10-K - Weyco Group, Inc. | StockGist

AI Analysis

AI-generated analysis. Always verify with the original filing.

Weyco Group reported net sales of $276.2 million for FY 2025, a decrease from $290.3 million in FY 2024. Net earnings declined to $23.1 million from $30.3 million in the prior year, with basic EPS of $2.44 compared to $3.21. Gross margin compressed to 43.2% from 45.3% due to incremental tariffs and cost pressures. Operating cash flow remained strong at $37.3 million, supporting dividend payments of $7.7 million and share repurchases of $5.3 million. The company maintained a solid balance sheet with $96.0 million in cash and no debt outstanding. Forward-looking challenges include ongoing tariff impacts, supply chain disruptions, and competitive pressures in the footwear market.

Key Takeaways

1Net sales declined 4.9% to $276.2M due to tariff impacts and competitive pressures

2Net earnings decreased 23.9% to $23.1M with EPS of $2.44 vs $3.21 prior year

3Gross margin compressed to 43.2% from 45.3% primarily due to incremental tariffs

4Operating cash flow remained strong at $37.3M despite earnings decline

5Cash position increased to $96.0M with no debt outstanding on $40M credit facility

Key Financial Metrics

EPS

$2.44

$3.21 prior year

Revenue

$276.2M

-4.9%

Net Income

$23.1M

-23.9%

Gross Margin

43.2%

45.3% prior year

Gross Profit

$119.2M

-9.3%

free cash flow

$37.1M

Operating Income

$29.2M

-20.3%

operating margin

10.6%

Business Segments

North American Wholesale78% of total sales, includes licensing revenues

$216.8M-4.9% YoY

North American Retail13% of total sales, includes e-commerce and 4 stores

$35.7M-7.7% YoY

Other Operations9% of total sales, Australia and South Africa operations

$23.7M+0.2% YoY