] Financial Performance - Operating earnings remained unchanged at $11.5 million, but net earnings grew 17% to $10 million, up from $8.5 million a year ago [3] - Wholesale net sales in North America increased by 1% year over year to $60.4 million, with Florsheim and Nunn Bush brands driving growth [4] - Wholesale gross earnings as a percentage of sales fell to 42.4% from 44.9% in Q4 2023, reflecting margin pressures, while selling and administrative expenses decreased to $16.7 million from $18.9 million [5] Segment Analysis - Retail net sales slightly increased to $14.1 million from $13.9 million, driven by higher direct-to-consumer sales [6] - Florsheim Australia reported net sales of $6 million, a 15% decline from the prior year, primarily due to the closure of Asia Pacific operations [7] Management Commentary - The CEO acknowledged challenges in 2024, particularly in the wholesale segment, and attributed the decline in BOGS sales to mild winter conditions [8] - The company is addressing cost pressures from U.S. tariffs on Chinese imports and is negotiating with suppliers to mitigate cost increases [9] Liquidity and Financial Position - As of December 31, 2024, the company had $77.3 million in cash and marketable securities with no debt on its $40 million revolving credit line [10] - The company declared a quarterly dividend of 26 cents per share, payable on March 31, 2025, and paid a one-time special dividend of $2 per share in early 2025 [11]

Group 1 - The article highlights that it was the first quarter of flat sales after three consecutive quarters of declines, indicating a potential stabilization in performance [1] - The positive sales performance is attributed to a long-only investment strategy that evaluates companies from an operational and buy-and-hold perspective, focusing on long-term earnings power and competitive dynamics [1] - The approach emphasizes that most calls will be holds, suggesting that only a small fraction of companies are considered a buy at any given time, which provides important information for future investors [1] Group 2 - The article does not provide any specific stock recommendations or investment advice, emphasizing the need for readers to conduct their own due diligence [2][3] - It is noted that past performance is not indicative of future results, reinforcing the importance of careful consideration before making investment decisions [3]

Financial Data and Key Metrics Changes - Overall net sales for Q4 2024 were $80.5 million, slightly down from $80.6 million in Q4 2023 [5] - Consolidated gross earnings were 47.9% of net sales for the quarter, down from 50.3% in the previous year [5] - Net earnings for Q4 2024 were $10 million or $1.04 per diluted share, compared to $8.5 million or $0.90 per diluted share in Q4 2023 [6] - Full-year consolidated net sales were $290 million, down 9% from $318 million in 2023 [14] - Full-year net earnings were a record $30.3 million or $3.16 per diluted share, compared to $30.2 million or $3.17 per diluted share in 2023 [14] Business Line Data and Key Metrics Changes - In the North American wholesale segment, Q4 net sales were $60.4 million, up 1% from $59.6 million last year [6] - North American retail segment net sales were $14.1 million for Q4, up 1% from $13.9 million in 2023 [8] - Florsheim Australia net sales were $6 million, down 15% from $7.2 million in Q4 2023 [11] - For the full year, North American wholesale net sales were $228 million, down 9% from $250 million in 2023 [14] - Retail operating earnings totaled $5.3 million in 2024, down 21% from $6.8 million in 2023 [18] Market Data and Key Metrics Changes - BOGS sales declined 17% in Q4 due to mild winter weather impacting demand [27] - Florsheim brand sales increased by 22% in Q4, while Stacy Adams faced challenges in the dress footwear market [30][31] - Nunn Bush grew 4% in Q4, benefiting from its Comfortech line [33] - Florsheim Australia's sales were down 10% for the year, primarily due to fewer operating retail stores [20] Company Strategy and Development Direction - The company is focused on evolving its portfolio of brands to position for future growth despite short-term pressures [26] - Product innovation and expanding retail presence are key strategies for revitalizing the BOGS brand [30] - The company is negotiating price reductions with suppliers to mitigate the impact of new tariffs [22][37] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers remain cautious amid economic uncertainty, affecting discretionary spending [26] - The company is optimistic about renewed interest in the BOGS category for fall 2025 [28] - Management expressed confidence in maintaining gross margins despite tariff impacts [37] Other Important Information - The company generated $16.2 million in cash from operations in 2024 and paid $9.7 million in dividends [23] - A special dividend of $2 per share was paid in early 2025, totaling $21.6 million [24] - The company has no debt outstanding on its $40 million revolving line of credit [23] Q&A Session Summary Question: Can someone walk me through the mechanics of a tariff for Weyco Group? - Management explained that they must post a bond equal to the average tariffs paid monthly and pay customs upon clearance of goods [46][47] Question: What percentage of your cost of goods sold came from China last year? - Approximately 75% of purchases are from China, with India being the second largest source at about 15% [66] Question: What are the tariffs today on those other countries? - The tariff on leather shoes from China is currently 36%, while other countries have lower tariffs, typically around 8.5% [71][72] Question: Are your offshore vendors receptive to sharing part of the cost of the tariffs? - Management confirmed that long-term relationships with factories have led to cooperation in mitigating some costs, but price increases will still be necessary [83][89]