10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

Or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________________to ________________________

Commission File Number: 0-9068

WEYCO GROUP, INC.

(Exact name of registrant as specified in its charter)

WISCONSIN	39-0702200
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

333 W. Estabrook Boulevard

P. O. Box 1188

Milwaukee, Wisconsin 53201

(Address of principal executive offices)

(Zip Code)

(414) 908-1600

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

Large Accelerated Filer ¨ Accelerated Filer x Non-Accelerated Filer ¨ Smaller Reporting Company x Emerging Growth Company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No x

As of July 31, 2018, there were 10,160,124 shares of common stock outstanding.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

The following unaudited consolidated condensed financial statements have been prepared by Weyco Group, Inc. (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. It is suggested that these consolidated condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s latest annual report on Form 10-K.

WEYCO GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)

	June 30,			December 31,
	2018			2017
	(Dollars in thousands)
ASSETS:
Cash and cash equivalents	$	23,998		$	23,453
Marketable securities, at amortized cost		8,781			5,970
Accounts receivable, net		37,879			49,451
Income tax receivable		1,901			669
Inventories		56,530			60,270
Prepaid expenses and other current assets		3,413			5,770
Total current assets		132,502			145,583
Marketable securities, at amortized cost		17,421			17,669
Deferred income tax benefits		746			750
Property, plant and equipment, net		30,030			31,643
Goodwill		11,112			11,112
Trademarks		32,978			32,978
Other assets		23,019			23,097
Total assets	$	247,808		$	262,832
LIABILITIES AND EQUITY:
Accounts payable	$	5,878		$	8,905
Dividend payable		-			2,228
Accrued liabilities		10,520			14,031
Total current liabilities		16,398			25,164
Deferred income tax liabilities		2,990			2,069
Long-term pension liability		24,592			27,766
Other long-term liabilities		1,792			2,174
Total liabilities		45,772			57,173
Common stock		10,160			10,162
Capital in excess of par value		59,928			55,884
Reinvested earnings		143,921			150,350
Accumulated other comprehensive loss		(18,419	)		(17,859	)
Total Weyco Group, Inc. equity		195,590			198,537
Noncontrolling interest		6,446			7,122
Total equity		202,036			205,659
Total liabilities and equity	$	247,808		$	262,832

The accompanying notes to consolidated condensed financial statements (unaudited) are an integral part of these financial statements.

1

WEYCO GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(In thousands, except per share amounts)
Net sales	$	60,888		$	57,453		$	130,414		$	126,573
Cost of sales		37,182			35,363			80,083			79,255
Gross earnings		23,706			22,090			50,331			47,318
Selling and administrative expenses		21,759			20,200			44,817			41,969
Earnings from operations		1,947			1,890			5,514			5,349
Interest income		254			200			487			379
Interest expense		-			-			-			(7	)
Other expense, net		(176	)		(55	)		(219	)		(190	)
Earnings before provision for income taxes		2,025			2,035			5,782			5,531
Provision for income taxes		502			732			1,443			2,113
Net earnings		1,523			1,303			4,339			3,418
Net (loss) earnings attributable to noncontrolling interest		(103	)		46			(274	)		(56	)
Net earnings attributable to Weyco Group, Inc.	$	1,626		$	1,257		$	4,613		$	3,474
Weighted average shares outstanding
Basic		10,214			10,305			10,194			10,370
Diluted		10,505			10,368			10,433			10,433
Earnings per share
Basic	$	0.16		$	0.12		$	0.45		$	0.34
Diluted	$	0.15		$	0.12		$	0.44		$	0.33
Cash dividends declared (per share)	$	0.23		$	0.22		$	0.45		$	0.43
Comprehensive income	$	650		$	1,924		$	3,465		$	4,799
Comprehensive (loss) income attributable to noncontrolling interest		(383	)		80			(588	)		246
Comprehensive income attributable to Weyco Group, Inc.	$	1,033		$	1,844		$	4,053		$	4,553

The accompanying notes to consolidated condensed financial statements (unaudited) are an integral part of these financial statements.

2

WEYCO GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Six Months Ended June 30,
	2018			2017
	(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	4,339		$	3,418
Adjustments to reconcile net earnings to net cash provided by operating activities -
Depreciation		1,905			1,995
Amortization		171			186
Bad debt expense		160			291
Deferred income taxes		841			1,434
Net foreign currency transaction losses (gains)		105			(15	)
Stock-based compensation		805			779
Pension contribution		(3,000	)		(4,000	)
Pension expense		426			497
Increase in cash surrender value of life insurance		(115	)		(115	)
Changes in operating assets and liabilities -
Accounts receivable		11,464			13,179
Inventories		3,714			9,041
Prepaid expenses and other assets		2,527			2,831
Accounts payable		(3,008	)		(6,927	)
Accrued liabilities and other		(5,213	)		241
Accrued income taxes		(1,111	)		(2,092	)
Net cash provided by operating activities		14,010			20,743
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities		(5,961	)		(7,433	)
Proceeds from maturities of marketable securities		3,375			3,015
Life insurance premiums paid		(155	)		(155	)
Purchases of property, plant and equipment		(491	)		(772	)
Net cash used for investing activities		(3,232	)		(5,345	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends paid		(6,836	)		(6,643	)
Cash dividends paid to noncontrolling interest of subsidiary		(88	)		(204	)
Shares purchased and retired		(6,589	)		(6,843	)
Net proceeds from stock options exercised		4,048			438
Taxes paid related to the net share settlement of equity awards		(611	)		-
Proceeds from bank borrowings		-			6,816
Repayments of bank borrowings		-			(11,084	)
Net cash used for financing activities		(10,076	)		(17,520	)
Effect of exchange rate changes on cash and cash equivalents		(157	)		266
Net increase (decrease) in cash and cash equivalents	$	545		$	(1,856	)
CASH AND CASH EQUIVALENTS at beginning of period		23,453			13,710
CASH AND CASH EQUIVALENTS at end of period	$	23,998		$	11,854
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net of refunds	$	1,927		$	2,805
Interest paid	$	-		$	7

The accompanying notes to consolidated condensed financial statements (unaudited) are an integral part of these financial statements.

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NOTES:

1. Financial Statements

In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature. The results of operations for the three and six months ended June 30, 2018, may not necessarily be indicative of the results for the full year.

2. New Accounting Pronouncements

On January 1, 2018, the Company adopted Accounting Standards Update (ASU) 2014-09, Revenue - Revenue from Contracts with Customers and all related amendments, which were together codified into Accounting Standards Codification (ASC) 606. This guidance was adopted using the modified retrospective method. The adoption of ASC 606 did not have a material impact on the Company’s financial position or results of operations. The Company did not restate prior period information for the effects of the new standard, nor did the Company adjust the opening balance of retained earnings to account for the implementation of the new requirements of this standard. The Company does not expect the adoption of this guidance will have a material effect on the results of operations in future periods. See Note 3.

3. Revenue Recognition

The Company’s revenue contracts represent a single performance obligation to sell its products to its customers. Sales are recorded at the time control of the products is transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for the products. All revenue is recorded net of estimated allowances for returns and discounts; these revenue offsets are accrued at the time of the sale. Generally, payments from customers are received within 90 days following the sale. The Company’s contracts with customers do not have significant financing components or significant prepayments from customers, and there is no non-cash consideration. The Company does not have unbilled revenue, and there are no contract assets or contract liabilities.

4. Reclassifications

Certain prior year amounts in the Consolidated Condensed Statements of Cash Flows (Unaudited) were reclassified to conform to current year presentation. These reclassifications had no effect on previously reported net earnings or equity.

5. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(In thousands, except per share amounts)
Numerator:
Net earnings attributable to Weyco Group, Inc.	$	1,626	$	1,257	$	4,613	$	3,474
Denominator:
Basic weighted average shares outstanding		10,214		10,305		10,194		10,370
Effect of dilutive securities:
Employee stock-based awards		291		63		239		63
Diluted weighted average shares outstanding		10,505		10,368		10,433		10,433
Basic earnings per share	$	0.16	$	0.12	$	0.45	$	0.34
Diluted earnings per share	$	0.15	$	0.12	$	0.44	$	0.33

There were no anti-dilutive stock options for the three months ended June 30, 2018. Diluted weighted average shares outstanding for the six months ended June 30, 2018, exclude anti-dilutive stock options totaling approximately 207,000 shares of common stock at a weighted average price of $27.94. Diluted weighted average shares outstanding for the three months ended June 30, 2017, exclude anti-dilutive stock options totaling approximately 837,000 shares of common stock at a weighted average price of $26.85. Diluted weighted average shares outstanding for the six months ended June 30, 2017, exclude anti-dilutive stock options totaling approximately 706,000 shares of common stock at a weighted average price of $27.15.

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6. Investments

As noted in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, all of the Company’s marketable securities are classified as held-to-maturity securities and reported at amortized cost pursuant to Accounting Standards Codification 320, Investments – Debt and Equity Securities, as the Company has the intent and ability to hold all investments to maturity.

Below is a summary of the amortized cost and estimated market values of the Company’s marketable securities as of June 30, 2018, and December 31, 2017.

	June 30, 2018				December 31, 2017
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
	(Dollars in thousands)
Municipal bonds:
Current	$	8,781	$	8,783	$	5,970	$	5,977
Due from one through five years		9,550		9,719		10,260		10,536
Due from six through ten years		5,261		5,332		5,005		5,197
Due from eleven through twenty years		2,610		2,675		2,404		2,539
Total	$	26,202	$	26,509	$	23,639	$	24,249

The unrealized gains and losses on marketable securities at June 30, 2018, and at December 31, 2017, were as follows:

	June 30, 2018					December 31, 2017
	Unrealized		Unrealized			Unrealized		Unrealized
	Gains		Losses			Gains		Losses
	(Dollars in thousands)
Municipal bonds	$	394	$	(87	)	$	634	$	(24	)

The estimated market values provided are level 2 valuations as defined by Accounting Standards Codification 820, Fair Value Measurements and Disclosures (“ASC 820”). The Company reviewed its portfolio of investments as of June 30, 2018 and determined that no other-than-temporary market value impairment exists.

7. Intangible Assets

The Company’s indefinite-lived intangible assets as recorded in the Consolidated Condensed Balance Sheets (Unaudited) consisted of the following:

	June 30, 2018							December 31, 2017
	Gross							Gross
	Carrying		Accumulated					Carrying		Accumulated
	Amount		Impairment			Net		Amount		Impairment			Net
	(Dollars in thousands)							(Dollars in thousands)
Indefinite-lived intangible assets
Goodwill	$	11,112	$	-		$	11,112	$	11,112	$	-		$	11,112
Trademarks		34,748		(1,770	)		32,978		34,748		(1,770	)		32,978
Total indefinite-lived intangible assets	$	45,860	$	(1,770	)	$	44,090	$	45,860	$	(1,770	)	$	44,090

5

The Company’s amortizable intangible assets as recorded in the Consolidated Condensed Balance Sheets (Unaudited) consisted of the following:

		June 30, 2018							December 31, 2017
	Weighted	Gross							Gross
	Average	Carrying		Accumulated					Carrying		Accumulated
	Life (Years)	Amount		Amortization			Net		Amount		Amortization			Net
		(Dollars in thousands)							(Dollars in thousands)
Amortizable intangible assets
Customer relationships	15	$	3,500	$	(1,711	)	$	1,789	$	3,500	$	(1,594	)	$	1,906
Total amortizable intangible assets		$	3,500	$	(1,711	)	$	1,789	$	3,500	$	(1,594	)	$	1,906

Amortization expense related to the intangible assets was approximately $58,000 in both the second quarters of 2018 and 2017. For the six months ended June 30, amortization expense related to the intangible assets was approximately $117,000 in both 2018 and in 2017. The amortizable intangible assets are included within other assets in the Consolidated Condensed Balance Sheets. (Unaudited).

8. Segment Information

The Company has two reportable segments: North American wholesale operations (“wholesale”) and North American retail operations (“retail”). The chief operating decision maker, the Company’s Chief Executive Officer, evaluates the performance of the Company’s segments based on earnings from operations. Therefore, interest income or expense, other income or expense, and income taxes are not allocated to the segments. The “other” category in the tables below includes the Company’s wholesale and retail operations in Australia, South Africa, Asia Pacific and Europe, which do not meet the criteria for separate reportable segment classification.

Summarized segment data for the three and six months ended June 30, 2018 and 2017, was as follows:

Three Months Ended
June 30,	Wholesale		Retail		Other			Total
	(Dollars in thousands)
2018
Product sales	$	45,167	$	4,624	$	10,625		$	60,416
Licensing revenues		472		-		-			472
Net sales	$	45,639	$	4,624	$	10,625		$	60,888
Earnings from operations	$	1,748	$	222	$	(23	)	$	1,947
2017
Product sales	$	41,700	$	4,758	$	10,404		$	56,862
Licensing revenues		591		-		-			591
Net sales	$	42,291	$	4,758	$	10,404		$	57,453
Earnings from operations	$	1,298	$	184	$	408		$	1,890

Six Months Ended
June 30,	Wholesale		Retail		Other			Total
	(Dollars in thousands)
2018
Product sales	$	98,161	$	9,551	$	21,436		$	129,148
Licensing revenues		1,266		-		-			1,266
Net sales	$	99,427	$	9,551	$	21,436		$	130,414
Earnings from operations	$	5,139	$	428	$	(53	)	$	5,514
2017
Product sales	$	93,849	$	9,688	$	21,744		$	125,281
Licensing revenues		1,292		-		-			1,292
Net sales	$	95,141	$	9,688	$	21,744		$	126,573
Earnings from operations	$	4,464	$	227	$	658		$	5,349

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9. Employee Retirement Plans

The components of the Company’s net periodic pension cost were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(Dollars in thousands)
Service cost	$	151		$	142		$	301		$	282
Interest cost		549			555			1,098			1,103
Expected return on plan assets		(646	)		(609	)		(1,292	)		(1,151	)
Net amortization and deferral		159			143			319			263
Net periodic pension cost	$	213		$	231		$	426		$	497

The components of net periodic pension cost other than the service cost component are included in "other expense, net" in the Consolidated Condensed Statements of Earnings and Comprehensive Income (Unaudited).

The Company made a $3.0 million pension contribution in the second quarter of 2018. No additional cash contributions are expected for the remainder of 2018.

10. Stock-Based Compensation Plans

During the three and six months ended June 30, 2018, the Company recognized approximately $454,000 and $805,000, respectively, of compensation expense associated with stock option and restricted stock awards granted in years 2014 through 2017. During the three and six months ended June 30, 2017, the Company recognized approximately $410,000 and $779,000, respectively, of compensation expense associated with stock option and restricted stock awards granted in years 2013 through 2016.

The following table summarizes the Company’s stock option activity for the six-month period ended June 30, 2018:

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Shares			Price		Term (Years)		Value*
Outstanding at December 31, 2017		1,502,493		$	26.57
Exercised		(352,566	)	$	25.82
Forfeited or expired		(11,075	)	$	26.57
Outstanding at June 30, 2018		1,138,852		$	26.80		4.0	$	10,936,000
Exercisable at June 30, 2018		524,690		$	27.10		2.3	$	4,878,000

* The aggregate intrinsic value of outstanding and exercisable stock options is defined as the difference between the market value of the Company's stock on June 29, 2018, the last trading day of the quarter, of $36.40 and the exercise price multiplied by the number of in-the-money outstanding and exercisable stock options.

The following table summarizes the Company’s stock option exercise activity for the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(Dollars in thousands)
Total intrinsic value of stock options exercised	$	2,549	$	23	$	3,050	$	64
Net cash proceeds from stock option exercises	$	1,164	$	82	$	4,048	$	438
Income tax benefit from the exercise of stock options	$	663	$	10	$	793	$	25

7

The following table summarizes the Company’s restricted stock award activity for the six-month period ended June 30, 2018:

						Weighted
				Weighted		Average
	Shares of			Average		Remaining		Aggregate
	Restricted			Grant Date		Contractual		Intrinsic
	Stock			Fair Value		Term (Years)		Value*
Non-vested at December 31, 2017		66,050		$	26.79
Issued		2,439		$	35.55
Vested		(2,439	)	$	35.55
Forfeited		(1,675	)		26.59
Non-vested at June 30, 2018		64,375		$	26.80		2.3	$	2,343,000

* The aggregate intrinsic value of non-vested restricted stock was calculated using the market value of the Company's stock on June 29, 2018 of $36.40 multiplied by the number of non-vested restricted shares outstanding.

11. Short-Term Borrowings

At June 30, 2018, the Company had a $60 million unsecured revolving line of credit with a bank expiring November 4, 2018. The line of credit bears interest at the London Interbank Offered Rate (“LIBOR”) plus 0.75%. At June 30, 2018, there were no amounts outstanding on the line of credit. There were also no amounts outstanding on the line of credit to date in 2018.

12. Financial Instruments

At June 30, 2018, the Company’s majority-owned subsidiary, Florsheim Australia, had foreign exchange contracts outstanding to buy $2.5 million U.S. dollars at a price of approximately $3.1 million Australian dollars. Based on quarter-end exchange rates, there were no significant unrealized gains or losses on the outstanding contracts.

The Company determines the fair value of foreign exchange contracts based on the difference between the foreign currency contract rates and the widely available foreign currency rates as of the measurement date. The fair value measurements are based on observable market transactions, and thus represent a level 2 valuation as defined by ASC 820.

13. Comprehensive Income

Comprehensive income for the three and six months ended June 30, 2018 and 2017, was as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
	(Dollars in thousands)
Net earnings	$	1,523		$	1,303	$	4,339		$	3,418
Foreign currency translation adjustments		(991	)		533		(1,110	)		1,220
Pension liability, net of tax of $42, $56, $83, and $102, respectively		118			88		236			161
Total comprehensive income	$	650		$	1,924	$	3,465		$	4,799

The components of accumulated other comprehensive loss as recorded on the Consolidated Condensed Balance Sheets (Unaudited) were as follows:

	June 30,			December 31,
	2018			2017
	(Dollars in thousands)
Foreign currency translation adjustments	$	(4,982	)	$	(4,186	)
Pension liability, net of tax		(13,437	)		(13,673	)
Total accumulated other comprehensive loss	$	(18,419	)	$	(17,859	)

8

The following presents a tabular disclosure about changes in accumulated other comprehensive loss during the six months ended June 30, 2018:

	Foreign Currency Translation Adjustments			Defined Benefit Pension Items			Total
Beginning balance, December 31, 2017	$	(4,186	)	$	(13,673	)	$	(17,859	)
Other comprehensive loss before reclassifications		(796	)		-			(796	)
Amounts reclassified from accumulated other comprehensive loss		-			236			236
Net current period other comprehensive (loss) income		(796	)		236			(560	)
Ending balance, June 30, 2018	$	(4,982	)	$	(13,437	)	$	(18,419	)

The following presents a tabular disclosure about reclassification adjustments out of accumulated other comprehensive loss during the six months ended June 30, 2018:

	Amounts reclassified from accumulated other comprehensive loss for the six months ended June 30, 2018			Affected line item in the statement where net income is presented
Amortization of defined benefit pension items
Prior service cost	$	(31	)(1)	Other expense, net
Actuarial losses		350	(1)	Other expense, net
Total before tax		319
Tax benefit		(83	)
Net of tax	$	236

⁽¹⁾ These amounts were included in net periodic pension cost. See Note 9 for additional details.

14. Equity

The following table reconciles the Company’s equity for the six months ended June 30, 2018:

										Accumulated
				Capital in						Other
	Common			Excess of			Reinvested			Comprehensive			Noncontrolling
	Stock			Par Value			Earnings			Loss			Interest
	(Dollars in thousands)
Balance, December 31, 2017	$	10,162		$	55,884		$	150,350		$	(17,859	)	$	7,122
Net earnings		-			-			4,613						(274	)
Foreign currency translation adjustments		-			-			-			(796	)		(314	)
Pension liability adjustment, net of tax		-			-			-			236			-
Cash dividends declared		-			-			(4,652	)		-			-
Cash dividends paid to noncontrolling interest		-			-			-			-			(88	)
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price		197			3,239			-			-			-
Issuance of restricted stock		2			(2	)		-			-			-
Restricted stock forfeited		(2	)		2			-			-			-
Stock-based compensation expense		-			805			-			-			-
Shares purchased and retired		(199	)		-			(6,390	)		-			-
Balance, June 30, 2018	$	10,160		$	59,928		$	143,921		$	(18,419	)	$	6,446

9

15. Subsequent Event

On July 31, 2018, David Venner, Director of Seraneuse Pty Ltd (“Seraneuse”), the minority interest shareholder of Florsheim Australia Pty Ltd, provided notice that Seraneuse will tender its shares, representing 45% equity in Florsheim Australia, to the Company, in accordance with the Shareholders Agreement dated January 23, 2009. Accordingly, the Company will purchase the minority interest of Florsheim Australia for $3.8 million on August 30, 2018.

The Shareholders Agreement referenced above was filed as Exhibit 10.2 to Form 10-K for the Year Ended December 31, 2008.

10

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

FORWARD-LOOKING STATEMENTS

This report contains certain forward-looking statements with respect to the Company’s outlook for the future.  These statements represent the Company's reasonable judgment with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially. Such statements can be identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “is likely,” “plans,” “predicts,” “projects,” “should,” “will,” or variations of such words, and similar expressions. Forward-looking statements, by their nature, address matters that are, to varying degrees, uncertain. Therefore, the reader is cautioned that these forward-looking statements are subject to a number of risks, uncertainties or other factors that may cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, the risk factors described under Item 1A, “Risk Factors,” of the Company’s Annual Report on Form 10-K for the year-ended December 31, 2017.

GENERAL

The Company designs and markets quality and innovative footwear principally for men, but also for women and children, under a portfolio of well-recognized brand names including: Florsheim, Nunn Bush, Stacy Adams, BOGS, and Rafters. Inventory is purchased from third-party overseas manufacturers. The majority of foreign-sourced purchases are denominated in U.S. dollars.

The Company has two reportable segments, North American wholesale operations (“wholesale”) and North American retail operations (“retail”). In the wholesale segment, the Company’s products are sold to leading footwear, department, and specialty stores, primarily in the United States and Canada. The Company also has licensing agreements with third parties who sell its branded apparel, accessories and specialty footwear in the United States, as well as its footwear in Mexico and certain markets overseas. Licensing revenues are included in the Company’s wholesale segment. As of June 30, 2018, the Company’s retail segment consisted of nine brick and mortar retail stores and internet businesses in the United States. Sales in retail outlets are made directly to consumers by Company employees.

The Company’s “other” operations include the Company’s wholesale and retail businesses in Australia, South Africa, Asia Pacific (collectively, “Florsheim Australia”) and Europe (“Florsheim Europe”). The majority of the Company’s operations are in the United States, and its results are primarily affected by the economic conditions and the retail environment in the United States.

EXECUTIVE OVERVIEW

Second Quarter Highlights

Consolidated net sales for the second quarter of 2018 were $60.9 million, up 6% compared to last year’s second quarter net sales of $57.5 million. Earnings from operations increased $57,000, or 3%, for the quarter, compared to the second quarter of 2017. Consolidated net earnings attributable to Weyco Group, Inc. rose 29% to $1.6 million in the second quarter of 2018, from $1.3 million in last year’s second quarter. Diluted earnings per share were $0.15 per share in the second quarter of 2018 and $0.12 per share in the second quarter of 2017.

The majority of the increase in consolidated net sales came from the Company’s wholesale segment. Wholesale net sales increased $3.3 million for the quarter, compared to the same period last year, due mainly to higher sales of the Florsheim brand.

Consolidated earnings from operations were up 3% for the quarter. While wholesale earnings from operations were up $450,000, due mainly to higher sales and gross margins, this increase was mostly offset by lower earnings from operations at Florsheim Australia, resulting mainly from lower sales.

Consolidated net earnings attributable to Weyco Group, Inc. and diluted earnings per share were up for the quarter. Net earnings were positively impacted by the lower U.S. federal tax rate of 21% effective January 1, 2018, versus 35% in 2017, resulting from the passing of the Tax Cuts and Jobs Act.

11

Year-to-Date Highlights

Consolidated net sales for the first half of 2018 were $130.4 million, up 3% from net sales of $126.6 million in the first half of 2017. Earnings from operations were $5.5 million in the first six months of 2018, up 3% compared to $5.3 million in the same period last year. Consolidated net earnings attributable to Weyco Group, Inc. were $4.6 million in the first six months of 2018, up 33% compared to $3.5 million in the same period last year. Diluted earnings per share to date in 2018 were $0.44 per share, versus $0.33 per share in the same period of 2017.

The increase in consolidated net sales was due to higher sales in the wholesale segment. Wholesale net sales increased $4.3 million in the first six months of 2018, compared to the same period last year, primarily due to higher sales of the Florsheim brand.

The increase in consolidated earnings from operations was due to higher operating earnings in the wholesale and retail segments. Earnings from operations in the wholesale segment were up $675,000, due to higher sales and gross margins. Earnings from operations in the retail segment were up $201,000, due to the benefit of closing underperforming stores since last year, and from higher operating earnings of the Company’s internet businesses. These increases were largely offset by lower operating earnings at Florsheim Australia, resulting mainly from lower sales.

Financial Position Highlights

At June 30, 2018, cash and marketable securities totaled $50.2 million and there was no debt outstanding on the Company’s revolving line of credit. At December 31, 2017, cash and marketable securities totaled $47.1 million and there was no debt outstanding on the line of credit. During the first six months of 2018, the Company generated $14.0 million of cash from operations. The Company paid dividends of $6.9 million and spent $6.6 million on purchases of Company stock. The Company also had $491,000 of capital expenditures.

SEGMENT ANALYSIS

Net sales and earnings from operations for the Company’s segments in the three and six months ended June 30, 2018 and 2017, were as follows:

	Three Months Ended June 30,					%			Six Months Ended June 30,					%
	2018			2017		Change			2018			2017		Change
	(Dollars in thousands)
Net Sales
North American Wholesale	$	45,639		$	42,291		8	%	$	99,427		$	95,141		5	%
North American Retail		4,624			4,758		-3	%		9,551			9,688		-1	%
Other		10,625			10,404		2	%		21,436			21,744		-1	%
Total	$	60,888		$	57,453		6	%	$	130,414		$	126,573		3	%
Earnings from Operations
North American Wholesale	$	1,748		$	1,298		35	%	$	5,139		$	4,464		15	%
North American Retail		222			184		21	%		428			227		89	%
Other		(23	)		408		-106	%		(53	)		658		-108	%
Total	$	1,947		$	1,890		3	%	$	5,514		$	5,349		3	%

12

North American Wholesale Segment

Net Sales

Net sales in the Company’s North American wholesale segment for the three and six months ended June 30, 2018 and 2017, were as follows:

North American Wholesale Segment Net Sales

	Three Months Ended June 30,				%			Six Months Ended June 30,				%
	2018		2017		Change			2018		2017		Change
	(Dollars in thousands)							(Dollars in thousands)
North American Net Sales
Stacy Adams	$	15,561	$	15,827		-2	%	$	35,049	$	35,146		0	%
Nunn Bush		11,498		11,082		4	%		23,852		24,827		-4	%
Florsheim		15,171		11,634		30	%		30,225		24,093		25	%
BOGS/Rafters		2,888		2,726		6	%		8,903		8,883		0	%
Other		49		431		-89	%		132		900		-85	%
Total North American Wholesale	$	45,167	$	41,700		8	%	$	98,161	$	93,849		5	%
Licensing		472		591		-20	%		1,266		1,292		-2	%
Total North American Wholesale Segment	$	45,639	$	42,291		8	%	$	99,427	$	95,141		5	%

Net sales of the Florsheim brand were up for the quarter and year-to-date periods, driven by strong sales to national shoe chains and department stores. While Nunn Bush sales were up for the quarter, they were down for the first half of 2018, compared to the same period of 2017, reflecting reduced sales in the national shoe chain and department store trade channels. Other net sales decreased in 2018, due to a wind down of operations of the Umi brand.

Licensing revenues consist of royalties earned on the sales of branded apparel, accessories and specialty footwear in the United States and on branded footwear in Mexico and certain overseas markets.

Earnings from Operations

Gross earnings for the North American wholesale segment were 33.3% of net sales in the second quarter of 2018, and 31.3% of net sales in last year’s second quarter. For the six months ended June 30, wholesale gross earnings were 33.2% of net sales in 2018, compared to 31.0% of net sales in 2017. Wholesale earnings from operations were $1.7 million for the three months ended June 30, 2018, up 35% compared to $1.3 million in the same period last year. For the six months ended June 30, 2018, earnings from operations for the wholesale segment were $5.1 million, up 15% from $4.5 million in the same period last year. The increases in wholesale earnings from operations for the quarter and year-to-date periods were primarily due to higher sales and gross margins.

The Company’s cost of sales does not include distribution costs (e.g., receiving, inspection, warehousing, shipping, and handling costs). Wholesale distribution costs were $3.1 million for the second quarter of 2018 versus $2.8 million for the same period of 2017. For the six-month periods ended June 30, 2018 and 2017, wholesale distribution costs were $6.2 million and $5.8 million, respectively. These costs were included in selling and administrative expenses. The Company’s gross earnings may not be comparable to other companies, as some companies may include distribution costs in cost of sales.

North American wholesale segment selling and administrative expenses include, and are primarily related to, distribution costs, salaries and commissions, advertising costs, employee benefit costs, and depreciation. Wholesale selling and administrative expenses were $13.5 million, or 30% of net sales, in the second quarter of 2018, compared to $12.0 million, or 28% of net sales, in the second quarter of 2017. For the six months ended June 30, wholesale selling and administrative expenses were $27.8 million versus $25.0 million in 2017. As a percent of net sales, wholesale selling and administrative expenses were 28% of net sales in the first half of 2018, and 26% of net sales in the first half of 2017.

13

North American Retail Segment

Net Sales

Net sales in the Company’s retail segment were down 3% for the quarter and 1% for the first half of 2018, compared to the same periods last year. Same store sales, which include U.S. internet sales were up 2% for the quarter, and 4% for the first six months of 2018, compared to the same periods last year, primarily due to increased sales on the Company’s websites. There were two fewer domestic brick and mortar stores operating at June 30, 2018 than there were at June 30, 2017.

Earnings from Operations

North American retail segment gross earnings were 65.8% of net sales in the second quarter of 2018, up from 64.9% of net sales in last year’s second quarter. For the six months ended June 30, retail gross earnings were 65.2% of net sales in 2018, compared to 64.7% of net sales in 2017.

Earnings from operations in the North American retail segment improved $38,000 for the quarter, or 21%, compared to the second quarter of 2017, mainly due to the benefit of closing unprofitable stores since last year. For the year-to-date period, retail earnings from operations were up $201,000 in 2018, compared to the first half of 2017, partially due to the benefit of closing unprofitable stores. In addition, the Company’s internet businesses had higher operating earnings this year, as a result of higher sales volumes. Selling and administrative expenses for the retail segment include, and are primarily related to, rent and occupancy costs, employee costs, advertising expense and freight. Retail selling and administrative expenses as a percent of net sales were flat at 61% for the three-months ended June 30, 2018 and 2017. For the six months ended June 30, retail selling and administrative expenses as a percent of net sales were 61% in 2018 and 62% in 2017.

Other

The Company’s other net sales were $10.6 million in the second quarter of 2018, up 2% compared to $10.4 million in 2017. This increase was due to higher net sales at Florsheim Europe, partially offset by lower net sales at Florsheim Australia. For the six months ended June 30, 2018, other net sales were $21.4 million, down 1% from $21.7 million in the same period last year, mainly due to lower net sales at Florsheim Australia. Florsheim Australia’s net sales were down 2% and 4% for the quarter and year-to-date periods, respectively, due to lower sales in both its retail and wholesale businesses. Sales in the Australian and Pacific Rim markets have been declining, as these businesses are facing similar challenges at retail that the Company has experienced in the U.S.

Collectively, Florsheim Australia and Florsheim Europe had operating losses of $23,000 in the second quarter of 2018, compared to operating earnings of $407,000 in the second quarter of 2017. For the six months ended June 30, 2018, Florsheim Australia and Florsheim Europe had operating losses totaling $53,000, compared to operating earnings of $658,000 in the same period last year. The earnings decline for the quarter and first half of 2018 was mainly due to lower operating earnings in Florsheim Australia’s wholesale and retail businesses, resulting from lower sales.

Other income and expense

Interest income for the three and six months ended June 30, 2018, rose $54,000 and $108,000, respectively, due mainly due to additional interest earned on higher cash balances this year. The Company’s effective tax rate for the quarter was 24.8%, compared to 36.0% for the same period of 2017. For the six months ended June 30, the Company’s effective tax rate was 25.0% in 2018 versus 38.2% in 2017. This year’s effective tax rate was down due to the lower U.S. federal tax rate of 21% effective January 1, 2018, versus 35% in 2017, which resulted from the passing of the Tax Cuts and Jobs Act.

LIQUIDITY AND CAPITAL RESOURCES

The Company’s primary sources of liquidity are its cash, short-term marketable securities and its revolving line of credit. The Company generated $14.0 million of cash from operating activities during the first six months of 2018, compared to $20.7 million in the same period of 2017. The decrease between years was primarily due to changes in operating assets and liabilities, principally inventory.

The Company paid cash dividends of $6.9 million and $6.8 million during the six months ended June 30, 2018 and 2017, respectively.

The Company continues to repurchase its common stock under its share repurchase program when the Company believes market conditions are favorable. During the first half of 2018, the Company repurchased 199,500 shares at a total cost of $6.6 million. As of June 30, 2018, the Company had approximately 817,000 shares available under its previously announced stock repurchase program. See Part II, Item 2, “Unregistered Sales of Equity Securities and Use of Proceeds” below for more information.

14

Capital expenditures were $491,000 in the first six months of 2018. Management estimates that annual capital expenditures for 2018 will be between $1.5 million and $2.5 million.

At June 30, 2018, the Company had a $60 million unsecured revolving line of credit with a bank expiring November 4, 2018. The line of credit bears interest at LIBOR plus 0.75%. There were no amounts outstanding on the line of credit during the first half of 2018.

At June 30, 2018, approximately $1.6 million of cash and cash equivalents was held by the Company’s foreign subsidiaries.

On July 31, 2018, David Venner, Director of Seraneuse Pty Ltd (“Seraneuse”), the minority interest shareholder of Florsheim Australia Pty Ltd, provided notice that Seraneuse will tender its shares, representing 45% equity in Florsheim Australia, to the Company, in accordance with the Shareholders Agreement dated January 23, 2009. Accordingly, the Company will purchase the minority interest of Florsheim Australia for $3.8 million on August 30, 2018.

The Company will continue to evaluate the best uses for its available liquidity, including, among other uses, capital expenditures, stock repurchases and additional acquisitions.

The Company believes that available cash and 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.

COMMITMENTS

There were no material changes to the Company’s contractual obligations during the six months ended June 30, 2018, from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes to quantitative and qualitative disclosures about market risk from those reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Item 4. Controls and Procedures.

The Company maintains disclosure controls and procedures designed to ensure that the information the Company must disclose in its filings with the Securities and Exchange Commission is recorded, processed, summarized and reported on a timely basis. The Company’s Chief Executive Officer and Chief Financial Officer have reviewed and evaluated the Company’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this report (the “Evaluation Date”). Based on such evaluation, such officers have concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures are effective in bringing to their attention on a timely basis material information relating to the Company required to be included in the Company’s periodic filings under the Exchange Act. Such officers have also concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures are effective in accumulating and communicating information in a timely manner, allowing timely decisions regarding required disclosures.

There have been no significant changes in the Company’s internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the Company’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

None

15

Item 1A. Risk Factors.

There have been no material changes to the risk factors affecting the Company from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The table below presents information pursuant to Item 703(a) of Regulation S-K regarding the purchase of the Company’s common stock by the Company in the three-month period ended June 30, 2018.

					Total Number of		Maximum Number
	Total		Average		Shares Purchased as		of Shares
	Number		Price		Part of the Publicly		that May Yet Be
	of Shares		Paid		Announced		Purchased Under
Period	Purchased		Per Share		Program		the Program (1)
4/1/2018 - 4/30/2018		-	$	-		-		1,016,636
5/1/2018 - 5/31/2018		-	$	-		-		1,016,636
6/1/2018 - 6/30/2018		199,500	$	33.03		199,500		817,136
Total		199,500	$	33.03		199,500

⁽¹⁾ In 1998 the Company's stock repurchase program was established. On several occasions since the program's inception, the Board of Directors has extended the number of shares authorized for repurchase under the program. In total, 7.5 million shares have been authorized for repurchase.

Item 6. Exhibits.

See the Exhibit Index included herewith for a listing of exhibits.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	WEYCO GROUP, INC.
Dated: August 8, 2018	/s/ John F. Wittkowske
	John F. Wittkowske
	Senior Vice President and Chief Financial Officer

16

WEYCO GROUP, INC.

(THE “REGISTRANT”)

(COMMISSION FILE NO. 0-9068)

EXHIBIT INDEX

TO

CURRENT REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED June 30, 2018

Exhibit	Description	Incorporation Herein By Reference To	Filed Herewith
31.1	Certification of Chief Executive Officer		X
31.2	Certification of Chief Financial Officer		X
32	Section 906 Certification of Chief Executive Officer and Chief Financial Officer		X
101	The following financial information from Weyco Group, Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Condensed Balance Sheets (Unaudited); (ii) Consolidated Condensed Statements of Earnings and Comprehensive Income (Unaudited); (iii) Consolidated Condensed Statements of Cash Flows (Unaudited); and (iv) Notes to Consolidated Condensed Financial Statements, furnished herewith		X

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Thomas W. Florsheim, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Weyco Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 8, 2018	/s/ Thomas W. Florsheim, Jr.
	Thomas W. Florsheim, Jr.
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, John F. Wittkowske, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Weyco Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 8, 2018	/s/ John F. Wittkowske
	John F. Wittkowske
	Chief Financial Officer

EX-32

EXHIBIT 32

CERTIFICATION OF PERIODIC FINANCIAL REPORTS

We, Thomas W. Florsheim, Jr., Chief Executive Officer, and John F. Wittkowske, Chief Financial Officer, of Weyco Group, Inc. each certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of our knowledge:

(1) The Periodic Report on Form 10-Q for the quarter ended June 30, 2018, (the “Periodic Report”) to which this statement is an exhibit fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)) and

(2) The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of Weyco Group, Inc.

Dated: August 8, 2018	/s/ Thomas W. Florsheim, Jr.
	Thomas W. Florsheim, Jr.
	Chief Executive Officer
	/s/ John F. Wittkowske
	John F. Wittkowske
	Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in type form within the electronic version of this written statement required by Section 906, has been provided to Weyco Group, Inc. and will be retained by Weyco Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 31, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Entity Registrant Name	WEYCO GROUP INC
Entity Central Index Key	0000106532
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	WEYS
Entity Common Stock, Shares Outstanding		10,160,124

XML

CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
ASSETS:
Cash and cash equivalents	$ 23,998	$ 23,453
Marketable securities, at amortized cost	8,781	5,970
Accounts receivable, net	37,879	49,451
Income tax receivable	1,901	669
Inventories	56,530	60,270
Prepaid expenses and other current assets	3,413	5,770
Total current assets	132,502	145,583
Marketable securities, at amortized cost	17,421	17,669
Deferred income tax benefits	746	750
Property, plant and equipment, net	30,030	31,643
Goodwill	11,112	11,112
Trademarks	32,978	32,978
Other assets	23,019	23,097
Total assets	247,808	262,832
LIABILITIES AND EQUITY:
Accounts payable	5,878	8,905
Dividend payable	0	2,228
Accrued liabilities	10,520	14,031
Total current liabilities	16,398	25,164
Deferred income tax liabilities	2,990	2,069
Long-term pension liability	24,592	27,766
Other long-term liabilities	1,792	2,174
Total liabilities	45,772	57,173
Common stock	10,160	10,162
Capital in excess of par value	59,928	55,884
Reinvested earnings	143,921	150,350
Accumulated other comprehensive loss	(18,419)	(17,859)
Total Weyco Group, Inc. equity	195,590	198,537
Noncontrolling interest	6,446	7,122
Total equity	202,036	205,659
Total liabilities and equity	$ 247,808	$ 262,832

XML

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net sales	$ 60,888	$ 57,453	$ 130,414	$ 126,573
Cost of sales	37,182	35,363	80,083	79,255
Gross earnings	23,706	22,090	50,331	47,318
Selling and administrative expenses	21,759	20,200	44,817	41,969
Earnings from operations	1,947	1,890	5,514	5,349
Interest income	254	200	487	379
Interest expense	0	0	0	(7)
Other expense, net	(176)	(55)	(219)	(190)
Earnings before provision for income taxes	2,025	2,035	5,782	5,531
Provision for income taxes	502	732	1,443	2,113
Net earnings	1,523	1,303	4,339	3,418
Net (loss) earnings attributable to noncontrolling interest	(103)	46	(274)	(56)
Net earnings attributable to Weyco Group, Inc.	$ 1,626	$ 1,257	$ 4,613	$ 3,474
Weighted average shares outstanding
Basic (in shares)	10,214	10,305	10,194	10,370
Diluted (in shares)	10,505	10,368	10,433	10,433
Earnings per share
Basic (in dollars per share)	$ 0.16	$ 0.12	$ 0.45	$ 0.34
Diluted (in dollars per share)	0.15	0.12	0.44	0.33
Cash dividends declared (per share)	$ 0.23	$ 0.22	$ 0.45	$ 0.43
Comprehensive income	$ 650	$ 1,924	$ 3,465	$ 4,799
Comprehensive (loss) income attributable to noncontrolling interest	(383)	80	(588)	246
Comprehensive income attributable to Weyco Group, Inc.	$ 1,033	$ 1,844	$ 4,053	$ 4,553

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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 4,339	$ 3,418
Adjustments to reconcile net earnings to net cash provided by operating activities -
Depreciation	1,905	1,995
Amortization	171	186
Bad debt expense	160	291
Deferred income taxes	841	1,434
Net foreign currency transaction losses (gains)	105	(15)
Stock-based compensation	805	779
Pension contribution	(3,000)	(4,000)
Pension expense	426	497
Increase in cash surrender value of life insurance	(115)	(115)
Changes in operating assets and liabilities -
Accounts receivable	11,464	13,179
Inventories	3,714	9,041
Prepaid expenses and other assets	2,527	2,831
Accounts payable	(3,008)	(6,927)
Accrued liabilities and other	(5,213)	241
Accrued income taxes	(1,111)	(2,092)
Net cash provided by operating activities	14,010	20,743
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities	(5,961)	(7,433)
Proceeds from maturities of marketable securities	3,375	3,015
Life insurance premiums paid	(155)	(155)
Purchases of property, plant and equipment	(491)	(772)
Net cash used for investing activities	(3,232)	(5,345)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends paid	(6,836)	(6,643)
Cash dividends paid to noncontrolling interest of subsidiary	(88)	(204)
Shares purchased and retired	(6,589)	(6,843)
Net proceeds from stock options exercised	4,048	438
Taxes paid related to the net share settlement of equity awards	(611)	0
Proceeds from bank borrowings	0	6,816
Repayments of bank borrowings	0	(11,084)
Net cash used for financing activities	(10,076)	(17,520)
Effect of exchange rate changes on cash and cash equivalents	(157)	266
Net increase (decrease) in cash and cash equivalents	545	(1,856)
CASH AND CASH EQUIVALENTS at beginning of period	23,453	13,710
CASH AND CASH EQUIVALENTS at end of period	23,998	11,854
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net of refunds	1,927	2,805
Interest paid	$ 0	$ 7

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Financial Statements

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting [Text Block]

NOTES:

1. Financial Statements

In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature. The results of operations for the three and six months ended June 30, 2018, may not necessarily be indicative of the results for the full year.

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New Accounting Pronouncements

6 Months Ended

Jun. 30, 2018

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

2. New Accounting Pronouncements

On January 1, 2018, the Company adopted Accounting Standards Update (ASU) 2014-09, Revenue - Revenue from Contracts with Customers and all related amendments, which were together codified into Accounting Standards Codification (ASC) 606. This guidance was adopted using the modified retrospective method. The adoption of ASC 606 did not have a material impact on the Company’s financial position or results of operations. The Company did not restate prior period information for the effects of the new standard, nor did the Company adjust the opening balance of retained earnings to account for the implementation of the new requirements of this standard. The Company does not expect the adoption of this guidance will have a material effect on the results of operations in future periods. See Note 3.

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Revenue Recognition

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Revenue from Contract with Customer [Text Block]

3. Revenue Recognition

The Company’s revenue contracts represent a single performance obligation to sell its products to its customers. Sales are recorded at the time control of the products is transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for the products. All revenue is recorded net of estimated allowances for returns and discounts; these revenue offsets are accrued at the time of the sale. Generally, payments from customers are received within 90 days following the sale. The Company’s contracts with customers do not have significant financing components or significant prepayments from customers, and there is no non-cash consideration. The Company does not have unbilled revenue, and there are no contract assets or contract liabilities.

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Reclassifications

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Reclassifications [Text Block]

4. Reclassifications

Certain prior year amounts in the Consolidated Condensed Statements of Cash Flows (Unaudited) were reclassified to conform to current year presentation. These reclassifications had no effect on previously reported net earnings or equity.

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Earnings Per Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

5. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(In thousands, except per share amounts)
Numerator:
Net earnings attributable to Weyco Group, Inc.	$	1,626	$	1,257	$	4,613	$	3,474
Denominator:
Basic weighted average shares outstanding		10,214		10,305		10,194		10,370
Effect of dilutive securities:
Employee stock-based awards		291		63		239		63
Diluted weighted average shares outstanding		10,505		10,368		10,433		10,433
Basic earnings per share	$	0.16	$	0.12	$	0.45	$	0.34
Diluted earnings per share	$	0.15	$	0.12	$	0.44	$	0.33

There were no anti-dilutive stock options for the three months ended June 30, 2018. Diluted weighted average shares outstanding for the six months ended June 30, 2018, exclude anti-dilutive stock options totaling approximately 207,000 shares of common stock at a weighted average price of $27.94. Diluted weighted average shares outstanding for the three months ended June 30, 2017, exclude anti-dilutive stock options totaling approximately 837,000 shares of common stock at a weighted average price of $26.85. Diluted weighted average shares outstanding for the six months ended June 30, 2017, exclude anti-dilutive stock options totaling approximately 706,000 shares of common stock at a weighted average price of $27.15.

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Investments

6 Months Ended

Jun. 30, 2018

Investments [Abstract]

Cost and Equity Method Investments Disclosure [Text Block]

6. Investments

As noted in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, all of the Company’s marketable securities are classified as held-to-maturity securities and reported at amortized cost pursuant to Accounting Standards Codification 320, Investments – Debt and Equity Securities, as the Company has the intent and ability to hold all investments to maturity.

Below is a summary of the amortized cost and estimated market values of the Company’s marketable securities as of June 30, 2018, and December 31, 2017.

	June 30, 2018				December 31, 2017
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
	(Dollars in thousands)
Municipal bonds:
Current	$	8,781	$	8,783	$	5,970	$	5,977
Due from one through five years		9,550		9,719		10,260		10,536
Due from six through ten years		5,261		5,332		5,005		5,197
Due from eleven through twenty years		2,610		2,675		2,404		2,539
Total	$	26,202	$	26,509	$	23,639	$	24,249

The unrealized gains and losses on marketable securities at June 30, 2018, and at December 31, 2017, were as follows:

	June 30, 2018					December 31, 2017
	Unrealized		Unrealized			Unrealized		Unrealized
	Gains		Losses			Gains		Losses
	(Dollars in thousands)
Municipal bonds	$	394	$	(87	)	$	634	$	(24	)

The estimated market values provided are level 2 valuations as defined by Accounting Standards Codification 820, Fair Value Measurements and Disclosures (“ASC 820”). The Company reviewed its portfolio of investments as of June 30, 2018 and determined that no other-than-temporary market value impairment exists.

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Intangible Assets

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

7. Intangible Assets

The Company’s indefinite-lived intangible assets as recorded in the Consolidated Condensed Balance Sheets (Unaudited) consisted of the following:

	June 30, 2018							December 31, 2017
	Gross							Gross
	Carrying		Accumulated					Carrying		Accumulated
	Amount		Impairment			Net		Amount		Impairment			Net
	(Dollars in thousands)							(Dollars in thousands)
Indefinite-lived intangible assets
Goodwill	$	11,112	$	-		$	11,112	$	11,112	$	-		$	11,112
Trademarks		34,748		(1,770	)		32,978		34,748		(1,770	)		32,978
Total indefinite-lived intangible assets	$	45,860	$	(1,770	)	$	44,090	$	45,860	$	(1,770	)	$	44,090

The Company’s amortizable intangible assets as recorded in the Consolidated Condensed Balance Sheets (Unaudited) consisted of the following:

			June 30, 2018							December 31, 2017
	Weighted		Gross							Gross
	Average		Carrying		Accumulated					Carrying		Accumulated
	Life (Years)		Amount		Amortization			Net		Amount		Amortization			Net
			(Dollars in thousands)							(Dollars in thousands)
Amortizable intangible assets
Customer relationships		15	$	3,500	$	(1,711	)	$	1,789	$	3,500	$	(1,594	)	$	1,906
Total amortizable intangible assets			$	3,500	$	(1,711	)	$	1,789	$	3,500	$	(1,594	)	$	1,906

Amortization expense related to the intangible assets was approximately $58,000 in both the second quarters of 2018 and 2017. For the six months ended June 30, amortization expense related to the intangible assets was approximately $117,000 in both 2018 and in 2017. The amortizable intangible assets are included within other assets in the Consolidated Condensed Balance Sheets. (Unaudited).

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Segment Information

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

8. Segment Information

The Company has two reportable segments: North American wholesale operations (“wholesale”) and North American retail operations (“retail”). The chief operating decision maker, the Company’s Chief Executive Officer, evaluates the performance of the Company’s segments based on earnings from operations. Therefore, interest income or expense, other income or expense, and income taxes are not allocated to the segments. The “other” category in the tables below includes the Company’s wholesale and retail operations in Australia, South Africa, Asia Pacific and Europe, which do not meet the criteria for separate reportable segment classification.

Summarized segment data for the three and six months ended June 30, 2018 and 2017, was as follows:

Three Months Ended
June 30,	Wholesale		Retail		Other			Total
	(Dollars in thousands)
2018
Product sales	$	45,167	$	4,624	$	10,625		$	60,416
Licensing revenues		472		-		-			472
Net sales	$	45,639	$	4,624	$	10,625		$	60,888
Earnings from operations	$	1,748	$	222	$	(23	)	$	1,947
2017
Product sales	$	41,700	$	4,758	$	10,404		$	56,862
Licensing revenues		591		-		-			591
Net sales	$	42,291	$	4,758	$	10,404		$	57,453
Earnings from operations	$	1,298	$	184	$	408		$	1,890

Six Months Ended
June 30,	Wholesale		Retail		Other			Total
	(Dollars in thousands)
2018
Product sales	$	98,161	$	9,551	$	21,436		$	129,148
Licensing revenues		1,266		-		-			1,266
Net sales	$	99,427	$	9,551	$	21,436		$	130,414
Earnings from operations	$	5,139	$	428	$	(53	)	$	5,514
2017
Product sales	$	93,849	$	9,688	$	21,744		$	125,281
Licensing revenues		1,292		-		-			1,292
Net sales	$	95,141	$	9,688	$	21,744		$	126,573
Earnings from operations	$	4,464	$	227	$	658		$	5,349

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Employee Retirement Plans

6 Months Ended

Jun. 30, 2018

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

9. Employee Retirement Plans

The components of the Company’s net periodic pension cost were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(Dollars in thousands)
Service cost	$	151		$	142		$	301		$	282
Interest cost		549			555			1,098			1,103
Expected return on plan assets		(646	)		(609	)		(1,292	)		(1,151	)
Net amortization and deferral		159			143			319			263
Net periodic pension cost	$	213		$	231		$	426		$	497

The components of net periodic pension cost other than the service cost component are included in "other expense, net" in the Consolidated Condensed Statements of Earnings and Comprehensive Income (Unaudited).

The Company made a $3.0 million pension contribution in the second quarter of 2018. No additional cash contributions are expected for the remainder of 2018.

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Stock-Based Compensation Plans

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

10. Stock-Based Compensation Plans

During the three and six months ended June 30, 2018, the Company recognized approximately $454,000 and $805,000, respectively, of compensation expense associated with stock option and restricted stock awards granted in years 2014 through 2017. During the three and six months ended June 30, 2017, the Company recognized approximately $410,000 and $779,000, respectively, of compensation expense associated with stock option and restricted stock awards granted in years 2013 through 2016.

The following table summarizes the Company’s stock option activity for the six-month period ended June 30, 2018:

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Shares			Price		Term (Years)		Value*
Outstanding at December 31, 2017		1,502,493		$	26.57
Exercised		(352,566	)	$	25.82
Forfeited or expired		(11,075	)	$	26.57
Outstanding at June 30, 2018		1,138,852		$	26.80		4.0	$	10,936,000
Exercisable at June 30, 2018		524,690		$	27.10		2.3	$	4,878,000

* The aggregate intrinsic value of outstanding and exercisable stock options is defined as the difference between the market value of the Company's stock on June 29, 2018, the last trading day of the quarter, of $36.40 and the exercise price multiplied by the number of in-the-money outstanding and exercisable stock options.

The following table summarizes the Company’s stock option exercise activity for the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(Dollars in thousands)
Total intrinsic value of stock options exercised	$	2,549	$	23	$	3,050	$	64
Net cash proceeds from stock option exercises	$	1,164	$	82	$	4,048	$	438
Income tax benefit from the exercise of stock options	$	663	$	10	$	793	$	25

The following table summarizes the Company’s restricted stock award activity for the six-month period ended June 30, 2018:

						Weighted
				Weighted		Average
	Shares of			Average		Remaining		Aggregate
	Restricted			Grant Date		Contractual		Intrinsic
	Stock			Fair Value		Term (Years)		Value*
Non-vested at December 31, 2017		66,050		$	26.79
Issued		2,439		$	35.55
Vested		(2,439	)	$	35.55
Forfeited		(1,675	)		26.59
Non-vested at June 30, 2018		64,375		$	26.80		2.3	$	2,343,000

* The aggregate intrinsic value of non-vested restricted stock was calculated using the market value of the Company's stock on June 29, 2018 of $36.40 multiplied by the number of non-vested restricted shares outstanding.

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Short-Term Borrowings

6 Months Ended

Jun. 30, 2018

Short-term Debt [Abstract]

Short-term Debt [Text Block]

11. Short-Term Borrowings

At June 30, 2018, the Company had a $60 million unsecured revolving line of credit with a bank expiring November 4, 2018. The line of credit bears interest at the London Interbank Offered Rate (“LIBOR”) plus 0.75%. At June 30, 2018, there were no amounts outstanding on the line of credit. There were also no amounts outstanding on the line of credit to date in 2018.

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Financial Instruments

6 Months Ended

Jun. 30, 2018

Investments, All Other Investments [Abstract]

Financial Instruments Disclosure [Text Block]

12. Financial Instruments

At June 30, 2018, the Company’s majority-owned subsidiary, Florsheim Australia, had foreign exchange contracts outstanding to buy $2.5 million U.S. dollars at a price of approximately $3.1 million Australian dollars. Based on quarter-end exchange rates, there were no significant unrealized gains or losses on the outstanding contracts.

The Company determines the fair value of foreign exchange contracts based on the difference between the foreign currency contract rates and the widely available foreign currency rates as of the measurement date. The fair value measurements are based on observable market transactions, and thus represent a level 2 valuation as defined by ASC 820.

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Comprehensive Income

6 Months Ended

Jun. 30, 2018

Stockholders' Equity Note [Abstract]

Comprehensive Income (Loss) Note [Text Block]

13. Comprehensive Income

Comprehensive income for the three and six months ended June 30, 2018 and 2017, was as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
	(Dollars in thousands)
Net earnings	$	1,523		$	1,303	$	4,339		$	3,418
Foreign currency translation adjustments		(991	)		533		(1,110	)		1,220
Pension liability, net of tax of $42, $56, $83, and $102, respectively		118			88		236			161
Total comprehensive income	$	650		$	1,924	$	3,465		$	4,799

The components of accumulated other comprehensive loss as recorded on the Consolidated Condensed Balance Sheets (Unaudited) were as follows:

	June 30,			December 31,
	2018			2017
	(Dollars in thousands)
Foreign currency translation adjustments	$	(4,982	)	$	(4,186	)
Pension liability, net of tax		(13,437	)		(13,673	)
Total accumulated other comprehensive loss	$	(18,419	)	$	(17,859	)

The following presents a tabular disclosure about changes in accumulated other comprehensive loss during the six months ended June 30, 2018:

	Foreign ‎Currency ‎Translation ‎Adjustments			Defined ‎Benefit ‎Pension ‎Items			Total
Beginning balance, December 31, 2017	$	(4,186	)	$	(13,673	)	$	(17,859	)
Other comprehensive loss before reclassifications		(796	)		-			(796	)
Amounts reclassified from accumulated other comprehensive loss		-			236			236
Net current period other comprehensive (loss) income		(796	)		236			(560	)
Ending balance, June 30, 2018	$	(4,982	)	$	(13,437	)	$	(18,419	)

The following presents a tabular disclosure about reclassification adjustments out of accumulated other comprehensive loss during the six months ended June 30, 2018:

	Amounts reclassified ‎from accumulated other ‎comprehensive loss for ‎the six months ended ‎June 30, 2018			Affected line item in the ‎statement where net ‎income is presented
Amortization of defined benefit pension items
Prior service cost	$	(31	)(1)		Other expense, net
Actuarial losses		350	(1)		Other expense, net
Total before tax		319
Tax benefit		(83	)
Net of tax	$	236

(1) These amounts were included in net periodic pension cost. See Note 9 for additional details.

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Equity

6 Months Ended

Jun. 30, 2018

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

14. Equity

The following table reconciles the Company’s equity for the six months ended June 30, 2018:

										Accumulated
				Capital in						Other
	Common			Excess of			Reinvested			Comprehensive			Noncontrolling
	Stock			Par Value			Earnings			Loss			Interest
	(Dollars in thousands)
Balance, December 31, 2017	$	10,162		$	55,884		$	150,350		$	(17,859	)	$	7,122
Net earnings		-			-			4,613						(274	)
Foreign currency translation adjustments		-			-			-			(796	)		(314	)
Pension liability adjustment, net of tax		-			-			-			236			-
Cash dividends declared		-			-			(4,652	)		-			-
Cash dividends paid to noncontrolling interest		-			-			-			-			(88	)
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price		197			3,239			-			-			-
Issuance of restricted stock		2			(2	)		-			-			-
Restricted stock forfeited		(2	)		2			-			-			-
Stock-based compensation expense		-			805			-			-			-
Shares purchased and retired		(199	)		-			(6,390	)		-			-
Balance, June 30, 2018	$	10,160		$	59,928		$	143,921		$	(18,419	)	$	6,446

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Subsequent Event

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events [Text Block]

15. Subsequent Event

On July 31, 2018, David Venner, Director of Seraneuse Pty Ltd (“Seraneuse”), the minority interest shareholder of Florsheim Australia Pty Ltd, provided notice that Seraneuse will tender its shares, representing 45% equity in Florsheim Australia, to the Company, in accordance with the Shareholders Agreement dated January 23, 2009. Accordingly, the Company will purchase the minority interest of Florsheim Australia for $3.8 million on August 30, 2018.

The Shareholders Agreement referenced above was filed as Exhibit 10.2 to Form 10-K for the Year Ended December 31, 2008.

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(In thousands, except per share amounts)
Numerator:
Net earnings attributable to Weyco Group, Inc.	$	1,626	$	1,257	$	4,613	$	3,474
Denominator:
Basic weighted average shares outstanding		10,214		10,305		10,194		10,370
Effect of dilutive securities:
Employee stock-based awards		291		63		239		63
Diluted weighted average shares outstanding		10,505		10,368		10,433		10,433
Basic earnings per share	$	0.16	$	0.12	$	0.45	$	0.34
Diluted earnings per share	$	0.15	$	0.12	$	0.44	$	0.33

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Investments (Tables)

6 Months Ended

Jun. 30, 2018

Investments [Abstract]

Debt Securities, Held-to-maturity [Table Text Block]

Below is a summary of the amortized cost and estimated market values of the Company’s marketable securities as of June 30, 2018, and December 31, 2017.

	June 30, 2018				December 31, 2017
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
	(Dollars in thousands)
Municipal bonds:
Current	$	8,781	$	8,783	$	5,970	$	5,977
Due from one through five years		9,550		9,719		10,260		10,536
Due from six through ten years		5,261		5,332		5,005		5,197
Due from eleven through twenty years		2,610		2,675		2,404		2,539
Total	$	26,202	$	26,509	$	23,639	$	24,249

Unrealized Gain (Loss) on Investments [Table Text Block]

The unrealized gains and losses on marketable securities at June 30, 2018, and at December 31, 2017, were as follows:

	June 30, 2018					December 31, 2017
	Unrealized		Unrealized			Unrealized		Unrealized
	Gains		Losses			Gains		Losses
	(Dollars in thousands)
Municipal bonds	$	394	$	(87	)	$	634	$	(24	)

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Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill [Table Text Block]

The Company’s indefinite-lived intangible assets as recorded in the Consolidated Condensed Balance Sheets (Unaudited) consisted of the following:

	June 30, 2018							December 31, 2017
	Gross							Gross
	Carrying		Accumulated					Carrying		Accumulated
	Amount		Impairment			Net		Amount		Impairment			Net
	(Dollars in thousands)							(Dollars in thousands)
Indefinite-lived intangible assets
Goodwill	$	11,112	$	-		$	11,112	$	11,112	$	-		$	11,112
Trademarks		34,748		(1,770	)		32,978		34,748		(1,770	)		32,978
Total indefinite-lived intangible assets	$	45,860	$	(1,770	)	$	44,090	$	45,860	$	(1,770	)	$	44,090

The Company’s amortizable intangible assets as recorded in the Consolidated Condensed Balance Sheets (Unaudited) consisted of the following:

			June 30, 2018							December 31, 2017
	Weighted		Gross							Gross
	Average		Carrying		Accumulated					Carrying		Accumulated
	Life (Years)		Amount		Amortization			Net		Amount		Amortization			Net
			(Dollars in thousands)							(Dollars in thousands)
Amortizable intangible assets
Customer relationships		15	$	3,500	$	(1,711	)	$	1,789	$	3,500	$	(1,594	)	$	1,906
Total amortizable intangible assets			$	3,500	$	(1,711	)	$	1,789	$	3,500	$	(1,594	)	$	1,906

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Summarized segment data for the three and six months ended June 30, 2018 and 2017, was as follows:

Three Months Ended
June 30,	Wholesale		Retail		Other			Total
	(Dollars in thousands)
2018
Product sales	$	45,167	$	4,624	$	10,625		$	60,416
Licensing revenues		472		-		-			472
Net sales	$	45,639	$	4,624	$	10,625		$	60,888
Earnings from operations	$	1,748	$	222	$	(23	)	$	1,947
2017
Product sales	$	41,700	$	4,758	$	10,404		$	56,862
Licensing revenues		591		-		-			591
Net sales	$	42,291	$	4,758	$	10,404		$	57,453
Earnings from operations	$	1,298	$	184	$	408		$	1,890

Six Months Ended
June 30,	Wholesale		Retail		Other			Total
	(Dollars in thousands)
2018
Product sales	$	98,161	$	9,551	$	21,436		$	129,148
Licensing revenues		1,266		-		-			1,266
Net sales	$	99,427	$	9,551	$	21,436		$	130,414
Earnings from operations	$	5,139	$	428	$	(53	)	$	5,514
2017
Product sales	$	93,849	$	9,688	$	21,744		$	125,281
Licensing revenues		1,292		-		-			1,292
Net sales	$	95,141	$	9,688	$	21,744		$	126,573
Earnings from operations	$	4,464	$	227	$	658		$	5,349

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Employee Retirement Plans (Tables)

6 Months Ended

Jun. 30, 2018

Retirement Benefits [Abstract]

Schedule of Net Benefit Costs [Table Text Block]

The components of the Company’s net periodic pension cost were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(Dollars in thousands)
Service cost	$	151		$	142		$	301		$	282
Interest cost		549			555			1,098			1,103
Expected return on plan assets		(646	)		(609	)		(1,292	)		(1,151	)
Net amortization and deferral		159			143			319			263
Net periodic pension cost	$	213		$	231		$	426		$	497

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Stock-Based Compensation Plans (Tables)

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation, Stock Options, Activity [Table Text Block]

The following table summarizes the Company’s stock option activity for the six-month period ended June 30, 2018:

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Shares			Price		Term (Years)		Value*
Outstanding at December 31, 2017		1,502,493		$	26.57
Exercised		(352,566	)	$	25.82
Forfeited or expired		(11,075	)	$	26.57
Outstanding at June 30, 2018		1,138,852		$	26.80		4.0	$	10,936,000
Exercisable at June 30, 2018		524,690		$	27.10		2.3	$	4,878,000

* The aggregate intrinsic value of outstanding and exercisable stock options is defined as the difference between the market value of the Company's stock on June 29, 2018, the last trading day of the quarter, of $36.40 and the exercise price multiplied by the number of in-the-money outstanding and exercisable stock options.

Share-based Compensation, Stock Options Exercised, Activity [Table Text Block]

The following table summarizes the Company’s stock option exercise activity for the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(Dollars in thousands)
Total intrinsic value of stock options exercised	$	2,549	$	23	$	3,050	$	64
Net cash proceeds from stock option exercises	$	1,164	$	82	$	4,048	$	438
Income tax benefit from the exercise of stock options	$	663	$	10	$	793	$	25

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

The following table summarizes the Company’s restricted stock award activity for the six-month period ended June 30, 2018:

						Weighted
				Weighted		Average
	Shares of			Average		Remaining		Aggregate
	Restricted			Grant Date		Contractual		Intrinsic
	Stock			Fair Value		Term (Years)		Value*
Non-vested at December 31, 2017		66,050		$	26.79
Issued		2,439		$	35.55
Vested		(2,439	)	$	35.55
Forfeited		(1,675	)		26.59
Non-vested at June 30, 2018		64,375		$	26.80		2.3	$	2,343,000

* The aggregate intrinsic value of non-vested restricted stock was calculated using the market value of the Company's stock on June 29, 2018 of $36.40 multiplied by the number of non-vested restricted shares outstanding.

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Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2018

Stockholders' Equity Note [Abstract]

Comprehensive Income (Loss) [Table Text Block]

Comprehensive income for the three and six months ended June 30, 2018 and 2017, was as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
	(Dollars in thousands)
Net earnings	$	1,523		$	1,303	$	4,339		$	3,418
Foreign currency translation adjustments		(991	)		533		(1,110	)		1,220
Pension liability, net of tax of $42, $56, $83, and $102, respectively		118			88		236			161
Total comprehensive income	$	650		$	1,924	$	3,465		$	4,799

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The components of accumulated other comprehensive loss as recorded on the Consolidated Condensed Balance Sheets (Unaudited) were as follows:

	June 30,			December 31,
	2018			2017
	(Dollars in thousands)
Foreign currency translation adjustments	$	(4,982	)	$	(4,186	)
Pension liability, net of tax		(13,437	)		(13,673	)
Total accumulated other comprehensive loss	$	(18,419	)	$	(17,859	)

Changes In Accumulated Other Comprehensive Loss [Table Text Block]

The following presents a tabular disclosure about changes in accumulated other comprehensive loss during the six months ended June 30, 2018:

	Foreign ‎Currency ‎Translation ‎Adjustments			Defined ‎Benefit ‎Pension ‎Items			Total
Beginning balance, December 31, 2017	$	(4,186	)	$	(13,673	)	$	(17,859	)
Other comprehensive loss before reclassifications		(796	)		-			(796	)
Amounts reclassified from accumulated other comprehensive loss		-			236			236
Net current period other comprehensive (loss) income		(796	)		236			(560	)
Ending balance, June 30, 2018	$	(4,982	)	$	(13,437	)	$	(18,419	)

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

The following presents a tabular disclosure about reclassification adjustments out of accumulated other comprehensive loss during the six months ended June 30, 2018:

	Amounts reclassified ‎from accumulated other ‎comprehensive loss for ‎the six months ended ‎June 30, 2018			Affected line item in the ‎statement where net ‎income is presented
Amortization of defined benefit pension items
Prior service cost	$	(31	)(1)		Other expense, net
Actuarial losses		350	(1)		Other expense, net
Total before tax		319
Tax benefit		(83	)
Net of tax	$	236

(1) These amounts were included in net periodic pension cost. See Note 9 for additional details.

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Equity (Tables)

6 Months Ended

Jun. 30, 2018

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity [Table Text Block]

The following table reconciles the Company’s equity for the six months ended June 30, 2018:

										Accumulated
				Capital in						Other
	Common			Excess of			Reinvested			Comprehensive			Noncontrolling
	Stock			Par Value			Earnings			Loss			Interest
	(Dollars in thousands)
Balance, December 31, 2017	$	10,162		$	55,884		$	150,350		$	(17,859	)	$	7,122
Net earnings		-			-			4,613						(274	)
Foreign currency translation adjustments		-			-			-			(796	)		(314	)
Pension liability adjustment, net of tax		-			-			-			236			-
Cash dividends declared		-			-			(4,652	)		-			-
Cash dividends paid to noncontrolling interest		-			-			-			-			(88	)
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price		197			3,239			-			-			-
Issuance of restricted stock		2			(2	)		-			-			-
Restricted stock forfeited		(2	)		2			-			-			-
Stock-based compensation expense		-			805			-			-			-
Shares purchased and retired		(199	)		-			(6,390	)		-			-
Balance, June 30, 2018	$	10,160		$	59,928		$	143,921		$	(18,419	)	$	6,446

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net earnings attributable to Weyco Group, Inc.	$ 1,626	$ 1,257	$ 4,613	$ 3,474
Denominator:
Basic weighted average shares outstanding	10,214	10,305	10,194	10,370
Effect of dilutive securities:
Employee stock-based awards	291	63	239	63
Diluted weighted average shares outstanding	10,505	10,368	10,433	10,433
Basic earnings per share	$ 0.16	$ 0.12	$ 0.45	$ 0.34
Diluted earnings per share	$ 0.15	$ 0.12	$ 0.44	$ 0.33

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Earnings Per Share (Details Textual) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	837,000	207,000	706,000
Weighted Average Price of Antidilutive Securities Excluded from Computation of Earnings Per Share (in dollars per share)	$ 26.85	$ 27.94	$ 27.15

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Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost, Current	$ 8,781	$ 5,970
Held-to-maturity Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost, Current	8,781	5,970
Amortized Cost, Due from one through five years	9,550	10,260
Amortized Cost, Due from six through ten years	5,261	5,005
Amortized Cost, Due from eleven through twenty years	2,610	2,404
Amortized Cost, Total	26,202	23,639
Market Value, Current	8,783	5,977
Market Value, Due from one through five years	9,719	10,536
Market Value, Due from six through ten years	5,332	5,197
Market Value, Due from eleven through twenty years	2,675	2,539
Market Value, Total	$ 26,509	$ 24,249

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Investments (Details 1) - Municipal Bonds [Member] - Held-to-maturity Securities [Member] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Net Investment Income [Line Items]
Unrealized Gains	$ 394	$ 634
Unrealized Losses	$ (87)	$ (24)

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Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Indefinite-lived intangible assets:
Gross Carrying Amount	$ 45,860	$ 45,860
Accumulated Impairment	(1,770)	(1,770)
Net	44,090	44,090
Gross Carrying Amount	11,112	11,112
Accumulated Impairment	0	0
Net	11,112	11,112
Amortizable intangible assets:
Gross Carrying Amount	3,500	3,500
Accumulated Amortization	(1,711)	(1,594)
Net	1,789	1,906
Trademarks [Member]
Indefinite-lived intangible assets:
Gross Carrying Amount	34,748	34,748
Accumulated Impairment	(1,770)	(1,770)
Net	$ 32,978	32,978
Amortizable intangible assets Customer relationships [Member]
Amortizable intangible assets:
Weighted Average Life (Years)	15 years
Gross Carrying Amount	$ 3,500	3,500
Accumulated Amortization	(1,711)	(1,594)
Net	$ 1,789	$ 1,906

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Intangible Assets (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 58,000	$ 58,000	$ 117,000	$ 117,000

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Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Net sales	$ 60,888	$ 57,453	$ 130,414	$ 126,573
Earnings (loss) from operations	1,947	1,890	5,514	5,349
Product sales [Member]
Segment Reporting Information [Line Items]
Net sales	60,416	56,862	129,148	125,281
Licensing revenues [Member]
Segment Reporting Information [Line Items]
Net sales	472	591	1,266	1,292
Wholesale [Member]
Segment Reporting Information [Line Items]
Net sales	45,639	42,291	99,427	95,141
Earnings (loss) from operations	1,748	1,298	5,139	4,464
Wholesale [Member] | Product sales [Member]
Segment Reporting Information [Line Items]
Net sales	45,167	41,700	98,161	93,849
Wholesale [Member] | Licensing revenues [Member]
Segment Reporting Information [Line Items]
Net sales	472	591	1,266	1,292
Retail [Member]
Segment Reporting Information [Line Items]
Net sales	4,624	4,758	9,551	9,688
Earnings (loss) from operations	222	184	428	227
Retail [Member] | Product sales [Member]
Segment Reporting Information [Line Items]
Net sales	4,624	4,758	9,551	9,688
Retail [Member] | Licensing revenues [Member]
Segment Reporting Information [Line Items]
Net sales	0	0	0	0
Other [Member]
Segment Reporting Information [Line Items]
Net sales	10,625	10,404	21,436	21,744
Earnings (loss) from operations	(23)	408	(53)	658
Other [Member] | Product sales [Member]
Segment Reporting Information [Line Items]
Net sales	10,625	10,404	21,436	21,744
Other [Member] | Licensing revenues [Member]
Segment Reporting Information [Line Items]
Net sales	$ 0	$ 0	$ 0	$ 0

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Employee Retirement Plans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 151	$ 142	$ 301	$ 282
Interest cost	549	555	1,098	1,103
Expected return on plan assets	(646)	(609)	(1,292)	(1,151)
Net amortization and deferral	159	143	319	263
Net periodic pension cost	$ 213	$ 231	$ 426	$ 497

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Stock-Based Compensation Plans (Details) - Employee Stock Option [Member]	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding at beginning of year | shares	1,502,493
Shares, Exercised | shares	(352,566)
Shares, Forfeited or expired | shares	(11,075)
Shares, Outstanding at end of year | shares	1,138,852
Shares, Exercisable at end of year | shares	524,690
Weighted Average Exercise Price, Outstanding at beginning of year (in dollars per share) | $ / shares	$ 26.57
Weighted Average Exercise Price, Exercised (in dollars per share) | $ / shares	25.82
Weighted Average Exercise Price, Forfeited or expired (in dollars per share) | $ / shares	26.57
Weighted Average Exercise Price, Outstanding at end of year (in dollars per share) | $ / shares	26.80
Weighted Average Exercise Price, Exercisable at end of year (in dollars per share) | $ / shares	$ 27.10
Weighted Average Remaining Contractual Life (Years), Outstanding - March 30, 2018	4 years
Weighted Average Remaining Contractual Life (Years), Exercisable - March 30, 2018	2 years 3 months 18 days
Aggregate Intrinsic Value, Outstanding at June 30, 2018 | $	$ 10,936,000	[1]
Aggregate Intrinsic Value, Exercisable at June 30, 2018 | $	$ 4,878,000	[1]

[1] The aggregate intrinsic value of outstanding and exercisable stock options is defined as the difference between the market value of the Company's stock on June 29, 2018, the last trading day of the quarter, of $36.40 and the exercise price multiplied by the number of in-the-money outstanding and exercisable stock options.

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Stock-Based Compensation Plans (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of stock options exercised	$ 2,549	$ 23	$ 3,050	$ 64
Net cash proceeds from stock option exercises	1,164	82	4,048	438
Income tax benefit from the exercise of stock options	$ 663	$ 10	$ 793	$ 25

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Stock-Based Compensation Plans (Details 2) - Restricted Stock [Member]	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of Restricted Stock, Non-vested beginning of year | shares	66,050
Shares of Restricted Stock, Issued | shares	2,439
Shares of Restricted Stock, Vested | shares	(2,439)
Shares of Restricted Stock, Forfeited | shares	(1,675)
Shares of Restricted Stock, Non-vested end of year | shares	64,375
Weighted Average Grant Date Fair Value, Non-vested beginning of year (in dollars per share) | $ / shares	$ 26.79
Weighted Average Grant Date Fair Value, Issued (in dollars per share) | $ / shares	35.55
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares	35.55
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares	26.59
Weighted Average Grant Date Fair Value, Non-vested end of year (in dollars per share) | $ / shares	$ 26.80
Weighted Average Remaining Contractual Term (Years), Non-vested at March 30, 2018	2 years 3 months 18 days
Aggregate Intrinsic Value (in dollars), Non-vested at June 30, 2018 | $	$ 2,343,000	[1]

[1] The aggregate intrinsic value of non-vested restricted stock was calculated using the market value of the Company's stock on June 29, 2018 of $36.40 multiplied by the number of non-vested restricted shares outstanding.

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Stock-Based Compensation Plans (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 29, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense		$ 454,000	$ 410,000	$ 805,000	$ 779,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Price	$ 36.40
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Intrinsic Value, Amount Per Share	$ 36.40

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Short-Term Borrowings (Details Textual) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
Short-term Debt [Line Items]
Line of Credit Facility, Expiration Date	Nov. 04, 2018
Line of Credit Facility, Interest Rate Description	(“LIBOR”) plus 0.75%
Revolving Credit Facility [Member]
Short-term Debt [Line Items]
Line of Credit Facility, Amount, Total	$ 60

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Financial Instruments (Details Textual) - Jun. 30, 2018 $ in Millions, $ in Millions	USD ($)	AUD ($)
Foreign Exchange Contracts, Australian [Member]
Financial Instruments [Line Items]
Investment Owned, Foreign Currency Contract, Current Value	$ 2.5	$ 3.1

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Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net earnings	$ 1,523	$ 1,303	$ 4,339	$ 3,418
Foreign currency translation adjustments	(991)	533	(1,110)	1,220
Pension liability, net of tax of $42, $56, $83, and $102, respectively	118	88	236	161
Total comprehensive income	$ 650	$ 1,924	$ 3,465	$ 4,799

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Comprehensive Income (Details 1) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Foreign currency translation adjustments	$ (4,982)	$ (4,186)
Pension liability, net of tax	(13,437)	(13,673)
Total accumulated other comprehensive loss	$ (18,419)	$ (17,859)

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Comprehensive Income (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign Currency Translation Adjustments, Beginning balance			$ (4,186)
Foreign Currency Translation Adjustments, Other comprehensive loss before reclassifications			(796)
Foreign Currency Translation Adjustments, Amounts reclassified from accumulated other comprehensive loss			0
Foreign Currency Translation Adjustments, Net current period other comprehensive (loss) income			(796)
Foreign Currency Translation Adjustments, Ending balance	$ (4,982)		(4,982)
Defined Benefit Pension Items, Beginning balance			(13,673)
Defined Benefit Pension Items, Other comprehensive loss before reclassifications			0
Defined Benefit Pension Items, Amounts reclassified from accumulated other comprehensive loss	118	$ 88	236	$ 161
Defined Benefit Pension Items, Net current period other comprehensive (loss) income			236
Defined Benefit Pension Items, Ending balance	(13,437)		(13,437)
Beginning balance			(17,859)
Other comprehensive loss before reclassifications			(796)
Amounts reclassified from accumulated other comprehensive loss			236
Net current period other comprehensive (loss) income			(560)
Ending balance	$ (18,419)		$ (18,419)

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Comprehensive Income (Details 3) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Amortization of defined benefit pension items
Prior service cost	[1]			$ (31)
Actuarial losses	[1]			350
Total before tax				319
Tax benefit				(83)
Net of tax		$ 118	$ 88	$ 236	$ 161

[1] These amounts were included in net periodic pension cost. See Note 9 for additional details.

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Comprehensive Income (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax	$ 42	$ 56	$ 83	$ 102

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Equity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Stockholders Equity Note [Line Items]
Balance, December 31, 2017			$ 205,659
Net earnings	$ 1,523	$ 1,303	4,339	$ 3,418
Foreign currency translation adjustments	(991)	$ 533	(1,110)	$ 1,220
Pension liability adjustment, net of tax			(236)
Balance, June 30, 2018	202,036		202,036
Common Stock [Member]
Stockholders Equity Note [Line Items]
Balance, December 31, 2017			10,162
Net earnings			0
Foreign currency translation adjustments			0
Pension liability adjustment, net of tax			0
Cash dividends declared			0
Cash dividends paid to noncontrolling interest			0
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price			197
Issuance of restricted stock			2
Restricted stock forfeited			(2)
Stock-based compensation expense			0
Shares purchased and retired			(199)
Balance, June 30, 2018	10,160		10,160
Capital in Excess of Par Value [Member]
Stockholders Equity Note [Line Items]
Balance, December 31, 2017			55,884
Net earnings			0
Foreign currency translation adjustments			0
Pension liability adjustment, net of tax			0
Cash dividends declared			0
Cash dividends paid to noncontrolling interest			0
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price			3,239
Issuance of restricted stock			(2)
Restricted stock forfeited			2
Stock-based compensation expense			805
Shares purchased and retired			0
Balance, June 30, 2018	59,928		59,928
Reinvested Earnings [Member]
Stockholders Equity Note [Line Items]
Balance, December 31, 2017			150,350
Net earnings			4,613
Foreign currency translation adjustments			0
Pension liability adjustment, net of tax			0
Cash dividends declared			(4,652)
Cash dividends paid to noncontrolling interest			0
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price			0
Issuance of restricted stock			0
Restricted stock forfeited			0
Stock-based compensation expense			0
Shares purchased and retired			(6,390)
Balance, June 30, 2018	143,921		143,921
Accumulated Other Comprehensive Loss [Member]
Stockholders Equity Note [Line Items]
Balance, December 31, 2017			(17,859)
Foreign currency translation adjustments			(796)
Pension liability adjustment, net of tax			236
Cash dividends declared			0
Cash dividends paid to noncontrolling interest			0
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price			0
Issuance of restricted stock			0
Restricted stock forfeited			0
Stock-based compensation expense			0
Shares purchased and retired			0
Balance, June 30, 2018	(18,419)		(18,419)
Noncontrolling Interest [Member]
Stockholders Equity Note [Line Items]
Balance, December 31, 2017			7,122
Net earnings			(274)
Foreign currency translation adjustments			(314)
Pension liability adjustment, net of tax			0
Cash dividends declared			0
Cash dividends paid to noncontrolling interest			(88)
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price			0
Issuance of restricted stock			0
Restricted stock forfeited			0
Stock-based compensation expense			0
Shares purchased and retired			0
Balance, June 30, 2018	$ 6,446		$ 6,446

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Subsequent Event (Details Textual) - Florsheim Australia Pty Ltd [Member] - USD ($) $ in Millions	Aug. 30, 2018	Jul. 31, 2018
Scenario, Forecast [Member]
Expected Investments to be Made in Minority Interests	$ 3.8
Subsequent Event [Member]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners		45.00%