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Dec 31, 2025
Weyco Q4 2025 Earnings Report
Weyco Q4 2025 Earnings Report
Key Takeaways
Weyco Group faced a challenging fourth quarter with net sales declining 5% and net earnings dropping 13% due to soft consumer demand and significant gross margin compression from incremental tariffs. Despite these headwinds, the Florsheim brand remained a bright spot, and the company maintained profitability through price increases and cost-management actions.
Net sales decreased 5% to $76.8 million in Q4 2025, driven by lower shipping volumes in the North American Wholesale and Retail segments.
Gross margin contracted from 47.9% to 44.1% primarily due to incremental tariffs on Chinese imports, which increased product costs by 19% to 50%.
The U.S. Supreme Court invalidated the statutory basis for the incremental tariffs in February 2026, though a new 10% across-the-board tariff has been announced.
Florsheim Australia was a growth driver with net sales up 12% for the quarter, while North American brands Nunn Bush and Stacy Adams saw 13% declines.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company is prioritizing financial oversight and operational discipline to reposition brands for growth while navigating a fluid and unpredictable U.S. trade policy environment.
Positive Outlook
- Invalidation of IEEPA-based incremental tariffs by the Supreme Court.
- Potential for refunds on approximately $16 million in tariffs paid in 2025.
- Continued momentum in the Florsheim dress-shoe category.
- Successful implementation of price increases to mitigate cost pressures.
- Strong cash position with $96 million in cash and no debt.
Challenges Ahead
- Implementation of a new 10% across-the-board tariff by the Administration.
- Uncertainty regarding potential future tariff rate increases.
- Ongoing soft consumer demand in seasonal footwear (BOGS).
- Retailers maintaining a cautious approach to inventory investment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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