On this page of StockholderLetter.com we present the latest annual shareholder letter from WEYCO GROUP INC — ticker symbol WEYS. Reading current and past WEYS letters to shareholders can bring important insights into the investment thesis.

 •  4/4/2025 Letter Continued (Full PDF)
 •  5/5/2023 WEYS Stockholder Letter
 •  4/5/2024 WEYS Stockholder Letter
 •  More "Department Stores" Category Stockholder Letters
 •  WEYS Benford's Law Stock Score = 51

WEYS Shareholder/Stockholder Letter Transcript:

2024 ANNUAL REPORT

TO OUR SHAREHOLDERS
Our Company achieved record earnings for the third consecutive year in 2024. This is despite a 9% decrease in revenues,
mainly in our North American wholesale business, and to a lesser extent, due to the closure of our Hong Kong office and retail
stores.
This year proved to be challenging for our wholesale business. Consumers remained cautious amid ongoing economic
uncertainty, limiting their discretionary spending on non-essential goods. Despite these challenges, we are navigating shortterm pressures and evolving our portfolio of brands to position the company for future growth.
Our BOGS brand faced significant headwinds in 2024. An oversaturation of outdoor boots at retail in the last half of 2023,
followed by a mild winter, led to a challenging environment for 2024. We anticipated the outdoor market would normalize by
late 2024, as retailers worked through their inventories. However, the market remained tepid, and with another mild start to
winter in late 2024, BOGS was unable to regain its momentum. Winter finally arrived in early 2025 and we are starting to see
renewed interest in the category for Fall 2025.
The hallmark of the BOGS brand is its product innovation, and we introduced seamless construction across a range of products
in 2024. This product is designed to withstand repetitive use, and we are focused on increasing our penetration in agriculture
channels. We are also excited about our new offerings in non-insulated footwear, such as the BOGS Boga, that launched
in March 2025. The Boga is a versatile, lightweight clog featuring superior comfort and an outsole that provides better
traction and durability than other outdoor clogs. The last two years have been challenging for BOGS, and we are focused on
reenergizing the brand through product innovation and expanding its retail presence in the Spring/Summer selling season.
Our men   s Legacy footwear brands had mixed success in a challenging retail environment. The dress footwear category
continues to face challenges as retailers prioritize other segments. Florsheim, however, has bucked this trend, solidifying its
market position by gaining share in refined dress footwear while expanding its presence in hybrid and casual styles. Stacy
Adams had a difficult year. The brand remains a leader in contemporary dress footwear and continues to perform well in retail
accounts that emphasize dress shoes. However, future growth depends on Stacy Adams capturing more demand for hybrid
and refined casual styles. While this transition takes time, early successes in the hybrid category are encouraging. Nunn Bush
revenues decreased in 2024, but the brand has evolved beyond its dress shoe roots and is experiencing retail success in the
casual, hybrid, and soft-toe work categories due to its strong value proposition and innovative comfort technology.
Our retail segment achieved record revenues for the fourth consecutive year in 2024. We continue to invest in our direct-toconsumer business, viewing our online stores as billboards for our brands and our e-commerce platform as a key driver of
profitable growth.
Florsheim Australia   s net sales decreased for the year. The decline in 2024 was largely due to the closure of its Hong Kong
office and retail stores, as the division was not profitable. We are now managing our Asia wholesale customers through our
Melbourne office. While 2024 was a challenging year for Florsheim Australia, we are pleased to report an increase in samestore retail sales in Australia. Our top priority for Florsheim Australia in 2025 is growth of our wholesale business.
On January 2, 2025, in addition to our regular fourth quarter dividend of $0.26 per share, we paid a one-time special dividend
of $2.00 per share, for a total dividend distribution of $21.6 million. We were pleased to provide this return of capital to our
shareholders. Our strong financial performance over the past few years led to a buildup of cash in excess of the amount
necessary to fund operations, capital expenditures, and fulfill corporate obligations. Looking ahead, we believe our strong
balance sheet and liquidity will continue to allow us to fund organic growth, invest in our business, and remain opportunistic
with respect to future strategic opportunities or share repurchases.
In early 2025, the U.S. government imposed additional tariffs on goods sourced from China. These tariffs will increase our
cost of goods across all our brands. In an effort to mitigate the impact of the tariffs, we have already begun negotiating price
reductions with our Chinese suppliers and are in the process of reviewing our wholesale pricing for Fall 2025.
Looking forward to 2025, after three consecutive years of record-breaking net earnings and armed with a strong balance
sheet, we believe we are in the best possible position to face current macroeconomic and geopolitical uncertainty. Our
strategy is to continue to focus on the long-term health and growth of our business.
We thank you for your interest in and support of our Company.
Thomas W. Florsheim, Jr.
Chairman and Chief Executive Officer
John W. Florsheim
President and Chief Operating Officer



 4/4/2025 Letter Continued (Full PDF)