WEYS Overview

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.