Weyco Group, Inc. (WEYS) Market Cap
Weyco Group, Inc. has a market capitalization of $331.3M.
Financials based on reported quarter end 2025-12-31
Price: $34.76
▼ -0.14 (-0.42%)
Market Cap: 331.27M
NASDAQ · time unavailable
CEO: Thomas W. Florsheim Jr.
Sector: Consumer Cyclical
Industry: Apparel - Footwear & Accessories
IPO Date: 1980-03-17
Website: https://www.weycogroup.com
Weyco Group, Inc. (WEYS) - Company Information
Market Cap: 331.27M · Sector: Consumer Cyclical
Weyco Group, Inc. designs and distributes footwear for men, women, and children. It operates through two segments, North American Wholesale Operations and North American Retail Operations. The company offers mid-priced leather dress shoes and casual footwear of man-made materials or leather; and outdoor boots, shoes, and sandals under the Florsheim, Nunn Bush, Stacy Adams, BOGS, and Rafters brand names. It is also involved in the wholesale of its products to approximately 10,000 footwear, department, and specialty stores, as well as e-commerce retailers. As of December 31, 2021, the company had four brick and mortar retail stores in the United States. In addition, it has licensing agreements with third parties, who sell its branded apparel, accessories, and specialty footwear. It serves in the United States, Canada, Europe, Australia, Asia, and South Africa. The company was formerly known as Weyenberg Shoe Manufacturing Company and changed its name to Weyco Group, Inc. in April 1990. Weyco Group, Inc. was incorporated in 1906 and is based in Milwaukee, Wisconsin.
Analyst Sentiment
Based on 2 ratings
Consensus Price Target
No data available
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"As of December 31, 2025, WEYS reported revenue of $76.8M and a net income of $8.7M, yielding an earnings per share (EPS) of $0.92. Total assets were recorded at $319.7M, with total liabilities of $80.1M, resulting in total equity of $239.6M. Notably, WEYS holds a net cash position with net debt reported at -$89.6M. Operating cash flow stood at $24.0M, and free cash flow reached $23.1M in the same period. In terms of shareholder returns, dividends accounted for a total of $3.10 per share distributed over recent quarters, although the stock experienced a modest price increase of 9.2% over the past year. While the company's financial health appears solid, with a significant net cash balance and a healthy equity position, the price appreciation has not surpassed the 20% threshold that would typically indicate a strong growth trajectory. Consequently, while WEYS is fundamentally sound, its recent performance may not attract growth-oriented investors seeking higher returns."
Revenue Growth
The growth of revenue at $76.8M signifies a positive trend, albeit not explosive.
Profitability
Strong profitability with net income of $8.7M represents a reasonable margin.
Cash Flow Quality
Solid operating cash flow of $24.0M supports operational sustainability.
Leverage & Balance Sheet
Excellent balance sheet with strong equity position and net cash.
Shareholder Returns
Dividends are present but moderate, with a 1-year price change of 9.20%.
Analyst Sentiment & Valuation
Valuation sentiment is mixed; further analysis needed for growth potential.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management tone is constrained by macro/tariff reality—explicitly acknowledging margin erosion, shipment disruption risk (China tariff prohibitive period), and 2026 cost uncertainty. The CFO/CEO emphasize resilience and mitigation: kept production running during the Q2 tariff window, held finished goods overseas, diversified sourcing beyond China (Cambodia/Vietnam), and are aiming to maintain historical margins via pricing/margin actions. However, the Q&A shows how incomplete the “mitigation” has been: wholesale margin is down about ~400 bps and the 10% July price increase did not cover a meaningful portion of tariff impacts because tariff rates varied dramatically by country and even by month (e.g., India ~50%, China sometimes >100%). The key financial swing factor is still the tariff refund—company seeks recovery of the full ~$16M paid, but litigation remedy timing is uncertain. Overall: disciplined operations, but analyst pressure focuses on quantifying tariff pass-through and refund confidence, which remain unresolved.
Growth Catalysts
- Florsheim brand achieved record wholesale sales in 2025 (brand sales $92.0M, all-time record)
- BOGS bookings for fall 2026 described as strong after exceptionally clean retailer inventories
Business Development
- No new named customer/partner/vendor announced on the call
Financial Highlights
- Q4 2025 diluted EPS: $0.91 vs $1.04 in prior-year Q4
- Q4 2025 consolidated net sales: $76.8M (2025 full-year figure cited; down 5% vs $80.5M in 2024)
- Full-year 2025 diluted EPS: $2.41 vs $3.16 in 2024 (down 24%)
- Gross margin: 44.1% of net sales in Q4 vs 47.9% in 2024; full-year gross margin 43.2% vs 45.3% in 2024
- Gross margins negatively impacted by incremental tariffs; management later quantified: margins down 200 bps for the year due to incremental tariffs
- Wholesale margin erosion: wholesale gross earnings % 37.2% in 2025 vs 42.4% in 2024 (large tariff/margin hit)
- Wholesale operating earnings Q4: $8.4M vs $8.9M prior year (down 6%); down due to lower sales volumes and gross margin
- E-commerce/Q4 retail: sales reserve increase caused notable operating earnings decline (retail operating earnings $1.9M vs $2.5M prior year)
Capital Funding
- Cash & marketable securities at 12/31/2025: $101.0M
- No debt outstanding on $40.0M revolving line of credit
- 2025 cash from operations: $37.3M
- 2025 dividends paid: $7.7M
- 2025 share repurchases: $5.3M
- 2025 capex: $1.8M
- Estimated 2026 annual capex: $1.0M to $3.0M
- During Jan 2026: paid Feb + special cash dividends totaling $21.4M
- 1Q 2026 dividend declared: $0.27/share (record 3/13/2026; payable 3/31/2026)
Strategy & Ops
- Tariff disruption mitigation: during an extended period in Q2, tariffs made China trade commercially prohibitive; company kept production running on key programs and held finished goods overseas to deliver nearly 100% of fall shipments on time once tariffs eased
- Supply chain diversification: reduced China-centric sourcing by expanding manufacturing footprint in Cambodia and Vietnam; established a more flexible supply chain
- Inventory discipline: Q4 shipments pressured by conservative inventory management at accounts; overall inventory at 12/31/2025: $65.9M vs $74.0M at 12/31/2024
- Price/margin management: implemented a 10% July 1, 2025 price increase; management emphasized it did not fully offset tariff-driven cost increases
- Nunn Bush reset plan: value-engineering products to meet key price points while preserving attributes versus private label
Market Outlook
- 2026: management expects continued cost uncertainty due to tariffs; goal is to adjust margin and pricing strategy to maintain historical margins (no quantified 2026 financial guidance provided)
- E-commerce: management expects lower clearance sales into the new year; looking to drive full-price sales via improved storytelling and clearer product attribute communication
Risks & Headwinds
- Tariffs/margin uncertainty: incremental tariffs increased product costs by 19% to 50% across 2025; wholesale gross earnings % deteriorated substantially (37.2% vs 42.4%)
- Management quantified margin compression: overall margins down 200 bps for the year due to incremental tariffs
- Q4 wholesale margin down: management cited wholesale margin down about 400 bps vs last year
- Price increase inadequacy: 10% price increase in July did not recapture a meaningful portion of the tariff impact; question response indicated tariff rates varied widely by country/month (e.g., India ~50%, many others ~20%, China varied 20% to >100% for periods)
- Refund litigation risk: company paid ~ $16.0M in incremental tariffs in 2025; lawsuit seeks full refund (optimistic) but remedy could be delayed by litigation; administration initially stated it would pay back if Supreme Court ruled unlawful, then potentially shifted to litigate
- Supreme Court / tariff regime shift: 2/20/2026 ruling invalidated IEEPA authority for tariffs since Feb 2025; remanded for implementation/refunds; President announced 10% across-the-board tariff under separate authority with potential for further increases
- Consumer demand soft goods: consumers shopping for deals; inventory is “extraordinarily clean,” limiting clearance availability; migration of consumers from company websites to other sites is pressuring conversion
- Retail Q4 reserve adjustment: increased sales reserves for e-commerce businesses reduced retail operating earnings
Sentiment: CAUTIOUS
Note: This summary was synthesized by AI from the WEYS Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.