Weyco Shares Increase 13% Despite Year-over-Year Decline in Q3 Earnings Due to Tariffs
Earnings Performance: Weyco Group, Inc. reported a decline in earnings per share to 69 cents for Q3 2025, down from 84 cents in Q3 2024, with net sales of $73.1 million reflecting a 2% decrease year-over-year, primarily due to tariffs and lower sales volume.
Segment Analysis: The North American wholesale segment saw a 2% drop in sales to $60.2 million, impacted by a key customer issue, while the retail segment's sales fell 4% to $7 million due to weaker demand on e-commerce platforms.
Tariff Impact and Strategy: CEO Thomas Florsheim Jr. highlighted the adverse effects of tariffs, particularly a 30% tariff on Chinese imports, and outlined long-term strategies to diversify manufacturing and mitigate tariff exposure.
Dividend Declaration and Financial Position: The Board declared a special cash dividend of $2.00 per share, alongside a regular dividend, reflecting Weyco's strong liquidity with $78.5 million in cash and no debt, while also announcing the winding down of the Forsake brand to optimize its portfolio.
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- Earnings Announcement: WEYCO Group plans to release its fourth quarter and full year 2025 financial results after market close on March 3, 2026, which is expected to provide investors with critical financial data and future outlook.
- Conference Call Details: CEO Thomas W. Florsheim, Jr. will host a conference call on March 4, 2026, at 11:00 a.m. Eastern Time to discuss the financial results in detail, enhancing transparency and engaging with investors.
- Pre-registration Requirement: Participants must pre-register online to join the call, with a simple process that ensures attendees receive the necessary call-in number and passcode, thereby increasing participation rates.
- Replay Availability: A replay of the call will be available approximately two hours after its conclusion and will last for one year, allowing investors who cannot attend live to access important information, thus enhancing communication channels between the company and its investors.
U.S. Stock Futures: U.S. stock futures showed mixed results, with Dow futures down approximately 0.1% on Monday morning.
Xpeng Inc Financial Results: Xpeng Inc reported a quarterly revenue of 20.38 billion Chinese yuan ($2.86 billion), a 101.8% increase year-over-year, but fell short of the $2.87 billion forecast, leading to a 3.6% drop in pre-market trading.
Other Stocks Declining: Several stocks experienced declines in pre-market trading, including Plug Power Inc (-6.1%), Lexicon Pharmaceuticals Inc (-6%), and Dell Technologies Inc (-4.7%) after a downgrade by Morgan Stanley.
Market Overview: The overall market sentiment appears cautious, with various companies reporting losses and analysts adjusting their ratings, indicating potential challenges ahead.

Earnings Performance: Weyco Group, Inc. reported a decline in earnings per share to 69 cents for Q3 2025, down from 84 cents in Q3 2024, with net sales of $73.1 million reflecting a 2% decrease year-over-year, primarily due to tariffs and lower sales volume.
Segment Analysis: The North American wholesale segment saw a 2% drop in sales to $60.2 million, impacted by a key customer issue, while the retail segment's sales fell 4% to $7 million due to weaker demand on e-commerce platforms.
Tariff Impact and Strategy: CEO Thomas Florsheim Jr. highlighted the adverse effects of tariffs, particularly a 30% tariff on Chinese imports, and outlined long-term strategies to diversify manufacturing and mitigate tariff exposure.
Dividend Declaration and Financial Position: The Board declared a special cash dividend of $2.00 per share, alongside a regular dividend, reflecting Weyco's strong liquidity with $78.5 million in cash and no debt, while also announcing the winding down of the Forsake brand to optimize its portfolio.
Zacks Research Daily Highlights: Today's report features research on 12 major stocks, including Boston Scientific, Union Pacific, and Realty Income, with a focus on unique insights into micro-cap stock Weyco Group.
Boston Scientific Performance: The company has shown strong growth in its MedSurg and Cardiovascular lines, despite macroeconomic challenges, with a notable 94% growth in its Electrophysiology arm in Q2.
Union Pacific Challenges: Facing a soft freight market and reduced consumer sentiment, Union Pacific is cutting costs and maintaining dividends while struggling with revenue weakness due to geopolitical and economic pressures.
Realty Income Stability and Concerns: Realty Income benefits from a stable portfolio of essential goods but faces challenges from growing e-commerce and market uncertainties, impacting its single-tenant asset exposure.
Walmart's Performance: Walmart's shares have increased by 13.4% year-to-date, benefiting from a strong omnichannel strategy and growth in e-commerce, although it faces challenges with rising operating expenses and tariff issues.
Alibaba's Growth: Alibaba's stock has surged 73.9% this year, with significant revenue growth in its e-commerce and cloud segments, but it faces competitive pressures and macroeconomic uncertainties that have impacted adjusted earnings.
Shell's Stability: Shell's shares have outperformed its industry, supported by cost savings and strategic projects like LNG Canada, but it faces revenue declines and ESG concerns due to a slower transition to renewables.
Micro-Cap Stocks Overview: Omega Flex and Weyco Group have underperformed their respective industries, facing challenges like rising costs and weak demand, but both maintain strong balance sheets and strategies for potential growth.
Stock Ratings Update: Validea's Small-Cap Growth Investor model, based on Motley Fool's strategy, has upgraded ratings for several small-cap stocks including California Bancorp (BCAL), Yalla Group Ltd (YALA), and Weyco Group Inc (WEYS), reflecting improved fundamentals and valuations.
Company Profiles: California Bancorp provides a range of financial services in California; Yalla Group operates a voice-centric social networking platform in the MENA region; and Weyco Group designs and distributes footwear under various brand names, highlighting their diverse business operations.









