Weyco Group (WEYS) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 declined 5% year-over-year to $68.0 million, with net earnings down 17% to $5.5 million ($0.57 per diluted share), and operating earnings down 15% to $7.0 million, reflecting macroeconomic and geopolitical uncertainties impacting both wholesale and retail segments.

• Florsheim brand sales rose 7%, while Stacy Adams and Nunn Bush declined 7% and 16%, respectively; BOGS sales fell 5%.

• Retail segment net sales dropped 12% to $8.7 million, with operating earnings down 52% to $0.6 million, mainly due to lower BOGS website sales and reduced promotional activity.

• Florsheim Australia net sales declined 7% (3% in local currency) to $5.1 million; operating loss improved to $0.2 million from $0.4 million on higher same-store sales.

• Incremental tariffs on Chinese imports (now 161%, up from 16%) did not impact Q1 but are expected to significantly raise future costs.

Financial highlights

• Gross margin was 44.6%, nearly flat compared to 44.7% in Q1 2024; operating margin was 10.3% (vs. 11.5% last year).

• Cash and marketable securities totaled $77.9 million at quarter-end, with no debt on a $40 million credit line.

• Net cash provided by operating activities was $4.1 million, down from $14.3 million in Q1 2024.

• Cash dividends declared per share rose 4% to $0.27, payable June 30, 2025; $2.5 million in dividends paid and $700,000 in stock repurchases during Q1 2025.

• $21.6 million prefunded dividend paid in January 2025.

Outlook and guidance

• Incremental tariffs on Chinese imports (now 161%) expected to significantly raise cost of goods sold in future periods; mitigation efforts include supplier negotiations, price increases starting Summer 2025, and accelerated sourcing diversification.

• Inventory levels are higher than normal due to proactive importing ahead of tariffs; sufficient to cover through part of Q3 2025.

• Capital expenditures for 2025 estimated at $1–2 million; $400,000 spent in Q1.

• Florsheim brand positioned for continued growth; cautious outlook for non-athletic footwear and retail due to consumer spending trends.