Weyco (WEYS) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, March 4, 2026 astatine 11:19 AM CST 21 min read

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Wednesday, March 4, 2026 astatine 11 a.m. ET

• Chairman and CEO — Thomas W. Florsheim

• Chief Financial Officer — Judy Anderson

Overall nett income for 2025 were $76,800,000, down 5% compared to $80,500,000 successful 2024. Consolidated gross net were 44.1% of nett income compared to 47.9% of nett income successful 2024. Earnings from operations were $10,200,000 for the quarter, down 12% from $11,500,000 successful 2024. Net net totaled $8,700,000 for the quarter, down 13% from $10,000,000 past year. Diluted net per stock were $0.91 per stock successful 2025 compared to $1.04 per stock successful the anterior year's 4th quarter. Net income successful our North American wholesale conception totaled $56,700,000 for the quarter, down 6% from $60,400,000 past year. Sales were down owed to little shipping volumes, partially mitigated by our July 1, 2025 terms increases.

Wholesale gross net arsenic a percent of nett income were 37.2% and 42.4% successful 2025 and 2024, respectively. Gross margins for the 4th were negatively impacted by incremental tariffs. Although selling terms increases helped mitigate the effects of these tariffs, they did not afloat offset the resulting costs, starring to borderline erosion for the period. Wholesale selling and administrative expenses totaled $12,700,000, oregon 23% of nett income for the quarter, versus $16,700,000, oregon 28% of nett sales, past year, down mostly owed to little worker costs this year. Wholesale operating net totaled $8,400,000 for the quarter, down 6% from $8,900,000 successful 2024 owed to little income volumes and gross margin.

In aboriginal 2025, the U.S. imposed retaliatory tariffs connected imported goods. Throughout 2025, these incremental tariffs accrued the outgo of our products by 19% to 50%, resulting successful gross borderline compression. On February 20, 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act, besides known arsenic IEEPA, does not authorize the President to enforce tariffs, invalidating the statutory ground for incremental tariffs enacted since February 2025. The substance has been remanded to the Court of International Trade for further proceedings, including issues related to implementation and imaginable refunds. We paid astir $16,000,000 of incremental tariffs successful 2025.

In December 2025, we filed a suit seeking a refund for amounts paid successful transportation with incremental tariffs imposed pursuant to IEEPA. The President responded to the tribunal ruling by announcing the implementation of a 10% across-the-board tariff nether a abstracted statutory authority. The medication has indicated that rates whitethorn beryllium accrued further taxable to statutory limits. Certain different tariffs imposed nether authorities autarkic of IEEPA stay successful effect. U.S. commercialized policies stay fluid and unpredictable, creating near-term gross borderline uncertainty. We person mitigation strategies successful spot and volition proceed to set arsenic needed successful effect to aboriginal argumentation development. Net income successful our retail conception totaled $13,300,000 for the quarter, down 5% from $14,100,000 successful 2024.