Weyco Group Reports Decline in Sales and Earnings for Q2 and First Half of 2025

Weyco Group, Inc. reported a decline in financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. For the three months ended June 30, 2025, the company recorded net sales of $58.2 million, a decrease of 9% from $63.9 million in the same period of 2024. Gross earnings also fell to $25.2 million, representing 43.3% of net sales, down from 43.9% a year earlier. The company's earnings from operations dropped significantly by 42% to $3.9 million, while net earnings were $2.3 million, or $0.24 per diluted share, compared to $5.6 million, or $0.59 per diluted share, in the prior year.

In the first half of 2025, Weyco's consolidated net sales totaled $126.3 million, down 7% from $135.5 million in the first half of 2024. The decline in sales was attributed to lower demand across its Wholesale and Retail segments, with notable decreases in brands such as Nunn Bush and Stacy Adams. The company’s gross earnings for the first six months were 44.0% of net sales, slightly down from 44.4% in the previous year. Earnings from operations for the period were $10.9 million, a 27% decrease from $14.9 million in 2024, while net earnings fell to $7.8 million from $12.3 million.

Weyco's operational challenges were compounded by the impact of incremental tariffs on imported goods, particularly from China, which reached a high of 145% earlier in the year. The company has taken steps to mitigate these costs, including diversifying its supply chain and adjusting pricing strategies. The retail segment experienced an 11% decline in net sales, reflecting a cautious consumer environment and lower sales conversion rates on e-commerce platforms. Despite increased site traffic, the company noted that consumers are becoming more value-conscious, leading to a decrease in discretionary spending.

The company’s strategic focus includes the introduction of new products, particularly in its BOGS brand, which is expanding its offerings to include lighter and more durable footwear. Additionally, Weyco is working to enhance its engagement with consumers to improve sales conversion rates. As of June 30, 2025, Weyco reported cash and marketable securities totaling $83.8 million, with no outstanding debt on its $40 million revolving line of credit. The company anticipates that the challenging retail environment will persist through the second half of the year, as it continues to navigate the impacts of tariffs and changing consumer behavior.