Weyco Group, Inc. (WEYS) | Investment Case

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

Last Price	32.37
Change Percentage	0.56%
Open	31.71
Previous Close	32.19
Market Cap ( Millions)	309
Volume	5516
Year High	34.93
Year Low	25.51
M A 50	32.03
M A 200	31.1

FCF Yield	11.51%
Dividend Yield	9.51%
ROE	9.35%
Debt / Equity	2.69%
Net Debt / EBIDTA	-267.61%
Price To Book	1.28
Price Earnings Ratio	13.29
Price To FCF	8.69
Price To sales	1.12
EV / EBITDA	6.54

2. Weyco Group's 2025 Earnings: Navigating Tariffs and Consumer Sentiment

Weyco Group reported fourth quarter net sales of $76.8 million, a 5% decline from $80.5 million in 2024, with earnings from operations down 12% to $10.2 million. The company's gross margin was 44.1% of net sales, compared to 47.9% in 2024. Net earnings totaled $8.7 million, down 13% from $10 million last year. For the full year 2025, the company's overall sales were down 5%, with gross margins compressed by 200 basis points due to incremental tariffs. The actual EPS came out at $0.21, below estimates of $0.25.

Publication Date: Mar -06

                                    📋 Highlights
                                    Q4 Net Sales Decline::
                                                Net sales dropped 5% to $76.8M in Q4 2025 from $80.5M in 2024, with full-year sales also declining 5%.
Gross Margin Compression::
                                                Gross margin fell to 44.1% (vs. 47.9% in 2024), driven by 19-50% price hikes from US retaliatory tariffs and $16M in incremental tariff costs.
Florsheim Brand Growth::
                                                Florsheim achieved record $92M sales in 2025, a post-pandemic growth leader among non-athletic men’s footwear brands.
Wholesale & Retail Performance::
                                                North American wholesale sales fell 6% to $56.7M (Q4), while retail sales declined 5% quarterly and 8% annually.
Supply Chain Diversification::
                                                65-70% of products sourced from China, but the company diversified to Cambodia and Vietnam to mitigate tariff risks and enhance flexibility.

                                

Segment Performance

The North American wholesale segment net sales totaled $56.7 million for the quarter, down 6% from $60.4 million last year. The retail segment net sales declined 5% for the quarter and 8% for the year. In contrast, Florsheim Australia's net sales increased 12% for the quarter and 11% in local currency. The Florsheim brand achieved record sales of $92 million in 2025, driven by sustained post-pandemic growth.

Tariff Impact and Mitigation

The company faced significant challenges due to the U.S.-imposed retaliatory tariffs on imported goods, resulting in gross margin compression. The company paid approximately $16 million in incremental tariffs in 2025. According to Thomas W. Florsheim, the 10% price increase only covered a small percentage of the tariff, and the company is seeking a refund for the amounts paid through a lawsuit. The company has diversified its manufacturing base, sourcing around 65-70% of its products from China, but has also established a better footprint in Cambodia and Vietnam.

Valuation and Outlook

With a P/E Ratio of 12.85 and a Dividend Yield of 9.81%, Weyco Group's valuation suggests a relatively stable outlook. The company's ROE is 9.35%, indicating a decent return on equity. Given the challenges related to tariffs and consumer sentiment, the company's ability to maintain historical margins and adjust its pricing strategy will be crucial. The estimated 2026 annual capital expenditures are between $1 million and $3 million, indicating a cautious approach to investment.

3. NewsRoom

Weyco Group, Inc. (NASDAQ:WEYS) Short Interest Update

Mar -29

Source: defenseworld.net

A Shoe-Company Stock Is Snagging Headlines. Thank Tariffs—and President Trump

Mar -12

Source: investopedia.com

Weyco's Q4 Earnings Slid Y/Y as Tariffs and Soft Demand Weigh

Mar -09

Source:

Weyco Group Q4 Earnings Call Highlights

Mar -06

Source: defenseworld.net

Weyco Group, Inc. (WEYS) Q4 2025 Earnings Call Transcript

Mar -04

Source: seekingalpha.com

Weyco Reports Fourth Quarter And Full Year 2025 Results

Mar -03

Source: globenewswire.com

WEYCO Group, Inc. Fourth Quarter and Full Year 2025 Earnings Conference Call

Jan -15

Source: globenewswire.com

Weyco Group (NASDAQ:WEYS) Stock Crosses Below 200-Day Moving Average – Time to Sell?

Dec -25

Source: defenseworld.net

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

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

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Buckle

A-Score: 6.8/10

Value: 5.0

Growth: 4.0

Quality: 7.6

Yield: 10.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

Weyco

A-Score: 6.4/10

Value: 7.1

Growth: 5.9

Quality: 7.1

Yield: 10.0

Momentum: 3.0

Volatility: 5.0

1-Year Total Return ->

Ethan Allen

A-Score: 6.1/10

Value: 6.8

Growth: 3.8

Quality: 6.5

Yield: 10.0

Momentum: 2.5

Volatility: 7.0

1-Year Total Return ->

Rocky Brands

A-Score: 5.7/10

Value: 7.9

Growth: 5.6

Quality: 5.3

Yield: 4.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

Caleres

A-Score: 3.5/10

Value: 7.9

Growth: 3.7

Quality: 3.5

Yield: 3.0

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

Vera Bradley

A-Score: 2.9/10

Value: 10.0

Growth: 0.7

Quality: 4.0

Yield: 0.0

Momentum: 1.5

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-6.43%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.90%

Weyco Group, Inc. - US9621491003

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on WEYS

1.c. Company Highlights

Better Quality

Higher Yield

Medium Volatility

Revenues Beats

Stable Momentum

Strong Momentum

Average Growth

Fairly Valued

2. Weyco Group's 2025 Earnings: Navigating Tariffs and Consumer Sentiment

Segment Performance

Tariff Impact and Mitigation

Valuation and Outlook

3. NewsRoom

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%

Retail

Expected Growth: 4.5%

Other

Expected Growth: 4.5%

7. Detailed Products

Florsheim

Nunn Bush

Stacy Adams

Dr. Martens

BOGS

Rafters

8. Weyco Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

32.37$

Current Price

32.37$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA