Weyco Group, Inc.’s earnings declined 13 percent in the fourth quarter ended December 31 as sales declined 6 percent at its Bogs outdoor brand with steeper declines seen at its Nunn Bush and Stacy Adams dress brands. Florsheim sales decreased 1 percent for the quarter. Gross margins eroded due to tariffs.

Fourth Quarter 2025 Overview

  • Net sales: $76.8 million (down 5 percent from $80.5 million in Q4 2024)
  • Gross earnings: 44.1 percent of net sales (compared to 47.9 percent of net sales in Q4 2024)
  • Earnings from operations: $10.2 million (down 12 percent compared to $11.5 million in Q4 2024)
  • Net earnings: $8.7 million (down 13 percent from $10.0 million in Q4 2024)
  • Diluted earnings per share: $0.91 (down from $1.04 in Q4 2024)

North American Wholesale Segment
Wholesale net sales were $56.7 million for the quarter, down 6 percent from $60.4 million in the fourth quarter of 2024. Sales were down due to lower shipping volumes, partially mitigated by its July 1, 2025 price increases. Sales of Weyco’s Nunn Bush and Stacy Adams brands were both down 13 percent for the quarter, with sales volumes down across most trade channels amid ongoing uncertainty in the retail environment caused by tariffs and price increases. Bog sales declined 6 percent for the quarter due to a reduction in pairs shipped, a reflection of continued softness in the seasonal footwear category, and Florsheim sales decreased 1 percent for the quarter.

Wholesale gross earnings as a percent of net sales were 37.2 percent and 42.4 percent in the fourth quarters of 2025 and 2024, respectively. Gross margins for the quarter were negatively impacted by incremental tariffs, as discussed below. Although selling price increases helped mitigate the effect of these tariffs, they did not fully offset the resulting costs, leading to margin erosion for the period. Wholesale selling and administrative expenses totaled $12.7 million, or 23 percent of net sales, for the quarter versus $16.7 million, or 28 percent of net sales, last year. The decreases were largely due to lower employee costs in 2025. Wholesale operating earnings totaled $8.4 million for the quarter, down 6 percent from $8.9 million in 2024, due to lower sales volumes and gross margins.

North American Retail Segment
Net sales in Weyco’s retail segment, which were generated mainly through its e-commerce websites, totaled $13.3 million for the quarter, down 5 percent from $14.1 million in 2024. Fourth quarter 2025 sales were negatively impacted by an increase in sales reserves related to our e-commerce businesses.

Retail gross earnings as a percent of net sales were 64.3 percent and 65.0 percent in the fourth quarters of 2025 and 2024, respectively. Retail operating earnings totaled $1.9 million for the quarter and $2.5 million in last year’s fourth quarter. The decrease was primarily due to the sales reserve adjustment described above.

Other Operations
Other operations consist of Weyco’s retail and wholesale businesses in Australia and South Africa (collectively, “Florsheim Australia”). Net sales of Florsheim Australia were $6.8 million in the fourth quarter of 2025, up 12 percent from $6.0 million in 2024. In local currency, Florsheim Australia’s net sales were up 11 percent for the quarter, driven by growth in both its wholesale and retail businesses. Florsheim Australia’s gross earnings as a percent of net sales were 61.5 percent and 62.5 percent in the fourth quarters of 2025 and 2024, respectively. Its quarterly operating losses totaled $0.1 million in 2025 compared to operating earnings of $0.1 million for 2024.

Incremental Tariffs
In early 2025, the U.S. imposed reciprocal and retaliatory (“incremental”) tariffs on imported goods. Throughout 2025, incremental tariffs increased the cost of Weyco’s products by 19 percent to 50 percent, resulting in gross margin compression.

On February 20, 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs, invalidating the statutory basis for incremental tariffs enacted since February 2025. The matter has been remanded to the Court of International Trade for further proceedings, including issues relating to implementation and potential refunds. We paid approximately $16 million of incremental tariffs in 2025. In December 2025, we filed a lawsuit seeking a refund for amounts paid in connection with the incremental tariffs imposed pursuant to IEEPA.

The President responded to the ruling by announcing the implementation of a 10 percent across-the-board tariff under a separate statutory authority. The Administration has indicated that rates could be increased, subject to statutory limits. Certain other tariffs imposed under authorities independent of IEEPA remain in effect. U.S. trade policies remain fluid and unpredictable, creating near-term gross margin uncertainty. We have mitigation strategies in place and will continue to adjust as needed in response to future policy developments.

Full Year 2025 Overview

  • Net sales: $276.2 million (down 5 percent from $290.3 million in 2024)
  • Gross earnings: 43.2 percent of net sales (compared to 45.3 percent of net sales in 2024)
  • Earnings from operations: $29.2 million (down 20 percent compared to $36.6 million in 2024)
  • Effective tax rate: 28.0 percent (compared to 23.9 percent in 2024)
  • Net earnings: $23.1 million (down 24 percent from $30.3 million in 2024)
  • Diluted earnings per share: $2.41 (down from $3.16 in 2024)

North American Wholesale Segment
Wholesale net sales were $216.8 million in 2025, down 5 percent compared to sales of $227.9 million in 2024. Sales of its Florsheim brand were a record $92.0 million, up 2 percent over 2024, driven by increased sales of dress and hybrid footwear. Sales of the Nunn Bush, Stacy Adams, and Bogs brands were down 10 percent, 9 percent and 11 percent, respectively, for the year, a result of lower demand. Additionally, Weyco’s major brands were adversely affected by a large customer who failed to timely adopt our new pricing structure in the third quarter of 2025, negatively impacting sales for the period.

Wholesale gross earnings as a percent of net sales were 37.5 percent in 2025 and 40.2 percent in 2024. Gross margins for the year were negatively impacted by incremental tariffs, discussed above. Wholesale selling and administrative expenses totaled $54.6 million for the year and $60.1 million last year. The decrease was largely due to lower employee costs. As a percent of net sales, wholesale selling and administrative expenses were 25 percent and 26 percent in 2025 and 2024, respectively. Wholesale operating earnings totaled $26.6 million for 2025, down 16 percent from $31.5 million in 2024, due to lower sales volumes and gross margins.

North American Retail Segment
Retail net sales were $35.7 million in 2025, down 8 percent from a record $38.7 million in 2024. The decrease was primarily due to lower direct-to-consumer sales of Florsheim, BOGS and Stacy Adams footwear. BOGS website sales were also impacted by fewer promotional activities in 2025.

Retail gross earnings as a percent of net sales were 65.7 percent and 65.9 percent in 2025 and 2024, respectively. Retail operating earnings totaled $3.3 million for 2025 and $5.3 million last year. The decrease was primarily due to lower sales volumes.

Other Operations
Florsheim Australia’s net sales remained relatively flat at $23.7 million and $23.6 million in 2025 and 2024, respectively. In local currency, Florsheim Australia’s net sales were up 2 percent for the year, driven by growth in its retail businesses. Florsheim Australia’s gross earnings as a percentage of net sales were 61.5 percent and 61.0 percent in 2025 and 2024, respectively. Florsheim Australia generated operating losses totaling $0.7 million for 2025 and $0.2 million in 2024.

Provision for Income Taxes
Weyco’s effective tax rates for 2025 and 2024 were 28.0 percent and 23.9 percent, respectively. This year’s income tax provision included a charge to establish a valuation allowance on Florsheim Australia’s deferred tax assets. Last year’s tax provision was reduced due to deductions related to share-based compensation.

Dividend Declarations
On March 3, 2026, Weyco’s Board of Directors declared a quarterly cash dividend of $0.27 per share to all shareholders of record on March 13, 2026, payable March 31, 2026.

Management Commentary
“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,” stated Thomas W. Florsheim, Jr., chairman and CEO. “In contrast, our other brands faced headwinds stemming from soft consumer demand and retailers’ cautious approach to inventory investment amid an unstable retail environment impacted by tariffs. Lower sales combined with incremental tariff costs pressured our margins for the period. Despite these challenges, we are pleased to have maintained profitability through planned price increases and cost-management actions taken throughout the year. Entering 2026, we are prioritizing financial oversight and operational discipline to reposition our brands and business lines for renewed growth while protecting long-term profitability.”

Image courtesy Bogs