Weyco Group's 15min chart triggers KDJ Golden Cross, bullish Marubozu signal.

Based on the 15-minute chart of Weyco Group, a bullish trend has been observed as evidenced by the KDJ Golden Cross and the Bullish Marubozu at 08/15/2025 14:30. This suggests that the momentum of the stock price is shifting in favor of an upward trend, with a potential for further increase. The dominance of buyers in the market indicates a bullish momentum that is likely to continue.

Weyco Group, Inc. (WEYS) reported its second-quarter 2025 earnings, revealing a mixed performance amidst ongoing tariff pressures and economic uncertainties. The company's stock has shown resilience, gaining 1.7% since the earnings report, despite a 7.7% decline over the past month [1].

Weyco's earnings per share (EPS) for the quarter ended June 30, 2025, were 24 cents, down from 59 cents in the prior-year quarter. Net sales fell by 9% to $58.2 million, and net earnings plunged by 60% to $2.3 million. Gross earnings as a percentage of net sales slipped to 43.3%, while earnings from operations decreased by 42% to $3.9 million [1].

The company's North American Wholesale segment saw a 9% sales decline, with major brands like Nunn Bush (-11%), Stacy Adams (-10%), Florsheim (-5%), and BOGS (-14%) experiencing weakness. The Retail segment also faced a 11% sales drop, driven by softer demand on the Florsheim and Stacy Adams websites. The "Other" category, which includes operations in Australia and South Africa, saw a 4% sales decline and a $0.2 million operating loss compared to a $0.2 million profit a year earlier [1].

Chairman and CEO Thomas W. Florsheim attributed the quarter's performance to "headwinds" from incremental tariffs and a pullback in consumer discretionary spending. He noted that cautious retailer buying and economic uncertainty are likely to persist in the near term. Management emphasized the company's strong financial position and efforts to reduce reliance on China by diversifying sourcing to countries like 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].

Weyco mitigated some cost pressures by pre-purchasing inventory, negotiating supplier cost reductions, shifting production out of China, and raising U.S. selling prices effective July 1, 2025. However, fixed operating costs became a larger percentage of sales due to the revenue decline [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].

Analysts and investors have been closely monitoring Weyco's performance and the potential impact of tariffs on the company's operations. Some analysts have maintained a Hold rating on the stock, citing the significant risks associated with tariffs and the company's exposure to a secularly declining category. Despite the challenges, Weyco's strong financial position and efforts to diversify sourcing may provide some resilience in the face of ongoing headwinds [2].

In conclusion, Weyco Group's Q2 2025 earnings reflect a mixed performance amidst tariff pressures and economic uncertainties. While the company's stock has shown resilience, the ongoing challenges and potential for further tariff increases may continue to impact Weyco's operations and financial performance.

References:
[1] https://www.nasdaq.com/articles/weyco-q2-earnings-slide-y-y-tariff-demand-pressures
[2] https://seekingalpha.com/article/4813419-weyco-is-exposed-to-tariffs-and-earnings-are-halving-but-the-stock-has-barely-adjusted