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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on WEYS

Weyco Group, Inc.'s recent performance was positively driven by its Q3 2025 earnings call, which highlighted the company's resilience in a challenging market. Despite a secularly declining men's formal footwear category, Weyco's stable gross margins and strong shareholder returns are notable. The company's exposure to tariffs from China and India remains a risk, but its earnings call transcript suggests a proactive approach to addressing these challenges. With a focus on shareholder value, Weyco's management team, led by Thomas Florsheim, is navigating the company through a complex environment.

1.c. Company Highlights

2. Weyco Group's Q3 2025 Earnings: A Mixed Bag

Weyco Group reported net sales of $73.1 million for the third quarter of 2025, down 2% from the same period last year. The company's gross margin contracted to 40.7% from 41.4% in Q3 2024, while earnings from operations declined 21% to $8.1 million. The actual EPS came out at $0.21, missing estimates of $0.25.

Publication Date: Nov -26

📋 Highlights
  • Overall Net Sales Decline:: Q3 2025 net sales fell to $73.1M (-2% YoY) despite 7% sales volume drop mitigated by price increases.
  • Operational Earnings Drop:: Earnings from operations declined to $8.1M (-21% YoY) with consolidated gross margin at 40.7%.
  • Wholesale Segment Margins:: North American Wholesale gross margin improved to 35.7% (vs. 40.1% in Q3 2024) despite 2% sales decline.
  • Florsheim Brand Growth:: Florsheim sales surged 8% YoY, outperforming overall wholesale segment (-2% sales).
  • Tariff Impact:: 100% of margin erosion attributed to tariffs, with supply chain diversification underway to reduce China dependency.

Segment Performance

The North American Wholesale segment, which accounts for the majority of the company's sales, saw net sales decline 2% to $60.2 million. Sales volumes were down 7%, but price increases helped mitigate the impact. However, gross earnings as a percentage of net sales declined to 35.7% from 40.1% in Q3 2024. The North American Retail segment reported a 4% decline in net sales to $7 million, while Florsheim Australia's net sales were flat at $6 million.

Tariff Impact and Supply Chain Diversification

According to Tom Florsheim, Chairman and CEO, 100% of the margin erosion was attributable to tariffs, which have not been fully offset by price increases. The company is shifting its supply chain and assessing the need for additional price increases or other strategies. As Tom Florsheim stated, "the company is diversifying its factory base to reduce its manufacturing concentration in China."

Valuation and Dividend Yield

With a P/E Ratio of 11.68 and an EV/EBITDA of 6.49, the stock appears to be reasonably valued. The Dividend Yield stands at 10.18%, which is attractive for income investors. Additionally, the company declared a quarterly cash dividend of $0.27 per share and a special cash dividend of $2 per share, demonstrating its commitment to returning value to shareholders.

Outlook and Conclusion

The company's cash and marketable securities totaled $78.5 million as of September 30, 2025, providing a solid foundation for future investments or dividend payments. While the company's legacy business performed well, with Florsheim brand sales up 8% for the quarter, the overall decline in sales and margin pressure due to tariffs are concerns. Analysts estimate next year's revenue growth at 0%, indicating a challenging environment for the company.

3. NewsRoom

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Weyco Stock Rise 13% Despite Q3 Earnings Down Y/Y on Tariffs

Nov -10

Source: zacks.com

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Weyco Group, Inc. (WEYS) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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WEYCO Group, Inc. Third Quarter 2025 Earnings Conference Call

Oct -14

Source: globenewswire.com

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Weyco Is Exposed To Tariffs And Earnings Are Halving, But The Stock Has Barely Adjusted

Aug -14

Source: seekingalpha.com

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Weyco Q2 Earnings Slide Y/Y on Tariff, Demand Pressures

Aug -11

Source: zacks.com

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Weyco Group, Inc. (WEYS) Q2 2025 Earnings Call Transcript

Aug -07

Source: seekingalpha.com

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Weyco (WEYS) Q2 Profit Drops 60%

Aug -06

Source: fool.com

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Weyco Reports Second Quarter Sales and Earnings

Aug -05

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Wholesale

Expected Growth: 4.5%

The wholesale segment of Weyco Group, Inc. is expected to grow driven by increasing demand for footwear and accessories, expansion of online retail channels, and strategic partnerships with retailers.

Retail

Expected Growth: 4.5%

Growing demand for comfort footwear, increasing popularity of online shopping, and expanding distribution channels are expected to drive Weyco's Retail segment growth.

Other

Expected Growth: 4.5%

The 'Other' segment, comprising comfort footwear brands like Umi and Rafters, is expected to grow steadily driven by increasing demand for comfortable and casual footwear, expanding online sales channels, and strategic marketing initiatives.

7. Detailed Products

Florsheim

Men's dress and casual footwear

Nunn Bush

Men's dress and casual footwear

Stacy Adams

Men's dress and casual footwear

Dr. Martens

Casual footwear for men, women, and kids

BOGS

Outdoor footwear for men, women, and kids

Rafters

Outdoor footwear for men and women

8. Weyco Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Weyco Group, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the availability of alternative products.

Bargaining Power Of Customers

Weyco Group, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Weyco Group, Inc. relies on a few key suppliers for raw materials, which gives them some bargaining power. However, the company's long-term relationships with suppliers and its ability to negotiate prices mitigate this risk.

Threat Of New Entrants

The footwear industry has high barriers to entry, including significant capital requirements and the need for specialized expertise. This makes it difficult for new entrants to compete with established players like Weyco Group, Inc.

Intensity Of Rivalry

The footwear industry is highly competitive, with many established players competing for market share. Weyco Group, Inc. faces intense competition from other manufacturers, which can lead to pricing pressure and reduced profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 5.24%
Debt Cost 5.30%
Equity Weight 94.76%
Equity Cost 8.04%
WACC 7.90%
Leverage 5.53%

11. Quality Control: Weyco Group, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Buckle

A-Score: 6.8/10

Value: 4.5

Growth: 3.9

Quality: 7.5

Yield: 10.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Weyco

A-Score: 6.5/10

Value: 7.4

Growth: 5.9

Quality: 7.1

Yield: 9.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Ethan Allen

A-Score: 6.2/10

Value: 6.1

Growth: 3.8

Quality: 6.4

Yield: 10.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Rocky Brands

A-Score: 5.1/10

Value: 7.8

Growth: 5.6

Quality: 5.4

Yield: 4.0

Momentum: 5.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Caleres

A-Score: 3.9/10

Value: 9.3

Growth: 3.7

Quality: 4.2

Yield: 4.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Vera Bradley

A-Score: 2.8/10

Value: 9.8

Growth: 0.7

Quality: 4.4

Yield: 0.0

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

30.81$

Current Price

30.81$

Potential

-0.00%

Expected Cash-Flows