Weyco (WEYS) - 2025 Q3 - Quarterly Results

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]