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].
Weyco Reports First Quarter Sales and Earnings