WEYCO GROUP INC SEC 10-Q Report

Weyco Group Inc., a leading footwear company known for its popular brands such as Stacy Adams, Nunn Bush, Florsheim, and BOGS, has released its Form 10-Q report for the first quarter of 2025. The report highlights the company's financial performance and operational activities amidst a challenging economic environment.

Financial Highlights

• Net sales: $68.0 million, down 5% compared to $71.6 million in the first quarter of 2024, reflecting declines in both wholesale and retail segments.
• Gross earnings: $30.4 million, representing 44.6% of net sales, slightly down from 44.7% in the first quarter of 2024.
• Earnings from operations: $7.0 million, down 15% from $8.3 million in the first quarter of 2024, primarily due to lower sales.
• Net earnings: $5.5 million, down 17% from $6.7 million in the first quarter of 2024, impacted by reduced sales.
• Diluted earnings per share: $0.57, compared to $0.69 in the first quarter of 2024, reflecting the decrease in net earnings.

Business Highlights

• Revenue Segments: The North American Wholesale segment saw a decline in net sales by 4%, with Stacy Adams and Nunn Bush brands experiencing decreases of 7% and 16%, respectively. Florsheim's sales increased by 7% due to new product launches, while BOGS sales decreased by 5%. Licensing revenues also fell by 6%.
• Geographical Performance: Florsheim Australia's net sales decreased by 7% in U.S. dollars, primarily due to the closure of Asia Pacific operations. However, in local currency, sales were down only 3%, with Australia showing a 6% increase in local currency sales.
• New Product Launches: The company introduced new products such as the Boga clog, which has been well-received in the market, contributing to Florsheim's sales growth.
• Future Outlook: The company anticipates challenges due to geopolitical and macroeconomic uncertainties, including potential impacts from increased tariffs on goods sourced from China. Efforts are underway to negotiate cost reductions with suppliers and diversify sourcing to mitigate these impacts.
• Operational Adjustments: The company is scaling back promotional activities in its retail segment to align inventory with demand, which has affected sales but is expected to position the business for long-term growth.
• Retail Segment Performance: The Retail segment experienced a 12% decline in net sales, attributed to reduced promotional activities compared to the previous year. Despite this, the segment maintained a high gross earnings percentage.
• Operational Efficiency: The company is focusing on managing expenses and identifying opportunities for profitable growth, particularly in the Florsheim Australia market, despite economic headwinds.

SEC Filing: WEYCO GROUP INC [ WEYS ] - 10-Q - May. 09, 2025