Weyco Reports Third Quarter 2025 Sales and Earnings; Declares Special Cash Dividend of $2.00 per Share

Rhea-AI Summary

Weyco Group (NASDAQ: WEYS) reported third quarter 2025 results and declared a $2.00 per share special cash dividend alongside the regular $0.27 quarterly dividend, both payable January 9, 2026 to shareholders of record November 17, 2025.

Key Q3 metrics: Net sales $73.1M (down 2% YoY), gross earnings 40.7% of net sales (versus 44.3% prior year), earnings from operations $8.1M (down 21%), and diluted EPS $0.69 (down from $0.84).

Positive

• Special dividend $2.00 per share declared, payable Jan 9, 2026
• Quarterly dividend maintained at $0.27 per share
• Cash and equivalents $72.9 million at Sept 30, 2025
• Florsheim sales +8% for the quarter

Negative

• Net sales down 2% to $73.1 million in Q3 2025
• Diluted EPS $0.69, down 18% YoY from $0.84
• Gross margin compressed to 40.7% from 44.3% (3.6 percentage points)
• Wholesale volumes down 7% driven by order cancellations from a large customer
• Incremental tariffs (30% on China; 10–50% on other countries) pressured margins and supply chain

Insights

Corporate Finance Analyst

Modest revenue and margin declines offset by a substantial special cash dividend; tariff uncertainty pressures near-term margins.

Net sales fell to $73.1 million in Q3 2025, down 2% year-over-year, while diluted EPS declined to $0.69 from $0.84. Operating earnings declined from $10.2 million to $8.1 million, driven by lower volumes and compressed gross margins; wholesale gross earnings fell to 35.7% from 40.1% for the segment.

The company returned capital via a regular dividend of $0.27 and a special dividend of $2.00 per share, both with record date November 17, 2025 and payable January 9, 2026. The balance sheet shows strong liquidity with cash and equivalents at $72.9 million and reduced current liabilities after paying the prior prefunded dividend, supporting the declared distribution.

Key near-term dependency is tariff policy: a 30% incremental tariff on China-origin goods remained in Q3 and may be re-evaluated on or before November 10, 2025, but the ultimate rate is uncertain. Management reports tariff-driven margin erosion despite price increases, and a large wholesale customer’s delayed pricing adoption materially reduced volumes for the quarter.

Watch for three concrete items over the next 30–180 days: the outcome of the tariff re-evaluation around November 10, 2025, any disclosure of customer remediation or contract changes addressing the order cancellations, and the company’s commentary on post-dividend liquidity and capital allocation at the upcoming conference call on November 5, 2025. These items will clarify whether margins stabilize and whether the special dividend meaningfully changes capital available for operations or M&A.

MILWAUKEE, Nov. 04, 2025 (GLOBE NEWSWIRE) -- Weyco Group, Inc. (NASDAQ: WEYS) (“we,” “our,” “us” and the “Company”) today announced financial results for the quarter ended September 30, 2025.

Third Quarter 2025 Overview

• Net sales: $73.1 million (down 2% from $74.3 million in Q3 2024)
• Gross earnings: 40.7% of net sales (compared to 44.3% of net sales in Q3 2024)
• Earnings from operations: $8.1 million (down 21% compared to $10.2 million in Q3 2024)
• Net earnings: $6.6 million (down 18% from $8.1 million in Q3 2024)
• Diluted earnings per share: $0.69 (down from $0.84 in Q3 2024)
  
  

North American Wholesale Segment
Wholesale net sales were $60.2 million for the quarter, down 2% from $61.1 million in the third quarter of 2024. Sales volumes were down 7% for the quarter, but selling price increases instituted on July 1, 2025, helped mitigate the impact of the volume decline. The volume decline was primarily due to reduced business with a large customer who failed to timely adopt our new pricing structure, resulting in order cancellations during the period. These cancellations adversely affected all our major brands’ sales performance for the quarter.

At the brand level, Florsheim posted an 8% sales increase for the quarter, driven by favorable pricing. Florsheim’s sales volumes were flat for the quarter, as its growth in the dress shoe category helped sustain volume levels. BOGS sales were down 17% for the quarter due to a reduction in pairs shipped, a reflection of continued softness in the seasonal footwear category. Stacy Adams’ sales were down 5% for the quarter, driven by lower sales volumes. Nunn Bush sales were up 1% for the period, as selling price increases more than offset the brand’s decline in volume.

Wholesale gross earnings as a percentage of net sales were 35.7% and 40.1% in the third quarters of 2025 and 2024, respectively. Gross margins for the quarter were negatively impacted by incremental tariffs, discussed below. Although selling price increases helped mitigate the effect of these tariffs, they did not fully offset the resulting costs, leading to margin erosion for the period. Wholesale selling and administrative expenses totaled $14.0 million for the quarter and $15.1 million last year. The decrease was primarily due to lower employee costs. As a percentage of net sales, wholesale selling and administrative expenses were 23% and 25% in the third quarters of 2025 and 2024, respectively. Wholesale operating earnings totaled $7.5 million for the quarter, down 20% from $9.4 million in 2024, due to lower sales volumes and margin erosion.

Incremental Tariffs
In early 2025, the U.S. government enacted reciprocal and retaliatory tariffs (“incremental tariffs”) on goods imported into the United States. The incremental tariff on goods sourced from China, where the majority of our products originate, remained at 30% throughout the third quarter of 2025. This tariff rate has been set to be re-evaluated on or before November 10, 2025. The U.S. and China recently engaged in high-level trade talks, and in late October reached a tentative framework agreement which, among other things, contemplates a reduction in U.S. tariffs on certain Chinese goods. As a result of this agreement, the previously scheduled tariff re-evaluation remains subject to change and the ultimate tariff rate remains uncertain. The incremental tariffs on goods we source from other countries, excluding China, ranged from 10% to 50% throughout the third quarter of 2025.  U.S. trade and tariff policies currently remain fluid and unpredictable, and the specific tariff rates applicable to goods imported by our company continue to evolve. As such, there is significant ongoing uncertainty regarding the potential near-term impact of incremental tariffs on our gross margins. We have implemented various mitigation strategies, and remain committed to adopting further strategies, as needed, in response to future policy developments.

Forsake
During the third quarter of 2025, we made the strategic decision to wind down operations of the Forsake brand, due to its sustained lack of growth and profitability. The closure of this brand is not expected to have a material impact on our consolidated financial statements.

North American Retail Segment
Net sales in our retail segment, which were generated mainly through our e-commerce websites, totaled $7.0 million for the quarter, down 4% from $7.2 million in 2024. The decline was primarily due to softer demand on our Florsheim and Stacy Adams websites, amid the tepid retail environment. Although we implemented selling price increases, heightened price sensitivity among consumers contributed to a shift in purchasing behavior toward lower-price alternatives, both on our websites and on other, more promotional websites. 

Retail gross earnings as a percentage of net sales were 66.4% and 66.9% in the third quarters of 2025 and 2024, respectively. Retail operating earnings totaled $0.6 million for the quarter and $0.8 million in last year’s third quarter. The decrease was primarily due to lower sales volumes.

Other Operations
Other operations consist of our retail and wholesale businesses primarily based in Australia, with a limited presence in South Africa (collectively, “Florsheim Australia”). Net sales of Florsheim Australia remained flat at $6.0 million in both the third quarters of 2025 and 2024. In local currency, Florsheim Australia’s net sales were up 2% for the quarter, driven by growth in its retail businesses. Florsheim Australia’s gross earnings as a percentage of net sales were 61.0% and 59.2% in the third quarters of 2025 and 2024, respectively. Florsheim Australia generated operating losses totaling $0.1 million for the quarter and breakeven results for the third quarter of last year.

“Sales for the quarter declined modestly, primarily due to a pricing issue with a large wholesale customer partially offset by the impact of planned price increases,” stated Thomas W. Florsheim, Jr., Chairman and CEO. “Despite price increases, our margins compressed due to the costly imposition of incremental tariffs. The volatile tariff environment has also introduced short-term disruptions within our supply chain, and we are actively pursuing long-term mitigation strategies to overcome these challenges. These strategies include shifting our sourcing in alignment with evolving tariff policies, optimizing our pricing structure, and enhancing operational efficiencies. We remain confident that these efforts will strengthen our resilience and position the company for sustained profitability.”

Dividend Declarations
On November 4, 2025, our Board of Directors declared a regular quarterly cash dividend of $0.27 per share to all shareholders of record on November 17, 2025, payable January 9, 2026. Additionally, as announced in a separate news release, on November 4, 2025, our Board of Directors declared a special cash dividend of $2.00 per share to all shareholders of record on November 17, 2025, payable January 9, 2026.

“We are pleased to announce this return of capital to shareholders,” stated Thomas W. Florsheim, Jr., Chairman and CEO. “Over the past few years, we have built up cash in excess of what we need to fund operations and capital expenditures. Looking to the future, we anticipate that our strong balance sheet and liquidity will allow us to fund organic growth and pursue future strategic opportunities as they arise.  Therefore, we are returning capital to our shareholders in the form of a special cash dividend alongside our regular quarterly dividend.”

Conference Call Details
Weyco Group will host a conference call on November 5, 2025, at 11:00 a.m. Eastern Time to discuss the third quarter 2025 financial results in more detail. To participate in the call, please dial 1-888-596-4144 or 1-646-968-2525, using passcode 6441034# at least fifteen minutes before the start of the call. There is no pre-registration link for the call this quarter.

A replay will be available for one year beginning about two hours after the completion of the call at the following webcast link: https://edge.media-server.com/mmc/p/abobbfd4. Alternatively, the replay will be available by visiting the investor relations section of Weyco Group’s website at www.weycogroup.com.

About Weyco Group
Weyco Group, Inc., designs and markets quality and innovative footwear principally for men, but also for women and children, under a portfolio of well-recognized brand names including: Florsheim, Nunn Bush, Stacy Adams, and BOGS. The Company’s products can be found in leading footwear, department, and specialty stores, as well as on e-commerce websites worldwide. Weyco Group also operates Florsheim stores in the United States, Australia, and South Africa.

Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Various factors could cause our results to be materially different from the results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the uncertain impacts of U.S. trade and tariff policies – particularly incremental tariffs on goods sourced from China - which remain highly dynamic and unpredictable; the impact of inflation generally and, specifically, increases in our costs for materials, labor and other manufacturing inputs; a slow down or contraction in the overall U.S. or Australian economies; our ability to successfully market and sell our products in a highly competitive industry and in view of changing and unpredictable consumer trends; the effect of unseasonable weather conditions on the demand for certain of our products; our ability to successfully procure our products from independent manufacturers on a timely basis; consumer acceptance of products and other factors affecting retail market conditions, changes in interest rates, the uncertain impact of the wars in Ukraine and Israel and the related economic and other sanctions imposed by the U.S. and European Union; and other factors detailed from time to time in our filings made with the Securities and Exchange Commission, including our annual report on Form 10-K filed on March 14, 2025, which are incorporated herein by reference. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

For more information, contact:

Judy Anderson
Vice President, Chief Financial Officer and Secretary
414-908-1833

WEYCO GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
		September 30,				December 31,
		2025				2024
		(Dollars in thousands)
ASSETS:
Cash and cash equivalents		$	72,915			$	70,963
Marketable securities, at amortized cost			747				852
Accounts receivable, net			46,444				37,464
Income tax receivable			1,676				1,086
Inventories			67,178				74,012
Prefunded dividend			—				21,579
Prepaid expenses and other current assets			2,214				3,435
Total current assets			191,174				209,391
Marketable securities, at amortized cost			4,885				5,529
Deferred income tax benefits			—				1,037
Property, plant and equipment, net			27,334				28,180
Operating lease right-of-use assets			10,905				10,504
Goodwill			12,317				12,317
Trademarks			32,868				32,868
Other assets			24,561				24,260
Total assets		$	304,044			$	324,086
LIABILITIES AND EQUITY:
Accounts payable		$	7,697			$	8,378
Dividend payable			—				21,579
Operating lease liabilities			4,550				4,033
Accrued liabilities			8,934				13,273
Total current liabilities			21,181				47,263
Deferred income tax liabilities			14,416				13,922
Long-term pension liability			9,736				9,888
Operating lease liabilities			6,939				7,034
Other long-term liabilities			445				394
Total liabilities			52,717				78,501
Common stock			9,566				9,643
Capital in excess of par value			73,535				72,577
Reinvested earnings			184,064				181,299
Accumulated other comprehensive loss			(15,838	)			(17,934	)
Total equity			251,327				245,585
Total liabilities and equity		$	304,044			$	324,086

WEYCO GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
			Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
		(In thousands, except per share amounts)
Net sales		$	73,121			$	74,329			$	199,372			$	209,819
Cost of sales			43,333				41,427				113,986				116,818
Gross earnings			29,788				32,902				85,386				93,001
Selling and administrative expenses			21,733				22,739				66,407				67,926
Earnings from operations			8,055				10,163				18,979				25,075
Interest income			828				894				2,247				2,763
Interest expense			—				(15	)			(2	)			(15	)
Other income (expense), net			57				(185	)			(129	)			(423	)
Earnings before provision for income taxes			8,940				10,857				21,095				27,400
Provision for income taxes			2,354				2,794				6,710				7,080
Net earnings		$	6,586			$	8,063			$	14,385			$	20,320
Weighted average shares outstanding
Basic			9,445				9,439				9,488				9,435
Diluted			9,535				9,599				9,585				9,576
Earnings per share
Basic		$	0.70			$	0.85			$	1.52			$	2.15
Diluted		$	0.69			$	0.84			$	1.50			$	2.12
Cash dividends declared (per share)		$	0.27			$	0.26			$	0.80			$	0.77

WEYCO GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
		Nine Months Ended September 30,
		2025				2024
		(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings		$	14,385			$	20,320
Adjustments to reconcile net earnings to net cash provided by operating activities -
Depreciation			1,860				1,848
Amortization			197				199
Bad debt expense			167				19
Deferred income taxes			1,531				(351	)
Net foreign currency transaction losses			59				79
Share-based compensation expense			1,246				1,086
Pension expense			218				693
Loss on disposal of fixed assets			17				34
Increase in cash surrender value of life insurance			(350	)			(315	)
Changes in operating assets and liabilities -
Accounts receivable			(9,113	)			(7,534	)
Inventories			6,803				2,728
Prepaid expenses and other assets			1,039				3,277
Accounts payable			(654	)			(2,792	)
Accrued liabilities and other			(3,567	)			(2,937	)
Accrued income taxes			(591	)			940
Net cash provided by operating activities			13,247				17,294
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of marketable securities			370				215
Proceeds from sale of marketable securities			384				—
Purchases of property, plant and equipment			(890	)			(900	)
Net cash used for investing activities			(136	)			(685	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends paid			(7,731	)			(9,614	)
Shares purchased and retired			(4,065	)			(567	)
Taxes paid related to the net share settlement of equity awards			(228	)			(4	)
Net cash used for financing activities			(12,024	)			(10,185	)
Effect of exchange rate changes on cash and cash equivalents			865				(281	)
Net increase in cash and cash equivalents		$	1,952			$	6,143
CASH AND CASH EQUIVALENTS at beginning of period			70,963				69,312
CASH AND CASH EQUIVALENTS at end of period		$	72,915			$	75,455
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net of refunds		$	5,768			$	6,251
Interest paid		$	1			$	15
NON-CASH FINANCING ACTIVITY:
Settlement of dividend payable with prefunded dividend		$	21,579			$	—

FAQ

What special dividend did Weyco Group (WEYS) declare on November 4, 2025?

Weyco declared a $2.00 per share special cash dividend, payable Jan 9, 2026 to shareholders of record Nov 17, 2025.

How did Weyco (WEYS) perform in Q3 2025 on revenue and EPS?

Q3 2025 net sales were $73.1M (down 2% YoY) and diluted EPS was $0.69 (down from $0.84).

What drove margin compression for Weyco (WEYS) in Q3 2025?

Margin compression was driven by incremental tariffs (30% on China; 10–50% on other countries) and lower sales volumes.

When will Weyco (WEYS) pay the declared dividends and who is eligible?

Both the regular $0.27 and special $2.00 dividends are payable on Jan 9, 2026 to shareholders of record on Nov 17, 2025.

Did any Weyco brand show growth in Q3 2025?

Yes, Florsheim posted an 8% sales increase for the quarter, driven by favorable pricing.

How is Weyco (WEYS) addressing tariff-related supply chain risks?

Weyco said it is pursuing mitigation strategies including sourcing shifts, pricing optimization, and operational efficiencies.