Weyco Group, Inc. — Cyborg Score 5/10

Mixed
Footwear Design, Marketing & Distribution

Strategic Profile

The company operates through North American wholesale and retail segments. Weyco faces significant challenges from new U.S. tariffs on Chinese imports, and is negotiating with suppliers, planning price increases, and diversifying sourcing.

Cyborg Score Rationale

Q1 2025 showed net sales decreasing 5% to $68.0 million and net earnings falling 17% to $5.5 million. Full-year 2024 delivered record net earnings of $30.3 million despite 9% sales decline. Strong fundamentals are offset by tariff pressures and 2025 headwinds.

Top Insights

  • U.S. tariffs on Chinese imports increased from 16% to 161%, creating significant margin pressure.
  • Board declared a 4% increase in quarterly dividend to $0.27 per share, signaling confidence in cash generation.
  • Florsheim sales grew 22% in Q4 2024 while BOGS declined 17% due to warm weather sensitivity.
  • Special one-time cash dividend of $2.00 per share reflects strong balance sheet with excess cash beyond operational needs.

Named Competitors

  • Footwear & Outdoor Retail — Large diversified footwear manufacturer and retailer
  • Footwear Design & Retail — Work boots and outdoor footwear specialist
  • Footwear Design & Retail — Designer and licensed footwear retailer

Recent Developments

  • (May 2025) Q1 2025 sales declined 5% to $68.0 million with net earnings down 17% year-over-year
  • (March 2025) Q4 2024 results showed flat sales at $80.5 million but net earnings up 17% to $10.0 million
  • (November 2024) Special one-time cash dividend of $2.00 per share announced

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