Weyco (US:WEYS)2026-03-13 20:22Financial Performance - Consolidated net sales for 2025 were $276.2 million, down 5% from $290.3 million in 2024[101] - Gross earnings as a percentage of net sales decreased to 43.2% in 2025 from 45.3% in 2024, primarily due to higher costs from incremental tariffs[105] - Operating earnings fell 20% to $29.2 million in 2025, compared to $36.6 million in 2024[101] - Net earnings decreased by 24% to $23.1 million, or $2.41 per diluted share, down from $30.3 million, or $3.16 per diluted share, in 2024[101] - Retail segment net sales decreased 8% to $35.7 million in 2025, primarily due to lower direct-to-consumer sales[112] Brand Performance - The Florsheim brand achieved record sales of $92.0 million in 2025, a 2% increase over 2024[94] - Nunn Bush sales declined 10% for the year, while Stacy Adams and BOGS saw declines of 9% and 11%, respectively[95][96][97] - Florsheim Australia's net sales were $23.7 million in 2025, showing a 2% increase in local currency compared to $23.6 million in 2024[114] - Gross earnings as a percentage of net sales for Florsheim Australia improved to 61.5% in 2025 from 61.0% in 2024[116] Costs and Expenses - The company paid approximately $16 million in incremental tariffs in 2025 and filed a lawsuit for a refund related to these tariffs[89] - Interest income decreased to $3.0 million in 2025 from $3.7 million in 2024, primarily due to lower interest rates[117] - The effective tax rate increased to 28.0% in 2025 from 23.9% in 2024, influenced by state taxes and a valuation allowance on deferred tax assets[118] Cash Flow and Liquidity - Cash and marketable securities totaled $100.9 million at December 31, 2025, with no debt outstanding on the revolving line of credit[102] - Net cash provided by operating activities was $37.3 million in 2025, down from $37.7 million in 2024, attributed to lower net earnings[120] - The company has approximately $5.9 million in cash and cash equivalents held by foreign subsidiaries, indicating strong liquidity[129] Shareholder Returns and Capital Management - Cash dividends paid in 2025 totaled $7.7 million, compared to $9.7 million in 2024[123] - The company repurchased 176,691 shares for $5.3 million in 2025, a significant increase from 19,841 shares for $0.6 million in 2024[124] - Capital expenditures were $1.8 million in 2025, with expectations for 2026 ranging between $1.0 million and $3.0 million[121] Strategic Decisions - The strategic decision was made to wind down operations of the Forsake brand due to lack of growth and profitability, with no material impact expected on consolidated financial statements[98] - As of December 31, 2025, the unfunded benefit obligation was $8.1 million, down from $10.4 million in 2024[137]