Based on the 15-minute chart for Weyco Group, the RSI has reached an overbought level and Bollinger Bands have narrowed as of 08/11/2025 at 16:00. This indicates that the stock price has surged beyond what is supported by fundamental analysis, suggesting a potential reversal in the near future. Moreover, the decreasing magnitude of stock price fluctuations suggests that the stock is experiencing a period of consolidation.
Weyco Group, Inc. (WEYS) reported its second-quarter 2025 earnings on July 30, 2025, with the stock price gaining 1.7% since the announcement, outperforming the S&P 500’s 1% change over the same period. However, the stock has since declined 7.7% over the past month, underperforming the S&P 500’s 2.3% gain [1].
The company reported a second-quarter 2025 EPS of 24 cents, a 60% decrease from the prior-year quarter. Net sales fell 9% to $58.2 million, and net earnings plunged 60% to $2.3 million. Gross earnings as a percentage of net sales slipped to 43.3% from 43.9%, and earnings from operations decreased 42% to $3.9 million [1].
In the North American Wholesale segment, sales declined 9% to $45.6 million, with major brands experiencing weakness. Gross margin in this segment contracted to 37.6% from 38.2%, pressured by incremental tariffs. Wholesale operating earnings fell 30% to $4.1 million. In Retail, sales fell 11% to $6.8 million, driven by softer demand on the Florsheim and Stacy Adams websites. Retail operating earnings dropped to $0.1 million from $0.7 million. The “Other” category saw sales decline 4% to $5.8 million, with a $0.2 million operating loss compared to a $0.2 million profit a year earlier [1].
Chairman and CEO Thomas W. Florsheim described the quarter as being marked by “headwinds” from incremental tariffs and a pullback in consumer discretionary spending. Management emphasized the company’s strong financial position and efforts to reduce reliance on China by diversifying sourcing to countries such as Vietnam, Cambodia, and India [1].
The earnings decline was primarily driven by reduced consumer spending amid heightened economic uncertainty, compounded by higher import costs from tariffs. The China-specific tariff, which peaked at 145% in April 2025, temporarily eased to 30% in mid-May for a 90-day period ending Aug. 12, 2025. Additional tariffs on non-China imports remained at 10% during the quarter but are set to rise to 19–25% in August [1].
Management cautioned that they expect continued top-line pressure in the coming months, with ongoing challenges from tariffs and weak consumer sentiment. The second half of the year may also be affected by seasonal category softness, particularly in casual and dress footwear, as well as continued volume weakness in the BOGS brand [1].
On Aug. 5, 2025, Weyco’s board of directors declared a regular quarterly cash dividend of 27 cents per share, payable Sept. 30, 2025, to shareholders of record as of Aug. 18, 2025. The company continued its capital allocation program, using $3.1 million for share repurchases and approximately $0.7 million for capital expenditures during the first half of 2025 [1].
As of 08/11/2025 at 16:00, the 15-minute chart for Weyco Group indicated that the Relative Strength Index (RSI) had reached an overbought level and Bollinger Bands had narrowed, suggesting a potential reversal in the near future. The decreasing magnitude of stock price fluctuations also indicated a period of consolidation [2].
References:
[1] https://www.nasdaq.com/articles/weyco-q2-earnings-slide-y-y-tariff-demand-pressures
[2] (Provided Writing Topic)
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