Weyco Group's 15min Chart Triggers KDJ Death Cross, Bearish Marubozu Signal

Weyco Group's 15-minute chart has exhibited a KDJ Death Cross and a Bearish Marubozu pattern, which occurred on August 18th at 16:00. This indicates a shift in momentum towards a bearish trend, with the potential for further decreases in stock price. Sellers currently dominate the market, and it is likely that this bearish momentum will continue.

Weyco Group (NASDAQ: WEYS), a footwear manufacturer, has reported a challenging second quarter of 2025, marked by revenue and margin deterioration, largely due to retailer caution. The company remains heavily exposed to tariffs in China and India, with significant impacts on its financial performance [1].

The company's 2Q25 earnings highlighted a decline across all brands and channels, with legacy men's formal shoe brands showing decreases ranging from 5% to 11% and the muck boots brand BOGS down by 14%. The company attributed these declines to retailer caution and a secular decline in the men's formal footwear category [1].

Despite these challenges, Weyco Group maintained its gross margins, which were only down by 60 basis points despite a 10% fall in revenues. This resilience can be attributed to the company's variable cost structure, with no manufacturing and a significant wholesale component [1].

However, the company's exposure to tariffs remains substantial, with 60% of its footwear sourced from China. The recent increase in tariffs on China, already at 30%, is expected to impact Weyco's margins and demand in the second half of 2025. The company has also been impacted by tariffs in India, its second-largest sourcing country [1].

Operating income and net income halved year-over-year in 2Q25, signaling a risk of focusing solely on current earnings ratios when evaluating the stock's attractiveness. The company's valuation remains high, trading at a market cap of $285 million versus $25 million in TTM net income, despite $85 million in net cash and no debt [1].

The stock price for Weyco Group has been declining, ending at $29.31 on August 18, 2025, after losing 0.0341%. The stock has fallen for six consecutive days, with a total decline of -0.64% over the last 10 days. Technical indicators suggest further downward momentum, with a KDJ Death Cross and Bearish Marubozu pattern indicating a shift towards a bearish trend [2].

Weyco Group's stock is expected to fall by -4.76% over the next three months, with a 90% probability of holding a price between $26.86 and $31.61. The company has not provided guidance for the year, but analysts predict sales could decline by double digits or mid-teens across the board [1].

References:
[1] https://seekingalpha.com/article/4813419-weyco-is-exposed-to-tariffs-and-earnings-are-halving-but-the-stock-has-barely-adjusted
[2] https://stockinvest.us/stock/WEYS