INDUSTRY NEWS

MILWAWKEE, WI— Weyco Group, Inc. (NASDAQ: WEYS) has announced its fourth quarter and final 2009 financial results. The company posted net sales for the fourth quarter at $58.4 million, up from $50.0 million in 2008. Net earnings attributable to Weyco Group, Inc. for the quarter were $4.8 million, up from $3.5 million in 2008. Diluted earnings per share were $.41 in 2009, as compared with $.30 for the fourth quarter of 2008.

Net sales in the wholesale division, which includes North American wholesale net sales and licensing revenues, were $44.0 million in the fourth quarter of 2009, compared with $41.9 million in 2008. Wholesale product sales were $43.2 million in 2009, up from $40.6 million in 2008. In the wholesale division, sales of the company’s Stacy Adams, Nunn Bush and Florsheim brands were up 7 percent, 6 percent and 7 percent, respectively, compared to 2008. Licensing revenues were $766,000 in 2009, compared with $1.3 million in 2008. The decrease in licensing revenues resulted from the company’s acquisition of its licensees in Australia, Asia Pacific and South Africa, and was also due to a general trend of lower sales of the company’s licensed products in the current challenging retail environment.

Net sales in the retail division, which includes sales from the company’s North American retail stores and its domestic Internet business, were $6.3 million, down from $7.1 million in 2008. The company had two fewer stores in 2009 than 2008. Same store sales were down 3 percent.

Overall net sales in 2009 of $225.3 million were up 2 percent compared with $221.4 million in the prior year. Net earnings attributable to Weyco Group, Inc. were $12.8 million, down from $17.0 million in 2008. Diluted earnings per share were $1.11 in 2009 and $1.45 last year.

Weyco’s balance sheet remained strong. The company’s cash and marketable securities totaled $76.8 million at the end of 2009 and there was no debt outstanding. At December 31, 2008, the company’s cash and marketable securities totaled $57.6 million and there was $1.25 million of borrowings under its revolving line of credit.

“As a result of the recession, we experienced lower sales volumes and margin pressure throughout most of 2009,” stated Tom Florsheim Jr., chairman and CEO of Weyco Group. “In the fourth quarter, there were some signs of stabilization in the economy, some of our cost control measures were realized, and our results improved. Throughout 2009, we continued to invest in our brands and we believe that we are well-positioned for success as the economy improves.”

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