McRAE INDUSTRIES, INC. REPORTS EARNINGS FOR THE SECOND QUARTER AND FIRST SIX MONTHS OF FISCAL 2026

Rhea-AI Summary

McRae Industries (Pink: MCRAA) reported second quarter fiscal 2026 consolidated net revenues of $27.948M and net earnings of $0.956M ($0.42 per diluted Class A share). First six months revenue was $59.151M with net earnings of $2.404M ($1.07 per diluted Class A share).

Western/lifestyle boots growth (Dan Post, Dingo) offset declines in work boots. Gross margin pressure from tariffs noted; company approved up to $700,000 share repurchase program and reported $29.9M cash at January 31, 2026.

Positive

• First-half revenue increased to $59.151M
• Western/lifestyle sales growth driven by Dan Post and Dingo
• $700,000 board-approved share repurchase program

Negative

• First-half net earnings declined 17% to $2.404M
• Operating profit declined to $1.9M for first six months
• Tariffs materially reduced margins in fiscal 2026

Key Figures

Q2 2026 net revenues: $27,948,000 Q2 2026 net earnings: $956,000 Q2 2026 EPS: $0.42 per diluted Class A share +5 more

8 metrics

Q2 2026 net revenues $27,948,000 Second quarter fiscal 2026 vs $27,548,000 in fiscal 2025

Q2 2026 net earnings $956,000 Second quarter fiscal 2026 vs $1,053,000 in fiscal 2025

Q2 2026 EPS $0.42 per diluted Class A share Second quarter fiscal 2026 vs $0.47 in fiscal 2025

Six-month 2026 revenues $59,151,000 First six months fiscal 2026 vs $56,250,000 in fiscal 2025

Six-month 2026 net earnings $2,404,000 First six months fiscal 2026 vs $2,899,000 in fiscal 2025

Q2 2026 gross margin 26.2% Second quarter fiscal 2026 vs 25.9% in fiscal 2025

Cash and equivalents $29.9 million Balance at January 31, 2026 vs $31.6 million at August 2, 2025

Share repurchase authorization $700,000 Approved repurchase of McRae A or B common stock

Market Reality Check

Price: $46.00 Vol: Volume 100 is light at 0....

low vol

$46.00 Last Close

Volume Volume 100 is light at 0.31x the 20-day average of 320 shares. low

Technical Price 46 trades below the 200-day MA at 47.47, indicating a weaker longer-term trend pre-release.

Peers on Argus

MCRAA was up 0.99% pre-release while key peers were largely flat, with only SMSE...

MCRAA was up 0.99% pre-release while key peers were largely flat, with only SMSEY up 0.05%, suggesting stock-specific dynamics rather than a sector-wide move.

Historical Context

2 past events · Latest: Mar 05 (Positive)

Pattern 2 events

Date	Event	Sentiment	Move	Catalyst
Mar 05	Dividend declaration	Positive	+1.0%	Announced $0.14 per share cash dividend payable April 1, 2026.
Dec 04	Dividend & special	Positive	+0.0%	Declared $0.42 per share total dividend, including $0.28 special payout.

Pattern Detected

Recent news flow has centered on recurring dividends, which have seen modest to minimal immediate price reaction.

Recent Company History

Over the past several months, McRae’s disclosed events have focused on shareholder returns via cash dividends. On Dec 04, 2025, the company declared a regular and special dividend totaling $0.42 per share, followed by a $0.14 per share dividend announced on Mar 05, 2026. Price reactions around these dividend announcements were modest, with one flat session and one move of about 1%. Today’s earnings update adds operating context to a story previously dominated by capital return announcements.

Market Pulse Summary

This announcement details modest revenue growth alongside softer net earnings and margin pressure, w...

Analysis

This announcement details modest revenue growth alongside softer net earnings and margin pressure, while highlighting a solid cash position of $29.9 million and an approved $700,000 stock repurchase program. Historically, McRae’s disclosures have focused on cash dividends with limited immediate price impact. Investors may focus on how tariffs, operating expenses, and new manufacturing investments affect future profitability, while tracking ongoing capital returns and demand trends in western, lifestyle, and work boot lines.

Key Terms

stock repurchase program

1 terms

stock repurchase program financial

"The Board of Directors of the Company has approved the repurchase of up to $700,000 of shares... under the stock repurchase program."

A stock repurchase program is when a company buys back its own shares from the market. This can make each remaining share more valuable and shows that the company believes its stock is a good investment. It’s like a business treating its shares like a limited resource, hoping to boost confidence and share prices.

AI-generated analysis. Not financial advice.

MOUNT GILEAD, N.C., March 17, 2026 /PRNewswire/ -- McRae Industries, Inc. (Pink: MCRAA and MCRAB) reported consolidated net revenues for the second quarter of fiscal 2026 of $27,948,000 as compared to $27,548,000 for the second quarter of fiscal 2025. Net earnings for the second quarter of fiscal 2026 amounted to $956,000, or $0.42 per diluted Class A common share as compared to $1,053,000, or $0.47 per diluted Class A common share, for the second quarter of fiscal 2025.

Consolidated net revenues for the first six months of fiscal 2026 totaled $59,151,000 as compared to $56,250,000 for the first six months of fiscal 2025. Net earnings for the first six months of fiscal 2026 amounted to $2,404,000, or $1.07 per diluted Class A common share, as compared to net earnings of $2,899,000, or $1.28 per diluted Class A common share, for the first six months of fiscal 2025.

SECOND QUARTER FISCAL 2026 COMPARED TO SECOND QUARTER FISCAL 2025

Consolidated net revenues totaled $27.9 million for the second quarter of fiscal 2026 as compared to $27.5 million for the second quarter of fiscal 2025. Sales related to our western/lifestyle boot products for the second quarter of fiscal 2026 totaled $21.4 million as compared to $20.4 million for the second quarter of fiscal 2025. This increase in net revenues was attributed to the Dan Post and Dingo brands. Revenues from our work boot products decreased from $7.5 million for the second quarter of fiscal 2025 to $6.7 million for the second quarter of fiscal 2026. This was a result of decreased sales for all work boots, which includes our military boots.

Consolidated gross profit for the second quarter of fiscal 2026 amounted to approximately $7.3 million, or 26.2%, as compared to $7.1 million, or 25.9%, for the second quarter of fiscal 2025.

Consolidated selling, general and administrative expenses totaled approximately $6.7 million for the second quarter of fiscal 2026 as compared to $6.4 million for the second quarter of fiscal 2025. This increase resulted primarily from increased marketing expenses.

As a result of the above, the consolidated operating profit for both the second quarter of fiscal 2026 and fiscal 2025 amounted to approximately $0.7 million.

FIRST SIX MONTHS FISCAL 2026 COMPARED TO FIRST SIX MONTHS FISCAL 2025

Consolidated net revenues for the first six months of fiscal 2026 totaled $59.2 million as compared to $56.3 million for the first six months of fiscal 2025. Our western and lifestyle product sales totaled $44.0 million for the first six months of fiscal 2026 as compared to $41.4 million for the first six months of fiscal 2025. This increase was a result of increased sales in the Dan Post and Dingo brands, offset by decreased sales in the Laredo and El Dorado brands. Net revenues from our work boot business slightly decreased from $15.5 million for the first six months of fiscal 2025 to $15.4 million for the first six months of fiscal 2026. There was a decrease in our Dan Post and Laredo work boot product lines, which was offset by an increase in our military boot sales.

Consolidated gross profit totaled $15.3 million, or 25.8%, for the first six months of fiscal 2026 as compared to $15.5 million, or 27.5%, for the first six months of fiscal 2025. As mentioned in our first quarter release, tariffs have significantly impacted our margins in this fiscal year. Based on current information, we expect the tariff impact to decrease in the second half of the year. Alternatively, our military boot operation profitability may be negatively impacted in the third quarter due to the installation of new manufacturing equipment.

Consolidated selling, general and administrative expenses totaled approximately $13.4 million for the first six months of fiscal 2026 as compared to $12.9 million for the first six months of fiscal 2025. This increase resulted primarily from increased sales commissions and marketing expenses.

As a result of the above, the consolidated operating profit amounted to $1.9 million for the first six months of fiscal 2026 as compared to $2.6 million for the first six months of fiscal 2025.

Financial Condition and Liquidity

Our financial condition remained strong at January 31, 2026 as cash and cash equivalents totaled $29.9 million as compared to $31.6 million at August 2, 2025. Our working capital decreased from $85.9 million at August 2, 2025 to $81.6 million at January 31, 2026.

We currently have two lines of credit totaling $6.75 million, all of which was fully available at January 31, 2026. One credit line totaling $1.75 million (which is restricted to one hundred percent of the outstanding receivables due from the Government) expires in January 2027. Our $5.0 million line of credit, which also expires in January 2027, is secured by the inventory and accounts receivable of our Dan Post Boot Company subsidiary.

For the first six months of fiscal 2026, operating activities provided approximately $3.6 million of cash. Net earnings contributed approximately $2.4 million of cash. Adjustments to reconcile net earnings to net cash used in operating activities totaled approximately $1.2 million. These adjustments were driven significantly by decreased inventory and offset by increased prepaid expenses.

Net cash used in investing activities totaled approximately $4.0 million, primarily due to the purchase and sale of securities.

Net cash used in financing activities totaled $1.3 million, which was used primarily for dividend payments.

The Board of Directors of the Company has approved the repurchase of up to $700,000 of shares of McRae A Common Stock or McRae B Common Stock. Repurchases of shares of common stock under the stock repurchase program will be made in the open market and in accordance with applicable securities laws. The stock repurchase program does not obligate the Company to acquire any particular amount of common stock, and it may be suspended or terminated at any time at the Company's discretion.

We believe that our current cash and cash equivalents, cash generated from operations, and available credit lines will be sufficient to meet our capital requirements for the remainder of fiscal 2026.

Forward-Looking Statements

This press release includes certain forward-looking statements. Important factors that could cause actual results or events to differ materially from those projected, estimated, assumed or anticipated in any such forward-looking statements include: the impact of higher tariff rates on our gross margins in future quarters; the effect of competitive products and pricing, risks unique to selling goods to the Government (including variation in the Government's requirements for our products and the Government's ability to terminate its contracts with vendors), changes in fashion cycles and trends in the western boot business, loss of key customers, acquisitions, supply interruptions, additional financing requirements, our expectations about future Government orders for military boots, loss of key management personnel, our ability to successfully develop new products and services, and the effect of general economic conditions in our markets.

McRae Industries, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
		January 31, 2026		August 2, 2025
ASSETS
Current assets:
Cash and cash equivalents		$29,895		$31,593
Equity investments		9,251		8,730
Debt securities		4,963		6,786
Accounts receivable, net		17,656		17,836
Inventories, net		21,429		24,599
Income tax receivable		676		639
Prepaid expenses and other current assets		3,772		1,611
Total current assets		87,641		91,794
Property and equipment, net		5,428		5,274
Other assets:
Deposits		4		14
Right to Use Asset		1,312		1,589
Real estate held for investment		2,311		2,311
Debt securities		10,413		5,032
Trademarks		2,824		2,824
Total other assets		16,863		11,770
Total assets		$109,932		$108,838

 

McRae Industries, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
		January 31, 2026		August 2, 2025
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$3,274		$2,093
Accrued employee benefits		397		1,232
Accrued payroll and payroll taxes		662		823
Lease liability		555		555
Other		1,187		1,143
Total current liabilities		6,075		5,846
Lease liability		757		1,034
Deferred tax liabilities		382		382
Total liabilities		7,214		7,262
Shareholders' equity:
Common Stock:
Class A, $1 par value; authorized 5,000,000 shares    issued and outstanding, 1,892,793 and 1,892,793    shares, respectively		1,893		1,893
Class B, $1 par value; authorized 2,500,000 shares;    issued and outstanding, 362,977 and 362,977 shares,         respectively		363		363
Retained earnings		100,462		99,320
Total shareholders' equity		102,718		101,576
Total liabilities and shareholders' equity		$109,932		$108,838

 

McRae Industries, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
(Unaudited)
	Three Months Ended				Six Months Ended
	January 31,		February 1,		January 31,		February 1,
	2026		2025		2026		2025
Net revenues	$27,948		$27,548		$59,151		$56,250
Cost of revenues	20,628		20,417		43,900		40,782
Gross profit	7,320		7,131		15,251		15,468
Selling, general and administrative expenses	6,652		6,382		13,394		12,911
Operating profit	668		749		1,857		2,557
Other income	659		734		1,442		1,462
Earnings before income taxes	1,327		1,483		3,299		4,019
Provision for income taxes	371		430		895		1,120
Net earnings	$956		$1,053		$2,404		$2,899
Earnings per common share:
Diluted earnings per share:
Class A	0.42		0.47		1.07		1.28
Class B	NA		NA		NA		NA
Weighted average number of common shares outstanding:
Class A	1,892,793		1,896,334		1,892,793		1,896,334
Class B	362,977		363,826		362,977		363,826
Total	2,255,770		2,260,160		2,255,770		2,260,160

 

McRae Industries, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(In thousands, except share data)
(Unaudited)
		Common Stock, $1 par value				Accumulated Other
		Class A		Class B		Comprehensive	Retained
		Shares	Amount	Shares	Amount	Income (Loss)	Earnings
Balance, August 3, 2024		1,896,334	$1,897	363,826	$363	$0	$94,805
Cash Dividend ($0.14 per  Class A common stock)							(265)
Cash Dividend ($0.14 per Class B common stock)							(51)
Net earnings							1,846
Balance, November 2, 2024		1,896,334	$1,897	363,826	$363	$0	$96,335
Cash Dividend ($0.84 per  Class A common stock)							(1,592)
Cash Dividend ($0.84 per Class B common stock)							(304)
Net earnings							1,053
Balance, February 1, 2025		1,896,334	$1,897	363,826	$363	$0	$95,492
		Common Stock, $1 par value				Accumulated Other
		Class A		Class B		Comprehensive	Retained
		Shares	Amount	Shares	Amount	Income (Loss)	Earnings
Balance, August 2, 2025		1,892,793	$1,893	362,977	$362	$0	$99,320
Cash Dividend ($0.14 per  Class A common stock)							(265)
Cash Dividend ($0.14 per Class B common stock)							(51)
Net earnings							1,449
Balance, November 1, 2025		1,892,793	$1,893	362,977	$362	$0	$100,453
Cash Dividend ($0.42 per  Class A common stock)							(795)
Cash Dividend ($0.42 per Class B common stock)							(152)
Net earnings							956
Balance, January 31, 2026		1,892,793	$1,893	362,977	$362	$0	$100,462

 

McRae Industries, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
		Six Months Ended
		January 31,		February 1,
		2026		2025
Cash Flows from Operating Activities:
Net earnings		$2,404		$2,899
Adjustments to reconcile net earnings to net cash used      in operating activities		1,182		(3,472)
Net cash provided in operating activities		3,586		(573)
Cash Flows from Investing Activities:
Proceeds from sale of land		-		50
Proceeds from sale of fixed assets		-		263
Capital expenditures		(516)		(275)
Purchase of securities		(7,514)		(1,112)
Proceeds from sale of securities		4,008		5,973
Net cash used in investing activities		(4,022)		4,899
Cash Flows from Financing Activities:
Dividends paid		(1,262)		(2,213)
Net cash used in financing activities		(1,262)		(2,213)
Net (Decrease) Increase in Cash and Cash equivalents		(1,698)		2,113
Cash and Cash Equivalents at Beginning of Year		31,593		20,723
Cash and Cash Equivalents at End of Period		$29,895		$22,836

 

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SOURCE McRae Industries, Inc.

FAQ

What were McRae Industries (MCRAA) Q2 fiscal 2026 revenues and EPS?

McRae reported Q2 fiscal 2026 revenues of $27.948M and diluted EPS of $0.42. According to the company, Q2 net earnings were $0.956M, slightly below prior-year comparatives due to higher marketing and tariff pressure.

Why did McRae Industries (MCRAA) first-half net earnings fall in fiscal 2026?

Net earnings fell to $2.404M, a decline of about 17% year-over-year. According to the company, increased marketing expenses and tariff-driven margin pressure reduced profitability despite revenue gains.

How did McRae Industries (MCRAA) perform by product line in Q2 2026?

Western/lifestyle boot sales rose to $21.4M while work boots fell to $6.7M. According to the company, growth came from Dan Post and Dingo, offset by weaker work boot demand including some military variations.

What liquidity and cash positions did McRae Industries (MCRAA) report at Jan 31, 2026?

McRae reported cash and equivalents of $29.9M and fully available credit lines totaling $6.75M. According to the company, operating activities provided approximately $3.6M in cash during the first six months.

What does the $700,000 share repurchase program mean for MCRAA shareholders?

The board approved repurchases up to $700,000, enabling open-market buybacks. According to the company, repurchases may support shareholder value but are discretionary and may be suspended or terminated at any time.