Weyco Group (WEYS) investor relations material

Executive summary

• Net sales for Q2 2025 were $58.2M, down 9% year-over-year, reflecting broad declines across brands and categories amid economic uncertainty and cautious retailer inventory management.

• Operating earnings fell 42% to $3.9M, and net earnings dropped 60% to $2.3M, impacted by lower sales, gross margins, and higher tariff costs.

• Diluted EPS was $0.24, compared to $0.59 in the prior year quarter.

• Tariff volatility and inflationary pressures contributed to margin compression and operational challenges.

• Cash and marketable securities totaled $83.8M at quarter-end, with no debt and strong liquidity.

Financial highlights

• Q2 2025 net sales: $58.2M (down 9% YoY); gross margin: 43.3% (vs. 43.9% prior year).

• Q2 net earnings: $2.3M (down 60% YoY); EPS: $0.24 (vs. $0.59 prior year).

• Cash and marketable securities totaled $83.8M at 6/30/2025, with no debt on a $40M credit line.

• $14.4M cash generated from operations in the first six months; $5M paid in dividends, $3.1M in share repurchases, and $0.7M in capex.

• Six-month net sales: $126.3M (down 7% YoY); net earnings: $7.8M (down 36% YoY); EPS: $0.81 (vs. $1.28 prior year).

Outlook and guidance

• Management expects the challenging environment to persist through the second half of 2025 due to continued consumer caution and tariff uncertainty.

• Ongoing efforts to mitigate tariff impacts include supply chain diversification, cost negotiations, and price adjustments.

• Cautious optimism for BOGS brand in H2 as retailer inventories are clean and new product launches are planned.

• Annual capital expenditures estimated at $1M–$2M.