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Earnings grow as tariffs loom for Weyco Group (NASDAQ: WEYS) Q1 2026

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Weyco Group reported essentially flat first quarter 2026 net sales of $68.0 million, compared with $68.0 million a year earlier, but higher profitability. Net earnings rose to $6.1 million from $5.5 million, and diluted EPS increased to $0.64 from $0.57 as selling and administrative expenses declined.

In North American wholesale, net sales were $53.6 million, down 1%, with 5% growth at Florsheim offset by declines at Stacy Adams and BOGS. Wholesale operating earnings still improved to $7.0 million. Retail segment net sales in North America edged up to $8.8 million, and operating earnings increased to $0.8 million.

Florsheim Australia net sales were $5.6 million, up 10% in U.S. dollars, with flat local-currency sales and small operating losses. Operating cash flow strengthened sharply to $17.4 million, helped by a significant inventory reduction. The company has paid about $19.8 million in IEEPA tariffs and has submitted refund claims for $18.6 million, with an additional $1.2 million in a later phase. The Board raised the quarterly dividend to $0.28 per share, a 4% increase.

Positive

  • Profitability and EPS improved: Net earnings rose to $6.1 million from $5.5 million and diluted EPS increased to $0.64 from $0.57, despite essentially flat net sales.
  • Strong operating cash flow and balance sheet: Net cash provided by operating activities jumped to $17.4 million from $4.1 million, while cash and cash equivalents remained high at $89.0 million with no debt reported.
  • Dividend increase: The Board declared a quarterly cash dividend of $0.28 per share, a 4% increase over the previous $0.27, signaling continued shareholder returns.

Negative

  • None.

Insights

Weyco grew earnings and cash flow on flat sales while navigating tariff uncertainty.

Weyco Group delivered first quarter 2026 net sales of $68.0 million, essentially unchanged year over year, but expanded profitability. Net earnings increased to $6.1 million from $5.5 million, and diluted EPS rose to $0.64 from $0.57, driven by lower selling and administrative expenses.

Segment results were mixed. North American wholesale revenue slipped 1% to $53.6 million, yet wholesale operating earnings improved to $7.0 million. Florsheim grew 5%, while Stacy Adams and BOGS declined amid softer retailer demand. Retail net sales in North America ticked up to $8.8 million and operating earnings increased to $0.8 million.

Cash generation was notable, with operating cash flow climbing to $17.4 million from $4.1 million, helped by inventory falling to $50.5 million. The company has paid about $19.8 million in IEEPA tariffs and has filed refund claims for $18.6 million, with another $1.2 million to follow, while a new across-the-board 10% tariff introduces ongoing gross margin uncertainty. A 4% dividend increase to $0.28 per share underscores management’s willingness to return capital.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net sales $68.0 million Three months ended March 31, 2026 vs $68.0 million in 2025
Net earnings $6.1 million Three months ended March 31, 2026 vs $5.5 million in 2025
Diluted EPS $0.64 Three months ended March 31, 2026 vs $0.57 in 2025
Operating cash flow $17.4 million Net cash provided by operating activities in Q1 2026 vs $4.1 million in 2025
IEEPA tariffs paid $19.8 million Tariffs paid in 2025 and Q1 2026 under IEEPA before being declared invalid
Tariff refund claims Phase 1 $18.6 million Claims submitted April 20, 2026 for Phase 1 entries
Quarterly dividend $0.28 per share Declared May 5, 2026, up 4% from $0.27
Cash and cash equivalents $89.0 million Balance at March 31, 2026 vs $96.0 million at December 31, 2025
International Emergency Economic Powers Act regulatory
"the U.S. imposed reciprocal and retaliatory tariffs on certain imported goods under the International Emergency Economic Powers Act"
A U.S. law that gives the president broad authority to control trade, financial transactions, and assets during a declared national emergency, such as by imposing sanctions, freezing property, or restricting exports and imports. For investors it matters because those powers can suddenly block deals, cut off access to markets or funds, and change the value of companies or securities much like an emergency brake that can stop or reroute economic activity overnight.
IEEPA tariffs financial
"We paid a total of approximately $19.8 million in IEEPA tariffs in 2025 and the first quarter of 2026"
Measures labeled as IEEPA tariffs are trade restrictions or charges imposed under the U.S. International Emergency Economic Powers Act, a law that lets the government respond to national emergencies with economic tools. For investors, these actions are like suddenly adding a toll to certain imports, exports or transactions: they can raise costs, disrupt supply chains, limit market access, and change a company’s revenue or risk profile overnight.
gross margin compression financial
"The IEEPA tariffs increased the cost of our products by 19% to 50%, resulting in gross margin compression"
operating earnings financial
"Wholesale operating earnings totaled $7.0 million for the quarter, up 5% from $6.6 million in 2025"
Operating earnings are the profit a company generates from its core business activities after subtracting everyday costs like wages, rent, and materials but before interest, taxes and one‑time gains or losses. Think of it as the result of running the business day to day—like a household’s monthly budget outcome before mortgage interest or a sudden unexpected bill—and investors use it to judge how healthy and repeatable a company’s core profit is.
cash dividends declared financial
"Cash dividends declared (per share) $ 0.27 $ 0.26"
accumulated other comprehensive loss financial
"Accumulated other comprehensive loss (13,739) (13,854)"
Accumulated other comprehensive loss is the running negative total of certain gains and losses that companies record outside their regular profit-and-loss statement, such as changes in the value of some investments, pension adjustments, or currency translation effects. It matters to investors because it reduces shareholders’ equity and reveals economic swings that haven’t affected reported net income yet — like a side ledger showing pending ups and downs that could influence future cash flow or balance-sheet strength.
Net sales $68.0 million flat vs $68.0 million in Q1 2025
Net earnings $6.1 million up from $5.5 million in Q1 2025
Diluted EPS $0.64 up from $0.57 in Q1 2025
Operating cash flow $17.4 million up from $4.1 million in Q1 2025
0000106532false00001065322026-05-052026-05-05

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):  May 5, 2026

WEYCO GROUP, INC.

(Exact name of registrant as specified in its charter)

Wisconsin

 

0-9068

 

39-0702200

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

333 W. Estabrook Blvd.

Glendale, WI

 

53212

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: (414) 908-1600

(Former name or former address, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock - $1.00 par value per share

WEYS

The Nasdaq Stock Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company

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

Item 2.02 Results of Operations and Financial Condition

The following information is being furnished under Item 2.02 of Form 8-K:

On May 5, 2026 Weyco Group, Inc. issued a press release announcing its financial results for the quarter ended March 31, 2026. A copy of this press release is attached as Exhibit 99.1 to this Form 8-K. The information under this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

99.1

Press release issued by the registrant on May 5, 2026.

 

 

104

Cover Page Interactive Data File (formatted as inline XBRL)

Signature

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 hereunto duly authorized.

Date: May 5, 2026

WEYCO GROUP, INC.

 

 

 

/s/ Judy Anderson

 

Judy Anderson

 

Vice President, Chief Financial Officer and Secretary

Exhibit 99.1

WEYCO REPORTS FIRST QUARTER 2026 RESULTS

Milwaukee, Wisconsin---May 5, 2026---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 to 44.6% of net sales in Q1 2025)
Earnings from operations: $7.5 million (up 7% compared to $7.0 million in Q1 2025)
Net earnings: $6.1 million (up 10% 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 $53.6 million for the quarter, down 1% from $54.3 million in the first quarter of 2025. Florsheim’s first quarter sales were up 5%, due to continued success in the dress shoe category. Florsheim’s increase was more than offset by lower sales of the Stacy Adams and BOGS brands, down 9% and 11%, respectively, due to lower retailer demand. Nunn Bush sales remained flat for the quarter.

Wholesale gross earnings as a percent of net sales were 38.7% and 39.4% in the first quarters of 2026 and 2025, respectively. Gross margins for the quarter continued to be negatively impacted by incremental tariffs, partially offset by selling price increases instituted in the second half of last year. Wholesale selling and administrative expenses totaled $13.8 million, or 26% of net sales, for the quarter versus $14.8 million, or 27% of net sales, last year. The decreases in 2026 were largely due to lower employee costs. Wholesale operating earnings totaled $7.0 million for the quarter, up 5% from $6.6 million in 2025, mainly due to lower selling and administrative expenses.

North American Retail Segment

Net sales in our retail segment totaled $8.8 million for the quarter, up 2% from $8.7 million in 2025. The increase resulted from higher sales of our e-commerce businesses. Retail gross earnings as a percent of net sales were 66.1% and 66.6% in the first quarters of 2026 and 2025, respectively. Retail operating earnings totaled $0.8 million for the quarter and $0.6 million in last year’s first quarter.

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 $5.6 million in the first quarter of 2026, up 10% from $5.1 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 flat for the quarter. Florsheim Australia’s gross earnings as a percent of net sales were 62.9% and 62.7% in the first quarters of 2026 and 2025, respectively, and its quarterly operating losses totaled $0.2 million in both periods.

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 $19.8 million in IEEPA tariffs in 2025 and the first quarter of 2026. The IEEPA tariffs increased the cost of our products by 19% to 50%, resulting in gross margin compression. 

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 $18.6 million. The timing for submitting claims related to our Phase 2 entries, totaling $1.2 million, has not yet been established. The timing and amount of any recoveries remain uncertain and subject to execution by CBP.

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 10%, although the scope and rate remain subject to change. 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.


"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 $0.28 per share to all shareholders of record on May 19, 2026, payable June 30, 2026. This represents an increase of 4% above the previous quarterly dividend rate of $0.27.

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


FAQ

How did Weyco Group (WEYS) perform financially in Q1 2026?

Weyco Group posted Q1 2026 net sales of $68.0 million, essentially flat year over year. Net earnings rose to $6.1 million from $5.5 million, and diluted EPS increased to $0.64 from $0.57, reflecting lower selling and administrative expenses.

What were Weyco Group (WEYS) segment results in the first quarter of 2026?

North American wholesale net sales were $53.6 million, down 1%, but operating earnings rose to $7.0 million. North American retail net sales were $8.8 million with operating earnings of $0.8 million. Florsheim Australia net sales reached $5.6 million with small operating losses.

How are tariffs affecting Weyco Group (WEYS) and what refund claims exist?

Weyco has paid about $19.8 million in IEEPA tariffs in 2025 and Q1 2026, which increased product costs and pressured gross margins. After the Supreme Court invalidated these tariffs, the company submitted refund claims totaling $18.6 million, with an additional $1.2 million in a later phase.

What did Weyco Group (WEYS) report about cash flow and inventory in Q1 2026?

Net cash provided by operating activities increased to $17.4 million, up from $4.1 million a year earlier. A key driver was inventory, which declined to $50.5 million from $65.9 million, helping strengthen operating cash flow and support a solid cash position.

Did Weyco Group (WEYS) change its dividend in May 2026?

Yes. On May 5, 2026, Weyco’s Board declared a quarterly cash dividend of $0.28 per share for shareholders of record on May 19, 2026, payable June 30, 2026. This represents a 4% increase over the prior quarterly dividend of $0.27.

How did individual brands like Florsheim and BOGS perform for Weyco Group (WEYS)?

In Q1 2026, Florsheim sales rose 5%, supported by dress shoes. This was more than offset by lower retailer demand for Stacy Adams and BOGS, where sales declined 9% and 11%, respectively. Nunn Bush sales were flat year over year.

Filing Exhibits & Attachments

5 documents