Weyco Group (WEYS) Q4 2025 earnings summary

Executive summary

• Net sales declined 5% year-over-year to $276M for 2025, with Q4 net sales down 5% to $76.8M, reflecting tariff impacts and softer consumer demand.

• Gross margins compressed to 43.2% for the year and 44.1% for Q4 due to incremental tariffs, despite mid-year price increases.

• Net earnings dropped 24% year-over-year to $23.1M, with Q4 net earnings down 13% to $8.7M.

• Diluted EPS was $2.41 for 2025 (down from $3.16 in 2024); Q4 diluted EPS was $0.91 (down from $1.04).

• Florsheim brand achieved record annual wholesale sales, while other brands saw declines.

Financial highlights

• Earnings from operations decreased 20% year-over-year to $29.2M; Q4 operating earnings fell 12% to $10.2M.

• Q4 gross margin: 44.1% (vs. 47.9% prior year); full year: 43.2% (vs. 45.3%).

• Effective tax rate increased to 28% from 23.9% in 2024.

• Cash and marketable securities at year-end: $101M; cash and cash equivalents rose to $96M from $71M in 2024.

• Cash dividends declared per share were $3.07 for 2025, up from $3.03 in 2024.

Outlook and guidance

• 2026 capital expenditures estimated at $1M–$3M.

• Management is prioritizing financial oversight and operational discipline for 2026 to reposition brands for growth and protect long-term profitability.

• U.S. trade policies and tariffs remain fluid, creating near-term gross margin uncertainty; mitigation strategies are in place.

• Focus remains on maintaining historical margins through pricing and margin strategies.