Weyco Reports First Quarter 2026 Results
Rhea-AI Summary
Weyco Group (NASDAQ: WEYS) reported Q1 2026 results: net sales $68.0M (flat), gross margin 44.2% of sales, earnings from operations $7.5M, net earnings $6.1M (+10% YoY) and diluted EPS $0.64 (from $0.57). The Board declared a quarterly cash dividend of $0.28 per share payable June 30, 2026.
The company noted continued brand mix shifts: Florsheim sales rose while Stacy Adams and BOGS declined. Weyco paid approximately $19.8M in IEEPA tariffs and submitted $18.6M in Phase 1 refund claims; tariff policy and potential recoveries remain uncertain.
Positive
- Diluted EPS of $0.64, up from $0.57
- Net earnings $6.1M, up 10% year-over-year
- Submitted $18.6M in Phase 1 IEEPA tariff refund claims
Negative
- Inventories decreased from $65.9M to $50.5M (≈23% decline)
- Paid approximately $19.8M in IEEPA tariffs, increasing product costs 19%–50%
- BOGS wholesale sales declined 11% in Q1 2026
Key Figures
Market Reality Check
Peers on Argus
WEYS was down 3.72% while key peers showed mixed moves: DBI -3.78%, RCKY -1.89%, VRA -0.73%, FOSL +0.46%, FORD +4.23%. The combination of declines and gains across peers points to a stock-specific setup into these earnings.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 03 | Earnings release | Neutral | +1.6% | Fourth quarter and full year 2025 financial results announcement. |
| Aug 05 | Earnings release | Negative | -1.9% | Q2 2025 sales and earnings decline driven by high incremental tariffs. |
| May 06 | Earnings release | Negative | +3.2% | Q1 2025 sales and earnings drop amid new, sharply higher U.S. tariffs. |
| Mar 04 | Earnings release | Positive | -1.8% | Q4 2024 flat sales but higher earnings and record full-year profit. |
| Aug 06 | Earnings release | Positive | -0.8% | Q2 2024 record net earnings despite lower sales and brand mix shifts. |
Earnings headlines often see muted to negative price reactions, including several instances where shares fell despite positive or record earnings.
Over recent quarters, Weyco’s earnings releases have highlighted tariff-driven pressure and mixed brand performance but generally solid profitability. Q1 2025 and Q2 2025 showed sales declines and margin compression from sharp tariff increases, while Q4 2024 delivered record net earnings of $10.0 million despite flat sales. Later updates, including Q4 2025, continued to emphasize headwinds from U.S. trade policy. Today’s Q1 2026 report, with flat sales but higher operating and net earnings, fits into this pattern of resilient earnings amid evolving tariff dynamics.
Historical Comparison
Past earnings headlines have produced modest average moves of 0.06%, indicating typically conservative market reactions to Weyco’s results.
Series of quarterly and annual earnings updates showing tariff headwinds, brand mix shifts, and resilient profitability over 2024–2025.
Market Pulse Summary
This announcement shows Weyco maintaining stability under challenging trade conditions. Q1 2026 net sales were roughly flat at $68.0 million, but operating earnings rose to $7.5 million and diluted EPS to $0.64. Management highlighted progress on tariff refund claims totaling $18.6 million, while warning that new 10% tariffs add fresh uncertainty. Investors may watch future gross margins, tariff refund execution, and brand-level performance trends across Florsheim, Nunn Bush, Stacy Adams, and BOGS.
Key Terms
international emergency economic powers act regulatory
u.s. customs and border protection regulatory
operating lease right-of-use assets technical
AI-generated analysis. Not financial advice.
MILWAUKEE, May 05, 2026 (GLOBE NEWSWIRE) -- Weyco Group, Inc. (NASDAQ: WEYS) (“we,” “our,” “us” and the “Company”) today announced financial results for the quarter ended March 31, 2026.
First Quarter 2026 Overview
- Net sales:
$68.0 million (flat compared to Q1 2025) - Gross earnings:
44.2% of net sales (compared to44.6% of net sales in Q1 2025) - Earnings from operations:
$7.5 million (up7% compared to$7.0 million in Q1 2025) - Net earnings:
$6.1 million (up10% from$5.5 million in Q1 2025) - Diluted earnings per share:
$0.64 (up from$0.57 in Q1 2025)
North American Wholesale Segment
Wholesale net sales were
Wholesale gross earnings as a percent of net sales were
North American Retail Segment
Net sales in our retail segment totaled
Other Operations
Other operations consist of our retail and wholesale businesses in Australia and South Africa (collectively, “Florsheim Australia”). Net sales of Florsheim Australia were
Incremental Tariffs
In February 2025, the U.S. imposed reciprocal and retaliatory tariffs on certain imported goods under the International Emergency Economic Powers Act (“IEEPA”). We paid a total of approximately
On February 20, 2026, the U.S. Supreme Court ruled that IEEPA does not authorize the President to impose tariffs, declaring the IEEPA tariffs invalid. In April 2026, U.S. Customs and Border Protection (“CBP”) commenced a phased process to accept claims for potential refunds of IEEPA tariffs previously paid. The refund process formally opened on April 20, 2026, and on that date, we submitted claims covering our Phase 1 entries totaling
Following the U.S. Supreme Court's ruling, the President announced the implementation of a new across-the-board tariff under a separate statutory authority, currently set at
"Florsheim delivered another strong quarter following its record 2025 performance, while our other brands continued to face headwinds resulting from ongoing market uncertainty," stated Thomas W. Florsheim, Jr., CEO. "Despite flat top-line results, our operating earnings improved, supported by lower costs. We are encouraged by the recent progress in the tariff refund process and believe it represents a constructive step toward recovering costs previously paid. At the same time, we remain focused on executing within a fluid trade environment. Our team is actively monitoring potential tariff developments and is prepared to respond, as appropriate, through future pricing and/or continued cost-management actions.”
Dividend Declaration
On May 5, 2026, our Board of Directors declared a cash dividend of
Conference Call Details
Weyco Group will host a conference call on May 6, 2026, at 11:00 a.m. Eastern Time to discuss the first quarter 2026 financial results in more detail. To participate in the call, you will first need to pre-register online. Pre-registration takes only a few minutes, and you may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://register-conf.media-server.com/register/BI905fcb27a8494543bb7a30fb095a981e
The pre-registration process will provide the conference call phone number and a passcode required to enter the call. A replay will be available for one year beginning about two hours after the completion of the call at the following webcast link:
https://edge.media-server.com/mmc/p/ncvykvxv. Alternatively, the replay will be available by visiting the investor relations section of Weyco Group’s website at www.weycogroup.com.
About Weyco Group
Weyco Group, Inc., designs and markets quality and innovative footwear principally for men, but also for women and children, under a portfolio of well-recognized brand names including: Florsheim, Nunn Bush, Stacy Adams, and BOGS. The Company’s products can be found in leading footwear, department, and specialty stores, as well as on e-commerce websites worldwide. Weyco Group also operates Florsheim stores in the United States, Australia, and South Africa.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Various factors could cause our results to be materially different from the results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the uncertain impacts of U.S. trade and tariff policies – particularly incremental tariffs on goods sourced from China - which remain highly dynamic and unpredictable; the impact of inflation generally and, specifically, increases in our costs for materials, labor and other manufacturing inputs; a slow-down or contraction in the overall U.S. or Australian economies; our ability to successfully market and sell our products in a highly competitive industry and in view of changing and unpredictable consumer trends; the effect of unseasonable weather conditions on the demand for certain of our products; our ability to successfully procure our products from independent manufacturers on a timely basis; consumer acceptance of products and other factors affecting retail market conditions, changes in interest rates, the uncertain impact of the wars in Ukraine, Israel, and Iran and the related economic and other sanctions imposed by the U.S. and European Union; and other factors detailed from time to time in our filings made with the Securities and Exchange Commission, including our annual report on Form 10-K filed on March 13, 2026, which are incorporated herein by reference. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
For more information, contact:
Judy Anderson
Vice President, Chief Financial Officer and Secretary
414-908-1833
| WEYCO GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| (Dollars in thousands) | ||||||||
| ASSETS: | ||||||||
| Cash and cash equivalents | $ | 89,036 | $ | 96,006 | ||||
| Marketable securities, at amortized cost | 1,727 | 1,425 | ||||||
| Accounts receivable, net | 39,313 | 38,899 | ||||||
| Inventories | 50,538 | 65,887 | ||||||
| Prepaid expenses and other current assets | 2,602 | 3,218 | ||||||
| Total current assets | 183,216 | 205,435 | ||||||
| Marketable securities, at amortized cost | 3,160 | 3,460 | ||||||
| Property, plant and equipment, net | 27,375 | 27,414 | ||||||
| Operating lease right-of-use assets | 9,278 | 10,257 | ||||||
| Goodwill | 12,317 | 12,317 | ||||||
| Trademarks | 32,868 | 32,868 | ||||||
| Other assets | 28,044 | 27,916 | ||||||
| Total assets | $ | 296,258 | $ | 319,667 | ||||
| LIABILITIES AND EQUITY: | ||||||||
| Accounts payable | $ | 5,227 | $ | 11,198 | ||||
| Dividend payable | — | 21,385 | ||||||
| Operating lease liabilities | 4,028 | 4,354 | ||||||
| Accrued liabilities | 10,143 | 11,062 | ||||||
| Accrued income tax payable | 2,772 | 638 | ||||||
| Total current liabilities | 22,170 | 48,637 | ||||||
| Deferred income tax liabilities | 13,796 | 13,828 | ||||||
| Long-term pension liability | 10,510 | 10,787 | ||||||
| Operating lease liabilities | 5,757 | 6,437 | ||||||
| Other long-term liabilities | 382 | 410 | ||||||
| Total liabilities | 52,615 | 80,099 | ||||||
| Common stock | 9,532 | 9,532 | ||||||
| Capital in excess of par value | 74,413 | 73,967 | ||||||
| Reinvested earnings | 173,437 | 169,923 | ||||||
| Accumulated other comprehensive loss | (13,739 | ) | (13,854 | ) | ||||
| Total equity | 243,643 | 239,568 | ||||||
| Total liabilities and equity | $ | 296,258 | $ | 319,667 | ||||
| WEYCO GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| (In thousands, except per share amounts) | ||||||||
| Net sales | $ | 68,005 | $ | 68,030 | ||||
| Cost of sales | 37,939 | 37,655 | ||||||
| Gross earnings | 30,066 | 30,375 | ||||||
| Selling and administrative expenses | 22,562 | 23,344 | ||||||
| Earnings from operations | 7,504 | 7,031 | ||||||
| Interest income | 685 | 634 | ||||||
| Interest expense | (4 | ) | (1 | ) | ||||
| Other income (expense), net | 157 | (127 | ) | |||||
| Earnings before provision for income taxes | 8,342 | 7,537 | ||||||
| Provision for income taxes | 2,221 | 1,994 | ||||||
| Net earnings | $ | 6,121 | $ | 5,543 | ||||
| Weighted average shares outstanding | ||||||||
| Basic | 9,412 | 9,548 | ||||||
| Diluted | 9,509 | 9,664 | ||||||
| Earnings per share | ||||||||
| Basic | $ | 0.65 | $ | 0.58 | ||||
| Diluted | $ | 0.64 | $ | 0.57 | ||||
| Cash dividends declared (per share) | $ | 0.27 | $ | 0.26 | ||||
| WEYCO GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| (Dollars in thousands) | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net earnings | $ | 6,121 | $ | 5,543 | ||||
| Adjustments to reconcile net earnings to net cash provided by operating activities - | ||||||||
| Depreciation | 633 | 532 | ||||||
| Amortization | 50 | 65 | ||||||
| Bad debt expense | 1 | 140 | ||||||
| Deferred income taxes | (58 | ) | (33 | ) | ||||
| Net foreign currency transaction (gains) losses | (90 | ) | 67 | |||||
| Share-based compensation expense | 434 | 427 | ||||||
| Pension (benefit) expense | (18 | ) | 120 | |||||
| Increase in cash surrender value of life insurance | (120 | ) | (110 | ) | ||||
| Changes in operating assets and liabilities - | ||||||||
| Accounts receivable | (420 | ) | (2,441 | ) | ||||
| Inventories | 15,350 | 5,827 | ||||||
| Prepaid expenses and other assets | 575 | (84 | ) | |||||
| Accounts payable | (5,971 | ) | (3,579 | ) | ||||
| Accrued liabilities and other | (1,189 | ) | (4,292 | ) | ||||
| Accrued income taxes | 2,133 | 1,947 | ||||||
| Net cash provided by operating activities | 17,431 | 4,129 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property, plant and equipment | (554 | ) | (417 | ) | ||||
| Net cash used for investing activities | (554 | ) | (417 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Cash dividends paid | (23,926 | ) | (2,482 | ) | ||||
| Shares purchased and retired | (34 | ) | (732 | ) | ||||
| Net proceeds from stock options exercised | 13 | — | ||||||
| Net cash used for financing activities | (23,947 | ) | (3,214 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 100 | 85 | ||||||
| Net (decrease) increase in cash and cash equivalents | $ | (6,970 | ) | $ | 583 | |||
| CASH AND CASH EQUIVALENTS at beginning of period | 96,006 | 70,963 | ||||||
| CASH AND CASH EQUIVALENTS at end of period | $ | 89,036 | $ | 71,546 | ||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
| Income taxes paid, net of refunds | $ | 127 | $ | 71 | ||||
| Interest paid | $ | 4 | $ | 1 | ||||
| NON-CASH FINANCING ACTIVITY: | ||||||||
| Settlement of dividend payable with prefunded dividend | $ | — | $ | 21,579 | ||||
