Weyco (WEYS) Announces Third Quarter 2025 Sales And Earnings Results; Declares Special Cash Dividend Of $2.00 Per Share

Weyco Group, Inc. (WEYS) today announced its financial results for the most recent quarter, showcasing a strong performance that exceeded expectations. The company reported earnings per share of $0.69, significantly beating the consensus estimate by $0.69. Additionally, Weyco Group achieved quarterly revenue of $73.1 million, surpassing projections by approximately $13.2 million.

Key Highlights:

• Weyco Group reported third quarter 2025 net sales of $73.1 million, a 2% decrease from $74.3 million in Q3 2024.
• Gross earnings as a percentage of net sales fell to 40.7% from 44.3% year-over-year.
• Earnings from operations decreased by 21% to $8.1 million compared to $10.2 million in Q3 2024.
• The company declared a special cash dividend of $2.00 per share, alongside a regular quarterly dividend of $0.27 per share.
• The North American Wholesale Segment saw a 2% decline in sales, primarily due to reduced business with a large customer and order cancellations.
• Incremental tariffs imposed on goods sourced from China have negatively impacted gross margins, with ongoing uncertainty regarding future tariff rates.
• The company decided to wind down operations of the Forsake brand due to lack of growth and profitability.

Weyco Group, Inc. reported its financial results for the third quarter of 2025, revealing a modest decline in sales and earnings compared to the previous year. The company experienced a 2% drop in net sales, totaling $73.1 million, and a significant decrease in earnings from operations, which fell by 21% to $8.1 million. The decline was attributed to lower sales volumes and the impact of incremental tariffs on imported goods, particularly from China. CEO Thomas W. Florsheim, Jr. noted that while price increases helped mitigate some of the volume decline, the overall margin compression was a concern due to the tariffs.

In response to the financial challenges, Weyco Group declared a special cash dividend of $2.00 per share, reflecting its strong balance sheet and commitment to returning capital to shareholders. Florsheim emphasized the company’s focus on long-term strategies to enhance operational efficiencies and adapt to evolving tariff policies. The company also announced the winding down of the Forsake brand, which had not met growth expectations. Looking ahead, Weyco Group aims to leverage its liquidity to fund organic growth and pursue strategic opportunities as they arise.

Weyco Group, Inc. (WEYS) has experienced a notable decline in its stock price, with a 12.54% drop over the past year, reflecting broader market challenges and company-specific issues. The recent one-week and one-month price changes of -4.29% and -4.00%, respectively, suggest that investor sentiment may be waning, despite a slight uptick of 1.18% over the last three months. On the fundamental side, the company’s price-to-earnings ratio stands at a relatively low 10.61, indicating that the stock may be undervalued compared to its earnings potential. However, the negative two-year compound annual growth rates (CAGR) for both earnings per share (-1.28%) and revenue (-10.30%) raise concerns about the company’s growth trajectory. On a more positive note, Weyco has managed to achieve a free cash flow CAGR of 5.48%, which could provide some cushion for future investments or shareholder returns. The return on invested capital at 12.34% and a net profit margin of 8.82% suggest that the company is still managing its resources effectively, but the overall trend in revenue and earnings growth will be critical for restoring investor confidence. As Weyco navigates these challenges, it will need to demonstrate a clear path to recovery to attract and retain investors.

Weyco Group, Inc. designs and distributes footwear for men, women, and children. It operates through two segments, North American Wholesale Operations and North American Retail Operations. The company offers mid-priced leather dress shoes and casual footwear of man-made materials or leather; and outdoor boots, shoes, and sandals under the Florsheim, Nunn Bush, Stacy Adams, BOGS, and Rafters brand names. It is also involved in the wholesale of its products to approximately 10,000 footwear, department, and specialty stores, as well as e-commerce retailers. As of December 31, 2021, the company had four brick and mortar retail stores in the United States. In addition, it has licensing agreements with third parties, who sell its branded apparel, accessories, and specialty footwear. It serves in the United States, Canada, Europe, Australia, Asia, and South Africa. The company was formerly known as Weyenberg Shoe Manufacturing Company and changed its name to Weyco Group, Inc. in April 1990. Weyco Group, Inc. was incorporated in 1906 and is based in Milwaukee, Wisconsin.