Weyco (US:WEYS) Globenewswireยท2025-11-04 21:05Core Insights - Weyco Group, Inc. reported financial results for the third quarter of 2025, showing a decline in both wholesale and retail segments, primarily due to reduced sales volumes and increased costs from tariffs [1][2][12]. North American Wholesale Segment - Wholesale net sales were $60.2 million, down 2% from $61.1 million in Q3 2024, with sales volumes decreasing by 7% [3]. - Florsheim brand saw an 8% sales increase, while BOGS and Stacy Adams experienced declines of 17% and 5%, respectively [4]. - Wholesale gross earnings as a percentage of net sales decreased to 35.7% from 40.1% year-over-year, impacted by incremental tariffs [5]. - Operating earnings fell by 20% to $7.5 million due to lower sales volumes and margin erosion [5]. Incremental Tariffs - The U.S. government maintained a 30% tariff on goods sourced from China, with ongoing trade talks potentially affecting future tariff rates [6]. - The tariff environment remains unpredictable, creating uncertainty regarding its impact on gross margins [6]. North American Retail Segment - Retail segment net sales totaled $73.1 million, down 2% from $74.3 million in Q3 2024, with gross earnings at 40.7% of net sales [8][10]. - Net earnings decreased by 18% to $6.6 million, with diluted earnings per share dropping to $0.69 from $0.84 [8][22]. Other Operations - Florsheim Australia reported flat net sales of $6.0 million, with gross earnings as a percentage of net sales increasing to 61.0% [11]. Strategic Decisions - The company decided to wind down operations of the Forsake brand due to lack of growth and profitability, with no material impact expected on consolidated financial statements [7]. Dividend Declarations - The Board of Directors declared a regular quarterly cash dividend of $0.27 per share and a special cash dividend of $2.00 per share, reflecting a return of capital to shareholders [13][14].