WEYCO GROUP INC
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
WEYS$60.69-3.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001558370-25-007097
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001558370-25-010741
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 68 previous paragraphs and 76 current paragraphs.
26 unchanged; 25 reworded; 25 added; 17 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
In early 2025, the U.S. government enacted reciprocal and retaliatory tariffs (“incremental tariffs”) on goods imported into the United States. The incremental tariff on goods sourced from China, which is where we source most of our products, reached a high of 145% in April, but was temporarily reduced to 30% on May 12, 2025, for a 90-day period ending August 12, 2025. It has not yet been announced if the China tariff will change at that time. The incremental tariffs on goods we source from other countries, excluding China, were 10% throughout the second quarter of 2025. As of our August 7, 2025 filing date, the tariffs of three of those countries increased: Cambodia - 19%, Vietnam - 20%, and India - 50%, with effective dates over the next several months. U.S. trade and tariff policies currently remain fluid and unpredictable, and the specific tariff rates applicable to goods imported by our company continue to evolve. We remain committed to adapting to changes in tariff policies and will adopt further mitigation strategies, as needed.
Current report
The tariff environment created headwinds for our business in the second quarter. Coming into 2025, consumers were already faced with affordability issues, driven by rising costs and economic volatility. The uncertainty around potential tariff-related price increases only added to their concerns about being able to cover everyday expenses. The result is that consumers are pulling back on discretionary purchases, including footwear. At the same time, wholesale customers are being cautious with their inventory buys to avoid potentially being left with excess product in an uncertain retail environment.
Current report
Our combined legacy business was down 8% for the quarter, with Nunn Bush down 11%, Stacy Adams down 10%, and Florsheim down 5%. The overall men’s dress, dress-casual, and basic-casual markets remained under pressure during the quarter, as consumers delayed replacement purchases, which is an important part of our business. This category softness, combined with retailers’ cautious approach to inventory management, made for a difficult second quarter. Given current consumer sentiment and continued uncertainty around tariffs, we expect the challenging environment to persist through the second half of the year.
Current report
The second quarter is typically the lowest-volume period for our BOGS brand. Sales for the brand were down 14% for the quarter, as consumer demand remained sluggish in the outdoor category. We are gearing up for new Fall product introductions, including an
Current report
expansion of our Seamless construction, which is lighter and more durable than traditional vulcanized rubber boot construction. In addition to diversifying BOGS manufacturing away from China, we are also expanding the product line to be less dependent on cold-weather demand. We now offer an enhanced assortment of lightly-insulated styles, as well as newly engineered products in the work category, which is a year-round business. We believe retailer inventories for outdoor footwear are lean, and we are cautiously optimistic that the brand will gain traction in the second half of the year.
Current report
Net sales in our retail segment were down 11% for the quarter, reflecting the tepid consumer environment. E-commerce site traffic for the majority of our brands increased year-to-date, but we are seeing a decrease in sales conversion rates. We believe consumers are increasingly value-conscious and focused on finding deals. As brand owners, we believe it is important to maintain pricing integrity and refrain from being overly promotional on our respective sites. In today’s price-sensitive environment, consumers tend to comparison shop, and we may lose a purchase to a more promotional retailer. We are investing in tools to drive consumer engagement and reduce shopping cart abandonment in this competitive landscape.
Current report
Florsheim Australia, which includes Asia and South Africa, experienced a 4% decline in net sales for the quarter, or 2% in local currency. This decrease was driven by lower wholesale shipments, as Australia’s retail same-store sales were flat for the quarter. Our focus for Florsheim Australia is growth of its wholesale business as well as finding efficiencies to reduce our selling and administrative expenses.
Current report
Second Quarter Highlights
Current report
Year-To-Date Highlights
Current report
Consolidated net sales for the first half of 2025 were $126.3 million, down 7% from $135.5 million in 2024. Consolidated gross earnings were 44.0% of net sales in the first six months of 2025 versus 44.4% of net sales in the same period one year ago. Year-to-date earnings from operations totaled $10.9 million, down 27% from $14.9 million in 2024. Net earnings were $7.8 million, or $0.81 per diluted share, in the first six months of 2025, down from $12.3 million, or $1.28 per diluted share, last year.
Current report
Consolidated net sales for the second quarter and first half of 2025 were down 9% and 7%, respectively, compared to the same periods of 2024. The decreases were mainly due to lower sales in our Wholesale and Retail segments, a result of lower demand.
Current report
June 30, consolidated distribution costs were $9.3 million in 2025 and $9.7 million in 2024, down in line with lower distribution activities this year.
Current report
Consolidated selling and administrative expenses as a percent of net sales were 37% and 34% in the second quarters of 2025 and 2024, respectively. For the first six months of 2025, selling and administrative expenses totaled 35% of net sales compared to 33% of net sales in the same period of 2024. This year’s percentage increases were because many of our operating costs are fixed and do not vary with sales.
Current report
Consolidated earnings from operations for the three and six months ended June 30, 2025, were down 42% and 27%, respectively, compared to the same periods one year ago. The decreases resulted mainly from lower sales in our Wholesale and Retail segments.
Current report
Interest income for the second quarter and year-to-date periods decreased $0.2 million and $0.5 million, respectively, compared to the same periods last year, due to lower interest rates in 2025. Interest expense was nominal for the three and six months ended June 30, 2025 and 2024, as there was no debt outstanding in such periods.
Current report
Net earnings for the three months ended June 30, 2025 totaled $2.3 million, down 60% compared to $5.6 million in 2024. For the six months ended June 30, net earnings totaled $7.8 million in 2025, down 36% from $12.3 million in 2024. This year’s quarter and year-to-date net earnings were mainly impacted by lower operating earnings in our Wholesale and Retail segments, and a $1.1 million adjustment to our income tax provision.
Current report
NM – Not meaningful
Current report
Wholesale net sales for the second quarter of 2025 were down 9% compared to last year’s second quarter, with sales down across all brands and in most major categories. A slowdown in consumer spending amid economic uncertainty prompted retailers to take a more cautious approach to buying and managing their inventories. For the six months ended June 30, 2025, wholesale net sales were down 6% compared to the first six months of 2024, due to lower sales of the Stacy Adams, Nunn Bush and BOGS brands, a result of lower demand. Florsheim’s sales were up slightly for the year-to-date period, driven mainly by new product launches in the first quarter. Licensing revenues for the three and six months ended June 30, 2025 were down $0.4 million in both periods, compared to the same periods of 2024, due to decreased sales of licensed products.
Current report
Wholesale gross earnings were 37.6% of net sales in the second quarter of 2025 compared to 38.2% of net sales in last year’s second quarter. For the six months ended June 30, wholesale gross earnings were 38.6% in 2025 and 39.0% in 2024. Gross margins for the quarter and year-to-date periods were negatively impacted by incremental tariffs in the second quarter.
Current report
We have taken various measures to minimize the impact of the tariffs on our gross margins. These measures included proactively bringing in a large amount of inventory ahead of the tariff effective dates, enabling us to temporarily halt our China imports while the incremental tariff rate was 145%. We negotiated factory cost reductions with several of our Chinese suppliers. We moved sourcing of certain footwear styles out of China and are continuing our efforts to diversify sourcing. Finally, we raised U.S. selling prices effective July 1, 2025. Until the U.S. trade agreements are finalized, we cannot predict the potential magnitude of the incremental tariffs on our gross margins. We intend to continue our work to mitigate the impact of the tariffs, as needed, by moving our supply chain and adjusting our pricing.
Current report
Wholesale operating earnings for the three and six months ended June 30, 2025, decreased 30% and 19%, respectively, compared to the same periods one year ago. The decreases were driven by lower sales and gross margins in both periods.
Current report
Retail gross earnings were 66.6% of net sales for the quarter and 67.5% in last year’s second quarter. For the six months ended June 30, retail gross earnings were 66.6% and 66.2% in 2025 and 2024, respectively.
Current report
Retail operating earnings declined $0.6 million for the quarter, compared to the last year’s second quarter, mainly because of lower sales and gross margins. For the year-to-date period, retail operating earnings declined $1.3 million in 2025, compared to the same period of 2024, due primarily to lower sales.
Current report
Florsheim Australia’s gross earnings as a percent of net sales were 60.9% and 62.0% in the second quarters of 2025 and 2024, respectively. For the six months ended June 30, Florsheim Australia’s gross earnings as a percent of net sales were 61.7% in 2025 and 61.2% in 2024. Florsheim Australia generated operating losses totaling $0.2 million for the quarter versus operating earnings of $0.2 million last year. For the six months ended June 30, 2025, its operating losses widened to $0.5 million, from $0.3 million in the same period of 2024. The three and six-month decreases were mainly due to the lower sales.
Current report
The effective income tax rate was for the three months ended June 30, 2025 and 2024 were 51.1% and 25.1%, respectively. For the six months ended June 30, 2025, the effective tax rate 35.8% compared to 25.9% in the same period one year ago. The increases in 2025 were due to the establishment of a $1.1 million valuation allowance on deferred tax assets at Florsheim Australia, as it was determined more likely than not that these assets will not be realized.
Removed paragraphs (17)
Previous report
Overall net sales for the first quarter of 2025 were down 5% compared to the first quarter of 2024. We began the year facing geopolitical and macroeconomic uncertainties, which include evolving U.S. trade policies, recession concerns, and market volatility. These factors affected both consumer and retailer confidence, resulting in declines in our wholesale and direct-to-consumer businesses.
Previous report
BOGS wholesale net sales declined 5% for the quarter. We experienced more typical winter weather in January and February 2025, with cold temperatures and precipitation across much of the country. This helped our BOGS retailers work through existing inventory, which we expect will create opportunities for new product in the remainder of 2025. We continue to have high expectations for our innovative seamless construction, which is lighter and more durable than comparable vulcanized products currently in the market. Our new Spring product, such as theBoga clog, has arrived at retail and is off to a solid start.
Previous report
Wholesale net sales of our legacy brands (Florsheim, Stacy Adams and Nunn Bush) were collectively down 3% in the first quarter, with Florsheim up 7%, Stacy Adams down 7%, and Nunn Bush down 16%. The declines in Nunn Bush and Stacy Adams reflect the current softness in non-athletic footwear at retailers, as consumers remain cautious with their discretionary spending. In tandem with this, many of our wholesale partners are maintaining conservative inventory positions, which has impacted our shipments.
Previous report
Considering the challenging environment, in light of reduced consumer discretionary spending and cautious retailer inventory management, Florsheim’s first quarter performance was particularly strong. The brand continues to gain market share with robust sales across a range of categories including hybrid “refined casual” footwear, which we view as a significant growth opportunity in the future.
Previous report
Net sales in our retail segment were down 12% for the quarter. Last year, we drove significant e-commerce volume through promotions, particularly with BOGS, due to elevated inventory levels. In 2025, our inventory is more aligned with demand, and we scaled back promotional activity, which contributed to the decline in sales. We continue to invest in data-driven tools to position our e-commerce business for long-term growth.
Previous report
Florsheim Australia’s overall net sales declined 7% for the quarter, or 3% in local currency, due mainly to the closing of our Asia Pacific operations. Like the U.S., Florsheim Australia's markets, which include South Africa, New Zealand, and the Pacific Rim, are facing economic headwinds. Despite the challenging environment, Florsheim Australia's first-quarter operating results improved due, in part, to an 11% increase in same-store retail sales. We remain focused on managing expenses and identifying opportunities for profitable growth in Florsheim Australia.
Previous report
Over the last several weeks, the U.S. government enacted a broad range of reciprocal and retaliatory tariffs (“incremental tariffs”) on goods imported into the United States. Including these incremental tariffs, the current effective total tariff rate on goods sourced from China, which is where we source a majority of our products, is 161%, up from 16% in 2024. While the incremental tariffs did not impact our first quarter 2025 performance, unless withdrawn, these tariffs will significantly increase our cost of goods sold in future periods. To mitigate the impact of tariff-cost increases, we negotiated cost reductions with several of our Chinese suppliers and are planning to raise selling prices beginning in Summer 2025. We are also accelerating our efforts to diversify our sourcing.
Previous report
First Quarter Highlights
Previous report
Net sales for the first quarter of 2025 were $68.0 million, down $3.5 million, or 5%, compared to the first quarter of 2024. This decrease was comprised of a $2.0 million decline in Wholesale net sales, a $1.1 million decline in Retail net sales, and a $0.4 million decline in net sales of Florsheim Australia.
Previous report
First quarter selling and administrative expenses as a percent of net sales remained relatively flat at 34% and 33% in 2025 and 2024, respectively. Earnings from operations were $7.0 million, down $1.2 million, or 15%, from 2024 levels. This decrease resulted from lower sales in both our Wholesale and Retail segments.
Previous report
Interest income decreased $0.3 million compared to last year’s first quarter, due to less interest earned on cash balances in the U.S. and Canada. Interest expense was nominal for the quarter and zero in the first quarter of 2024, as there was no debt outstanding during either period.
Previous report
Net earnings were $5.5 million or $0.57 per diluted share, in 2025 versus $6.7 million, or $0.69 per diluted share, in 2024. The decreases were primarily due to lower sales.
Previous report
Net sales of the Stacy Adams and Nunn Bush brands were down 7% and 16%, respectively, for the quarter, reflecting the current softness in non-athletic footwear at retail, as consumers were cautious with discretionary spending. Florsheim’s sales were up 7% for the period, due largely to new product launches. BOGS sales were down 5%, resulting from lower retailer demand.
Previous report
Wholesale gross earnings as a percent of net sales were 39.4% and 39.6% in the first quarters of 2025 and 2024, respectively. The incremental tariffs did not impact our first quarter 2025 gross margins. Given the uncertainty surrounding the evolving tariff and trade policies of the U.S. government, we cannot currently predict the potential magnitude of the incremental tariffs on our gross margins.
Previous report
million last year. As a percent of net sales, wholesale selling and administrative expenses were flat at 27% in both 2025 and 2024. Wholesale operating earnings decreased 10% to $6.6 million for the quarter, from $7.4 million in 2024, as a result of lower sales.
Previous report
Florsheim Australia’s gross earnings as a percent of net sales were 62.7% and 60.2% in the first quarters of 2025 and 2024, respectively. Florsheim Australia generated operating losses totaling $0.2 million for the quarter and $0.4 million last year. The improvement was due to higher sales in Australia.
Previous report
The effective income tax rate was 26.5% and 26.6% in 2025 and 2024, respectively. The 2025 and 2024 effective tax rates differed from the federal rate of 21% primarily because of state taxes.
Reworded paragraphs (25)
Previous wording
We have two reportable segments, North American wholesale operations (“Wholesale”) and North American retail operations (“Retail”). In the Wholesale segment, our products are sold to leading footwear, department, and specialty stores, as well as e-commerce retailers, primarily in the United States and Canada. We also have licensing agreements with third parties who sell our branded apparel, accessories, and specialty footwear in the United States, as well as our footwear in Mexico and certain markets overseas. Licensing revenues are included in our Wholesale segment. Our Retail segment consists of e-commerce businesses and four brick-and-mortar retail stores in the United States. Retail sales are made directly to consumers on our websites, or by our employees in our stores. Our “other” operations include our wholesale and retail businesses in Australia, South Africa, and Asia Pacific (collectively, “Florsheim Australia”). We ceased operations in the Asia Pacific region in 2023 and completed the wind down of that business in 2024. The majority of our operations are in the United States and our results are primarily affected by the economic conditions and the retail environment in the United States.
Current wording
We have two reportable segments, North American wholesale operations (“Wholesale”) and North American retail operations (“Retail”). In the Wholesale segment, our products are sold to leading footwear, department, and specialty stores, as well as e-commerce retailers, primarily in the United States and Canada. We also have licensing agreements with third parties who sell our branded apparel, accessories, and specialty footwear in the United States, as well as our footwear in Mexico and certain markets overseas. Licensing revenues are included in our Wholesale segment. Our Retail segment consists of e-commerce businesses and four brick-and-mortar retail stores in the United States. Retail sales are made directly to consumers on our websites, or by our employees in our stores. Our “other” operations include our wholesale and retail businesses in Australia and South Africa (collectively, “Florsheim Australia”). We ceased operations in the Asia Pacific region, which was previously included in Florsheim Australia, in 2023 and completed the wind down of that business in 2024. The majority of our operations are in the United States and our results are primarily affected by the economic conditions and the retail environment in the United States.
Previous wording
Consolidated net sales were $68.0 million, down 5% compared to net sales of $71.6 million in the first quarter of 2024. Consolidated gross earnings were 44.6% of net sales compared to 44.7% of net sales in last year’s first quarter. Earnings from operations totaled $7.0 million for the quarter, down 15% from $8.3 million last year. First quarter net earnings were $5.5 million, or $0.57 per diluted share, in 2025, versus $6.7 million, or $0.69 per diluted share, in 2024.
Current wording
Consolidated net sales were $58.2 million, down 9% compared to net sales of $63.9 million in the second quarter of 2024. Consolidated gross earnings were 43.3% of net sales compared to 43.9% of net sales in last year’s second quarter. Earnings from operations totaled $3.9 million for the quarter, down 42% from $6.7 million last year. Second quarter net earnings were $2.3 million, or $0.24 per diluted share, in 2025, versus $5.6 million, or $0.59 per diluted share, in 2024.
Previous wording
At March 31, 2025, our cash and marketable securities totaled $77.9 million, and we had no debt outstanding on our $40.0 million revolving line of credit. During the first three months of 2025, we generated $4.1 million of cash from operations, and used funds to pay $2.5 million in dividends and repurchase $0.7 million of our common stock. Additionally, our prefunded dividend of $21.6 million was paid to shareholders in January 2025, and we had $0.4 million of capital expenditures during the period.
Current wording
At June 30, 2025, our cash and marketable securities totaled $83.8 million, and we had no debt outstanding on our $40.0 million revolving line of credit. During the first six months of 2025, we generated $14.4 million of cash from operations. We used funds to pay $5.0 million in dividends, repurchase $3.1 million of our common stock, and pay $0.7 million of capital expenditures during the period. Additionally, our prefunded dividend of $21.6 million was paid to shareholders in January 2025.
Previous wording
Gross earnings as a percent of net sales remained relatively flat at 44.6% and 44.7% in the first quarters of 2025 and 2024, respectively. Our cost of sales does not include distribution costs (e.g., receiving, inspection, warehousing, shipping, and handling costs) which are included in selling and administrative expenses. Consolidated distribution costs totaled $5.0 million and $5.3 million in the first quarters of 2025 and 2024, respectively.
Current wording
Consolidated gross earnings as a percent of net sales were 43.3% and 43.9% in the second quarters of 2025 and 2024, respectively. For the year-to-date period, consolidated gross earnings were 44.0% in 2025 and 44.4% and 2024. The decreases in 2025 were primarily due to incremental tariffs, mainly incurred in the second quarter. Our cost of sales does not include distribution costs (e.g., receiving, inspection, warehousing, shipping, and handling costs) which are included in selling and administrative expenses. Consolidated distribution costs totaled $4.3 million and $4.5 million in the second quarters of 2025 and 2024, respectively. For the six months ended
Previous wording
Other expense, net, primarily includes the non-service cost components of pension expense and net gains and losses on foreign currency transactions. The expense category remained flat year-over-year, as were no significant changes in these expenses between periods.
Current wording
Other expense, net, primarily includes the non-service cost components of pension expense and net gains and losses on foreign currency transactions. The expense category remained relatively flat quarter-over-quarter and year-over-year, as there were no significant changes in these expenses.
Previous wording
The effective income tax rate was 26.5% and 26.6% for the first quarters of 2025 and 2024, respectively. See Note 9 to the Consolidated Financial Statements for additional information on income taxes.
Current wording
Our effective income tax rates for the three months ended June 30, 2025 and 2024 were 51.1% and 25.1%, respectively. For the six months ended June 30, our effective tax rates were 35.8% in 2025 and 25.9% in 2024. This year’s effective tax rates were impacted by a $1.1 million adjustment to our second quarter income tax provision. See Note 9 to the Consolidated Financial Statements for additional information on income taxes.
Previous wording
Net sales and earnings from operations for our reportable segments and the “other “category for the three months ended March 31, 2025 and 2024, were as follows:
Current wording
Net sales and earnings from operations for our reportable segments and the “other” category for the three and six months ended June 30, 2025 and 2024, were as follows:
Previous wording
Net sales in our Wholesale segment for the three months ended March 31, 2025 and 2024, were as follows:
Current wording
Net sales in our Wholesale segment for the three and six months ended June 30, 2025 and 2024, were as follows:
Previous wording
Wholesale selling and administrative expenses consist primarily of distribution costs, salaries and commissions, advertising costs, employee benefit costs, and depreciation. Wholesale selling and administrative expenses totaled $14.8 million for the quarter and $14.9
Current wording
Wholesale selling and administrative expenses consist primarily of distribution costs, salaries and commissions, advertising costs, employee benefit costs, and depreciation. Wholesale selling and administrative expenses totaled $13.1 million for the quarter, or 29% of net sales, compared to $13.4 million, or 27% of net sales, in last year’s second quarter. For the six months ended June 30, wholesale selling and administrative expenses were $27.9 million, or 28% of net sales, in 2025 versus $28.3 million, or 27% of net sales, in 2024. The increases in expenses as percentage of net sales was because many of our costs are fixed and do not vary with sales.
Previous wording
Net sales in our Retail segment, which were generated mainly by our e-commerce websites, were $8.7 million for the quarter, down 12% from record sales of $9.8 million in 2024. The decrease resulted mainly from lower sales on the BOGS website, due to less promotional activities in 2025, compared to a strong first quarter last year.
Current wording
Net sales in our Retail segment, which were generated mainly by our e-commerce websites, were $6.8 million for the quarter, down 11% from $7.6 million in 2024. The decrease was primarily due to lower sales on the Florsheim and Stacy Adams websites, a result of lower consumer demand. For the six months ended June 30, retail net sales were $15.4 million, down 11% from record sales of $17.4 million in 2024. The year-to-date sales decrease was primarily on the BOGS and Florsheim websites, caused by lower demand. BOGS website sales were also impacted by less promotional activities this year.
Previous wording
Retail gross earnings were 66.6% of net sales for the quarter compared to 65.3% in the first quarter of 2024. Selling and administrative expenses for the Retail segment consist primarily of freight, advertising expense, employee costs, rent and occupancy costs. Retail selling and administrative expenses were $5.2 million and $5.1 million in the first quarter of 2025 and 2024, respectively. As a percent of net sales, retail selling and administrative expenses were 59% and 52% in the first quarters of 2025 and 2024, respectively. The increase in retail selling and administrative expenses as a percentage of net sales is because many of our retail expenses are fixed and do not vary with sales. Retail operating earnings totaled $0.6 million for the quarter, down 52% from $1.3 million last year. The decrease was primarily due to lower sales.
Current wording
Selling and administrative expenses for the Retail segment consist primarily of freight, advertising expense, employee costs, rent and occupancy costs. Retail selling and administrative expenses were flat at $4.4 million in both the second quarters of 2025 and 2024. For the six months ended June 30, retail selling and administrative expenses were flat at $9.6 million in both 2025 and 2024. As a percent of net sales, retail selling and administrative expenses were 66% and 58% in the second quarters of 2025 and 2024, respectively, and were 62% and 55% in the first half of 2025 and 2024, respectively. Retail expenses constituted a higher percentage of sales this year, as many of our retail costs are fixed and do not vary with sales.
Previous wording
Operating results reported in the“other” category historically included our retail and wholesale businesses in Australia, South Africa, and Asia Pacific (collectively,“Florsheim Australia”). We ceased operations in the Asia Pacific region in 2023 and completed the wind down of that business in 2024. Accordingly, first-quarter 2025 operating results of the“other” category only reflect the operations of Australia and South Africa.
Current wording
Operating results reported in the“other” category historically included our retail and wholesale businesses in Australia, South Africa, and Asia Pacific (collectively,“Florsheim Australia”). We ceased operations in the Asia Pacific region in 2023 and completed the wind down of that business in 2024. Accordingly, second-quarter and year-to-date 2025 operating results of the“other” category only reflect the operations of Australia and South Africa.
Previous wording
First quarter 2025 net sales of Florsheim Australia were $5.1 million, down 7% from $5.5 million in the first quarter of 2024. The weaker Australian dollar relative to the U.S. dollar contributed to this decrease. In local currency, Florsheim Australia’s net sales were down 3% due mainly to the closing of Asia Pacific, partially offset by higher sales in Australia. Net sales in Australia were up 6% in local currency, with higher sales in both its wholesale and retail businesses.
Current wording
Net sales of Florsheim Australia were $5.8 million, down 4% from $6.1 million in the second quarter of 2024. The weaker Australian dollar relative to the U.S. dollar contributed to the decrease, as Florsheim Australia’s quarterly net sales in local currency were down 2%, driven by lower wholesale shipments. For the year-to-date period, Florsheim Australia’s net sales declined $0.7 million, or 6%, from the same period one year ago. The weaker Australian dollar also contributed to this decrease, as Florsheim Australia’s first half net sales in local currency were down 2%. The local currency decrease was largely due to the closing of Asia Pacific, partially offset by higher sales in South Africa and Australia.
Previous wording
Interest income totaled $0.6 million in the first quarter of 2025 compared to $0.9 million in last year’s first quarter. The decrease was due to less interest earned on cash balances in the U.S. and Canada, resulting from lower average cash balances and lower interest rates compared to last year.
Current wording
Interest income totaled $0.8 million in the second quarter of 2025 compared to $1.0 million in last year’s second quarter. For the six months ended June 30, interest income was $1.4 million in 2025 and $1.9 million in 2024. The decreases in 2025 were due to less interest earned on cash balances, due to lower interest rates this year.
Previous wording
Other expense, net, primarily includes the non-service cost components of pension expense and net gains and losses on foreign currency transactions. Other expense, net, remained flat at $0.1 million in both the first quarters of 2025 and 2024, because there were no significant changes in these expenses during the period.
Current wording
Other expense, net, primarily included the non-service cost components of pension expense and net gains and losses on foreign currency transactions. Other expense, net, remained relatively flat for the quarter and year-to-date periods, compared to the same respective periods of 2024, because there were no significant changes in these expenses.
Previous wording
Net cash provided by operating activities totaled $4.1 million in the first three months of 2025, down $10.2 million compared to $14.3 million last year. The decrease was primarily due to lower net earnings and changes in operating assets and liabilities, principally inventory. Cash flows from the change in inventory decreased $7.1 million for the period, mainly because our inventory levels as of
Current wording
Net cash provided by operating activities totaled $14.4 million in the first six months of 2025, down $3.3 million from $17.7 million last year. The decrease was primarily due to lower net earnings and changes in operating assets and liabilities, principally inventory.
Previous wording
March 31, 2025, were higher than normal for this time of year, as we were proactive in expediting a large amount of inventory before the incremental tariffs went into effect.
Current wording
Cash flows from the change in inventory decreased $4.2 million for the period, mainly because our inventory levels as of June 30, 2025, were higher than normal for this time of year, as we were proactive in expediting a large amount of inventory before the incremental tariffs took effect. With higher tariff levels currently in place, we are working to bring our inventories down to more normalized levels in terms of pairs; however, with the tariffs, the dollar value of our inventory may increase.
Previous wording
Net cash used for investing activities totaled $0.4 million for the quarter compared to less than $0.1 million in the same period of 2024. The increased use of cash this year was due to higher capital expenditures and less proceeds from maturities of marketable securities. Capital expenditures totaled $0.4 million for the period, compared to $0.2 million last year. Management estimates that total capital expenditures for 2025 will be between $1.0 million and $2.0 million.
Current wording
Net cash used for investing activities totaled $0.7 million for the first six months of 2025 compared to $0.1 million in the same period of 2024. The increased use of cash this year was due to higher capital expenditures and less proceeds from maturities of marketable securities. Capital expenditures totaled $0.7 million for the period, compared to $0.3 million last year. Management estimates that total capital expenditures for 2025 will be between $1.0 million and $2.0 million.
Previous wording
Net cash used for financing activities totaled $3.2 million and $4.7 million in the first quarters of 2025 and 2024, respectively. The change was due to a $2.2 million decrease in cash dividends paid (see further explanation below) partially offset by a $0.7 million increase in shares repurchased and retired.
Current wording
Net cash used for financing activities totaled $8.2 million and $7.7 million in the first six months of 2025 and 2024, respectively. The change was due to a $2.1 million decrease in cash dividends paid (see further explanation below) partially offset by a $2.6 million increase in shares repurchased and retired.
Previous wording
Cash dividends paid for the first three months of 2025 totaled $2.5 million and included one dividend payment that was both declared and paid in the first quarter of 2025. Cash dividends paid for the first three months of 2024 totaled $4.7 million and included two dividend payments: one that was declared in the fourth quarter of 2023 and paid in the first quarter of 2024 and one that was both declared and paid in the first quarter of 2024.
Current wording
Cash dividends paid for the first six months of 2025 totaled $5.0 million and included two dividend payments that were both declared and paid in the first half of 2025. Cash dividends paid for the first six months of 2024 totaled $7.2 million and included three dividend payments: one that was declared in the fourth quarter of 2023 and paid in the first half of 2024 and two that were both declared and paid in the first half of 2024.
Previous wording
On May 6, 2025, our Board of Directors declared a cash dividend of $0.27 per share to all shareholders of record on May 16, 2025, payable June 30, 2025. This represents an increase of 4% above the previous quarter dividend rate of $0.26.
Current wording
On August 5, 2025, our Board of Directors declared a cash dividend of $0.27 per share to all shareholders of record on August 18, 2025, payable September 30, 2025.
Previous wording
We repurchase our common stock under our share repurchase program when we believe market conditions are favorable. During the first three months of 2025, we repurchased 24,253 shares for a total cost of approximately $0.7 million. As of March 31, 2025, there were 824,663 authorized shares available for repurchase under the program. See Part II, Item 2,“Unregistered Sales of Equity Securities and Use of Proceeds” below for more information.
Current wording
We repurchase our common stock under our share repurchase program when we believe market conditions are favorable. During the first six months of 2025, we repurchased 104,092 shares for a total cost of approximately $3.1 million. As of June 30, 2025, there were 744,824 authorized shares available for repurchase under the program. See Part II, Item 2,“Unregistered Sales of Equity Securities and Use of Proceeds” below for more information.
Previous wording
Our regular fourth-quarter 2024 and one-time special cash dividend totaling $21.6 million was prefunded in December 2024 and paid to shareholders in January 2025. This dividend payment was reflected as a non-cash financing activity in the Condensed Consolidated Statements of Cash Flows.
Current wording
Our regular fourth-quarter 2024 and one-time special cash dividend totaling $21.6 million were prefunded in December 2024 and paid to shareholders in January 2025. This dividend payment was reflected as a non-cash financing activity in the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025.
Previous wording
As of March 31, 2025, approximately $3.7 million of cash and cash equivalents was held by our foreign subsidiaries.
Current wording
As of June 30, 2025, approximately $4.8 million of cash and cash equivalents was held by our foreign subsidiaries.
Previous wording
We will continue to evaluate the best uses for our available liquidity, including, among other uses, capital expenditures, continued stock repurchases and acquisitions. We believe that available cash, marketable securities, cash provided by operations, and available borrowing facilities will provide adequate support for the cash needs of the business for at least one year, although there can be no assurances.
Current wording
We will continue to evaluate the best uses for our available liquidity, including, among other uses, capital expenditures, continued stock repurchases and acquisitions. We believe that available cash, marketable securities, and cash provided by operations will provide adequate support for the cash needs of the business for at least one year, although there can be no assurances.