Weyco Group Inc. reported sales slid 8.9 percent in the second quarter ended June 30, 2025, dragged down by a declines in its North America wholesale segment of 14 percent for Bogs, 11 percent for Nunn Bush, and 10 percent for Stacy Adams. Earnings were down sharply with margins hurt by the impact of tariffs.

Second Quarter 2025 Overview

  • Net sales: $58.2 million (down 8.9 percent from $63.9 million in Q2 2024)
  • Gross earnings: 43.3 percent of net sales (compared to 43.9 percent of net sales in Q2 2024)
  • Earnings from operations: $3.9 million (down 42 percent compared to $6.7 million in Q2 2024)
  • Provision for income taxes: $2.4 million (includes a $1.1 million adjustment)
  • Net earnings: $2.3 million (down 60 percent from $5.6 million in Q2 2024)
  • Diluted earnings per share: 24 cents (down from 59 cents in Q2 2024)

North American Wholesale Segment
Wholesale net sales were $45.6 million for the quarter, down 9 percent from $50.3 million in the second quarter of 2024. Sales of the Nunn Bush, Stacy Adams, Florsheim and BOGS brands were down 11 percent, 10 percent, 5 percent, and 14 percent, respectively, for the quarter, with sales down across most major categories. A slowdown in consumer spending amid economic uncertainty has prompted retailers to take a more cautious approach with buying and managing their inventories.

Wholesale gross earnings as a percent of net sales were 37.6 percent and 38.2 percent in the second quarters of 2025 and 2024, respectively. Gross margins were negatively impacted by the effects of incremental tariffs, discussed below. Wholesale selling and administrative expenses totaled $13.1 million for the quarter and $13.4 million last year. As a percent of net sales, wholesale selling and administrative expenses were 29 percent and 27 percent in the second quarters of 2025 and 2024, respectively. The increase in expenses as a percentage of net sales was because many of its operating costs are fixed and do not vary with sales. Wholesale operating earnings totaled $4.1 million for the quarter, down 30 percent from $5.8 million in 2024, due mainly to lower sales and gross margins.

Incremental Tariffs
In early 2025, the U.S. government enacted reciprocal and retaliatory tariffs (“incremental tariffs”) on goods imported into the United States. The incremental tariff on goods sourced from China, which is where Weyco sources most of its products, reached a high of 145 percent in April, but was temporarily reduced to 30 percent on May 12, 2025, for a 90-day period ending August 12, 2025. It has not yet been announced if the China tariff will change at that time. The incremental tariffs on goods the company sources from other countries, excluding China, were 10 percent throughout the second quarter of 2025. Effective August 7, 2025, the tariffs of three of those countries will increase to 19 – 25 percent.

Weyco said, “We have taken various measures to minimize the impact of the incremental tariffs on our gross margins. These measures included proactively bringing in a large amount of inventory ahead of the tariff effective dates, enabling us to temporarily halt our China imports while the incremental tariff rate was 145 percent. We negotiated factory cost reductions with several of our Chinese suppliers. We moved sourcing of certain footwear styles out of China and are continuing our efforts to diversify sourcing. Finally, as mentioned in the first quarter, we raised U.S. selling prices effective July 1, 2025.

“U.S. trade and tariff policies currently remain fluid and unpredictable, and the specific tariff rates applicable to goods imported by our company continue to evolve. Therefore, despite our mitigation efforts, uncertainty still exists regarding the potential near-term impact of incremental tariffs on our gross margins. We remain committed to adapting to changes in tariff policies and will adopt further mitigation strategies, as needed.”

North American Retail Segment
Net sales in its retail segment, which were generated mainly by its e-commerce websites, were $6.8 million, down 11 percent from $7.6 million in 2024. The decrease was primarily due to lower sales on the Florsheim and Stacy Adams websites, a result of lower consumer demand for footwear.

Retail gross earnings as a percent of net sales were 66.6 percent and 67.5 percent in the second quarters of 2025 and 2024, respectively. Retail operating earnings totaled $0.1 million for the quarter and $0.7 million in last year’s second quarter. The decrease was mainly due to lower sales and gross margins.

Other Operations
Weyco’s other operations historically included its retail and wholesale businesses in Australia, South Africa, and Asia Pacific (collectively, “Florsheim Australia”). Weyco said it ceased operations in the Asia Pacific region in 2023 and completed the wind down of that business in 2024. Accordingly, second quarter 2025 results of the “other” category only reflect the operations of Australia and South Africa.

Net sales of Florsheim Australia were $5.8 million, down 4 percent from $6.1 million in the second quarter of 2024. The weaker Australian dollar relative to the U.S. dollar contributed to the decrease, as Florsheim Australia’s net sales in local currency were down 2 percent for the quarter, driven by lower wholesale shipments.

Florsheim Australia’s gross earnings as a percent of net sales were 60.9 percent and 62.0 percent in the second quarters of 2025 and 2024, respectively. Florsheim Australia generated operating losses totaling $0.2 million for the quarter versus operating earnings of $0.2 million last year.

Provision for Income Taxes
Weyco’s effective tax rates for the second quarters of 2025 and 2024 were 51.1 percent and 25.1 percent, respectively. The increase this quarter was due to the establishment of a $1.1 million valuation allowance on deferred tax assets at Florsheim Australia, as it was determined more likely than not that these assets will not be realized.

“The tariff-environment created headwinds for our business in second quarter,” stated Thomas W. Florsheim, Chairman and CEO. “Consumers pulled back on discretionary spending which adversely impacted sales, and higher tariff-import costs set in, eroding our margins and reducing our profitability for the period. In the months ahead, we expect continued top-line pressure amid heightened economic uncertainty and reduced consumer sentiment. Our strong financial position provides us with stability and flexibility to navigate near-term uncertainties with confidence, allowing us to focus on our long-term goal of delivering profitable and sustainable growth to our shareholders.”

Dividend Declaration
On August 5, 2025, Weyco’s Board of Directors declared a regular quarterly cash dividend of $0.27 per share to all shareholders of record on August 18, 2025, payable September 30, 2025.

Image courtesy Bogs