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Weyco Group (WEYS)
:WEYS

Weyco Group (WEYS) AI Stock Analysis

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Weyco Group

(NASDAQ:WEYS)

Rating:70Outperform
Price Target:
$34.00
▲(0.65%Upside)
Weyco Group's overall stock score of 70 reflects a balanced view between strong financial health and attractive valuation against a backdrop of mixed technical signals and challenges highlighted in the earnings call. The company's solid profitability margins and low leverage are significant positives, while the uncertain impact of tariffs and sales declines pose risks. Valuation metrics suggest the stock is undervalued, which supports the overall score.

Weyco Group (WEYS) vs. SPDR S&P 500 ETF (SPY)

Weyco Group Business Overview & Revenue Model

Company DescriptionWeyco Group, Inc. designs and distributes footwear for men, women, and children. It operates through two segments, North American Wholesale Operations and North American Retail Operations. The company offers mid-priced leather dress shoes and casual footwear of man-made materials or leather; and outdoor boots, shoes, and sandals under the Florsheim, Nunn Bush, Stacy Adams, BOGS, and Rafters brand names. It is also involved in the wholesale of its products to approximately 10,000 footwear, department, and specialty stores, as well as e-commerce retailers. As of December 31, 2021, the company had four brick and mortar retail stores in the United States. In addition, it has licensing agreements with third parties, who sell its branded apparel, accessories, and specialty footwear. It serves in the United States, Canada, Europe, Australia, Asia, and South Africa. The company was formerly known as Weyenberg Shoe Manufacturing Company and changed its name to Weyco Group, Inc. in April 1990. Weyco Group, Inc. was incorporated in 1906 and is based in Milwaukee, Wisconsin.
How the Company Makes MoneyWeyco Group generates revenue through the sale of its footwear products via multiple distribution channels. The company's primary revenue stream is its wholesale operations, which involve selling footwear to department stores, specialty retailers, and online marketplaces. Additionally, Weyco Group operates its own retail outlets and e-commerce platforms, providing direct-to-consumer sales that contribute to its earnings. Strategic partnerships with retailers and a diversified brand portfolio allow the company to capitalize on various consumer segments. The company's financial performance is also influenced by factors such as seasonal fashion trends, consumer purchasing behavior, and economic conditions affecting discretionary spending.

Weyco Group Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 12.60%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were some positive achievements such as strong performance in the Florsheim brand, improvement in retail gross earnings, and a strong cash position, these were countered by significant declines in net sales, wholesale and retail segments, and challenges posed by increased tariffs. The company is navigating these challenges with strategic actions like diversifying its supply chain, but the uncertain impact of tariffs on future costs remains a concern.
Q1-2025 Updates
Positive Updates
Florsheim Brand Performance
Florsheim's performance was particularly strong with the brand up 7% in a challenging environment, gaining market share across various categories.
Retail Gross Earnings Improvement
Retail gross earnings as a percent of net sales improved to 66.6% from 65.3% in the first quarter of 2024.
Strong Cash Position
Cash and marketable securities totaled $77.9 million with no debt outstanding on a $40 million revolving line of credit.
Dividend Increase
A cash dividend of $0.27 per share was declared, representing a 4% increase over the previous rate of $0.26.
Florsheim Australia's Retail Growth
Florsheim Australia saw an 11% increase in same-store retail sales despite economic headwinds.
Negative Updates
Decrease in Net Sales
Overall net sales for the first quarter of 2025 were $68 million, down 5% compared to the first quarter of 2024.
Wholesale and Retail Segment Declines
Net sales in the North American wholesale segment decreased by 4%, and retail segment sales were down 12%.
Operating Earnings Decline
Operating earnings totaled $7 million, down 15% from the first quarter of 2024.
Tariff Impact on Costs
The effective total tariff rate on goods sourced from China increased to 161% from 16% in 2024, potentially increasing future costs.
Decline in Legacy Brands
Stacy Adams and Nunn Bush brands were down 7% and 16% respectively, reflecting softness in non-athletic footwear.
Inventory Challenges
Inventory levels were higher than normal due to expedited shipments before tariff increases, which may impact future operations.
Company Guidance
During the first quarter of 2025, Weyco Group faced a challenging economic environment, resulting in a 5% decline in net sales to $68 million compared to the same quarter in 2024. The company's consolidated gross earnings were 44.6% of net sales, slightly down from 44.7% last year. Operating earnings dropped 15% to $7 million, and net earnings decreased to $5.5 million or $0.57 per diluted share from $6.7 million or $0.69 per share in the previous year. The North American wholesale segment experienced a 4% decline in net sales to $54.3 million, while retail segment sales fell 12% to $8.7 million. Florsheim Australia's sales also decreased by 7% to $5.1 million, influenced by currency fluctuations and the closure of operations in the Asia Pacific region. Despite these challenges, the company is implementing strategies to mitigate the impact of increased tariffs, including diversifying its supply chain and adjusting product pricing. The Board of Directors declared a cash dividend of $0.27 per share, a 4% increase from the prior rate. At the end of the quarter, Weyco Group had $77.9 million in cash and marketable securities, with no debt on its revolving credit line.

Weyco Group Financial Statement Overview

Summary
Weyco Group demonstrates solid financial health with strong profitability margins, high equity ratio, and low leverage. While revenue and free cash flow have shown slight declines, the company maintains efficient operations and strong cash generation capabilities.
Income Statement
75
Positive
Weyco Group shows strong profitability with a Gross Profit Margin of 45.30% and a Net Profit Margin of 10.19% for TTM (Trailing-Twelve-Months). However, there is a slight decline in revenue with a Revenue Growth Rate of -1.22% from the previous annual period. The company maintains healthy EBIT and EBITDA Margins of 12.34% and 14.04% respectively, indicating operational efficiency. Despite the revenue shrinkage, overall margins remain robust.
Balance Sheet
80
Positive
The company's balance sheet is strong, with a low Debt-to-Equity Ratio of 0.05, indicating minimal leverage risk. The Return on Equity (ROE) is a solid 11.75%, reflecting good profitability from shareholders' investments. Additionally, the Equity Ratio stands at 83.03%, showcasing a high level of financial stability and low risk of insolvency.
Cash Flow
70
Positive
Weyco Group's cash flow is stable, with a Free Cash Flow Growth Rate of -28.75% compared to the previous year, primarily due to decreased operating cash flow. However, the company maintains a strong Operating Cash Flow to Net Income Ratio of 0.94 and a Free Cash Flow to Net Income Ratio of 0.89, indicating good cash generation relative to its net income. Despite the decline in free cash flow, the underlying cash flow metrics remain healthy.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue286.76M290.29M318.05M351.74M267.64M195.38M
Gross Profit129.89M131.53M142.88M144.39M107.45M78.56M
EBITDA40.26M42.53M44.17M43.17M30.15M-3.84M
Net Income29.21M30.32M30.19M29.54M20.55M-8.48M
Balance Sheet
Total Assets256.72M324.09M309.34M326.62M277.67M256.72M
Cash, Cash Equivalents and Short-Term Investments34.69M71.81M69.53M18.37M28.05M34.69M
Total Debt11.98M11.07M13.51M45.82M11.11M11.98M
Total Liabilities68.79M78.50M64.85M102.72M76.27M68.79M
Stockholders Equity187.93M245.59M244.49M223.91M201.40M187.93M
Cash Flow
Free Cash Flow25.89M36.34M95.32M-32.25M5.38M36.61M
Operating Cash Flow27.52M37.73M98.63M-29.90M6.39M39.98M
Investing Cash Flow-1.63M-1.17M-1.24M7.43M-7.00M3.16M
Financing Cash Flow-30.77M-32.22M-45.34M20.27M-11.87M-20.89M

Weyco Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price33.78
Price Trends
50DMA
30.98
Positive
100DMA
31.35
Positive
200DMA
32.47
Positive
Market Momentum
MACD
0.45
Negative
RSI
64.14
Neutral
STOCH
93.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEYS, the sentiment is Positive. The current price of 33.78 is above the 20-day moving average (MA) of 31.58, above the 50-day MA of 30.98, and above the 200-day MA of 32.47, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 64.14 is Neutral, neither overbought nor oversold. The STOCH value of 93.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WEYS.

Weyco Group Risk Analysis

Weyco Group disclosed 17 risk factors in its most recent earnings report. Weyco Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Weyco Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$1.78B10.5919.51%3.42%10.17%-4.71%
71
Outperform
$166.76M12.175.97%2.77%-2.01%2.08%
70
Outperform
$323.57M11.1311.76%3.20%-5.46%-1.09%
WWWWW
68
Neutral
$1.50B20.9025.29%2.16%-13.05%
66
Neutral
£1.85B11.466.20%2.99%0.64%-17.57%
CACAL
66
Neutral
$423.81M5.2413.67%2.23%-4.84%-49.08%
VRVRA
45
Neutral
$58.66M-36.91%-24.95%-1959.79%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WEYS
Weyco Group
33.78
6.84
25.39%
RCKY
Rocky Brands
22.35
-11.60
-34.17%
SHOO
Steven Madden
24.56
-15.98
-39.42%
VRA
Vera Bradley
2.10
-3.86
-64.77%
WWW
Wolverine World Wide
18.53
5.59
43.20%
CAL
Caleres
12.54
-19.55
-60.92%

Weyco Group Corporate Events

Executive/Board ChangesShareholder Meetings
Weyco Group Holds Annual Shareholders Meeting
Neutral
May 9, 2025

On May 6, 2025, Weyco Group held its Annual Meeting of Shareholders. During the meeting, six directors were elected to the Board for terms expiring in 2026. Additionally, shareholders ratified the appointment of Deloitte & Touche, LLP as the independent registered public accounting firm for the year ending December 31, 2025, and approved the compensation of the company’s named executive officers.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 24, 2025