Weyco Group, Inc. (WEYS): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of Weyco Group, Inc. to see how they are navigating 2025, and the numbers show a business leaning on its established wholesale backbone-that segment alone hit $60.2 million in Q3 2025 net sales-while managing inventory near $67.2 million. Honestly, figuring out how they balance the legacy of brands like Florsheim with a recent strategic price increase and a notable $2.00 per share special dividend is crucial for any analyst. This canvas distills their entire operation, from sourcing in Mexico to their $279.84 million trailing twelve-month revenue, into the nine essential building blocks; see the full breakdown below to map out their current value proposition and cost structure.

Weyco Group, Inc. (WEYS) - Canvas Business Model: Key Partnerships

The Key Partnerships for Weyco Group, Inc. center on a global manufacturing footprint, extensive wholesale distribution, strategic brand licensing, and a commitment to sustainable sourcing standards.

Global factory network for manufacturing in China, India, and Mexico.

Weyco Group, Inc. maintains a manufacturing base across several nations to support its design and distribution model. The company is actively working to diversify this base to lessen concentration risk in one area. The primary manufacturing locations include:

• Cambodia
• China
• India
• Mexico
• The Dominican Republic

The company is deliberately expanding its factory base beyond China while keeping strong ties with existing partners there, who have been key to Weyco Group, Inc.'s quality reputation. The Q3 2025 gross earnings as a percentage of net sales were 40.7%, which the company noted was negatively impacted by incremental tariffs on goods imported from China.

Wholesale retail partners like department and specialty stores.

The North American wholesale segment relies on a broad network of retailers. In 2024, Weyco Group, Inc.'s shoes were marketed by retailers across more than 10,000 shoe, clothing, and department stores in the United States and Canada. The company's Q3 2025 net sales reached $73.1 million.

It is important to note that in 2024, no single customer represented or exceeded 10% of the total net sales for Weyco Group, Inc.

Licensing partners for branded apparel and accessories.

Licensing agreements are a component of the wholesale segment, involving third parties who sell branded apparel, accessories, and specialty footwear. These agreements are active in the United States, Mexico, and specific overseas markets. Licensing revenues for the three months ended June 30, 2025, were down $0.4 million compared to the same period in 2024. For context, licensing revenues were $2.5 million in 2023.

Leather Working Group (LWG) for sustainable material sourcing.

Weyco Group, Inc. partners with tanneries committed to environmental standards. The company has a stated goal for 2025 regarding material sourcing.

• Leather sourced from LWG-certified suppliers: Over 75%
• Goal for Environmentally-Preferred Material minimums by 2025: At least 25% of all product

This commitment is part of a broader ESG plan that includes working with factory partners to improve their environmental practices.

Logistics and shipping providers for global distribution.

The movement of goods relies on established logistics partners. Weyco Group, Inc. is a member of the U.S. Customs and Border Protection's (CBP) Customs-Trade Partnership Against Terrorism (CTPAT). This partnership focuses on strengthening supply chain security. Shoes are shipped to retailers mainly from the distribution center located in Glendale, Wisconsin. Consolidated goods, after leaving the factory, are handled by the company's CTPAT approved freight forwarders. The company estimated its 2025 annual capital expenditures to be between $1 million and $3 million, which supports operational infrastructure like distribution.

Weyco Group, Inc. (WEYS) - Canvas Business Model: Key Activities

You're looking at the core actions Weyco Group, Inc. must execute flawlessly to keep delivering its value proposition in the current market. These key activities are where the rubber meets the road, especially with the recent tariff pressures and pricing shifts.

Footwear design, development, and brand marketing

Weyco Group, Inc. focuses on developing footwear across its portfolio, which includes brands like Florsheim, Nunn Bush, Stacy Adams, and BOGS. The company made product development investments totaling $2.3 million back in 2023, setting the stage for current offerings. Brand marketing is crucial, evidenced by the 8% sales increase for the Florsheim brand in the third quarter of 2025, driven partly by favorable pricing following strategic adjustments. The Florsheim brand showed resilience, growing sales by 8% in Q3 2025, while BOGS sales slipped by 17%.

• Develops footwear for Florsheim, Nunn Bush, Stacy Adams, and BOGS.
• Florsheim brand sales grew 8% in Q3 2025.
• BOGS sales declined 17% in Q3 2025.

Global supply chain management and factory base diversification

Managing the flow of goods remains a top priority, especially given the geopolitical environment. Weyco Group, Inc. is actively working to diversify its factory base to lessen its concentration in China. The incremental tariff on goods sourced from China remained at 30% throughout the third quarter of 2025, directly impacting cost structures. This required strategic sourcing shifts and pricing optimization to counter the margin erosion. The company continues to manage risks associated with ocean freight transportation and potential geopolitical instability.

Inventory management

Keeping inventory levels right is a constant balancing act, especially when consumer sentiment is cautious. As of September 30, 2025, Weyco Group, Inc.'s inventory stood at $67.2 million. This level is down from the $74 million reported at December 31, 2024. The company expressed encouragement about this inventory level as it moved into the fourth quarter. Inventory control is defintely critical in a production-driven business like this one.

Strategic pricing adjustments

To combat margin pressure, Weyco Group, Inc. executed a significant pricing move. They instituted a 10% price increase effective July 1, 2025. This action was taken to offset the impact of incremental tariffs. While the wholesale unit volume was down 7%, these selling price increases helped mitigate the overall impact of that volume decline. However, the retail pricing gap widened when wholesale partners phased in increases more gradually than the company's direct 10% hike at retail. Wholesale gross earnings as a percentage of net sales fell to 35.7% in Q3 2025 from 40.1% in Q3 2024.

E-commerce operations and website maintenance

The retail segment, which is mainly driven by e-commerce operations, saw softer demand. Net sales in the retail segment decreased by 4% to $7.0 million for the third quarter of 2025. The Chairman and CEO noted that the company believes it loses some sales to wholesale partners' e-commerce sites because Weyco Group, Inc.'s own sites are often priced at full MSRP (manufacturer's suggested retail price). The company plans to continue investing in its e-commerce platform as a key driver of profitable growth, with expected capital expenditures for 2025 set between $1.0 million and $3.0 million.

• Retail net sales for Q3 2025 were $7.0 million.
• Retail sales decreased 4% year-over-year.
• Expected 2025 Capital Expenditures for e-commerce: $1.0 million to $3.0 million.

Finance: draft 13-week cash view by Friday.

Weyco Group, Inc. (WEYS) - Canvas Business Model: Key Resources

You're looking at the core assets Weyco Group, Inc. (WEYS) relies on to deliver its value proposition. These aren't just line items; they are the engines of the business, especially as the company navigates current market softness.

Portfolio of established brands: Florsheim, Nunn Bush, Stacy Adams, BOGS.

The brand portfolio is a primary resource, though performance varied in early 2025. For the first quarter ended March 31, 2025, total sales were $68 million, a 5 percent decrease year-over-year. Florsheim showed strength, with first quarter sales up 7 percent, but this was offset by declines in other key brands. The portfolio also includes Forsake and Rafters.

Here's a quick look at the North American Wholesale Segment performance for Q1 2025:

The North American Wholesale Segment net sales overall were $54.3 million, down 4 percent compared to $56.2 million in Q1 2024.

Intellectual property (IP) and design capabilities.

Design capabilities are embedded in the brand legacies. For instance, Nunn Bush refines its technology to engineer maximum support and cushioning. Florsheim maintains a reputation for trend-right shoes while staying true to classic styling and quality workmanship, paying attention to details from material selection to stitching. BOGS utilizes cutting-edge technology for exceptional protection from the elements.

Distribution centers in Milwaukee and Montreal for North America.

The physical infrastructure includes a distribution center in Milwaukee, Wisconsin, which is a key operational hub. Weyco Group tracks operational metrics at this location.

• Tracking >90 percent waste diversion in the Milwaukee distribution center and corporate offices.
• Solar panels installed at the Milwaukee office supply 10 percent of total energy.
• Distribution center located in Milwaukee.
• Distribution center located in Montreal.

Strong balance sheet supporting a $2.00 per share special dividend.

The balance sheet strength is a tangible resource supporting shareholder returns. Weyco Group, Inc. declared a special cash dividend of $2.00 per share on November 4, 2025. This special dividend resulted in a total cash outlay of approximately $19 million. The company's Free Cash Flow (FCF) Payout Ratio was reported at 31.63 percent. The Current Market Cap as of the announcement was $272.5M.

Experienced management team, including the Florsheim family.

The leadership structure includes key figures with deep industry ties. Thomas W. Florsheim, Jr. serves as the Chairman of the Board and Chief Executive Officer. He is the great-grandson of Milton S. Florsheim, linking current leadership directly to the historical foundation of the Florsheim brand, which Weyco acquired assets from in 2002.

• CEO and Chairman: Thomas W. Florsheim, Jr.
• Family lineage traces to Milton S. Florsheim.

Finance: draft 13-week cash view by Friday.

Weyco Group, Inc. (WEYS) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Weyco Group, Inc. (WEYS) products over the competition. It boils down to a mix of established heritage and modern relevance across their offerings.

Quality, innovative footwear across multiple price points is a foundational value proposition. This is evidenced by the company's ability to implement a 10% price increase on July 1, 2025, to combat tariff impacts, suggesting perceived value holds up even as costs rise for the consumer. Furthermore, the commitment to material quality is underlined by the ESG efforts, including plans to incorporate the use of bio-based alternatives using >22% bio-based alternatives to EVA/PU in insoles, midsoles, and outsoles.

The strength of the diverse brand portfolio is key to covering various needs, spanning from dress to outdoor performance. As of the third quarter of 2025, the performance across the major brands shows this mix:

The focus on modernizing classic lines is clear, especially with Florsheim. The Florsheim brand's strength in hybrid footwear and dress sneakers is a direct response to consumer demand for versatility. In fact, Nunn Bush and Florsheim now derive more than half of their direct-to-consumer sales volume from true casual and hybrid footwear styles. This shift helps maintain relevance in the traditional dress and dress-casual categories, which comprise a meaningful but shrinking market.

While the portfolio covers a range, the focus on mid-priced options using both leather and man-made materials allows WEYS to capture a broad market segment. This is supported by the fact that for products made with leather, Weyco Group sources more than 75% of its product from Leather Working Group-approved tanneries.

The commitment to ESG goals provides value to environmentally conscious consumers and stakeholders. Weyco Group has established a concrete goal to ensure that at least 25% of all products meet environmentally-preferred material minimums by 2025. Additional environmental metrics supporting this value proposition include:

• Sourcing over 75% of leather from Leather Working Group-certified suppliers.
• Tracking over 90% waste diversion in the Milwaukee distribution center and corporate offices.
• Sourcing 85-90% Forest Stewardship Council-certified recycled paperboard for packaging.

Finance: draft 13-week cash view by Friday.

Weyco Group, Inc. (WEYS) - Canvas Business Model: Customer Relationships

The customer relationships for Weyco Group, Inc. are clearly segmented across its two primary operational structures: the dominant North American Wholesale segment and the direct-to-consumer North American Retail segment, which is largely driven by e-commerce.

Dedicated wholesale account management for large retailers involves managing relationships with the more than 10,000 shoe, clothing, and department stores that carry Weyco Group, Inc.'s products in the United States and Canada. This relationship structure faced a specific challenge in the third quarter of 2025 when order cancellations from a large customer, who failed to adopt the company's new pricing structure in a timely manner, negatively impacted sales volumes across all major brands. The North American Wholesale Segment generated net sales of $60.2 million in the third quarter of 2025, representing the vast majority of the company's total revenue for that period. To manage margin erosion from incremental tariffs, Weyco Group, Inc. instituted selling price increases on July 1, 2025, which helped mitigate the impact of a 7% decline in wholesale sales volumes for the quarter.

The nature of these wholesale relationships is quantified by the segment's financial contribution and performance metrics:

Transactional relationship via e-commerce websites defines the North American Retail Segment. This segment's net sales totaled $7.0 million in the third quarter of 2025, a 4% decrease from the prior year's third quarter. The Chairman and CEO noted that the company believes it is losing some sales to wholesale partners' e-commerce sites because Weyco Group, Inc.'s own sites are often priced at full Manufacturer's Suggested Retail Price (MSRP), a gap that widened after the company raised retail price points by 10% on July 1, 2025, while wholesale customers phased in increases more gradually. This pricing dynamic suggests a highly transactional, price-sensitive relationship on the direct-to-consumer channel.

Direct customer service for online and in-store purchases is supported by the company's operation of Florsheim concept stores in the United States and Australia, alongside its e-commerce presence. The retail gross earnings margin remained high but saw a slight dip, reported at 66.4% of net sales in the third quarter of 2025, compared to 66.9% in the third quarter of 2024. Retail operating earnings for Q3 2025 were $0.6 million, down from $0.8 million in Q3 2024, primarily due to lower sales volumes on the websites.

Loyalty is built on decades of brand recognition and quality, evidenced by the performance of its core brands, which are available in leading footwear, department, and specialty stores. The brand portfolio includes Florsheim, Nunn Bush, Stacy Adams, BOGS, and Forsake. The company itself was incorporated in 1906, underscoring its long history in the market. Brand-specific results in Q3 2025 illustrate the varying strength of these established relationships:

• Florsheim posted an 8% sales increase, driven by favorable pricing.
• Nunn Bush sales edged up 1% as price increases offset volume declines.
• Stacy Adams' sales were down 5%, driven by lower sales volumes.
• BOGS sales slipped 17% due to a reduction in pairs shipped.

The company ended Q3 2025 with $83.8 million in cash and no debt, and its board declared a special cash dividend of $2.00 per share in November 2025, which can reinforce investor loyalty.

Finance: draft 13-week cash view by Friday.

Weyco Group, Inc. (WEYS) - Canvas Business Model: Channels

You're looking at how Weyco Group, Inc. gets its footwear to the customer, which is a mix of traditional wholesale power and direct-to-consumer (DTC) digital reach. The channels are quite distinct across their main operating areas.

The largest channel by far remains the wholesale network in North America. This is where you see the bulk of the volume move through established retail and specialty stores. For the third quarter of 2025, the North American Wholesale segment brought in net sales of $60.2 million. This figure reflects the impact of selling price increases implemented on July 1, 2025, which helped offset a 7% drop in sales volumes during that period, partly due to a temporary issue with a large customer's order cancellations. That wholesale channel is the engine for brands like Florsheim, which still managed an 8% sales increase in that segment for the quarter.

Direct-to-consumer is handled through a dedicated digital presence. Weyco Group, Inc. maintains e-commerce websites for all major brands, which falls under the North American Retail segment. This channel saw net sales of $7 million in the third quarter of 2025. This DTC effort is a key area for brand control, even though Q3 2025 showed softer demand on the Florsheim and Stacy Adams websites compared to the prior year.

For physical retail presence, the company relies on a limited footprint. Weyco Group, Inc. operates limited brick-and-mortar Florsheim concept stores in the US and Australia. While the exact current store count isn't always front-and-center in the latest quarterly reports, these locations serve as important brand showcases. The entire North American Retail segment, which includes these physical locations and the e-commerce sites, generated those $7 million in net sales for Q3 2025.

Internationally, the focus is on Australia and South Africa, managed under the Florsheim Australia structure, following the wind-down of Asia Pacific operations in 2024. This channel supports both wholesale and retail activities in those regions. For instance, in the first quarter of 2025, the net sales for Florsheim Australia were $5.1 million, though this was impacted by the weaker Australian dollar relative to the U.S. dollar. Anyway, the local currency sales in Australia were actually up 6% in that period, showing underlying strength in that specific international market.

Here's a quick look at how the major revenue-generating channels performed in Q3 2025, where available:

You can see the reliance on the wholesale channel is heavy; it accounted for the vast majority of the total net sales of $73.1 million for the third quarter of 2025. The DTC/Retail channel is smaller but offers higher gross margins, which were 66.4% of net sales for the retail segment in Q3 2025.

The distribution strategy relies on these core points:

• Wholesale Dominance: Moving product through third-party footwear, department, and specialty stores primarily in the US and Canada.
• Digital Direct: Operating dedicated e-commerce sites for key brands like Florsheim and Stacy Adams.
• Flagship Retail: Maintaining a small number of Florsheim concept stores in the US and Australia for brand experience.
• Targeted International Reach: Focused wholesale and retail operations remaining in Australia and South Africa.

Finance: draft 13-week cash view by Friday.

Weyco Group, Inc. (WEYS) - Canvas Business Model: Customer Segments

Weyco Group, Inc. serves distinct customer groups through its wholesale and retail channels, with a clear emphasis on the male consumer across its core dress and casual brands.

The primary customer base is mass-market consumers seeking mid-priced, reliable footwear, though recent financial data suggests caution in discretionary spending among these buyers.

The distribution relies heavily on wholesale retailers, which include department stores, specialty shops, and e-commerce partners. This channel remains the largest revenue generator for Weyco Group, Inc.

• North American Wholesale Segment net sales for Q3 2025 totaled $60.2 million.
• North American Wholesale Segment net sales for Q1 2025 were $54.3 million.
• North American Wholesale Segment wholesale gross earnings as a percent of net sales was 39.4% in Q1 2025.
• North American Retail Segment net sales for Q3 2025 decreased by 4% to $7.0 million.
• North American Retail Segment net sales for Q2 2025 were $6.8 million, an 11% decrease year-over-year.

Demographically, the focus is squarely on men through brands like Florsheim, Stacy Adams, and Nunn Bush, with women and children represented primarily through the BOGS brand and general retail offerings.

Geographically, the business is concentrated in North America, but international consumers in Canada, Australia, and South Africa represent smaller, specific markets for Weyco Group, Inc.

• Operations in the Asia Pacific region were ceased in 2023, with the wind-down completed in 2024.
• Australia/South Africa net sales declined 7% in Q1 2025 (a 3% decline in local currency).
• Inventory was staged in Canada as a temporary measure due to increased U.S. tariffs on China-sourced goods in early 2025.
• Florsheim Australia reported an operating loss in Q2 2025.

Weyco Group, Inc. (WEYS) - Canvas Business Model: Cost Structure

You're looking at the cost side of the Weyco Group, Inc. (WEYS) operation as of late 2025, and the main story is the pressure on the cost of goods sold (COGS) from trade policy.

Cost of Goods Sold (COGS), heavily impacted by incremental tariffs.

The cost structure is clearly feeling the pinch from import duties. Consolidated gross earnings for the third quarter of 2025 clocked in at 40.7% of net sales. That's down significantly from 44.3% in the third quarter of 2024. Management stated that this margin deterioration was 100% attributable to incremental tariffs. Specifically, the incremental tariff on goods sourced from China, where the majority of Weyco Group, Inc.'s products originate, remained at 30% throughout the third quarter of 2025. Tariffs on goods from other countries varied, ranging from 10% to 50% during the same period. Price increases implemented on July 1, 2025, helped mitigate some of this, but they didn't fully offset the resulting costs.

Here's a quick look at the key financial metrics impacting the cost side for the third quarter of 2025:

Wholesale Selling and Administrative Expenses (Q3 2025: $14.0 million).

The operating expenses for the wholesale segment showed some discipline, even with lower sales volumes. Wholesale selling and administrative expenses totaled $14.0 million for the third quarter of 2025. This was an improvement from $15.1 million in the third quarter of 2024, primarily due to lower employee costs. As a percentage of net sales, this expense line fell to 23% in Q3 2025, down from 25% in Q3 2024.

Logistics and freight costs for global shipping.

While specific line-item data for logistics and freight costs outside the Selling and Administrative bucket isn't broken out for Q3 2025, the overall pressure on landed costs is evident through the gross margin compression caused by tariffs. The company is actively working on supply chain diversification to manage these global shipping and duty costs going forward.

Marketing and advertising expenses to support multiple brands.

Marketing and advertising costs are embedded within the Selling and Administrative Expenses figure. For instance, in the second quarter of 2024, higher web advertising costs contributed to increased SG&A. For Q3 2025, the total wholesale SG&A was $14.0 million. The performance of individual brands reflects varied marketing needs:

• The Florsheim brand posted an 8% sales increase for the quarter, driven by favorable pricing.
• BOGS sales declined 17% for the quarter, reflecting continued softness in the seasonal footwear category.
• Stacy Adams sales were down 5%, reflecting pressure in value-oriented segments.

Capital expenditures estimated between $1 million and $3 million for 2025.

Weyco Group, Inc. is managing its investment in property, plant, and equipment conservatively. The estimate for total 2025 annual capital expenditures remains between $1 million and $3 million. For the third quarter of 2025 specifically, capital expenditures totaled $900,000.

Finance: draft the Q4 2025 cash flow projection incorporating the Q3 CapEx run-rate by next Tuesday.

Weyco Group, Inc. (WEYS) - Canvas Business Model: Revenue Streams

Total LTM revenue (ending Sep 30, 2025) was $279.84 million.

The primary sources of revenue are segmented across North American wholesale, North American retail/e-commerce, and Florsheim Australia operations.

For the third quarter ended September 30, 2025, the net sales breakdown by segment was:

North American Wholesale sales represent the largest segment.

The North American Wholesale segment includes wholesale sales to stores and e-commerce retailers, plus licensing revenues from third parties for branded products like apparel, accessories, and footwear in specific markets.

Specific Q3 2025 performance points include:

• North American Wholesale net sales: $60.2 million.
• North American Retail/E-commerce net sales: $7.0 million.
• Florsheim Australia net sales: $6.0 million.
• The wholesale gross earnings margin for Q3 2025 was 35.7%.