Weyco Group (WEYS) AI Stock Analysis

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Weyco Group

(NASDAQ:WEYS)

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Rating:77Outperform

Price Target:$73.00▲(23.90% Upside)

Action:reiterated

Date:11/05/26

Weyco earns an above-average score driven primarily by its exceptionally strong financial position: virtually no debt, $263.5M of equity, $47.8M of free cash flow and improving returns on capital, supported by a positive earnings call showing 5% sales growth and sharply higher EPS. Valuation remains reasonable at 15.4x earnings with a generous dividend backed by surplus cash. The main constraints are a top line still well below 2022-2023 levels, gross margin compression and an earnings boost that leaned on one-off tariff refunds, plus technically stretched conditions after a powerful rally that leaves the shares vulnerable to a near-term pullback. Australian market weakness and unpredictable trade policy add further uncertainty.

Positive Factors

Brand portfolio and product innovationEstablished brands span dress, casual and utility footwear, while new collections and construction technologies broaden their use cases. This supports retailer interest, improves year-round selling potential, and gives Weyco multiple avenues to sustain brand relevance and demand.

Negative Factors

Tariff-driven margin uncertaintyImport tariffs can raise product costs and pressure gross margins, particularly because management is reluctant to increase wholesale prices while consumers remain financially constrained. The uncertainty makes recent margin performance less dependable and complicates product and inventory planning.

Weyco Group Key Performance Indicators (KPIs)

Operating Income by SegmentShows how much profit each business segment generates for Weyco Group after operating costs, revealing which lines — for example wholesale, direct retail, or branded footwear — truly drive earnings. A growing share of operating income from higher-margin segments points to stronger profitability and resilience; shrinking segment profits can signal cost pressure, poor pricing, or underperforming channels that may hurt overall margins.

Chart Insights

Wholesale’s recent surge in profitability is largely a one‑off from tariff refunds recognized in the quarter; excluding that benefit, wholesale performance reverts to seasonal, uneven gains and is being pressured by rising SG&A, so margins look less durable. Retail shows genuine operating improvement driven by e‑commerce and higher gross margins, but it remains a much smaller profit contributor. The small, recently negative ‘Other’ line and management’s planned inventory build increase working‑capital risk—watch future refund timing and wholesale S&A for true earnings sustainability.

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The Fly

Weyco Group (WEYS) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $569.26M
Dividend Yield: 5.26%
Average Volume (3M): 34.51K
Price to Earnings (P/E): 14.0
Beta (1Y): 0.94
Revenue Growth: 1.50%
EPS Growth: 63.78%
Country: US
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...

How the Company Makes Money

Weyco makes money primarily by selling footwear under its owned/licensed brands through two main routes: (1) wholesale sales to third-party retailers and distributors, and (2) direct-to-consumer (DTC) sales, primarily via company-operated e-commerce...

Weyco Group Earnings Call Summary

Earnings Call Date:Nov 03, 2026(Q3-2026)|% Change Since:12.70%|Next Earnings Date:Mar 09, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. The company reported higher sales, operating earnings, net earnings and diluted EPS, with growth across wholesale and direct-to-consumer channels, improved gross margins, strong liquidity, no debt and substantial shareholder returns. The main challenges were tariff uncertainty, supply chain inflation, a choppy retail environment, declining sales and higher operating losses in Australia, higher wholesale employee costs, and a slight decline in Nunn Bush sales. Management nevertheless expressed confidence in its brands, tariff mitigation strategies, balance sheet and future strategic opportunities.

Positive Updates

Quarterly Sales and Earnings Growth

Third-quarter 2026 net sales were $77 million, up 5% from the third quarter of 2025. Earnings from operations increased to $13.7 million from $8.1 million, net earnings rose to $11.5 million from $6.6 million, and diluted earnings per share increased to $1.19 from $0.69.

Negative Updates

Tariff and Gross Margin Uncertainty

U.S. trade policies continue to evolve and remain unpredictable, creating near-term gross margin uncertainty. Incremental tariffs on imports from China, the Dominican Republic and Vietnam were 12.5% during the quarter, while other imports remained at 10%.

Company Guidance

The company estimates that annual capital expenditures in 2026 will be approximately $3 million and is bringing inventory levels up to approximately $70 million by the end of the fourth quarter; it expects market conditions in Australia to remain challenging in the near to medium term, will continue to align its cost structure with the business environment, and said evolving and unpredictable U.S. trade policies create near-term gross margin uncertainty.

Weyco Group Financial Statement Overview

Summary

Weyco's financial profile is anchored by a pristine, essentially debt-free balance sheet (score 89) with $263.5M of equity, just $5.1M of debt and return on equity improving to about 14%. Cash generation is strong (score 80), with TTM operating cash flow of $50.6M and free cash flow of $47.8M covering roughly 94% of net income on minimal capital spending. The income statement is the weaker link (score 68): revenue declined three straight years from $351.7M in 2022 to $276.2M in 2025 before a modest TTM recovery to $284.0M, and gross margin compressed to about 37.9% from 45.3% in 2024, suggesting part of the earnings jump to $39.6M may stem from cost control and non-recurring items rather than pricing power. Historically lumpy working-capital-driven cash flow is an added caution.

Income Statement

68Positive

Balance Sheet

89Very Positive

Cash Flow

80Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	284.04M	276.17M	290.29M	318.05M	351.74M	267.64M
Gross Profit	145.95M	119.23M	131.53M	142.88M	144.39M	107.45M
EBITDA	53.77M	34.91M	42.60M	44.24M	43.22M	30.22M
Net Income	39.64M	23.08M	30.32M	30.19M	29.54M	20.55M
Balance Sheet
Total Assets	317.80M	319.67M	324.09M	309.34M	326.62M	277.67M
Cash, Cash Equivalents and Short-Term Investments	93.24M	97.43M	71.81M	69.53M	18.37M	28.05M
Total Debt	8.86M	10.79M	11.07M	13.51M	45.82M	11.11M
Total Liabilities	54.27M	80.10M	78.50M	64.85M	102.72M	76.27M
Stockholders Equity	263.54M	239.57M	245.59M	244.49M	223.91M	201.40M
Cash Flow
Free Cash Flow	47.82M	35.50M	36.34M	95.32M	-32.25M	5.38M
Operating Cash Flow	50.62M	37.25M	37.73M	98.63M	-29.90M	6.39M
Investing Cash Flow	-1.63M	-242.00K	-1.17M	-1.24M	7.43M	-7.00M
Financing Cash Flow	-31.29M	-13.23M	-32.22M	-45.34M	20.27M	-11.87M

Weyco Group Technical Analysis

Technical Analysis SentimentPositive

Last Price58.92

Price Trends

50DMA51.02Positive

100DMA46.27Positive

200DMA39.72Positive

Market Momentum

MACD2.87Negative

RSI60.93Neutral

STOCH47.29Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEYS, the sentiment is Positive. The current price of 58.92 is above the 20-day moving average (MA) of 55.51, above the 50-day MA of 51.02, and above the 200-day MA of 39.72, indicating a bullish trend. The MACD of 2.87 indicates Negative momentum. The RSI at 60.93 is Neutral, neither overbought nor oversold. The STOCH value of 47.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WEYS.

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

3 New Risks

1.Additional tariffs on product imported into the U.S., retaliatory trade actions taken by other countries and resulting trade wars may have a material adverse impact on our business.Q2, 2025

2.Additional tariffs on product imported into the U.S., retaliatory trade actions taken by other countries and resulting trade wars may have a material adverse impact on our business.Q1, 2025

3.The Company could be negatively impacted by stakeholder reactions to our ESG initiatives.Q4, 2024

Weyco Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

WEYS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCKY	79Outperform	$389.42M	11.33	13.20%	1.25%	10.84%	66.78%
WWW	79Outperform	$1.88B	13.83	33.36%	1.61%	7.31%	69.31%
WEYS	77Outperform	$577.47M	14.03	15.83%	5.26%	1.50%	63.78%
CROX	76Outperform	$7.17B	12.12	48.76%	―	0.70%	329.45%
SHOO	73Outperform	$3.01B	17.07	18.92%	2.00%	20.60%	208.58%
DBI	71Outperform	$328.73M	19.33	5.83%	3.13%	-0.84%	―
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

* Consumer Cyclical Sector Average

Performance Comparison

WEYS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
WEYS	Weyco Group	58.92	30.59	107.98%
CROX	Crocs	163.72	86.57	112.21%
DBI	Designer Brands	6.38	2.89	82.76%
RCKY	Rocky Brands	51.99	22.81	78.19%
SHOO	Steven Madden	42.00	5.78	15.96%
WWW	Wolverine World Wide	24.89	10.50	72.91%

Weyco Group Corporate Events

Dividends

Weyco Group Declares Special Cash Dividend Amid Excess Cash

Positive

Nov 3, 2026

On November 3, 2026, Weyco Group‘s board declared a special cash dividend of $2 per share, requiring approximately $19 million in cash, payable January 8, 2027, to shareholders of record on November 17, 2026. The company said the distribution returne...

Other

Weyco Group Announces Material Definitive Agreement Entry

Neutral

Sep 24, 2026

The information provided in the release from Weyco Group is incomplete and does not contain any specific operational, financial, strategic, or transactional details. Without additional content, it is not possible to determine the nature of the announ...

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.

Date of analysis: Nov 05, 2026

Weyco Group AI Stock Analysis