Weyco Group, Inc. reported a slight decline in sales in the third quarter, impacted by a 17 percent decline in wholesale sales at Bogs and cancellations from one major retail partner tied to Weyco’s moves to raise prices to offset tariffs. Earnings down slightly as margins were pressured by tariffs.

Third Quarter 2025 Overview

  • Net sales: $73.1 million (down 2 percent from $74.3 million in Q3 2024)
  • Gross earnings: 40.7 percent of net sales (compared to 44.3 percent of net sales in Q3 2024)
  • Earnings from operations: $8.1 million (down 21 percent compared to $10.2 million in Q3 2024)
  • Net earnings: $6.6 million (down 18 percent from $8.1 million in Q3 2024)
  • Diluted earnings per share: $0.69 (down from $0.84 in Q3 2024)

North American Wholesale Segment
Wholesale net sales were $60.2 million for the quarter, down 2 percent from $61.1 million in the third quarter of 2024. Sales volumes were down 7 percent for the quarter, but selling price increases instituted on July 1, 2025, helped mitigate the impact of the volume decline. The volume decline was primarily due to reduced business with a large customer that failed to adopt its new pricing structure in a timely manner, resulting in order cancellations during the period. These cancellations adversely affected the sales performance of all its major brands for the quarter.

At the brand level, Bogs’ 17 percent decline marked the worst performance among brands. Florsheim posted an 8 percent sales increase for the quarter, driven by favorable pricing. Florsheim’s sales volumes were flat for the quarter, as its growth in the dress shoe category helped sustain volume levels. Stacy Adams’ sales were down 5 percent for the quarter, primarily due to lower sales volumes. Nunn Bush sales were up 1 percent for the period, as selling price increases more than offset the brand’s decline in volume.

Wholesale gross earnings as a percentage of net sales were 35.7 percent and 40.1 percent in the third quarters of 2025 and 2024, respectively. Gross margins for the quarter were negatively impacted by incremental tariffs. 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 $14.0 million for the quarter and $15.1 million last year. The decrease was primarily due to lower employee costs. As a percentage of net sales, wholesale selling and administrative expenses were 23 percent and 25 percent in the third quarters of 2025 and 2024, respectively. Wholesale operating earnings totaled $7.5 million for the quarter, down 20 percent from $9.4 million in 2024, due to lower sales volumes and margin erosion.

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, where most of its products originate, remained at 30 percent throughout the third quarter of 2025. This tariff rate is scheduled to be re-evaluated on or before November 10, 2025. The U.S. and China recently engaged in high-level trade talks, and in late October reached a tentative framework agreement which, among other things, contemplates a reduction in U.S. tariffs on certain Chinese goods. As a result of this agreement, Weyco said the previously scheduled tariff re-evaluation remains subject to change and the ultimate tariff rate remains uncertain. The incremental tariffs on goods sourced from countries other than China, excluding China, ranged from 10 percent to 50 percent throughout the third quarter of 2025. U.S. trade and tariff policies currently remain fluid and unpredictable, and the specific tariff rates applicable to goods imported by the company continue to evolve. As such, Weyco said there is significant ongoing uncertainty regarding the potential near-term impact of incremental tariffs on its gross margins. Weyco said, “We have implemented various mitigation strategies, and remain committed to adopting further strategies, as needed, in response to future policy developments.”

Forsake
Weyco said that during the third quarter of 2025, it made the strategic decision to wind down operations of the Forsake brand, due to its sustained lack of growth and profitability. The closure of this brand is not expected to have a material impact on our consolidated financial statements. Weyco acquired Forsake in 2021, and the brand subsequently joined Bogs in forming Weyco’s outdoor division, headquartered in Portland, OR.

North American Retail Segment
Net sales in Weyco’s retail segment, primarily generated through its e-commerce websites, totaled $7.0 million for the quarter, down 4 percent from $7.2 million in the same period in 2024. Weyco said the decline was primarily due to softer demand on its Florsheim and Stacy Adams websites, amid the tepid retail environment. Although selling price increases were implemented, heightened price sensitivity among consumers contributed to a shift in purchasing behavior toward lower-price alternatives, both on its websites and on other, more promotional websites.

Retail gross earnings as a percentage of net sales were 66.4 percent and 66.9 percent in the third quarters of 2025 and 2024, respectively. Retail operating earnings totaled $0.6 million for the quarter and $0.8 million in last year’s third quarter. The decrease was primarily due to lower sales volumes.

Other Operations
Other operations consist of Weyco’s retail and wholesale businesses, primarily based in Australia, with a limited presence in South Africa (collectively, “Florsheim Australia”). Net sales of Florsheim Australia remained flat at $6.0 million in both the third quarters of 2025 and 2024. In local currency, Florsheim Australia’s net sales were up 2 percent for the quarter, driven by growth in its retail businesses. Florsheim Australia’s gross earnings as a percentage of net sales were 61.0 percent and 59.2 percent in the third quarters of 2025 and 2024, respectively. Florsheim Australia generated operating losses totaling $0.1 million for the quarter and breakeven results for the third quarter of last year.

“Sales for the quarter declined modestly, primarily due to a pricing issue with a large wholesale customer partially offset by the impact of planned price increases,” stated Thomas W. Florsheim, Jr., chairman and CEO. “Despite price increases, our margins compressed due to the costly imposition of incremental tariffs. The volatile tariff environment has also introduced short-term disruptions within our supply chain, and we are actively pursuing long-term mitigation strategies to overcome these challenges. These strategies include shifting our sourcing in alignment with evolving tariff policies, optimizing our pricing structure, and enhancing operational efficiencies. We remain confident that these efforts will strengthen our resilience and position the company for sustained profitability.”

Dividend Declarations
On November 4, 2025, Weyco’s Board of Directors declared a regular quarterly cash dividend of $0.27 per share to all shareholders of record on November 17, 2025, payable January 9, 2026. Additionally, as announced in a separate news release, on November 4, 2025, the company’s Board of Directors declared a special cash dividend of $2.00 per share to all shareholders of record on November 17, 2025, payable January 9, 2026.

“We are pleased to announce this return of capital to shareholders,” stated Thomas W. Florsheim, Jr., Chairman and CEO. “Over the past few years, we have built up cash in excess of what we need to fund operations and capital expenditures. Looking to the future, we anticipate that our strong balance sheet and liquidity will allow us to fund organic growth and pursue future strategic opportunities as they arise. Therefore, we are returning capital to our shareholders in the form of a special cash dividend alongside our regular quarterly dividend.”

Image courtesy Weyco Group / Florsheim