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)

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]