Shares of Weyco Group, Inc. (WEYS Quick QuoteWEYS - Free Report) have gained 1.7% since the company reported its earnings for the quarter ended June 30, 2025, outpacing the S&P 500 index’s 1% change over the same period. However, over the past month, the stock has declined 7.7%, notably underperforming the S&P 500’s 2.3% gain.

Weyco reported second-quarter 2025 EPS of 24 cents, which dropped from 59 cents in the prior-year quarter.

Net sales fell 9% to $58.2 million from $63.9 million in the prior-year quarter. Net earnings plunged 60% to $2.3 million from $5.6 million. Gross earnings as a percentage of net sales slipped to 43.3% from 43.9%, while earnings from operations decreased 42% to $3.9 million from $6.7 million, reflecting both lower sales and margin compression.

Weyco Group, Inc. Price, Consensus and EPS Surprise

Weyco Group, Inc. price-consensus-eps-surprise-chart | Weyco Group, Inc. Quote

Other Key Business Metrics

In the North American Wholesale segment, sales declined 9% to $45.6 million, with all major brands experiencing weakness: Nunn Bush (-11%), Stacy Adams (-10%), Florsheim (-5%), and BOGS (-14%). Gross margin in this segment contracted to 37.6% from 38.2%, pressured by incremental tariffs. Wholesale operating earnings fell 30% to $4.1 million. In Retail, sales fell 11% to $6.8 million, driven by softer demand on the Florsheim and Stacy Adams websites. Retail operating earnings dropped to $0.1 million from $0.7 million. The “Other” category, comprising operations in Australia and South Africa, saw sales decline 4% to $5.8 million, with a $0.2 million operating loss compared to a $0.2 million profit a year earlier.

Management Commentary

Chairman and CEO Thomas W. Florsheim described the quarter as being marked by “headwinds” from incremental tariffs and a pullback in consumer discretionary spending. He noted that cautious retailer buying and economic uncertainty are likely to persist in the near term. Management emphasized the company’s strong financial position, which they believe will enable Weyco to navigate the challenging environment and focus on long-term growth. The leadership team also highlighted efforts to reduce reliance on China by diversifying sourcing to countries such as Vietnam, Cambodia and India.

Factors Influencing the Headline Numbers

The earnings decline was primarily driven by reduced consumer spending amid heightened economic uncertainty, compounded by higher import costs from tariffs. The China-specific tariff, which peaked at 145% in April 2025, temporarily eased to 30% in mid-May for a 90-day period ending Aug. 12, 2025. Additional tariffs on non-China imports remained at 10% during the quarter but are set to rise to 19–25% in August. Weyco mitigated some of these cost pressures by pre-purchasing inventory, negotiating supplier cost reductions, shifting production out of China, and raising U.S. selling prices effective July 1, 2025. Nonetheless, fixed operating costs became a larger percentage of sales due to the revenue decline.

Guidance

Management cautioned that they expect continued top-line pressure in the coming months, with ongoing challenges from tariffs and weak consumer sentiment. The second half of the year may also be affected by seasonal category softness, particularly in casual and dress footwear, as well as continued volume weakness in the BOGS brand.

Other Developments

On Aug. 5, 2025, Weyco’s board of directors declared a regular quarterly cash dividend of 27 cents per share, payable Sept. 30, 2025, to shareholders of record as of Aug. 18, 2025. The company continued its capital allocation program, using $3.1 million for share repurchases and approximately $0.7 million for capital expenditures during the first half of 2025.