Weyco Reports Second Quarter 2026 Results

Rhea-AI Summary

Weyco Group (NASDAQ: WEYS) reported second quarter 2026 net sales of $62.2 million, up 7% year over year. Gross earnings were 70.4% of net sales, including $15.3 million of tariff refunds. Earnings from operations rose to $17.0 million from $3.9 million, and net earnings increased to $13.3 million from $2.3 million. Diluted EPS was $1.39 versus $0.24 in Q2 2025.

Wholesale sales grew 7% to $48.8 million, led by 12% growth in Florsheim and 10% growth in BOGS, while Nunn Bush declined 3%. Retail sales rose 4% to $7.0 million, driven by Florsheim e-commerce, and other operations sales increased 10% to $6.4 million, largely due to currency. Operating cash flow for the first six months was $25.2 million. The Board declared a quarterly dividend of $0.28 per share, payable September 30, 2026, to shareholders of record on August 18, 2026.

Positive

• Net sales up 7% in Q2 2026 to $62.2 million
• Earnings from operations increased to $17.0 million from $3.9 million
• Net earnings grew to $13.3 million from $2.3 million year over year
• Diluted EPS rose to $1.39 from $0.24 in Q2 2025
• Tariff refunds recognized $15.3 million in cost-of-sales reductions plus $0.7 million interest
• Operating cash flow for six months rose to $25.2 million from $14.4 million
• Quarterly dividend declared at $0.28 per share versus $0.27 a year ago

Negative

• Tariff benefit is largely one-time, creating tougher future margin comparisons
• Selling and administrative expenses rose to $26.8 million from $21.3 million
• Nunn Bush brand sales declined 3% in the wholesale segment
• Florsheim Australia local-currency sales fell 1% despite reported dollar growth
• Incremental tariffs of 10%–12.5% create near-term gross margin uncertainty
• Cash and cash equivalents declined to $93.7 million from $96.0 million at year-end 2025

News Explained

At June 30, $17,447 thousand of tariff refunds was a receivable, while $1.2 million of Phase 3 claims lacked a submission timeline.

Weyco reported second-quarter results for the period ended June 30, 2026, recognizing $15.3 million of tariff refunds in earnings; its remaining $1.2 million of Phase 3 entries had produced no refund and had no submission timeline.

The company submitted Phase 1 refund claims totaling $18.6 million, substantially all of which were approved during the quarter, while the Phase 3 claims remain subject to CBP execution and have uncertain timing and amount.

At June 30, 2026, Weyco reported $93,691 thousand of cash and a separate $17,447 thousand tariff refund receivable among current assets; the release therefore does not present the receivable as cash already held.

The unresolved Phase 3 claims and the 12.5% incremental tariff imposed on certain imports from July 24, 2026 are the specific items the company identifies as affecting refund timing and near-term gross-margin uncertainty.

Market Context

The earnings-tagged history showed an average move of 0.56%. Against the reported quarter, that reco...

Analysis

The earnings-tagged history showed an average move of 0.56%. Against the reported quarter, that record frames tariff refunds as a key factor; CBP timing for remaining claims and low short positioning were relevant context.

Key Figures

Net Sales: $62.2 million, up 7% Earnings from Operations: $17.0 million Net Earnings: $13.3 million +5 more

8 metrics

Net Sales $62.2 million, up 7% Q2 2026 versus Q2 2025

Earnings from Operations $17.0 million Q2 2026 versus $3.9 million in Q2 2025

Net Earnings $13.3 million Q2 2026 versus $2.3 million in Q2 2025

Diluted EPS $1.39 Q2 2026 versus $0.24 in Q2 2025

Tariff Refunds $15.3 million Recognized as a reduction to cost of sales in Q2 2026

Cash Dividend $0.28 per share Declared August 4, 2026, payable September 30, 2026

Incremental Tariff 12.5% Applied to imports from China, Dominican Republic, and Vietnam from July 24

Phase 3 Entries $1.2 million Remaining tariff entries without a claim submission timeline

Previous Earnings Reports

5 past events · Latest: May 05 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 05	Q1 earnings report	Positive	+1.7%	Higher net earnings and diluted EPS, alongside tariff refund claims and dividend declaration
Mar 03	Q4 earnings report	Neutral	+1.6%	Fourth-quarter and full-year earnings results generated a positive reaction
Aug 05	Q2 earnings report	Negative	-1.9%	Lower sales and earnings reflected tariff pressure and declines across major brands
May 06	Q1 earnings report	Negative	+3.2%	Lower sales and earnings coincided with tariff challenges despite dividend increase
Mar 04	Q4 earnings report	Positive	-1.8%	Higher earnings and EPS coincided with a negative price reaction

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tagged earnings history showed three positive reactions, one negative reaction aligned with adverse results, and one negative reaction despite improved earnings.

Key Terms

ieepa, valuation allowance, deferred tax assets

3 terms

ieepa regulatory

"we paid approximately $19.8 million in IEEPA tariffs."

A U.S. law that gives the president broad authority to control trade, freeze assets, and block financial transactions during a declared national emergency. Investors care because those powers can abruptly restrict a company's ability to sell products, access cash, or do business with certain countries or parties, creating sudden risks to revenues, supply chains and share prices — like an emergency brake that can stop or reroute parts of a business overnight.

valuation allowance financial

"the establishment of a $1.1 million valuation allowance on deferred tax assets"

A valuation allowance is a reserve set aside to reduce the value of certain assets on a company's financial records when there is uncertainty about whether they will generate the expected benefits. It acts like a caution sign, indicating that some assets might not be fully recoverable or worth their recorded amount. This matters to investors because it provides a more realistic picture of a company's financial health and potential risks.

deferred tax assets financial

"valuation allowance on deferred tax assets at Florsheim Australia"

An item on a company’s balance sheet showing tax benefits it can use later to reduce future tax bills — think of it as an IOU from the tax system for past losses or timing differences. It matters to investors because it can boost future cash flow and apparent value if the company expects profits ahead, but those benefits vanish if the company cannot generate taxable income and the asset must be reduced.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MILWAUKEE, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Weyco Group, Inc. (NASDAQ: WEYS) (“we,” “our,” “us” and the “Company”) today announced financial results for the quarter ended June 30, 2026.

Second Quarter 2026 Overview

• Net sales: $62.2 million (up 7% compared to Q2 2025)
• Gross earnings: 70.4% of net sales (includes $15.3 million of tariff refunds)
• Earnings from operations: $17.0 million (compared to $3.9 million in Q2 2025)
• Net earnings: $13.3 million (up from $2.3 million in Q2 2025)
• Diluted earnings per share: $1.39 (up from $0.24 in Q2 2025)
  
  

North American Wholesale Segment
Wholesale net sales were $48.8 million for the quarter, up 7% from $45.6 million in the second quarter of 2025. Sales of our Florsheim brand were up 12%, due to its continued growth in the dress shoe category. BOGS sales were up 10% for the quarter, driven by increased sales volumes across most major channels. Sales of our Stacy Adams brand increased 4% for the quarter, primarily due to favorable pricing. Nunn Bush sales were down 3% for the quarter.

Wholesale gross earnings as a percent of net sales were 70.0% and 37.6% in the second quarters of 2026 and 2025, respectively. The increase was primarily due to the recognition of $14.3 million in tariff refunds, discussed below, as well as the benefit of selling price increases implemented in the second half of 2025. Wholesale selling and administrative expenses totaled $18.1 million, or 37% of net sales, for the quarter versus $13.1 million, or 29% of net sales, last year. The increases in 2026 were primarily due to higher employee costs. Wholesale operating earnings were $16.0 million for the quarter, up from $4.1 million in 2025, due mainly to tariff refunds partially offset by higher employee costs.

North American Retail Segment
Net sales in our retail segment totaled $7.0 million for the quarter, up 4% from $6.8 million in 2025. The increase was primarily due to higher sales on our Florsheim website. Retail gross earnings as a percent of net sales increased to 79.2% in the second quarter of 2026, up from 66.6% in the second quarter of 2025, driven mainly by the recognition of $1.0 million in tariff refunds. Retail operating earnings reached $1.0 million for the quarter, compared to $0.1 million in last year’s second quarter, driven mainly by the tariff refunds.

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 $6.4 million in the second quarter of 2026, up 10% from $5.8 million in 2025. The increase was due to the appreciation of the Australian dollar relative to the U.S. dollar, as Florsheim Australia’s net sales in local currency were down 1% for the quarter. Florsheim Australia’s gross earnings as a percent of net sales were 63.1% and 60.9% in the second quarters of 2026 and 2025, respectively. Its second quarter operating earnings were break-even in 2026 versus operating losses of $0.2 million last year.

Incremental Tariffs
In early 2025, the U.S. imposed tariffs on certain imported goods under the International Emergency Economic Powers Act (“IEEPA”). During 2025 and the first quarter of 2026, we paid approximately $19.8 million in IEEPA tariffs. In February 2026, the U.S. Supreme Court invalidated IEEPA tariffs, and in April 2026, U.S. Customs and Border Protection (“CBP”) commenced a phased process for accepting refund claims. Accordingly, in April, we submitted refund claims for our Phase 1 entries totaling $18.6 million, substantially all of which were approved during the second quarter. As a result, during the quarter we recognized: $15.3 million in tariff refunds as a reduction to cost of sales ($14.3 million in the Wholesale segment and $1.0 million in the Retail segment), $3.3 million as a reduction of inventory, and $0.7 million of interest income.

Our remaining entries, totaling $1.2 million (now classified as Phase 3 entries), have not yet been assigned a claim submission timeline. No refunds related to Phase 3 entries have been recognized, as the timing and amount of these recoveries remain uncertain and subject to execution by CBP.

Following the U.S. Supreme Court's ruling in February, the Administration imposed a 10% incremental tariff under a separate statutory authority, which remained in effect throughout the second quarter. On July 24^th, the Administration increased the incremental tariff on imports from China, Dominican Republic, and Vietnam to 12.5%. U.S. trade policies continue to evolve and remain unpredictable, creating near‑term gross margin uncertainty. We have mitigation strategies in place and will continue to adjust, as appropriate, in response to future policy developments.

Interest Income
Interest income totaled $1.5 million compared to $0.8 million in last year’s second quarter. This year included $0.7 million of interest income on tariff refunds recognized in the second quarter.

Provision for Income Taxes
Our effective tax rates for the second quarters of 2026 and 2025 were 28.4% and 51.1% respectively. The higher effective tax rate in 2025 was primarily due to the establishment of a $1.1 million valuation allowance on deferred tax assets at Florsheim Australia.

"We are pleased with our performance this quarter, with three of our brands posting solid wholesale sales growth, led by our Florsheim brand, as well as gains in Florsheim's e-commerce business," stated Thomas W. Florsheim, Jr., Chairman and Chief Executive Officer. "This sales growth led to strong second-quarter earnings, which were further bolstered by the recovery of previously paid IEEPA tariffs. Overall, we are encouraged by our current momentum and believe we are well positioned for a strong second-half."

Dividend Declaration
On August 4, 2026, our Board of Directors declared a cash dividend of $0.28 per share to all shareholders of record on August 18, 2026, payable September 30, 2026.

Conference Call Details
Weyco Group will host a conference call on August 5, 2026, at 11:00 a.m. Eastern Time to discuss the second 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/BIdbf49246d29d49fdb28efc4756dd1e16

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/rqug7zo8. 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)
	June 30,				December 31,
	2026				2025
	(Dollars in thousands)
ASSETS:
Cash and cash equivalents	$	93,691			$	96,006
Marketable securities, at amortized cost		1,780				1,425
Tariff refund receivable		17,447				—
Accounts receivable, net		34,283				38,899
Inventories		49,069				65,887
Prepaid expenses and other current assets		2,609				3,218
Total current assets		198,879				205,435
Marketable securities, at amortized cost		2,640				3,460
Property, plant and equipment, net		27,674				27,414
Operating lease right-of-use assets		8,621				10,257
Goodwill		12,317				12,317
Trademarks		32,868				32,868
Other assets		28,076				27,916
Total assets	$	311,075			$	319,667
LIABILITIES AND EQUITY:
Accounts payable	$	6,358			$	11,198
Dividend payable		—				21,385
Operating lease liabilities		3,672				4,354
Accrued liabilities		14,351				11,062
Accrued income tax payable		1,977				638
Total current liabilities		26,358				48,637
Deferred income tax liabilities		13,716				13,828
Long-term pension liability		10,387				10,787
Operating lease liabilities		5,437				6,437
Other long-term liabilities		382				410
Total liabilities		56,280				80,099
Common stock		9,531				9,532
Capital in excess of par value		74,843				73,967
Reinvested earnings		184,084				169,923
Accumulated other comprehensive loss		(13,663	)			(13,854	)
Total equity		254,795				239,568
Total liabilities and equity	$	311,075			$	319,667

WEYCO GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
		Three Months Ended June 30,							Six Months Ended June 30,
	2026			2025				2026				2025
	(In thousands, except per share amounts)
Net sales	$	62,216		$	58,221			$	130,221			$	126,251
Cost of sales		18,432			32,998				56,371				70,653
Gross earnings		43,784			25,223				73,850				55,598
Selling and administrative expenses		26,764			21,330				49,326				44,674
Earnings from operations		17,020			3,893				24,524				10,924
Interest income		1,519			785				2,204				1,419
Interest expense		—			(1	)			(4	)			(2	)
Other income (expense), net		51			(59	)			208				(186	)
Earnings before provision for income taxes		18,590			4,618				26,932				12,155
Provision for income taxes		5,275			2,362				7,496				4,356
Net earnings	$	13,315		$	2,256			$	19,436			$	7,799
Weighted average shares outstanding
Basic		9,412			9,475				9,412				9,511
Diluted		9,561			9,561				9,536				9,612
Earnings per share
Basic	$	1.41		$	0.24			$	2.06			$	0.82
Diluted	$	1.39		$	0.24			$	2.04			$	0.81
Cash dividends declared (per share)	$	0.28		$	0.27			$	0.55			$	0.53

WEYCO GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
	Six Months Ended June 30,
	2026				2025
	(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	19,436			$	7,799
Adjustments to reconcile net earnings to net cash provided by operating activities -
Depreciation		1,271				1,203
Amortization		63				131
Bad debt expense		4				148
Deferred income taxes		(145	)			838
Net foreign currency transaction (gains) losses		(71	)			66
Share-based compensation expense		863				802
Pension (benefit) expense		(36	)			240
Loss on disposal of fixed assets		—				5
Increase in cash surrender value of life insurance		(240	)			(230	)
Changes in operating assets and liabilities -
Accounts receivable		4,610				5,301
Tariff refund receivable		(17,447	)			—
Inventories		16,828				2,705
Prepaid expenses and other assets		644				791
Accounts payable		(4,848	)			(1,277	)
Accrued liabilities and other		2,913				(3,458	)
Accrued income taxes		1,331				(707	)
Net cash provided by operating activities		25,176				14,357
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of marketable securities		470				5
Purchases of property, plant and equipment		(1,490	)			(677	)
Net cash used for investing activities		(1,020	)			(672	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash dividends paid		(26,562	)			(5,039	)
Shares purchased and retired		(34	)			(3,135	)
Net proceeds from stock options exercised		13				—
Net cash used for financing activities		(26,583	)			(8,174	)
Effect of exchange rate changes on cash and cash equivalents		112				956
Net (decrease) increase in cash and cash equivalents	$	(2,315	)		$	6,467
CASH AND CASH EQUIVALENTS at beginning of period		96,006				70,963
CASH AND CASH EQUIVALENTS at end of period	$	93,691			$	77,430
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net of refunds	$	6,304			$	4,208
Interest paid	$	—			$	1
NON-CASH FINANCING ACTIVITY:
Settlement of dividend payable with prefunded dividend	$	—			$	21,579

FAQ

How did Weyco Group (NASDAQ: WEYS) perform in Q2 2026?

Weyco Group reported higher sales and earnings in Q2 2026, with net sales of $62.2 million and net earnings of $13.3 million. According to Weyco Group, diluted EPS increased to $1.39 from $0.24 a year earlier, helped by tariff refunds and brand growth.

What were Weyco Group’s Q2 2026 earnings per share (WEYS)?

Weyco Group reported diluted earnings per share of $1.39 for Q2 2026, compared with $0.24 in Q2 2025. According to Weyco Group, basic EPS was $1.41, and six-month diluted EPS reached $2.04 versus $0.81 in the prior-year period.

How did tariff refunds impact Weyco Group’s Q2 2026 results?

Tariff refunds significantly boosted Q2 2026 profitability by reducing cost of sales and adding interest income. According to Weyco Group, it recognized $15.3 million in tariff refunds in cost of sales, $3.3 million as an inventory reduction, and $0.7 million of related interest income.

What are the key sales trends by brand for Weyco Group in Q2 2026?

Weyco Group saw mixed brand performance in its wholesale segment during Q2 2026. According to Weyco Group, Florsheim sales rose 12%, BOGS increased 10%, Stacy Adams grew 4%, while Nunn Bush sales declined 3%, reflecting varied demand across its portfolio.

What dividend did Weyco Group declare following its Q2 2026 earnings?

Weyco Group’s board declared a quarterly cash dividend of $0.28 per share on August 4, 2026. According to Weyco Group, the dividend is payable on September 30, 2026, to shareholders of record as of August 18, 2026, slightly above the prior-year rate.

How strong was Weyco Group’s cash flow in the first half of 2026?

Weyco Group generated higher operating cash flow in the first six months of 2026 compared with 2025. According to Weyco Group, net cash provided by operating activities was $25.2 million, up from $14.4 million, supported by earnings growth and inventory reductions.

What tariff risks and uncertainties does Weyco Group face after Q2 2026?

Weyco Group faces evolving U.S. trade policies that affect its imported products and margins. According to Weyco Group, a 10% incremental tariff remained through Q2, increasing to 12.5% on July 24, and management cites near-term gross margin uncertainty despite mitigation strategies.