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, 2013

Or

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

For the transition period from to _____________________ 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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files). Yes x No ¨

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

Large accelerated filer ¨ Accelerated filer x    Non-accelerated filer ¨ Smaller reporting company ¨

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 August 1, 2013, there were 10,828,541 shares of common stock outstanding.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

The consolidated condensed financial statements included herein have been prepared by Weyco Group, Inc. (the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. It is suggested that these 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,
	2013			2012
	(Dollars in thousands)
ASSETS:
Cash and cash equivalents	$	7,048		$	17,288
Marketable securities, at amortized cost		6,981			8,004
Accounts receivable, net		42,717			49,048
Accrued income tax receivable		2,628			1,136
Inventories		52,332			65,366
Deferred income tax benefits		396			649
Prepaid expenses and other current assets		5,298			4,953
Total current assets		117,400			146,444
Marketable securities, at amortized cost		30,915			36,216
Deferred income tax benefits		1,440			792
Property, plant and equipment, net		35,706			37,218
Goodwill		11,112			11,112
Trademarks		34,748			34,748
Other assets		21,666			18,791
Total assets	$	252,987		$	285,321
LIABILITIES AND EQUITY:
Short-term borrowings	$	20,000		$	45,000
Accounts payable		4,524			11,133
Dividend payable		1,938			-
Accrued liabilities		9,013			13,888
Total current liabilities		35,475			70,021
Long-term pension liability		28,216			27,530
Other long-term liabilities		6,695			6,381
Equity:
Common stock		10,804			10,831
Capital in excess of par value		29,932			26,184
Reinvested earnings		148,696			149,664
Accumulated other comprehensive loss		(13,375	)		(12,514	)
Total Weyco Group, Inc. equity		176,057			174,165
Noncontrolling interest		6,544			7,224
Total equity		182,601			181,389
Total liabilities and equity	$	252,987		$	285,321

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

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WEYCO GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(In thousands, except per share amounts)
Net sales	$	65,041		$	60,333		$	138,631		$	135,647
Cost of sales		40,343			37,455			86,234			84,738
Gross earnings		24,698			22,878			52,397			50,909
Selling and administrative expenses		21,018			19,476			44,029			41,674
Earnings from operations		3,680			3,402			8,368			9,235
Interest income		386			483			798			966
Interest expense		(112	)		(116	)		(239	)		(245	)
Other expense, net		(538	)		(123	)		(627	)		(65	)
Earnings before provision for income taxes		3,416			3,646			8,300			9,891
Provision for income taxes		1,151			1,094			2,910			3,284
Net earnings		2,265			2,552			5,390			6,607
Net earnings (loss) attributable to noncontrolling interest		60			333			(15	)		519
Net earnings attributable to Weyco Group, Inc.	$	2,205		$	2,219		$	5,405		$	6,088
Weighted average shares outstanding
Basic		10,763			10,865			10,762			10,877
Diluted		10,813			10,982			10,824			11,005
Earnings per share
Basic	$	0.20		$	0.20		$	0.50		$	0.56
Diluted	$	0.20		$	0.20		$	0.50		$	0.55
Cash dividends declared (per share)	$	0.18		$	0.17		$	0.18		$	0.33
Comprehensive income	$	982		$	2,088		$	3,864		$	6,978
Comprehensive (loss) income attributable to noncontrolling interest		(533	)		151			(680	)		796
Comprehensive income attributable to Weyco Group, Inc.	$	1,515		$	1,937		$	4,544		$	6,182

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

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WEYCO GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Six Months Ended June 30,
	2013			2012
	(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	5,390		$	6,607
Adjustments to reconcile net earnings to net cash provided by operating activities -
Depreciation		1,985			1,603
Amortization		171			184
Bad debt expense		87			152
Deferred income taxes		(727	)		(841	)
Net gain on remeasurement of contingent consideration		-			(1,219	)
Net foreign currency transaction losses		580			90
Stock-based compensation		633			598
Pension contribution		(110	)		-
Pension expense		1,796			1,869
Increase in cash surrender value of life insurance		(115	)		(115	)
Changes in operating assets and liabilities -
Accounts receivable		6,278			5,244
Inventories		12,960			2,082
Prepaids and other assets		99			376
Accounts payable		(6,628	)		(8,547	)
Accrued liabilities and other		(5,004	)		(1,096	)
Accrued income taxes		(1,493	)		(392	)
Net cash provided by operating activities		15,902			6,595
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of marketable securities		(12	)		-
Proceeds from maturities of marketable securities		6,308			2,905
Life insurance premiums paid		(155	)		(155	)
Investment in real estate		(3,206	)		-
Purchase of property, plant and equipment		(1,125	)		(2,128	)
Net cash provided by investing activities		1,810			622
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends paid		-			(3,496	)
Shares purchased and retired		(4,623	)		(3,812	)
Proceeds from stock options exercised		2,828			1,566
Payment of contingent consideration		(1,270	)		-
Proceeds from bank borrowings		2,000			9,000
Repayments of bank borrowings		(27,000	)		(12,000	)
Income tax benefits from stock-based compensation		455			469
Net cash used for financing activities		(27,610	)		(8,273	)
Effect of exchange rate changes on cash and cash equivalents		(342	)		(7	)
Net decrease in cash and cash equivalents	$	(10,240	)	$	(1,063	)
CASH AND CASH EQUIVALENTS at beginning of period		17,288			10,329
CASH AND CASH EQUIVALENTS at end of period	$	7,048		$	9,266
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net of refunds	$	4,527		$	4,010
Interest paid	$	206		$	191

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. The results of operations for the three and six months ended June 30, 2013 are not necessarily indicative of the results for the full year.

2. Reclassifications

Certain reclassifications have been made in the prior year’s financial statements to conform to the current year’s presentation. Such reclassifications had no effect on previously reported net income or equity.

3. Earnings Per Share

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(In thousands, except per share amounts)
Numerator:
Net earnings attributable to Weyco Group, Inc.	$	2,205	$	2,219	$	5,405	$	6,088
Denominator:
Basic weighted average shares outstanding		10,763		10,865		10,762		10,877
Effect of dilutive securities:
Employee stock-based awards		50		117		62		128
Diluted weighted average shares outstanding		10,813		10,982		10,824		11,005
Basic earnings per share	$	0.20	$	0.20	$	0.50	$	0.56
Diluted earnings per share	$	0.20	$	0.20	$	0.50	$	0.55

Diluted weighted average shares outstanding for the three and six months ended June 30, 2013 exclude anti-dilutive stock options totaling 773,150 shares of common stock at a weighted average price of $24.99. Diluted weighted average shares outstanding for the three and six months ended June 30, 2012 exclude anti-dilutive stock options totaling 805,000 shares of common stock at a weighted average price of $25.38.

4. Investments

As noted in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, all of the Company’s municipal bond investments are classified as held-to-maturity securities and reported at amortized cost pursuant to Accounting Standards Codification (“ASC”) 320, Investments – Debt and Equity Securities (“ASC 320”) as the Company has the intent and ability to hold all security investments to maturity.

Below is a summary of the amortized cost and estimated market values of the Company’s investment securities as of as of June 30, 2013 and December 31, 2012.

	June 30, 2013				December 31, 2012
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
	(Dollars in thousands)
Municipal bonds:
Current	$	6,981	$	7,049	$	8,004	$	8,117
Due from one through five years		22,569		23,586		25,384		26,620
Due from six through ten years		8,346		8,963		10,832		11,756
Total	$	37,896	$	39,598	$	44,220	$	46,493

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The unrealized gains and losses on investment securities as of June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013				December 31, 2012
	Unrealized		Unrealized		Unrealized		Unrealized
	Gains		Losses		Gains		Losses
	(Dollars in thousands)
Municipal bonds	$	1,902	$	200	$	2,473	$	200

The estimated market values provided are level 2 valuations as defined by ASC 820, Fair Value Measurements and Disclosures (“ASC 820”). The Company reviewed its portfolio of investments as of June 30, 2013 and determined that no other-than-temporary market value impairment exists.

On May 1, 2013, the Company purchased a 50% interest in a building in Montreal, Canada for approximately $3.2 million. This building serves as the Company’s Canadian office and distribution center. This real estate investment was accounted for as an equity-method investment under ASC 323, Investments - Equity Method and Joint Ventures (“ASC 323”) and is included within other assets in the Consolidated Condensed Balance Sheets (Unaudited).

5. Intangible Assets

The Company’s indefinite-lived and amortizable intangible assets as recorded in the Consolidated Condensed Balance Sheets (Unaudited) consisted of the following as of June 30, 2013:

		June 30, 2013
	Weighted	Gross
	Average	Carrying		Accumulated
	Life (Yrs)	Amount		Amortization			Net
		(Dollars in thousands)
Indefinite-lived intangible assets:
Goodwill		$	11,112	$	-		$	11,112
Trademarks			34,748		-			34,748
Total indefinite-lived intangible assets		$	45,860	$	-		$	45,860
Amortizable intangible assets:
Non-compete agreement	5	$	200	$	(93	)	$	107
Customer relationships	15		3,500		(545	)		2,955
Total amortizable intangible assets		$	3,700	$	(638	)	$	3,062

The Company’s indefinite-lived and amortizable intangible assets as recorded in the Consolidated Condensed Balance Sheets (Unaudited) consisted of the following as of December 31, 2012:

		December 31, 2012
	Weighted	Gross
	Average	Carrying		Accumulated
	Life (Yrs)	Amount		Amortization			Net
		(Dollars in thousands)
Indefinite-lived intangible assets:
Goodwill		$	11,112	$	-		$	11,112
Trademarks			34,748		-			34,748
Total indefinite-lived intangible assets		$	45,860	$	-		$	45,860
Amortizable intangible assets:
Non-compete agreement	5	$	200	$	(73	)	$	127
Customer relationships	15		3,500		(428	)		3,072
Total amortizable intangible assets		$	3,700	$	(501	)	$	3,199

The Company’s amortizable intangible assets are included within other assets in the Consolidated Condensed Balance Sheets (Unaudited).

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6. 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 its segments based on earnings from operations and accordingly, 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, 2013 and 2012 was as follows:

Three Months Ended
June 30,	Wholesale		Retail		Other		Total
	(Dollars in thousands)
2013
Product sales	$	46,858	$	5,383	$	12,174	$	64,415
Licensing revenues		626		-		-		626
Net sales	$	47,484	$	5,383	$	12,174	$	65,041
Earnings from operations	$	2,179	$	584	$	917	$	3,680
2012
Product sales	$	43,076	$	5,589	$	11,129	$	59,794
Licensing revenues		539		-		-		539
Net sales	$	43,615	$	5,589	$	11,129	$	60,333
Earnings from operations	$	2,092	$	37	$	1,273	$	3,402
Six Months Ended
June 30,		Wholesale		Retail		Other		Total
		(Dollars in thousands)
2013
Product sales	$	101,507	$	11,131	$	24,773	$	137,411
Licensing revenues		1,220		-		-		1,220
Net sales	$	102,727	$	11,131	$	24,773	$	138,631
Earnings from operations	$	5,911	$	1,026	$	1,431	$	8,368
2012
Product sales	$	98,978	$	11,249	$	24,156	$	134,383
Licensing revenues		1,264		-		-		1,264
Net sales	$	100,242	$	11,249	$	24,156	$	135,647
Earnings from operations	$	6,562	$	32	$	2,641	$	9,235

7. Employee Retirement Plans

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(Dollars in thousands)
Benefits earned during the period	$	447		$	369		$	832		$	768
Interest cost on projected benefit obligation		608			573			1,186			1,175
Expected return on plan assets		(525	)		(492	)		(1,044	)		(974	)
Net amortization and deferral		441			430			822			900
Net pension expense	$	971		$	880		$	1,796		$	1,869

The Company expects to make pension contributions totaling approximately $1.6 million during 2013.

8. Stock-Based Compensation Plans

During the three and six months ended June 30, 2013, the Company recognized approximately $317,000 and $633,000, respectively, of compensation expense associated with stock option and restricted stock awards granted in years 2009 through 2012. During the three and six months ended June 30, 2012, the Company recognized approximately $299,000 and $598,000, respectively, of compensation expense associated with stock option and restricted stock awards granted in years 2008 through 2011.

6

The following table summarizes the stock option activity under the Company’s plans for the six month period ended June 30, 2013:

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Shares			Price		Term (Years)		Value*
Outstanding at December 31, 2012		1,265,792		$	22.76
Exercised		(168,176	)	$	16.82
Forfeited or expired		(4,700	)	$	24.07
Outstanding at June 30, 2013		1,092,916		$	23.67		3.1	$	2,287,000
Exercisable at June 30, 2013		537,787		$	23.47		1.8	$	1,543,000

* 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 28, 2013, the last trading day of the quarter, of $25.20 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 activity for the three and six months ended June 30, 2013 and 2012:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(Dollars in thousands)
Total intrinsic value of stock options exercised	$	111	$	1,147	$	1,166	$	1,204
Cash received from stock option exercises	$	329	$	1,430	$	2,828	$	1,566
Income tax benefit from the exercise of stock options	$	44	$	447	$	455	$	469

The following table summarizes the Company’s restricted stock award activity for six month period ended June 30, 2013:

					Weighted
			Weighted		Average
	Shares of		Average		Remaining		Aggregate
	Restricted		Grant Date		Contractual		Intrinsic
	Stock		Fair Value		Term (Years)		Value*
Non-vested at December 31, 2012		42,575	$	23.87
Issued		-		-
Vested		-		-
Forfeited		-		-
Non-vested at June 30, 2013		42,575	$	23.87		2.6	$	1,073,000

* The aggregate intrinsic value of non-vested restricted stock was calculated using the market value of the Company's stock on on June 28, 2013, the last trading day of the quarter, of 25.20 multiplied by the number of non-vested restricted shares outstanding.

9. Short-Term Borrowings

At June 30, 2013, the Company had a $60 million unsecured revolving line of credit, with $20 million of bank borrowings outstanding at an interest rate of approximately 1.2%. The Company’s borrowing facility includes one financial covenant that specifies a minimum level of net worth. The Company was in compliance with the covenant at June 30, 2013. The line of credit agreement expired on April 30, 2013 and was renewed for another term that expires on April 30, 2014, at essentially the same terms as the prior agreement.

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10. Contingent Consideration

Contingent consideration is comprised of two contingent payments that the Company is obligated to pay the former shareholders of The Combs Company (“Bogs”) two and five years following the Bogs acquisition date (in 2013 and 2016). The estimate of contingent consideration is formula-driven and is based on Bogs achieving certain levels of gross margin dollars between January 1, 2011 and December 31, 2015. The first payment was paid to the former owners on March 28, 2013. In accordance with ASC 805, the Company remeasures its estimate of the fair value of the contingent payments at each reporting date. The change in fair value is recognized in earnings.

The Company’s estimate of the fair value of the contingent payments as recorded in the Consolidated Condensed Balance Sheets (Unaudited) was as follows:

	June 30,		December 31,
	2013		2012
	(Dollars in thousands)
Current portion	$	-	$	1,270
Long-term portion		5,015		4,991
Total contingent consideration	$	5,015	$	6,261

The fair value of the contingent payments was recorded at present value. Accordingly, the two components of the change in contingent consideration between December 31, 2012 and June 30, 2013 were the payment to the former owners of $1,270,000 and interest expense of $24,000.

The current portion of contingent consideration was recorded within accrued liabilities in the Consolidated Condensed Balance Sheets (Unaudited). The long-term portion was recorded within other long-term liabilities in the Consolidated Condensed Balance Sheets (Unaudited). The total contingent consideration has been assigned to the Company’s wholesale segment.

The fair value measurement of the contingent consideration is based on significant inputs not observed in the market and thus represents a level 3 valuation as defined by ASC 820.

11. Comprehensive Income

Comprehensive income for the three and six months ended June 30, 2013 and 2012 was as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(Dollars in thousands)
Net earnings	$	2,265		$	2,552		$	5,390		$	6,607
Foreign currency translation adjustments		(1,551	)		(743	)		(2,027	)		(194	)
Pension liability, net of tax of $172, $178, $320, and $361, respectively		268			279			501			565
Total comprehensive income	$	982		$	2,088		$	3,864		$	6,978

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

	June 30,			December 31,
	2013			2012
	(Dollars in thousands)
Foreign currency translation adjustments	$	(681	)	$	681
Pension liability, net of tax		(12,694	)		(13,195	)
Total accumulated other comprehensive loss	$	(13,375	)	$	(12,514	)

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12. Equity

A reconciliation of the Company’s equity for the six months ended June 30, 2013 is as follows:

									Accumulated
				Capital in					Other
	Common			Excess of		Reinvested			Comprehensive			Noncontrolling
	Stock			Par Value		Earnings			Loss			Interest
	(Dollars in thousands)
Balance, December 31, 2012	$	10,831		$	26,184	$	149,664		$	(12,514	)	$	7,224
Net earnings		-			-		5,405			-			(15	)
Foreign currency translation
adjustments		-			-		-			(1,362	)		(665	)
Pension liability adjustment,
net of tax		-			-		-			501			-
Cash dividends declared		-			-		(1,945	)		-			-
Stock options exercised		168			2,660		-			-			-
Stock-based compensation
expense		-			633		-			-			-
Income tax benefit from
stock options exercised		-			455		-			-			-
Shares purchased and retired		(195	)		-		(4,428	)		-			-
Balance, June 30, 2013	$	10,804		$	29,932	$	148,696		$	(13,375	)	$	6,544

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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. 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, 2012.

GENERAL

The Company designs and markets quality and innovative footwear for men, women and children under a portfolio of well-recognized brand names including: “Florsheim,” “Nunn Bush,” “Stacy Adams,” “BOGS,” “Rafters,” and “Umi.” 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. As of June 30, 2013, the Company also had 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. The Company’s retail segment consisted of 19Company-owned retail stores in the United States and an Internet business as of June 30, 2013. 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 2013 were $65.0 million, up 8% over last year’s second quarter net sales of $60.3 million. Earnings from operations increased 8% to $3.7 million this quarter, from $3.4 million in 2012. Consolidated net earnings attributable to Weyco Group, Inc. and diluted earnings per share were flat at $2.2 million and $0.20 per share, respectively, for the second quarter of 2013 compared to the same period in 2012. Earnings for last year’s second quarter included approximately $700,000 ($410,000 after tax, or $0.04 per diluted share) of income resulting from a reduction in the contingent consideration liability. See Note 10.

The majority of the increase in consolidated net sales came from the Company’s wholesale segment. Wholesale net sales increased $3.9 million this quarter compared to the same period last year. This increase was primarily due to higher sales of the Nunn Bush and Florsheim brands.

Excluding the $700,000 prior year adjustment, consolidated earnings from operations would have been up approximately $1 million, or 57%, for the quarter. This increase was driven by strong performance in the Company’s wholesale and retail segments, offset by lower earnings from operations from the Company’s other businesses.

Year to Date Highlights

Consolidated net sales for the first half of 2013 were $138.6 million, up 2% over last year’s year to date net sales of $135.6 million. Earnings from operations decreased 9% to $8.4 million in the first six months of 2013, from $9.2 million in 2012. Consolidated net earnings attributable to Weyco Group, Inc. for the six months ended June 30, 2013 were $5.4 million, compared to $6.1 million last year. Diluted earnings per share to date through June 30, 2013 were $0.50 per share, down from $0.55 per share for the same period in 2012. Last year’s year to date earnings included approximately $1.2 million ($710,000 after tax, or $0.06 per diluted share) of income resulting from the contingent consideration adjustments described above.

The majority of the increase in consolidated net sales for the six months ended June 30, 2013 came from Company’s wholesale segment. Wholesale net sales increased $2.5 million in the first six months of 2013, compared to the same period last year. This increase was primarily due to higher sales volumes across several of the Company’s major wholesale brands, and increased Bogs sales volumes in Canada due to the takeover of Bogs Canadian distribution in June 2012.

10

Excluding the $1.2 million prior year adjustment, consolidated earnings from operations would have been up approximately $400,000 in the first six months of 2013, compared to the same period in 2012. This increase was driven by strong performance in the Company’s wholesale and retail segments, offset by lower earnings from operations from the Company’s other businesses.

Financial Position Highlights

At June 30, 2013 cash and marketable securities totaled $45 million and outstanding debt totaled $20 million. At December 31, 2012, cash and marketable securities totaled $62 million and outstanding debt totaled $45 million. The Company’s main sources of cash for the first six months of 2013 were from operations, the maturities of marketable securities and proceeds from stock options exercised. The Company’s main uses of cash during the year to date period were for common stock repurchases, payments on the revolving line of credit, and a payment to the former shareholders of Bogs. The Company also paid approximately $3.2 million for a 50% interest in a building in Montreal, Canada on May 1, 2013.

SEGMENT ANALYSIS

Net sales and earnings from operations for the Company’s segments in the three and six months ended June 30, 2013 and 2012 were as follows:

	Three Months Ended June 30,				%			Six Months Ended June 30,				%
	2013		2012		Change			2013		2012		Change
	(Dollars in thousands)
Net Sales
North American Wholesale	$	47,484	$	43,615		9	%	$	102,727	$	100,242		2	%
North American Retail		5,383		5,589		-4	%		11,131		11,249		-1	%
Other		12,174		11,129		9	%		24,773		24,156		3	%
Total	$	65,041	$	60,333		8	%	$	138,631	$	135,647		2	%
Earnings from Operations
North American Wholesale	$	2,179	$	2,092		4	%	$	5,911	$	6,562		-10	%
North American Retail		584		37		*			1,026		32		*
Other		917		1,273		-28	%		1,431		2,641		-46	%
Total	$	3,680	$	3,402		8	%	$	8,368	$	9,235		-9	%

* Not meaningful.

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, 2013 and 2012 were as follows:

11

North American Wholesale Segment Net Sales                        

	Three Months Ended June 30,				%			Six Months Ended June 30,				%
	2013		2012		Change			2013		2012		Change
	(Dollars in thousands)							(Dollars in thousands)
North American Net Sales
Stacy Adams	$	13,484	$	13,172		2	%	$	32,200	$	31,601		2	%
Nunn Bush		17,132		15,410		11	%		33,267		33,545		-1	%
Florsheim		12,406		10,550		18	%		24,893		22,616		10	%
BOGS/Rafters		3,245		3,538		-8	%		9,548		9,372		2	%
Umi		591		406		46	%		1,599		1,844		-13	%
Total North American Wholesale	$	46,858	$	43,076		9	%	$	101,507	$	98,978		3	%
Licensing		626		539		16	%		1,220		1,264		-3	%
Total North American Wholesale
Segment	$	47,484	$	43,615		9	%	$	102,727	$	100,242		2	%

The increase in Nunn Bush second quarter net sales was primarily due to higher sales volumes at department stores and national shoe chains. The increases in Florsheim second quarter and year to date net sales were also driven by higher sales at department stores and national shoe chains. The Company took over the distribution of Bogs in Canada from a third-party licensee effective June 1, 2012. As a result, Bogs net sales increased due to having new sales in Canada for six months in 2013, compared to one month of such sales in 2012. This increase was largely offset by decreased sales of Bogs in the United States in 2013. Management believes that Bogs net sales in the United States decreased because retailers continued to sell inventory carried over from the prior mild winter rather than buying new stock.

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

Earnings from operations in the North American wholesale segment were $2.2 million in the second quarter of 2013, compared to $2.1 million in 2012. For the six months ended June 30, 2013, earnings from operations for the wholesale segment were $5.9 million, down from $6.6 million in the same period last year. Last year’s earnings from operations for the three and six months ended June 30, 2012 included approximately $700,000 and $1.2 million, respectively, of income resulting from the contingent consideration adjustments described above. No significant adjustment was made to the contingent consideration in the first six months of 2013.

Wholesale gross earnings increased by $1.4 million and $1.3 million for the three and six months ended June 30, 2013, respectively, due to higher sales volumes and higher gross earnings as a percent of net sales. Wholesale gross earnings were 29.9% of net sales in the second quarter of 2013 compared with 29.3% in last year’s second quarter. For the six months ended June 30, wholesale gross earnings were 30.5% of net sales in 2013 compared with 30.0% in 2012.

The Company’s cost of sales does not include distribution costs (e.g., receiving, inspection or warehousing costs). Distribution costs for the three month periods ended June 30, 2013 and 2012 were $2.6 million and $2.4 million, respectively. For the six month periods ended June 30, 2013 and 2012, distribution costs were $5.5 million and $4.9 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. As a percent of net sales, wholesale selling and administrative expenses were 26% this quarter compared with 25% in the same quarter last year. For the six months ended June 30, wholesale selling and administrative expenses were 25% of net sales in 2013 and 24% of net sales in 2012. Last year’s selling and administrative expenses for the three and six months ended June 30, 2012 were reduced by the contingent consideration adjustments described above. Excluding these adjustments, selling and administrative expenses as a percent of net sales for the quarter and year to date periods would have been flat between years.

12

North American Retail Segment

Net Sales

Net sales in the Company’s North American retail segment decreased approximately $200,000 or 4% in the second quarter of 2013, compared to the same period last year and decreased approximately $100,000 or 1% for the six months ended June 30, 2013 compared to the same period last year. There were seven fewer domestic retail stores at June 30, 2013 than at June 30, 2012, as the Company has been closing unprofitable stores. Same store sales were up 6% for the quarter and up 8% for the first half of 2013, primarily due to increased sales volumes in the Company’s Internet business.

Earnings from Operations

Retail earnings from operations increased by $550,000 and $1 million for the three and six months ended June 30, 2013, respectively, compared to the same periods in 2012. These increases were due to higher same store sales as well as the closing of underperforming stores since June 30, 2012. Gross earnings as a percent of net sales increased to 65% this quarter, from 64% in last year’s second quarter. For the six months ended June 30, retail gross earnings as a percent of net sales were 65% in 2013, compared to 64% in 2012.

Selling and administrative expenses for the retail segment include, and are primarily related to, rent and occupancy costs, employee costs and depreciation. Selling and administrative expenses as a percent of net sales were 55% in the second quarter of 2013 and 64% in last year’s second quarter. To date in 2013, selling and administrative expenses were 56% of net sales compared to 64% of net sales in the first half of 2012. The decreases in selling and administrative expenses relative to net sales for the quarter and six months ended June 30 were primarily due to the closing of unprofitable stores since last year.

Other

The Company’s other net sales increased 9% for the quarter and 3% for the first half of the year compared to the same periods last year. The majority of the Company’s other net sales were generated by Florsheim Australia. For the quarter and six months ended June 30, 2013, Florsheim Australia’s net sales were up 7% and 3%, respectively. The quarter and year to date increases were achieved through higher sales in Florsheim Australia’s retail business, slightly offset by lower sales in Florsheim Australia’s wholesale business. Florsheim Australia’s retail net sales were up 13% and 10%, respectively, for the three and six months ended June 30, 2013, compared to 2012. Florsheim Australia’s wholesale net sales were down 1% and 8%, respectively, for the three and six months ended June 30, 2013, compared to 2012. Florsheim Europe’s net sales increased for the quarter and first six months of 2013 due to higher wholesale sales.

Collectively, the earnings from operations of the Company’s other businesses for the quarter and six months ended June 30, 2013 decreased approximately $350,000 and $1.2 million, respectively, compared to 2012. These decreases were mainly due to higher retail selling and administrative expenses. Retail selling and administrative expenses increased due to new retail locations in Australia and Asia. There were also higher selling and administrative expenses in Florsheim Australia’s wholesale business to accommodate the Bogs expansion in Australia.

Other income and expense and taxes

Interest income for the quarter and six months ended June 30, 2013 was down approximately $100,000 and $170,000, respectively, compared to the same periods last year, primarily due to a lower average investment balance this year compared to last year. Interest expense was relatively flat for the quarter and year to date periods. Other expense for the quarter and six months ended June 30, 2013 increased approximately $420,000 and $560,000, respectively, compared to the same periods last year, primarily due to foreign exchange losses resulting from the revaluation of intercompany loans between the Company’s North American wholesale segment and Florsheim Australia.

The Company’s effective tax rate for the quarter ended June 30, 2013 was 34% as compared to 30% for the same period in 2012. The effective tax rate for the six months ended June 30 was 35% in 2013 and 33% in 2012. The higher effective tax rates for the quarter and year to date periods were primarily due to lower percentages of tax free municipal bond income relative to pretax earnings in the United States.

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LIQUIDITY AND CAPITAL RESOURCES

The Company’s primary sources of liquidity are its cash, short-term marketable securities and revolving line of credit. During the first six months of 2013, the Company generated $15.9 million of cash from operating activities compared with $6.6 million in the same period one year ago. The increase between years was primarily due to changes in operating assets and liabilities, and most significantly in the inventory balance.

The Company paid no cash dividends in 2013 and $3.5 million during the six months ended June 30, 2012. The dividends which typically would have been paid in the first half of 2013 were accelerated into 2012 and were paid on December 31, 2012. The Company resumed its regular quarterly dividend payment schedule in July 2013.

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 2013, the Company repurchased 195,050 shares at a total cost of $4.6 million. As of June 30, 2013, the Company had 628,475 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.

Capital expenditures totaled $4.3 million in the first six months of 2013, including the purchase of a 50% interest in a building located in Montreal, Canada for approximately $3.2 million. This building serves as the Company’s Canadian office and distribution center. Management estimates that annual capital expenditures for 2013 will be between $5 million and $6 million.

At June 30, 2013, the Company had a $60 million unsecured revolving line of credit. The Company repaid a net of $25 million on its line of credit during the first six months of 2013. At the end of the second quarter, the Company had $20 million of bank borrowings outstanding at an interest rate of approximately 1.2%. The Company’s borrowing facility includes one financial covenant that specifies a minimum level of net worth. The Company was in compliance with the covenant at June 30, 2013. The line of credit agreement expired on April 30, 2013 and was renewed for another term that expires April 30, 2014, at essentially the same terms as the prior agreement.

The Company made a contingent consideration payment of approximately $1,270,000 in the first quarter of 2013. A second contingent consideration payment is due to the former shareholders of Bogs in March 2016. See Note 10.

The Company will continue to evaluate the best uses for its available liquidity, including, among other uses, continued 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.

14

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes from those reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

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. 

15

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

None

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, 2012.

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, 2013.

					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)
4/1/2013 - 4/30/2013		13,165	$	23.56		13,165		637,475
5/1/2013 - 5/31/2013		9,000	$	23.88		9,000		628,475
6/1/2013 - 6/30/2013		-	$	-		-		628,475
Total		22,165	$	23.69		22,165

⁽¹⁾ In April 1998, the Company's Board of Directors first authorized a stock repurchase program to repurchase 1,500,000 shares of its common stock in open market transactions at prevailing prices. In April 2000 and again in May 2001, the Company's Board of Directors extended the stock repurchase program to cover the repurchase of 1,500,000 additional shares. In February 2009, the Board of Directors extended the stock repurchase program to cover the repurchase of 1,000,000 additional shares, bringing the total authorized since inception to 5,500,000 shares.

Item 6. Exhibits.

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

16

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 7, 2013	/s/ John F. Wittkowske
	John F. Wittkowske
	Senior Vice President and Chief Financial Officer

17

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, 2013

Exhibit	Description	Incorporation Herein By Reference To	Filed Herewith
10.1 (1)	Ninth Amendment to Second Amended and Restated Credit Agreement, dated April 30, 2013	Exhibit 10.1 to Form 10-Q filed May 9, 2013
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, 2013 formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Condensed Balance Sheets; (ii) Consoidated Condensed Statements of Earnings and Comprehensive Income; (iii) Consolidated Condensed Statements of Cash Flows; and (v) Notes to Consolidated Condensed Financial Statements, furnished herewith		X

⁽¹⁾ Represents a non-material amendment to the Amended and Restated Credit Agreement

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 7, 2013	/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 7, 2013	/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, 2013, (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 7, 2013	/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

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

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

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

	Three Months Ended  June 30,				Six Months Ended June  30,
	2013		2012		2013		2012
	(In thousands, except per share amounts)
Numerator:
Net earnings attributable to Weyco Group, Inc.	$	2,205	$	2,219	$	5,405	$	6,088
Denominator:
Basic weighted average shares outstanding		10,763		10,865		10,762		10,877
Effect of dilutive securities:
Employee stock-based awards		50		117		62		128
Diluted weighted average shares outstanding		10,813		10,982		10,824		11,005
Basic earnings per share	$	0.20	$	0.20	$	0.50	$	0.56
Diluted earnings per share	$	0.20	$	0.20	$	0.50	$	0.55

XML

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 5,390	$ 6,607
Adjustments to reconcile net earnings to net cash provided by operating activities -
Depreciation	1,985	1,603
Amortization	171	184
Bad debt expense	87	152
Deferred income taxes	(727)	(841)
Net gain on remeasurement of contingent consideration	0	(1,219)
Net foreign currency transaction losses	580	90
Stock-based compensation	633	598
Pension contribution	(110)	0
Pension expense	1,796	1,869
Increase in cash surrender value of life insurance	(115)	(115)
Changes in operating assets and liabilities -
Accounts receivable	6,278	5,244
Inventories	12,960	2,082
Prepaids and other assets	99	376
Accounts payable	(6,628)	(8,547)
Accrued liabilities and other	(5,004)	(1,096)
Accrued income taxes	(1,493)	(392)
Net cash provided by operating activities	15,902	6,595
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of marketable securities	(12)	0
Proceeds from maturities of marketable securities	6,308	2,905
Life insurance premiums paid	(155)	(155)
Investment in real estate	(3,206)	0
Purchase of property, plant and equipment	(1,125)	(2,128)
Net cash provided by investing activities	1,810	622
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends paid	0	(3,496)
Shares purchased and retired	(4,623)	(3,812)
Proceeds from stock options exercised	2,828	1,566
Payment of contingent consideration	(1,270)	0
Proceeds from bank borrowings	2,000	9,000
Repayments of bank borrowings	(27,000)	(12,000)
Income tax benefits from stock-based compensation	455	469
Net cash used for financing activities	(27,610)	(8,273)
Effect of exchange rate changes on cash and cash equivalents	(342)	(7)
Net decrease in cash and cash equivalents	(10,240)	(1,063)
CASH AND CASH EQUIVALENTS at beginning of period	17,288	10,329
CASH AND CASH EQUIVALENTS at end of period	7,048	9,266
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net of refunds	4,527	4,010
Interest paid	$ 206	$ 191

XML

Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

6. 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 its segments based on earnings from operations and accordingly, 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, 2013 and 2012 was as follows:

Three Months Ended June 30,	Wholesale		Retail		Other		Total
	(Dollars in thousands)
2013
Product sales	$	46,858	$	5,383	$	12,174	$	64,415
Licensing revenues		626		-		-		626
Net sales	$	47,484	$	5,383	$	12,174	$	65,041
Earnings from operations	$	2,179	$	584	$	917	$	3,680
2012
Product sales	$	43,076	$	5,589	$	11,129	$	59,794
Licensing revenues		539		-		-		539
Net sales	$	43,615	$	5,589	$	11,129	$	60,333
Earnings from operations	$	2,092	$	37	$	1,273	$	3,402

Six Months Ended June 30,	Wholesale		Retail		Other		Total
	(Dollars in thousands)
2013
Product sales	$	101,507	$	11,131	$	24,773	$	137,411
Licensing revenues		1,220		-		-		1,220
Net sales	$	102,727	$	11,131	$	24,773	$	138,631
Earnings from operations	$	5,911	$	1,026	$	1,431	$	8,368
2012
Product sales	$	98,978	$	11,249	$	24,156	$	134,383
Licensing revenues		1,264		-		-		1,264
Net sales	$	100,242	$	11,249	$	24,156	$	135,647
Earnings from operations	$	6,562	$	32	$	2,641	$	9,235

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Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2013

Stockholders' Equity Note [Abstract]

Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]

Comprehensive income for the three and six months ended June 30, 2013 and 2012 was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(Dollars in thousands)
Net earnings	$	2,265	$	2,552	$	5,390	$	6,607
Foreign currency translation adjustments		(1,551)		(743)		(2,027)		(194)
Pension liability, net of tax of $172, $178, $320, and    $361, respectively		268		279		501		565
Total comprehensive income	$	982	$	2,088	$	3,864	$	6,978

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,
	2013		2012
	(Dollars in thousands)
Foreign currency translation adjustments	$	(681)	$	681
Pension liability, net of tax		(12,694)		(13,195)
Total accumulated other comprehensive loss	$	(13,375)	$	(12,514)

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Investments (Tables)

6 Months Ended

Jun. 30, 2013

Investments [Abstract]

Held-to-maturity Securities [Table Text Block]

Below is a summary of the amortized cost and estimated market values of the Company’s investment securities as of as of June 30, 2013 and December 31, 2012.

	June 30, 2013				December 31, 2012
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
	(Dollars in thousands)
Municipal bonds:
Current	$	6,981	$	7,049	$	8,004	$	8,117
Due from one through five years		22,569		23,586		25,384		26,620
Due from six through ten years		8,346		8,963		10,832		11,756
Total	$	37,896	$	39,598	$	44,220	$	46,493

Unrealized Gains (Losses) on Held-to-maturity Securities [Table Text Block]

The unrealized gains and losses on investment securities as of June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013				December 31, 2012
	Unrealized		Unrealized		Unrealized		Unrealized
	Gains		Losses		Gains		Losses
	(Dollars in thousands)
Municipal bonds	$	1,902	$	200	$	2,473	$	200

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Stock-Based Compensation Plans (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Allocated Share-based Compensation Expense	$ 317,000	$ 299,000	$ 633,000	$ 598,000
Market Value of Common Stock	$ 25.20		$ 25.20

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Earnings Per Share (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	773,150	805,000	773,150	805,000
Weighted Average Price of Antidilutive Securities Excluded from Computation of Earnings Per Share (in dollars per share)	$ 24.99	$ 25.38	$ 24.99	$ 25.38

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Earnings Per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Numerator:
Net earnings attributable to Weyco Group, Inc.	$ 2,205	$ 2,219	$ 5,405	$ 6,088
Denominator:
Basic weighted average shares outstanding (in shares)	10,763	10,865	10,762	10,877
Effect of dilutive securities:
Employee stock-based awards (in shares)	50	117	62	128
Diluted weighted average shares outstanding (in shares)	10,813	10,982	10,824	11,005
Basic earnings per share (in dollars per share)	$ 0.20	$ 0.20	$ 0.50	$ 0.56
Diluted earnings per share (in dollars per share)	$ 0.20	$ 0.20	$ 0.50	$ 0.55

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Employee Retirement Plans (Details Textual) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Defined Benefit Plan, Expected Contributions in Current Fiscal Year	$ 1.6

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Contingent Consideration (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Current portion	$ 0	$ 1,270
Long-term portion	5,015	4,991
Total contingent consideration	$ 5,015	$ 6,261

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Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Indefinite-lived intangible assets:
Gross Carrying Amount	$ 45,860	$ 45,860
Accumulated Amortization	0	0
Net	45,860	45,860
Amortizable intangible assets:
Gross Carrying Amount	3,700	3,700
Accumulated Amortization	(638)	(501)
Net	3,062	3,199
Goodwill [Member]
Indefinite-lived intangible assets:
Gross Carrying Amount	11,112	11,112
Accumulated Amortization	0	0
Net	11,112	11,112
Trademarks [Member]
Indefinite-lived intangible assets:
Gross Carrying Amount	34,748	34,748
Accumulated Amortization	0	0
Net	34,748	34,748
Noncompete Agreements [Member]
Amortizable intangible assets:
Weighted Average Life (Yrs)	5 years	5 years
Gross Carrying Amount	200	200
Accumulated Amortization	(93)	(73)
Net	107	127
Customer Relationships [Member]
Amortizable intangible assets:
Weighted Average Life (Yrs)	15 years	15 years
Gross Carrying Amount	3,500	3,500
Accumulated Amortization	(545)	(428)
Net	$ 2,955	$ 3,072

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Comprehensive Income (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Foreign currency translation adjustments	$ (681)	$ 681
Pension liability, net of tax	(12,694)	(13,195)
Total accumulated other comprehensive loss	$ (13,375)	$ (12,514)

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Equity (Tables)

6 Months Ended

Jun. 30, 2013

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity [Table Text Block]

A reconciliation of the Company’s equity for the six months ended June 30, 2013 is as follows:

							Accumulated
			Capital in				Other
	Common		Excess of		Reinvested		Comprehensive		Noncontrolling
	Stock		Par Value		Earnings		Loss		Interest
	(Dollars in thousands)
Balance, December 31, 2012	$	10,831	$	26,184	$	149,664	$	(12,514)	$	7,224
Net earnings		-		-		5,405		-		(15)
Foreign currency translation    adjustments		-		-		-		(1,362)		(665)
Pension liability adjustment, net of tax		-		-		-		501		-
Cash dividends declared		-		-		(1,945)		-		-
Stock options exercised		168		2,660		-		-		-
Stock-based compensation expense		-		633		-		-		-
Income tax benefit from stock options    exercised		-		455		-		-		-
Shares purchased and retired		(195)		-		(4,428)		-		-
Balance, June 30, 2013	$	10,804	$	29,932	$	148,696	$	(13,375)	$	6,544

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Reclassifications

6 Months Ended

Jun. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Reclassifications [Text Block]

2. Reclassifications

Certain reclassifications have been made in the prior year’s financial statements to conform to the current year’s presentation. Such reclassifications had no effect on previously reported net income or equity.

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Investments

6 Months Ended

Jun. 30, 2013

Investments [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

4.    Investments

As noted in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, all of the Company’s municipal bond investments are classified as held-to-maturity securities and reported at amortized cost pursuant to Accounting Standards Codification (“ASC”) 320, Investments – Debt and Equity Securities (“ASC 320”) as the Company has the intent and ability to hold all security investments to maturity.

Below is a summary of the amortized cost and estimated market values of the Company’s investment securities as of as of June 30, 2013 and December 31, 2012.

	June 30, 2013				December 31, 2012
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
	(Dollars in thousands)
Municipal bonds:
Current	$	6,981	$	7,049	$	8,004	$	8,117
Due from one through five years		22,569		23,586		25,384		26,620
Due from six through ten years		8,346		8,963		10,832		11,756
Total	$	37,896	$	39,598	$	44,220	$	46,493

The unrealized gains and losses on investment securities as of June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013				December 31, 2012
	Unrealized		Unrealized		Unrealized		Unrealized
	Gains		Losses		Gains		Losses
	(Dollars in thousands)
Municipal bonds	$	1,902	$	200	$	2,473	$	200

The estimated market values provided are level 2 valuations as defined by ASC 820, Fair Value Measurements and Disclosures (“ASC 820”). The Company reviewed its portfolio of investments as of June 30, 2013 and determined that no other-than-temporary market value impairment exists.

On May 1, 2013, the Company purchased a 50% interest in a building in Montreal, Canada for approximately $3.2 million. This building serves as the Company’s Canadian office and distribution center. This real estate investment was accounted for as an equity-method investment under ASC 323, Investments - Equity Method and Joint Ventures (“ASC 323”) and is included within other assets in the Consolidated Condensed Balance Sheets (Unaudited).

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Employee Retirement Plans

6 Months Ended

Jun. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

7. Employee Retirement Plans

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(Dollars in thousands)
Benefits earned during the period	$	447	$	369	$	832	$	768
Interest cost on projected benefit obligation		608		573		1,186		1,175
Expected return on plan assets		(525)		(492)		(1,044)		(974)
Net amortization and deferral		441		430		822		900
Net pension expense	$	971	$	880	$	1,796	$	1,869

The Company expects to make pension contributions totaling approximately $1.6 million during 2013.

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Intangible Assets

6 Months Ended

Jun. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

5. Intangible Assets

The Company’s indefinite-lived and amortizable intangible assets as recorded in the Consolidated Condensed Balance Sheets (Unaudited) consisted of the following as of June 30, 2013: 

			June 30, 2013
	Weighted		Gross
	Average		Carrying		Accumulated
	Life (Yrs)		Amount		Amortization		Net
			(Dollars in thousands)
Indefinite-lived intangible assets:
Goodwill			$	11,112	$	-	$	11,112
Trademarks				34,748		-		34,748
Total indefinite-lived intangible assets			$	45,860	$	-	$	45,860
Amortizable intangible assets:
Non-compete agreement		5	$	200	$	(93)	$	107
Customer relationships		15		3,500		(545)		2,955
Total amortizable intangible assets			$	3,700	$	(638)	$	3,062

The Company’s indefinite-lived and amortizable intangible assets as recorded in the Consolidated Condensed Balance Sheets (Unaudited) consisted of the following as of December 31, 2012:

			December 31, 2012
	Weighted		Gross
	Average		Carrying		Accumulated
	Life (Yrs)		Amount		Amortization		Net
			(Dollars in thousands)
Indefinite-lived intangible assets:
Goodwill			$	11,112	$	-	$	11,112
Trademarks				34,748		-		34,748
Total indefinite-lived intangible assets			$	45,860	$	-	$	45,860
Amortizable intangible assets:
Non-compete agreement		5	$	200	$	(73)	$	127
Customer relationships		15		3,500		(428)		3,072
Total amortizable intangible assets			$	3,700	$	(501)	$	3,199

The Company’s amortizable intangible assets are included within other assets in the Consolidated Condensed Balance Sheets (Unaudited).

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Contingent Consideration (Details Textual) (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Interest Expenses on Contingent Consideration	$ 24,000
Payment of contingent consideration	1,270,000	0
Business Combination, Contingent Consideration Arrangements, Description	Contingent consideration is comprised of two contingent payments that the Company is obligated to pay the former shareholders of Bogs two and five years following the Bogs acquisition date (in 2013 and 2016). The estimate of contingent consideration is formula-driven and is based on Bogs achieving certain levels of gross margin dollars between January 1, 2011 and December 31, 2015.
Former Owners [Member]
Payment of contingent consideration	$ 1,270,000

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Investments (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Amortized Cost	$ 37,896	$ 44,220
Market Value	39,598	46,493
Municipal Bonds, Current [Member]
Amortized Cost	6,981	8,004
Market Value	7,049	8,117
Municipal Bonds, Due from One Through Five Years [Member]
Amortized Cost	22,569	25,384
Market Value	23,586	26,620
Municipal Bonds, Due from Six Through Ten Years [Member]
Amortized Cost	8,346	10,832
Market Value	$ 8,963	$ 11,756

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Segment Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Product sales	$ 64,415	$ 59,794	$ 137,411	$ 134,383
Licensing revenues	626	539	1,220	1,264
Net sales	65,041	60,333	138,631	135,647
Earnings from operations	3,680	3,402	8,368	9,235
Wholesale [Member]
Product sales	46,858	43,076	101,507	98,978
Licensing revenues	626	539	1,220	1,264
Net sales	47,484	43,615	102,727	100,242
Earnings from operations	2,179	2,092	5,911	6,562
Retail [Member]
Product sales	5,383	5,589	11,131	11,249
Licensing revenues	0	0	0	0
Net sales	5,383	5,589	11,131	11,249
Earnings from operations	584	37	1,026	32
Other Segment [Member]
Product sales	12,174	11,129	24,773	24,156
Licensing revenues	0	0	0	0
Net sales	12,174	11,129	24,773	24,156
Earnings from operations	$ 917	$ 1,273	$ 1,431	$ 2,641

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Stock-Based Compensation Plans (Details 2) (Restricted Stock [Member], USD $)	6 Months Ended
	Jun. 30, 2013
Restricted Stock [Member]
Shares of Restricted Stock, Non-vested at December 31, 2012	42,575
Shares of Restricted Stock, Issued	0
Shares of Restricted Stock, Vested	0
Shares of Restricted Stock, Forfeited	0
Shares of Restricted Stock, Non-vested at June 30, 2013	42,575
Weighted Average Grant Date Fair Value, Non-vested at December 31, 2012	$ 23.87
Weighted Average Grant Date Fair Value, Issued	$ 0
Weighted Average Grant Date Fair Value, Vested	$ 0
Weighted Average Grant Date Fair Value, Forfeited	$ 0
Weighted Average Grant Date Fair Value, Non-vested at June 30, 2013	$ 23.87
Weighted Average Remaining Contractual Term (Years), Non-vested at June 30, 2013	2 years 7 months 6 days
Aggregate Intrinsic Value, Non-vested (in dollars) Non-vested at June 30, 2013	$ 1,073,000	[1]

[1] The aggregate intrinsic value of non-vested restricted stock was calculated using the market value of the Company's stock on on June 28, 2013, the last trading day of the quarter, of 25.20 multiplied by the number of non-vested restricted shares outstanding.

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Equity (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Balance, December 31, 2012			$ 181,389
Net earnings	2,265	2,552	5,390	6,607
Balance, June 30, 2013	182,601		182,601
Common Stock [Member]
Balance, December 31, 2012			10,831
Net earnings			0
Foreign currency translation adjustments			0
Pension liability adjustment, net of tax			0
Cash dividends declared			0
Stock options exercised			168
Stock-based compensation expense			0
Income tax benefit from stock options exercised			0
Shares purchased and retired			(195)
Balance, June 30, 2013	10,804		10,804
Capital in Excess of Par Value [Member]
Balance, December 31, 2012			26,184
Net earnings			0
Foreign currency translation adjustments			0
Pension liability adjustment, net of tax			0
Cash dividends declared			0
Stock options exercised			2,660
Stock-based compensation expense			633
Income tax benefit from stock options exercised			455
Shares purchased and retired			0
Balance, June 30, 2013	29,932		29,932
Reinvested Earnings [Member]
Balance, December 31, 2012			149,664
Net earnings			5,405
Foreign currency translation adjustments			0
Pension liability adjustment, net of tax			0
Cash dividends declared			(1,945)
Stock options exercised			0
Stock-based compensation expense			0
Income tax benefit from stock options exercised			0
Shares purchased and retired			(4,428)
Balance, June 30, 2013	148,696		148,696
Accumulated Other Comprehensive Income (Loss) [Member]
Balance, December 31, 2012			(12,514)
Net earnings			0
Foreign currency translation adjustments			(1,362)
Pension liability adjustment, net of tax			501
Cash dividends declared			0
Stock options exercised			0
Stock-based compensation expense			0
Income tax benefit from stock options exercised			0
Shares purchased and retired			0
Balance, June 30, 2013	(13,375)		(13,375)
Noncontrolling Interest [Member]
Balance, December 31, 2012			7,224
Net earnings			(15)
Foreign currency translation adjustments			(665)
Pension liability adjustment, net of tax			0
Cash dividends declared			0
Stock options exercised			0
Stock-based compensation expense			0
Income tax benefit from stock options exercised			0
Shares purchased and retired			0
Balance, June 30, 2013	$ 6,544		$ 6,544

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CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Net sales	$ 65,041	$ 60,333	$ 138,631	$ 135,647
Cost of sales	40,343	37,455	86,234	84,738
Gross earnings	24,698	22,878	52,397	50,909
Selling and administrative expenses	21,018	19,476	44,029	41,674
Earnings from operations	3,680	3,402	8,368	9,235
Interest income	386	483	798	966
Interest expense	(112)	(116)	(239)	(245)
Other expense, net	(538)	(123)	(627)	(65)
Earnings before provision for income taxes	3,416	3,646	8,300	9,891
Provision for income taxes	1,151	1,094	2,910	3,284
Net earnings	2,265	2,552	5,390	6,607
Net earnings (loss) attributable to noncontrolling interest	60	333	(15)	519
Net earnings attributable to Weyco Group, Inc.	2,205	2,219	5,405	6,088
Weighted average shares outstanding
Basic (in shares)	10,763	10,865	10,762	10,877
Diluted (in shares)	10,813	10,982	10,824	11,005
Earnings per share
Basic (in dollars per share)	$ 0.20	$ 0.20	$ 0.50	$ 0.56
Diluted (in dollars per share)	$ 0.20	$ 0.20	$ 0.50	$ 0.55
Cash dividends declared (per share) (in dollars per share)	$ 0.18	$ 0.17	$ 0.18	$ 0.33
Comprehensive income	982	2,088	3,864	6,978
Comprehensive (loss) income attributable to noncontrolling interest	(533)	151	(680)	796
Comprehensive income attributable to Weyco Group, Inc.	$ 1,515	$ 1,937	$ 4,544	$ 6,182

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Contingent Consideration

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Contingencies Disclosure [Text Block]

10.  Contingent Consideration

Contingent consideration is comprised of two contingent payments that the Company is obligated to pay the former shareholders of The Combs Company (“Bogs”) two and five years following the Bogs acquisition date (in 2013 and 2016). The estimate of contingent consideration is formula-driven and is based on Bogs achieving certain levels of gross margin dollars between January 1, 2011 and December 31, 2015. The first payment was paid to the former owners on March 28, 2013. In accordance with ASC 805, the Company remeasures its estimate of the fair value of the contingent payments at each reporting date. The change in fair value is recognized in earnings.

The Company’s estimate of the fair value of the contingent payments as recorded in the Consolidated Condensed Balance Sheets (Unaudited) was as follows:

	June 30,		December 31,
	2013		2012
	(Dollars in thousands)
Current portion	$	-	$	1,270
Long-term portion		5,015		4,991
Total contingent consideration	$	5,015	$	6,261

The fair value of the contingent payments was recorded at present value. Accordingly, the two components of the change in contingent consideration between December 31, 2012 and June 30, 2013 were the payment to the former owners of $1,270,000 and interest expense of $24,000.

The current portion of contingent consideration was recorded within accrued liabilities in the Consolidated Condensed Balance Sheets (Unaudited). The long-term portion was recorded within other long-term liabilities in the Consolidated Condensed Balance Sheets (Unaudited). The total contingent consideration has been assigned to the Company’s wholesale segment.

The fair value measurement of the contingent consideration is based on significant inputs not observed in the market and thus represents a level 3 valuation as defined by ASC 820.

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Financial Statements

6 Months Ended

Jun. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations [Text Block]

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. The results of operations for the three and six months ended June 30, 2013 are not necessarily indicative of the results for the full year.

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CONSOLIDATED CONDENSED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
ASSETS:
Cash and cash equivalents	$ 7,048	$ 17,288
Marketable securities, at amortized cost	6,981	8,004
Accounts receivable, net	42,717	49,048
Accrued income tax receivable	2,628	1,136
Inventories	52,332	65,366
Deferred income tax benefits	396	649
Prepaid expenses and other current assets	5,298	4,953
Total current assets	117,400	146,444
Marketable securities, at amortized cost	30,915	36,216
Deferred income tax benefits	1,440	792
Property, plant and equipment, net	35,706	37,218
Goodwill	11,112	11,112
Trademarks	34,748	34,748
Other assets	21,666	18,791
Total assets	252,987	285,321
LIABILITIES AND EQUITY:
Short-term borrowings	20,000	45,000
Accounts payable	4,524	11,133
Dividend payable	1,938	0
Accrued liabilities	9,013	13,888
Total current liabilities	35,475	70,021
Long-term pension liability	28,216	27,530
Other long-term liabilities	6,695	6,381
Equity:
Common stock	10,804	10,831
Capital in excess of par value	29,932	26,184
Reinvested earnings	148,696	149,664
Accumulated other comprehensive loss	(13,375)	(12,514)
Total Weyco Group, Inc. equity	176,057	174,165
Noncontrolling interest	6,544	7,224
Total equity	182,601	181,389
Total liabilities and equity	$ 252,987	$ 285,321

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Investments (Details 1) (Municipal Bonds [Member], USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Municipal Bonds [Member]
Unrealized Gains	$ 1,902	$ 2,473
Unrealized Losses	$ 200	$ 200

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Contingent Consideration (Tables)

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block]

The Company’s estimate of the fair value of the contingent payments as recorded in the Consolidated Condensed Balance Sheets (Unaudited) was as follows:

	June 30,		December 31,
	2013		2012
	(Dollars in thousands)
Current portion	$	-	$	1,270
Long-term portion		5,015		4,991
Total contingent consideration	$	5,015	$	6,261

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Comprehensive Income (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax, Total	$ 172	$ 178	$ 320	$ 361

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Short-Term Borrowings (Details Textual) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Bank Loans	$ 20
Debt Instrument, Interest Rate at Period End	1.20%
Line of Credit Facility, Description	The line of credit agreement expired on April 30, 2013 and was renewed for another term that expires on April 30, 2014, at essentially the same terms as the prior agreement.
Revolving Credit Facility [Member]
Line of Credit Facility, Amount, Total (in dollars)	$ 60

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Stock-Based Compensation Plans (Details) (Employee Stock Option [Member], USD $)	6 Months Ended
	Jun. 30, 2013
Employee Stock Option [Member]
Shares, Outstanding at December 31, 2012	1,265,792
Shares, Exercised	(168,176)
Shares, Forfeited or expired	(4,700)
Shares, Outstanding at June 30, 2013	1,092,916
Shares, Exercisable at June 30, 2013	537,787
Weighted Average Exercise Price, Outstanding at December 31, 2012	$ 22.76
Weighted Average Exercise Price, Exercised	$ 16.82
Weighted Average Exercise Price, Forfeited or expired	$ 24.07
Weighted Average Exercise Price, Outstanding at June 30, 2013	$ 23.67
Weighted Average Exercise Price, Exercisable at June 30, 2013	$ 23.47
Weighted Average Remaining Contractual Term (Years), Outstanding at June 30, 2013	3 years 1 month 6 days
Weighted Average Remaining Contractual Term (Years), Exercisable at June 30, 2013	1 year 9 months 18 days
Aggregate Intrinsic Value, Outstanding at June 30, 2013	$ 2,287,000	[1]
Aggregate Intrinsic Value, Exercisable at June 30, 2013	$ 1,543,000	[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 28, 2013, the last trading day of the quarter, of $25.20 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, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Total intrinsic value of stock options exercised	$ 111	$ 1,147	$ 1,166	$ 1,204
Cash received from stock option exercises	329	1,430	2,828	1,566
Income tax benefit from the exercise of stock options	$ 44	$ 447	$ 455	$ 469

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Short-Term Borrowings

6 Months Ended

Jun. 30, 2013

Short-term Debt [Abstract]

Short-term Debt [Text Block]

9. Short-Term Borrowings

At June 30, 2013, the Company had a $60 million unsecured revolving line of credit, with $20 million of bank borrowings outstanding at an interest rate of approximately 1.2%. The Company’s borrowing facility includes one financial covenant that specifies a minimum level of net worth. The Company was in compliance with the covenant at June 30, 2013. The line of credit agreement expired on April 30, 2013 and was renewed for another term that expires on April 30, 2014, at essentially the same terms as the prior agreement.

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Investments (Details Textual) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Percentage of Property Acquired	50.00%
Payments to Acquire Real Estate Held-for-investment	$ 3,206	$ 0

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Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Net earnings	$ 2,265	$ 2,552	$ 5,390	$ 6,607
Foreign currency translation adjustments	(1,551)	(743)	(2,027)	(194)
Pension liability, net of tax of $172, $178, $320, and $361, respectively	268	279	501	565
Total comprehensive income	$ 982	$ 2,088	$ 3,864	$ 6,978

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Equity

6 Months Ended

Jun. 30, 2013

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

12. Equity

A reconciliation of the Company’s equity for the six months ended June 30, 2013 is as follows:

							Accumulated
			Capital in				Other
	Common		Excess of		Reinvested		Comprehensive		Noncontrolling
	Stock		Par Value		Earnings		Loss		Interest
	(Dollars in thousands)
Balance, December 31, 2012	$	10,831	$	26,184	$	149,664	$	(12,514)	$	7,224
Net earnings		-		-		5,405		-		(15)
Foreign currency translation    adjustments		-		-		-		(1,362)		(665)
Pension liability adjustment, net of tax		-		-		-		501		-
Cash dividends declared		-		-		(1,945)		-		-
Stock options exercised		168		2,660		-		-		-
Stock-based compensation expense		-		633		-		-		-
Income tax benefit from stock options    exercised		-		455		-		-		-
Shares purchased and retired		(195)		-		(4,428)		-		-
Balance, June 30, 2013	$	10,804	$	29,932	$	148,696	$	(13,375)	$	6,544

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Stock-Based Compensation Plans

6 Months Ended

Jun. 30, 2013

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

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

8. Stock-Based Compensation Plans

During the three and six months ended June 30, 2013, the Company recognized approximately $317,000 and $633,000, respectively , of compensation expense associated with stock option and restricted stock awards granted in years 2009 through 2012. During the three and six months ended June 30, 2012, the Company recognized approximately $299,000 and $598,000, respectively, of compensation expense associated with stock option and restricted stock awards granted in years 2008 through 2011.

The following table summarizes the stock option activity under the Company’s plans for the six month period ended June 30, 2013:

					Weighted
					Average
			Weighted		Remaining
			Average		Contractual		Aggregate
			Exercise		Term		Intrinsic
	Shares		Price		(Years)		Value*
Outstanding at December 31, 2012		1,265,792	$	22.76
Exercised		(168,176)	$	16.82
Forfeited or expired		(4,700)	$	24.07
Outstanding at June 30, 2013		1,092,916	$	23.67		3.1	$	2,287,000
Exercisable at June 30, 2013		537,787	$	23.47		1.8	$	1,543,000

* 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  28, 2013, the last trading day of the quarter, of $25.20 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 activity for the three and six months ended June 30, 2013 and 2012:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(Dollars in thousands)
Total intrinsic value of stock options exercised	$	111	$	1,147	$	1,166	$	1,204
Cash received from stock option exercises	$	329	$	1,430	$	2,828	$	1,566
Income tax benefit from the exercise of stock options	$	44	$	447	$	455	$	469

The following table summarizes the Company’s restricted stock award activity for six month period ended June 30, 2013:

			Weighted		Weighted Average
			Average		Remaining
	Shares of		Grant		Contractual		Aggregate
	Restricted		Date		Term		Intrinsic
	Stock		Fair Value		(Years)		Value*
Non-vested at December 31, 2012		42,575	$	23.87
Issued		-		-
Vested		-		-
Forfeited		-		-
Non-vested at June 30, 2013		42,575	$	23.87		2.6	$	1,073,000

* The aggregate intrinsic value of non-vested restricted stock was calculated using the market value of the Company's stock on on June 28, 2013, the last trading day of the quarter, of 25.20 multiplied by the number of non-vested restricted shares outstanding.

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Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

3. Earnings Per Share

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

	Three Months Ended  June 30,				Six Months Ended June  30,
	2013		2012		2013		2012
	(In thousands, except per share amounts)
Numerator:
Net earnings attributable to Weyco Group, Inc.	$	2,205	$	2,219	$	5,405	$	6,088
Denominator:
Basic weighted average shares outstanding		10,763		10,865		10,762		10,877
Effect of dilutive securities:
Employee stock-based awards		50		117		62		128
Diluted weighted average shares outstanding		10,813		10,982		10,824		11,005
Basic earnings per share	$	0.20	$	0.20	$	0.50	$	0.56
Diluted earnings per share	$	0.20	$	0.20	$	0.50	$	0.55

Diluted weighted average shares outstanding for the three and six months ended June 30, 2013 exclude anti-dilutive stock options totaling 773,150 shares of common stock at a weighted average price of $24.99. Diluted weighted average shares outstanding for the three and six months ended June 30, 2012 exclude anti-dilutive stock options totaling 805,000 shares of common stock at a weighted average price of $25.38.

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Employee Retirement Plans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Benefits earned during the period	$ 447	$ 369	$ 832	$ 768
Interest cost on projected benefit obligation	608	573	1,186	1,175
Expected return on plan assets	(525)	(492)	(1,044)	(974)
Net amortization and deferral	441	430	822	900
Net pension expense	$ 971	$ 880	$ 1,796	$ 1,869

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Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Definite and Indefinite Lived Intangible Assets Including Goodwill [Table Text Block]

The Company’s indefinite-lived and amortizable intangible assets as recorded in the Consolidated Condensed Balance Sheets (Unaudited) consisted of the following as of June 30, 2013: 

			June 30, 2013
	Weighted		Gross
	Average		Carrying		Accumulated
	Life (Yrs)		Amount		Amortization		Net
			(Dollars in thousands)
Indefinite-lived intangible assets:
Goodwill			$	11,112	$	-	$	11,112
Trademarks				34,748		-		34,748
Total indefinite-lived intangible assets			$	45,860	$	-	$	45,860
Amortizable intangible assets:
Non-compete agreement		5	$	200	$	(93)	$	107
Customer relationships		15		3,500		(545)		2,955
Total amortizable intangible assets			$	3,700	$	(638)	$	3,062

The Company’s indefinite-lived and amortizable intangible assets as recorded in the Consolidated Condensed Balance Sheets (Unaudited) consisted of the following as of December 31, 2012:

			December 31, 2012
	Weighted		Gross
	Average		Carrying		Accumulated
	Life (Yrs)		Amount		Amortization		Net
			(Dollars in thousands)
Indefinite-lived intangible assets:
Goodwill			$	11,112	$	-	$	11,112
Trademarks				34,748		-		34,748
Total indefinite-lived intangible assets			$	45,860	$	-	$	45,860
Amortizable intangible assets:
Non-compete agreement		5	$	200	$	(73)	$	127
Customer relationships		15		3,500		(428)		3,072
Total amortizable intangible assets			$	3,700	$	(501)	$	3,199

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Comprehensive Income

6 Months Ended

Jun. 30, 2013

Stockholders' Equity Note [Abstract]

Comprehensive Income (Loss) Note [Text Block]

11. Comprehensive Income

Comprehensive income for the three and six months ended June 30, 2013 and 2012 was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(Dollars in thousands)
Net earnings	$	2,265	$	2,552	$	5,390	$	6,607
Foreign currency translation adjustments		(1,551)		(743)		(2,027)		(194)
Pension liability, net of tax of $172, $178, $320, and $361, respectively		268		279		501		565
Total comprehensive income	$	982	$	2,088	$	3,864	$	6,978

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

	June 30,		December 31,
	2013		2012
	(Dollars in thousands)
Foreign currency translation adjustments	$	(681)	$	681
Pension liability, net of tax		(12,694)		(13,195)
Total accumulated other comprehensive loss	$	(13,375)	$	(12,514)

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Stock-Based Compensation Plans (Tables)

6 Months Ended

Jun. 30, 2013

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

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

The following table summarizes the stock option activity under the Company’s plans for the six month period ended June 30, 2013:

					Weighted
					Average
			Weighted		Remaining
			Average		Contractual		Aggregate
			Exercise		Term		Intrinsic
	Shares		Price		(Years)		Value*
Outstanding at December 31, 2012		1,265,792	$	22.76
Exercised		(168,176)	$	16.82
Forfeited or expired		(4,700)	$	24.07
Outstanding at June 30, 2013		1,092,916	$	23.67		3.1	$	2,287,000
Exercisable at June 30, 2013		537,787	$	23.47		1.8	$	1,543,000

* 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  28, 2013, the last trading day of the quarter, of $25.20 and the exercise price multiplied by the number of in-the-money outstanding and exercisable stock options.

Schedule of Cash Proceeds Received from Share-based Payment Awards [Table Text Block]

The following table summarizes the Company’s stock option activity for the three and six months ended June 30, 2013 and 2012:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(Dollars in thousands)
Total intrinsic value of stock options exercised	$	111	$	1,147	$	1,166	$	1,204
Cash received from stock option exercises	$	329	$	1,430	$	2,828	$	1,566
Income tax benefit from the exercise of stock options	$	44	$	447	$	455	$	469

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

The following table summarizes the Company’s restricted stock award activity for six month period ended June 30, 2013:

			Weighted		Weighted Average
			Average		Remaining
	Shares of		Grant		Contractual		Aggregate
	Restricted		Date		Term		Intrinsic
	Stock		Fair Value		(Years)		Value*
Non-vested at December 31, 2012		42,575	$	23.87
Issued		-		-
Vested		-		-
Forfeited		-		-
Non-vested at June 30, 2013		42,575	$	23.87		2.6	$	1,073,000

* The aggregate intrinsic value of non-vested restricted stock was calculated using the market value of the Company's stock on on June 28, 2013, the last trading day of the quarter, of 25.20 multiplied by the number of non-vested restricted shares outstanding.

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2013

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, 2013 and 2012 was as follows:

Three Months Ended June 30,	Wholesale		Retail		Other		Total
	(Dollars in thousands)
2013
Product sales	$	46,858	$	5,383	$	12,174	$	64,415
Licensing revenues		626		-		-		626
Net sales	$	47,484	$	5,383	$	12,174	$	65,041
Earnings from operations	$	2,179	$	584	$	917	$	3,680
2012
Product sales	$	43,076	$	5,589	$	11,129	$	59,794
Licensing revenues		539		-		-		539
Net sales	$	43,615	$	5,589	$	11,129	$	60,333
Earnings from operations	$	2,092	$	37	$	1,273	$	3,402

Six Months Ended June 30,	Wholesale		Retail		Other		Total
	(Dollars in thousands)
2013
Product sales	$	101,507	$	11,131	$	24,773	$	137,411
Licensing revenues		1,220		-		-		1,220
Net sales	$	102,727	$	11,131	$	24,773	$	138,631
Earnings from operations	$	5,911	$	1,026	$	1,431	$	8,368
2012
Product sales	$	98,978	$	11,249	$	24,156	$	134,383
Licensing revenues		1,264		-		-		1,264
Net sales	$	100,242	$	11,249	$	24,156	$	135,647
Earnings from operations	$	6,562	$	32	$	2,641	$	9,235

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Document And Entity Information	6 Months Ended
	Jun. 30, 2013	Aug. 01, 2013
Document Information [Line Items]
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		10,828,541
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2013
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2013

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Employee Retirement Plans (Tables)

6 Months Ended

Jun. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Schedule of Net Benefit Costs [Table Text Block]

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(Dollars in thousands)
Benefits earned during the period	$	447	$	369	$	832	$	768
Interest cost on projected benefit obligation		608		573		1,186		1,175
Expected return on plan assets		(525)		(492)		(1,044)		(974)
Net amortization and deferral		441		430		822		900
Net pension expense	$	971	$	880	$	1,796	$	1,869