Core Viewpoint - Weyco Group, Inc. has faced significant challenges in its recent earnings report, with declines in both sales and earnings attributed to economic uncertainty and increased tariffs [1][5]. Financial Performance - The company reported a second-quarter 2025 EPS of 24 cents, down from 59 cents in the prior-year quarter [1]. - Net sales decreased by 9% to $58.2 million from $63.9 million year-over-year [2]. - Net earnings fell 60% to $2.3 million compared to $5.6 million in the same quarter last year [2]. - Gross earnings as a percentage of net sales declined to 43.3% from 43.9% [2]. Segment Performance - In the North American Wholesale segment, sales dropped 9% to $45.6 million, with major brands like Nunn Bush, Stacy Adams, Florsheim, and BOGS experiencing declines of 11%, 10%, 5%, and 14% respectively [3]. - Retail sales fell 11% to $6.8 million, driven by weaker demand on Florsheim and Stacy Adams websites [3]. - The "Other" category, which includes operations in Australia and South Africa, saw a 4% sales decline to $5.8 million, resulting in an operating loss of $0.2 million [3]. Management Commentary - The CEO described the quarter as facing "headwinds" from tariffs and reduced consumer spending, with expectations of continued economic uncertainty [4]. - Management highlighted the company's strong financial position, which they believe will support long-term growth despite current challenges [4]. - Efforts to diversify sourcing away from China to countries like Vietnam, Cambodia, and India were emphasized [4]. Influencing Factors - The earnings decline was primarily due to reduced consumer spending and higher import costs from tariffs, with the China-specific tariff peaking at 145% in April 2025 [5]. - Weyco has taken measures to mitigate cost pressures, including pre-purchasing inventory and negotiating supplier cost reductions [5]. Guidance - Management anticipates ongoing top-line pressure in the coming months due to tariffs and weak consumer sentiment, with potential seasonal softness in casual and dress footwear [6]. Other Developments - On August 5, 2025, the board declared a quarterly cash dividend of 27 cents per share, payable on September 30, 2025 [7]. - The company allocated $3.1 million for share repurchases and approximately $0.7 million for capital expenditures in the first half of 2025 [7].

Weyco Group (WEYS -0.37%), the company behind footwear brands like Florsheim and Nunn Bush, reported its financial results for the second quarter of fiscal 2025 on August 5, 2025. The quarter brought significant declines: revenue (GAAP) fell to $58.2 million and diluted earnings per share (GAAP) dropped to $0.24, both well below prior-year levels. There were no published analyst estimates for direct comparison. The company's sharp year-over-year declines in GAAP sales and profit reflect broad-based demand w ...

Core Viewpoint - Weyco Group, Inc. reported a decline in financial performance for the second quarter of 2025, attributed to reduced consumer spending and increased tariffs impacting gross margins and profitability [1][15]. Financial Performance Summary - Net sales for the second quarter of 2025 were $58.2 million, down 9% from $63.9 million in the same quarter of 2024 [10]. - Gross earnings as a percentage of net sales decreased to 43.3% from 43.9% year-over-year [10]. - Earnings from operations fell to $3.9 million, a 42% decrease compared to $6.7 million in Q2 2024 [10]. - Net earnings were $2.3 million, down 60% from $5.6 million in Q2 2024 [10]. - Diluted earnings per share decreased to $0.24 from $0.59 in Q2 2024 [10]. Segment Performance North American Wholesale Segment - Wholesale net sales were $45.6 million, down 9% from $50.3 million in Q2 2024 [3]. - Sales for major brands such as Nunn Bush, Stacy Adams, Florsheim, and BOGS decreased by 11%, 10%, 5%, and 14%, respectively [3]. - Wholesale gross earnings as a percentage of net sales were 37.6%, down from 38.2% in Q2 2024 [4]. - Operating earnings in this segment totaled $4.1 million, a 30% decline from $5.8 million in 2024 [4]. North American Retail Segment - Retail segment net sales were $6.8 million, down 11% from $7.6 million in 2024 [8]. - Retail gross earnings as a percentage of net sales decreased to 66.6% from 67.5% in the previous year [9]. - Operating earnings in the retail segment fell to $0.1 million from $0.7 million in Q2 2024 [9]. Other Operations - Net sales from Florsheim Australia were $5.8 million, down 4% from $6.1 million in Q2 2024 [12]. - Operating losses in Florsheim Australia totaled $0.2 million, compared to operating earnings of $0.2 million in the previous year [13]. Tariff Impact - The U.S. government enacted incremental tariffs on imported goods, with tariffs on goods sourced from China reaching 145% before being temporarily reduced to 30% [5]. - The company has implemented measures to mitigate the impact of these tariffs, including increasing inventory ahead of tariff changes and negotiating cost reductions with suppliers [6][7]. Tax Provision - The effective tax rate for Q2 2025 was 51.1%, up from 25.1% in Q2 2024, primarily due to a valuation allowance on deferred tax assets [14]. Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.27 per share, payable on September 30, 2025 [16].

Core Viewpoint - Weyco Group, Inc. is set to announce its second quarter 2025 financial results on August 5, 2025, followed by a conference call on August 6, 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 platforms globally [4]. - Weyco Group operates Florsheim concept stores in the United States, Australia, and various international markets [4].

Core Insights - Weyco Group, Inc. (WEYS) shares have increased by 6.2% since the earnings report for Q1 2025, outperforming the S&P 500 index, which declined by 0.2% during the same period [1] - The company reported a decline in earnings per share to 57 cents, down 17% from 69 cents in Q1 2024, with net sales decreasing by 5% to $68 million [2] Financial Performance - Net earnings fell 17% year-over-year to $5.5 million, while earnings from operations decreased by 15% to $7 million [2] - The North American Wholesale segment experienced a 4% decline in sales to $54.3 million, with mixed performance across brands [3] - The North American Retail segment saw a 12% drop in sales to $8.7 million, attributed to reduced promotional activity [4] - International sales from Florsheim Australia and South Africa decreased by 7% to $5.1 million, primarily due to foreign exchange issues [5] Management Commentary - The CEO highlighted challenges such as geopolitical risks and macroeconomic uncertainty, while noting proactive measures taken by the company [6] - Future risks include significantly higher tariffs on goods sourced from China, with the effective tariff rate increasing from 16% in 2024 to 161% in 2025 [7] Strategic Developments - To address rising costs from tariffs, the company plans to raise prices starting in summer 2025 and diversify sourcing efforts [7] - The board approved a 4% increase in the quarterly dividend to 27 cents per share, payable on June 30, 2025 [8]

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]

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].

Financial Data and Key Metrics Changes - Overall net sales for Q4 2024 were $80.5 million, slightly down from $80.6 million in Q4 2023 [5] - Consolidated gross earnings were 47.9% of net sales for the quarter, compared to 50.3% in the same quarter last year [5] - Net earnings for Q4 2024 were $10 million or $1.04 per diluted share, up from $8.5 million or $0.90 per diluted share in Q4 2023 [6] - Full-year consolidated net sales were $290 million, down 9% from $318 million in 2023 [14] - Full-year net earnings were a record $30.3 million or $3.16 per diluted share, compared to $30.2 million or $3.17 per diluted share in 2023 [14] Business Line Data and Key Metrics Changes - In the North American wholesale segment, net sales for Q4 were $60.4 million, up 1% from $59.6 million last year [6] - Retail segment net sales were $14.1 million for Q4, also up 1% from $13.9 million in 2023 [8] - Florsheim brand sales increased by 22% in Q4, while BOGS sales declined by 17% due to mild winter weather [27][30] - Nunn Bush grew by 4% in Q4, supported by a strong value proposition and innovative products [33] - Florsheim Australia's net sales were $6 million in Q4, down 15% from $7.2 million in Q4 2023 [11] Market Data and Key Metrics Changes - North American wholesale net sales for the full year were $228 million, down 9% from $250 million in 2023, primarily due to a 27% decline in BOGS sales [14][15] - Florsheim Australia's sales were down 20% for the year, largely due to the closure of the Asia Pacific operations [19][20] Company Strategy and Development Direction - The company is focused on evolving its portfolio of brands to position for future growth, particularly through product innovation and expanding retail presence [26][30] - The introduction of new products, such as the BOGS BOGA, aims to reenergize the BOGS brand [29] - The company is negotiating price reductions with Chinese suppliers to mitigate the impact of new tariffs [22][37] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers remain cautious amid economic uncertainty, affecting discretionary spending [26] - The company is optimistic about renewed interest in the BOGS category for fall 2025 as winter weather improves [28] - Management expressed confidence in maintaining gross margins despite tariff-related cost increases [37] Other Important Information - The company generated $16.2 million in cash from operations in 2024 and paid $9.7 million in dividends [23] - A special dividend of $2 per share was paid in early 2025, totaling $21.6 million [24] - The company has no debt outstanding on its $40 million revolving line of credit [23] Q&A Session Summary Question: Can someone walk me through the mechanics of a tariff for Weyco Group? - Management explained that they must post a bond equal to the amount of tariffs paid and clear goods through customs, paying the applicable tariffs [46][47] Question: What percentage of your cost of goods sold came from China last year? - Approximately 75% of purchases are from China, with India being the second largest source at about 15% [66] Question: What are the tariffs today on those other countries? - The tariff on leather shoes from China is currently 36%, while other countries have lower tariffs, typically around 8.5% [71][72] Question: Are your offshore vendors receptive to sharing part of the cost of the tariffs? - Management confirmed that long-term relationships with suppliers have led to cooperation in mitigating some costs, although price increases will still be necessary [83][89]

Core Insights - Weyco Group, Inc. reported its financial results for the fourth quarter and full year ended December 31, 2024, highlighting mixed performance across its segments and brands [1][11]. Fourth Quarter 2024 Overview - North American wholesale segment net sales reached $60.4 million, a 1% increase from $59.6 million in Q4 2023, driven by a 22% increase in Florsheim sales, while BOGS and Stacy Adams saw declines of 17% and 8% respectively [3][4]. - Retail segment net sales were $14.1 million, up 1% from $13.9 million in Q4 2023, primarily due to increased direct-to-consumer sales of BOGS and Florsheim [5][6]. - Florsheim Australia reported net sales of $6.0 million, down 15% from $7.2 million in Q4 2023, attributed to the closure of Asia Pacific operations [8][9]. Full Year 2024 Overview - Total net sales for 2024 were $290.3 million, a 9% decrease from $318.0 million in 2023, with wholesale net sales down 9% to $227.9 million [12][22]. - Retail segment achieved record net sales of $38.7 million, a 2% increase from $38.0 million in 2023, driven by higher direct-to-consumer sales [15][16]. - Florsheim Australia net sales totaled $23.6 million, down 20% from $29.6 million in 2023, with a 10% decline in sales in Australia due to fewer operating retail stores [17][18]. Earnings and Expenses - Gross earnings as a percentage of net sales were 45.3% for 2024, up from 44.9% in 2023, while earnings from operations decreased by 11% to $36.6 million [22]. - Retail operating earnings fell 21% to $5.3 million in 2024, primarily due to increased selling and administrative expenses [16]. - Interest income increased to $3.7 million in 2024 from $1.1 million in 2023, reflecting higher cash balances [19]. Future Outlook - The company faces increased costs due to new tariffs imposed on goods sourced from China and is negotiating price reductions with suppliers to mitigate these impacts [20]. - The CEO emphasized the benefits of a diversified brand portfolio and expressed confidence in the company's position for future growth despite macroeconomic uncertainties [21][23].