Weyco Group (WY1) AI Stock Analysis

Weyco Group

(Frankfurt:WY1)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Conservative balance sheetMinimal leverage and healthy equity capitalization give Weyco substantial financial flexibility. The company can fund operations, dividends, and measured investment without relying heavily on borrowing, while its low debt burden reduces exposure to interest costs and refinancing pressure.

Negative Factors

One-time earnings benefitA substantial portion of the quarter’s margin and earnings improvement came from refunds that are not recurring operating revenue. When this benefit is absent, reported profitability may normalize lower, making sustained earnings growth dependent on underlying demand, pricing, and cost control.

Weyco Group (WY1) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 501.04M
Dividend Yield: 5.73%
Average Volume (3M): 89
Price to Earnings (P/E): 14.3
Beta (1Y): 0.66
Revenue Growth: -7.30%
EPS Growth: 25.25%
Country: Germany
Employees: 569
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Apparel - Footwear & Accessories

Weyco Group Business Overview & Revenue Model

Company Description

Weyco Group, Inc. specializes in the creation and distribution of footwear for male, female, and juvenile consumers. Its operations are divided into two main segments: wholesale activities across North America and its retail presence within the same...

Weyco Group Earnings Call Summary

Earnings Call Date:Aug 03, 2026(Q2-2026)|% Change Since:32.82%|Next Earnings Date:Nov 02, 2026

Earnings Call SentimentPositive

The call conveyed a positive financial result driven by modest top-line growth, strong brand performance (notably Florsheim and BOGS), solid cash holdings and no debt. However, much of the quarter's margin and earnings improvement was materially influenced by one-time tariff refunds, while trade policy unpredictability, higher SG&A (employee costs), and some brand/market pressures (Nunn Bush, Australia local-currency softness) represent meaningful risks going forward. Overall, highlights outweigh the lowlights, but the sustainability of the earnings strength is contingent on tariff resolution and continued execution.

Positive Updates

Top-line Growth

Consolidated net sales of $62.2M in Q2 2026, up 7% year-over-year versus Q2 2025.

Negative Updates

Trade Policy and Tariff Uncertainty

U.S. trade policies remain dynamic and unpredictable — administration imposed an incremental tariff that was 10% during Q2 and increased to 12.5% on July 24, creating near-term gross-margin uncertainty and execution risk.

Company Guidance

Guidance in the call centered on inventory, capital spending, dividends and tariff mitigation: management plans to raise inventories to about $70.0 million by year‑end (vs. $49.1M at June 30 and $65.9M at Dec. 31, 2025) to support a healthy backlog amid tariff uncertainty; they estimate 2026 capital expenditures of $2–3M (YTD $1.5M); the Board declared a $0.28 per‑share cash dividend (record Aug 18, payable Sep 30); liquidity remains strong with $98.1M of cash and marketable securities and no borrowings on a $40M revolver; operating cash flow was $25.2M in H1 while dividends paid totaled $26.6M; Q2 actions included recognizing $15.3M of tariff refunds ($14.3M wholesale, $1.0M retail), a $3.3M reduction to inventory and $700K of interest income, receiving $1.8M in Q2 plus $17.5M in early July, with $1.2M of Phase 3 entries not yet recognized — management reiterated mitigation strategies but provided no formal forward sales or EPS targets.

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 (61)

Financial Indicators

DE:WY1 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CROX	76Outperform	$6.88B	11.14	48.76%	―	0.70%	329.45%
RCKY	75Outperform	$369.13M	10.73	13.20%	1.32%	10.84%	66.78%
WWW	66Neutral	$1.71B	16.00	26.26%	1.92%	7.16%	24.85%
SHOO	64Neutral	$3.18B	21.53	16.05%	1.93%	18.33%	56.39%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DBI	57Neutral	$344.57M	20.42	5.83%	2.97%	-0.84%	―

* Consumer Cyclical Sector Average

Performance Comparison

DE:WY1 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:WY1	Weyco Group	46.20	25.14	119.32%
CROX	Crocs	150.52	71.82	91.26%
DBI	Designer Brands	6.74	3.31	96.27%
RCKY	Rocky Brands	49.27	21.21	75.61%
SHOO	Steven Madden	43.50	11.34	35.24%
WWW	Wolverine World Wide	20.80	-0.78	-3.61%

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.

Weyco Group AI Stock Analysis