Weyco Group 2025 Q2 Earnings Net Income Falls 60% Amid Revenue Decline

Weyco Group reported its fiscal 2025 Q2 earnings on August 7, 2025. The results fell short of prior performance, with both revenue and earnings slipping compared to the same quarter in 2024. While the company has maintained profitability for over two decades, it did not provide updated guidance or revise expectations, maintaining its focus on navigating current economic challenges.

Revenue
Weyco Group’s total revenue for Q2 2025 declined by 8.9% to $58.22 million, compared to $63.93 million in the prior-year period. This drop reflects continued challenges in the retail sector, driven by shifting consumer behavior and rising costs.

Earnings/Net Income
The company’s earnings per share (EPS) dropped significantly, falling 60.0% to $0.24 in Q2 2025 from $0.60 in Q2 2024. Similarly, net income fell to $2.26 million, a 59.8% decline from $5.61 million in the year-ago period. Despite the drop, Weyco Group has consistently reported profits in this quarter for more than 20 years, demonstrating operational resilience in difficult conditions.

Price Action
The stock of Weyco Group experienced mixed performance in the short term. Shares rose 1.10% on the most recent trading day and 0.96% over the past full week, but fell 12.62% over the month, reflecting investor caution in the current market environment.

Post-Earnings Price Action Review
A strategy of buying Weyco Group shares following the earnings report and holding for 30 days produced a 33.06% return, outperforming the steady but higher benchmark return of 44.35%. This generated a negative excess return of -11.29%, suggesting the strategy underperformed in relative terms. The approach, with a compound annual growth rate (CAGR) of 18.22%, is characterized by low volatility—marked by a maximum drawdown of 0.00%—and a Sharpe ratio of 0.43, indicating modest risk-adjusted returns.

CEO Commentary
Thomas W. Florsheim, Chairman and CEO, attributed the decline to external factors such as higher tariff costs and reduced consumer spending on discretionary items. He emphasized the company’s strong financial position as a strategic advantage in managing these pressures and maintaining long-term value for shareholders.

Guidance
The company did not provide updated revenue or EPS guidance for future periods, noting ongoing uncertainty in the broader economic environment and consumer sentiment.

Additional News
On August 5, 2025, Weyco Group, Inc. announced its second-quarter financial results for the quarter ended June 30, 2025. The report detailed a net sales decline to $58.2 million, down 9% year-over-year. While the company did not provide further details on specific business strategies or structural changes at the C-level, it reiterated its focus on operational flexibility and long-term growth. No announcements were made regarding mergers, acquisitions, dividends, or stock buybacks during the three-week period from July 25 to August 7, 2025.