Weyco Group (WEYS) Q2 2025 earnings summary

Executive summary

• Net sales declined 9% year-over-year to $58.2 million in Q2 2025, with all brands and segments affected by lower demand and cautious retailer inventory management.

• Operating earnings fell 42% to $3.9 million, and net earnings dropped 60% to $2.3 million, with diluted EPS at $0.24, down from $0.59 last year.

• Tariff-related headwinds, especially on imports from China, significantly impacted gross margins and consumer sentiment.

• Cash and marketable securities totaled $83.8 million 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); diluted EPS: $0.24 (vs. $0.59 prior year).

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

• Cash and marketable securities totaled $83.8 million with no debt on a $40 million credit line.

• $14.4 million cash generated from operations in the first half of 2025.

• $5 million paid in dividends, $3.1 million in share repurchases, and $700,000 in capital expenditures in the first half of 2025.

Outlook and guidance

• Management expects continued headwinds and top-line pressure in the second half of 2025 due to persistent consumer caution, tariff uncertainty, and economic volatility.

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

• Annual capital expenditures are estimated between $1 million and $2 million.