greeksoup/ stock research
Stock research / United States / WEYS / Q4 FY2025 / Earnings call

Weyco Group Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 3 March 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Key takeaways

  • Full-year sales fell 5%: Full-year net sales were $276.2 million, down 5% from $290.3 million. Fourth-quarter net sales were $76.8 million, down 5% from $80.5 million. Source
  • Operating earnings fell 20%: Full-year earnings from operations were $29.2 million, down 20% from $36.6 million. Fourth-quarter earnings from operations were $10.2 million, down 12% from $11.5 million. Source
  • Diluted EPS fell to $2.41: Full-year diluted EPS was $2.41 against $3.16, and net earnings were $23.1 million, down 24%. Fourth-quarter diluted EPS was $0.91 against $1.04. Source
  • Florsheim reached record wholesale sales: Florsheim sales rose 2% to a record $92.0 million for the year, driven by dress and hybrid footwear. Source
  • Gross margin fell to 43.2%: Full-year gross earnings were 43.2% of net sales against 45.3%. Wholesale gross earnings were 37.5% against 40.2%, and fourth-quarter gross earnings were 44.1% against 47.9%. Source
  • Tariffs compressed gross margin: Management said incremental tariffs raised product costs by 19% to 50% through 2025. Price increases helped but did not fully offset the costs. Source
  • Supreme Court struck down IEEPA tariffs: On February 20, 2026 the Supreme Court ruled that IEEPA does not authorize presidential tariffs, invalidating the statutory basis for incremental tariffs enacted since February 2025. Source
  • Priorities set for 2026: The company said it is prioritizing financial oversight and operational discipline to reposition its brands and business lines for renewed growth. Source

“Florsheim was a bright spot in an otherwise challenging year, delivering its strongest annual wholesale sales performance to date, driven by continued momentum in the dress-shoe category,”

Thomas W. Florsheim, Jr., Chairman and CEO

Guidance

AreaPeriodFigureAgainst last quarter
Quarterly cash dividend SourceDividend payable March 31, 2026$0.27 per shareKept

What changed from last quarter

  • New: The Supreme Court ruled that IEEPA does not authorize the tariffs, and a 10% replacement tariff was announced under separate authority. Source
  • New: The company filed a lawsuit in December 2025 seeking a refund of incremental tariffs paid under IEEPA. Source

Results and profit decline

  • Full-year sales fell 5%: Full-year net sales were $276.2 million, down 5% from $290.3 million. Fourth-quarter net sales were $76.8 million, down 5% from $80.5 million. Source
  • Operating earnings fell 20%: Full-year earnings from operations were $29.2 million, down 20% from $36.6 million. Fourth-quarter earnings from operations were $10.2 million, down 12% from $11.5 million. Source
  • Diluted EPS fell to $2.41: Full-year diluted EPS was $2.41 against $3.16, and net earnings were $23.1 million, down 24%. Fourth-quarter diluted EPS was $0.91 against $1.04. Source
  • Tax rate rose on valuation allowance: The effective tax rate was 28.0% against 23.9% in 2024. The provision included a charge to set up a valuation allowance on Florsheim Australia's deferred tax assets. Source

Segment results

  • Wholesale sales fell 5% for year: Wholesale net sales were $216.8 million, against $227.9 million. Wholesale operating earnings fell 16% to $26.6 million on lower volumes and gross margins. Source
  • Fourth-quarter wholesale sales fell 6%: Fourth-quarter wholesale sales were $56.7 million, down 6%, on lower shipping volumes partly offset by the July 1, 2025 price increases. Source
  • Retail sales hit by reserves: Retail net sales were $35.7 million for the year, down 8%. Fourth-quarter retail sales of $13.3 million fell 5%, and retail operating earnings were $1.9 million against $2.5 million. Source
  • Florsheim Australia flat, up in local currency: Florsheim Australia net sales were $23.7 million for the year, flat in dollars. Fourth-quarter sales rose 12% to $6.8 million. Source

“Lower sales combined with incremental tariff costs pressured our margins for the period.”

Thomas W. Florsheim, Jr., Chairman and CEO

Brands and product lines

  • Florsheim reached record wholesale sales: Florsheim sales rose 2% to a record $92.0 million for the year, driven by dress and hybrid footwear. Source
  • Other brands declined on lower demand: Nunn Bush, Stacy Adams and BOGS sales fell 10%, 9% and 11% for the year. Fourth-quarter Nunn Bush and Stacy Adams each fell 13%, and BOGS fell 6% on fewer pairs shipped. Source
  • Large customer delayed pricing adoption: The company said a large customer did not adopt the new pricing structure in time in the third quarter, adversely affecting its major brands' sales for the period. Source

Gross margin and tariff costs

  • Gross margin fell to 43.2%: Full-year gross earnings were 43.2% of net sales against 45.3%. Wholesale gross earnings were 37.5% against 40.2%, and fourth-quarter gross earnings were 44.1% against 47.9%. Source
  • Tariffs compressed gross margin: Management said incremental tariffs raised product costs by 19% to 50% through 2025. Price increases helped but did not fully offset the costs. Source
  • About $16 million tariffs paid: The company paid approximately $16 million of incremental tariffs during 2025. Source
  • Wholesale overhead fell with employee costs: Wholesale selling and administrative expenses were 25% of net sales against 26%, with the decrease largely due to lower employee costs. Source

Tariff ruling and refunds

  • Supreme Court struck down IEEPA tariffs: On February 20, 2026 the Supreme Court ruled that IEEPA does not authorize presidential tariffs, invalidating the statutory basis for incremental tariffs enacted since February 2025. Source
  • Refund lawsuit filed in December: The company filed suit in December 2025 to recover amounts paid under the IEEPA tariffs. Source
  • Replacement 10% tariff announced: The President announced a 10% across-the-board tariff under a separate statutory authority, and the Administration indicated rates could be increased within statutory limits. Source
  • Margin uncertainty persists: The company described trade policy as fluid and unpredictable, creating near-term gross margin uncertainty, and said mitigation strategies are in place. Source

Demand and retail conditions

  • Soft demand and cautious retailers: Management attributed weaker sales of its other brands to soft consumer demand and retailers' cautious inventory buying amid tariff-affected retail conditions. Source
  • Retail operating earnings fell on volume: Full-year retail operating earnings were $3.3 million against $5.3 million, which the company linked to lower sales volumes. Source
  • Fewer direct-to-consumer sales: Retail sales fell mainly on lower direct-to-consumer sales of Florsheim, BOGS and Stacy Adams footwear. BOGS website sales were also hit by fewer promotions. Source

Capital, cash and dividends

  • Year-end cash rose to $96.0 million: Cash and cash equivalents were $96.0 million at year-end, against $71.0 million at the end of 2024. Source
  • Operating cash flow held near prior year: Net cash provided by operating activities was $37.3 million for the year, against $37.7 million in 2024. Source
  • Capital spending rose to $1.8 million: Purchases of property, plant and equipment were $1.8 million for the year, against $1.4 million in 2024. Source
  • Share repurchases rose to $5.3 million: Shares purchased and retired totaled $5.3 million for the year, against $0.6 million in 2024. Source
  • Special dividend payable January 2026: The $2.00 special dividend declared in November 2025 was payable January 9, 2026. The balance sheet shows $21.4 million of dividend payable at year-end.

Strategy and 2026 priorities

  • Priorities set for 2026: The company said it is prioritizing financial oversight and operational discipline to reposition its brands and business lines for renewed growth. Source
  • Profit kept through pricing and cost actions: Management said it was pleased to have kept profitability through planned price increases and cost-management actions during the year. Source
  • Florsheim Australia moved to operating loss: Florsheim Australia generated operating losses of $0.7 million for 2025, against $0.2 million in 2024. Source

Coming up, as management said on 3 March 2026

  • Tariff matter returns to trade court: The matter was sent back to the Court of International Trade for implementation and potential refund issues. Source

Risks management discussed

  • Regulatory: The Administration indicated the 10% replacement tariff could be increased, subject to statutory limits. Source
  • Regulatory: Tariffs imposed under authorities independent of IEEPA remain in effect. Source
  • Operational: Fourth-quarter sales were reduced by higher sales reserves at the e-commerce businesses. Source
  • Operational: A large customer's delayed adoption of the new pricing structure affected sales in the third quarter. Source
  • Financial: The tax provision included a charge to set up a valuation allowance on Florsheim Australia's deferred tax assets. Source

Earlier plans management reported on

  • Not stated: The company said mitigation strategies are in place and will be adjusted as policy changes. Source
  • Not stated: Management said it was pleased to have maintained profitability through planned price increases and cost actions taken during 2025. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.