WEYS

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 11 a.m. ET Chief Financial Officer - Judy Anderson Chairman and Chief Executive Officer - Tom Florsheim, Jr. President and Chief Operating Officer - John Florsheim Operator: Good day, and thank you for standing by. Welcome to the Weyco Group, Inc. Second Quarter 2026 Earnings Release Conference Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Judy Anderson, Chief Financial Officer. Please go ahead. Judy Anderson: Thank you. Good morning, and welcome to Weyco Group's conference call to discuss second quarter 2026 results. On the call with me today are Tom Florsheim, Jr., Chairman and Chief Executive Officer, and John Florsheim, President and Chief Operating Officer. Before we begin to discuss the results for the quarter, I will read a brief cautionary statement. During this call, we may make projections or other forward-looking statements regarding our current expectations concerning future events and the future financial performance of the company. We wish to caution you that these statements are just predictions and that actual events or results may differ materially. We refer you to the section entitled Risk Factors in our most recent annual report on Form 10-K, which provides a discussion of important factors and risks that could cause our actual results to differ materially from our projections. These risks are incorporated herein by reference. They include, in part, the uncertain impact of U.S. trade and tariff policies, which remain highly dynamic and unpredictable, the impact of inflation on our costs and consumer demand for our products, increased interest rates, and other macroeconomic factors that may cause a slowdown or contraction in the U.S. or Australian economies. Overall, net sales for the second quarter of 2026 were $62.2 million, up 7% compared to the second quarter of 2025. Consolidated gross earnings were 70.4% of net sales compared to 43.3% of net sales last year. Earnings from operations were $17 million for the quarter, up from $3.9 million in 2025. Net earnings totaled $13.3 million, up from $2.3 million last year. Diluted earnings per share were $1.39 per share in 2026, up from $0.24 per share in the prior year. In early 2025, the U.S. imposed tariffs on certain imported goods under the International Emergency Economic Powers Act, also known as IEEPA. During 2025 and the first quarter of 2026, we paid approximately $19.8 million in IEEPA tariffs. In February of 2026, the U.S. Supreme Court invalidated IEEPA tariffs, and in April of 2026, U.S. Customs and Border Protection, or 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, of which $14.3 million related to the Wholesale segment and $1 million related to the Retail segment. We also recognized $3.3 million as a reduction of inventory and $700,000 of interest income. Our remaining entries, totaling $1.2 million are now classified as Phase 3 entries. 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, 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. Wholesale net sales were $48.8 million for the quarter, up 7% from $45.6 million in the second quarter of 2025 due to higher sales of our Florsheim, Stacy Adams, and BOGS brands. Nunn Bush sales were down slightly for the quarter. Wholesale gross earnings as a percent of net sales were 70% and 37.6% in the second quarters of 2026 and 2025, respectively. The increase was primarily due to the reduction in cost of sales of $14.3 million caused by tariff refunds as discussed earlier, 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 million for the quarter, up from $4.1 million in 2025, mainly driven by tariff refunds. Net sales in our Retail segment totaled $7 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 reduction of cost of sales of $1 million caused by tariff refunds. Retail operating earnings reached $1 million for the quarter compared to $100,000 last year due to the tariff refunds. Our other operations consist of our retail and wholesale businesses in Australia and South Africa, collectively known as 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 $200,000 last year. Interest income totaled $1.5 million compared to $800,000 in last year's second quarter. This year included $700,000 of interest income related to tariff refunds recognized in the second quarter. 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. At June 30, 2026, our cash and marketable securities totaled $98.1 million, and we had no debt outstanding on our $40 million revolving line of credit. During the first 6 months of 2026, we generated $25.2 million in cash from operations and used funds to pay $26.6 million in dividends. We also had $1.5 million of capital expenditures. We estimate that annual capital expenditures in 2026 will be between $2 million and $3 million. During the second quarter, we received $1.8 million in tariff refund and interest proceeds from the U.S. government, and in early July, we received an additional $17.5 million. As these refunds all related to entries approved during the quarter, the full benefit was recognized in our second quarter results. 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. I would now like to turn the call over to Tom Florsheim, Jr., our Chairman and CEO. Thomas Florsheim: Thanks, Judy, and good morning, everyone. We are pleased with the growth of our Wholesale business in the second quarter. While the categories in which we compete remain under pressure, we delivered growth in 3 of our 4 brands, resulting in a 7% increase in Wholesale sales. It remains a very challenging environment for discretionary consumer goods, including footwear, and we believe our company is executing well despite these market conditions. Sales of our combined legacy business increased 6% in the second quarter, with Florsheim leading the way with a 12% increase. The Florsheim brand continues to build momentum driven by strong sales of traditional dress shoes and encouraging growth in hybrid and casual footwear. Stacy Adams sales increased 4%. While we still have ground to recover following the brand's softer performance last year, we are encouraged by this quarter's growth. The Stacy Adams dress shoe business continues to generate strong retail sell-through, and our focus is on translating that success into increased demand for our casual lifestyle products. Nunn Bush sales declined 3% for the quarter. As an opening price point brand, Nunn Bush competes in a highly competitive segment of the market against private label offerings and lower-priced licensed brands. Our strategy is to differentiate the brand by investing in comfort technology and higher quality materials, giving consumers a clear reason to choose Nunn Bush for superior value. We believe we are well positioned with strong products currently at retail and in the pipeline that distinguish the brand on quality. In our Outdoor segment, BOGS sales increased 10%, and the brand is well positioned for a strong second half. In a market with many rubber boot options, BOGS' seamless construction provides a meaningful point of differentiation. It is significantly lighter and more durable than the traditional vulcanized construction used by many competing brands. We are continuing to educate both retailers and consumers about the advantages of seamless construction, and we are seeing solid growth across this product line. While we believe we are still in the early stages of a BOGS turnaround, we are encouraged by the brand's performance this quarter. Our Retail segment increased 4% driven by very strong Florsheim e-commerce sales. We continue to invest in our direct-to-consumer platform and are encouraged by our growth in the U.S. market so far this year. Florsheim Australia's reported net sales increased 10% for the quarter but declined 1% in local currency, reflecting the favorable impact of foreign exchange. Despite a challenging economic environment, our Florsheim Australia team continues to execute well by maximizing sales opportunities in a difficult retail market while maintaining disciplined expense control. Our overall gross margins were 70.4% for the quarter. Our margins in the second quarter benefited from the IEEPA refunds we received. The administration continues to pursue additional tariff actions, and it is difficult to know what impact additional tariffs could have on our margins as we move through the second half of the year. Our overall inventory as of June 30, 2026 was [ $49.1 million ] compared to $65.9 million at December 31, 2025. As discussed last quarter, we have planned our inventories to rise over the next several months to about $70 million by the end of the fourth quarter. This concludes our formal remarks. Thank you for your interest in Weyco Group, and I would now like to open the call to your questions. Operator: Our first question comes from the line of John Deysher of Pinnacle. John Deysher: Quick question. Is it too early to talk about back-to-school sales? I know we haven't even hit Labor Day yet, but any color you can give on that space? John Florsheim: Yes, you know, not too much at this point. I mean, you know, it's not that important a factor in our market other than it creates retail traffic and, you know, it's in full swing, especially in the South. But I don't have that much insight, to be honest with you, as to how back-to-school is going in the market, I think. Retailers in general are worried about the impact of price increases in the kids' footwear market, they've been hesitant to take price increases because of pressures on discretionary income right now given all the inflationary concerns. It's not that big a factor for what we do, other than it does create some retail traffic in August. John Deysher: Okay, that's helpful. And your last comment was on inventory. I think you said you're moving towards $70 million by year-end. That would put you up about $4 million from year-end 2025. Can you talk about that dynamic of, you know, how we should think about that rise in inventory to $70 million by the year-end? Thomas Florsheim: Well, John, 4% rise in inventory is not a lot. I mean, we, a couple things from the standpoint of thought process is with the unknown situation with tariffs. We brought in as much product as we could when we knew it was going to be 10%. You know, the Section 122 tariffs ended July 24, so we tried to buy as much inventory and get it on the water. And we believe that with possible disruptions just due to all these tariffs. We don't know what they're going to be. We're trying to get shoes in here and just have the inventory. We have cash to support that. And so we feel that we're better off having a little extra inventory than not enough. And as we've talked about also, we have a healthy backlog going into the second half of the year, and so we just want to have the inventory to support our retailers and take advantage of demand that we hope is there from our customers. So it's nothing extreme I guess, but we consciously are making inventories, bringing them up a little bit higher than they've been. Operator: I am showing no further questions at this time. I would now like to turn it back to Judy Anderson for closing remarks. Judy Anderson: Just wanted to say thank you to everyone for participating in our call today and for your ongoing support of Weyco Group. Have a great day. Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Weyco Group. The Motley Fool has a disclosure policy. Weyco Group (WEYS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Shares of Weyco Group, Inc. WEYS have gained 0.3% since the company reported its earnings for the quarter ended June 30, 2026, compared with a 1.5% increase in the S&P 500 index over the same period. Over the past month, Weyco shares have advanced 5.7%, outperforming the S&P 500’s 2.9% gain. Weyco reported second-quarter 2026 earnings per share of $1.39, which jumped from 24 cents in the prior-year quarter. Net sales of $62.2 million denoted a 7% rise from $58.2 million a year earlier. Net earnings increased to $13.3 million from $2.3 million. Earnings from operations rose to $17 million from $3.9 million. Gross earnings totaled $43.8 million compared with $25.2 million a year ago, while gross earnings as a percentage of sales reached 70.4%. The sharp improvement in profitability included a substantial benefit from tariff refunds recognized during the quarter. Weyco Group, Inc. price-consensus-eps-surprise-chart | Weyco Group, Inc. Quote North American wholesale sales increased 7% to $48.8 million from $45.6 million. Florsheim sales rose 12%, supported by continued growth in dress shoes, while BOGS advanced 10% on higher volumes across most major channels. Stacy Adams sales increased 4%, primarily on favorable pricing, whereas Nunn Bush declined 3%. Wholesale gross margin increased to 70% from 37.6%, while operating earnings rose to $16 million from $4.1 million. However, selling and administrative expenses increased to $18.1 million from $13.1 million, mainly reflecting higher employee costs. Retail sales rose 4% to $7 million, primarily on higher Florsheim website sales. Retail operating earnings increased to $1 million from $0.1 million. Florsheim Australia reported a 10% increase in reported sales to $6.4 million, although sales declined 1% in local currency, with the difference reflecting appreciation of the Australian dollar. The business broke even operationally compared with a $0.2 million loss a year earlier. Weyco ended June with $93.7 million in cash and cash equivalents, while inventories declined to $49.1 million from $65.9 million at Dec. 31, 2025. Net cash provided by operating activities during the first six months of 2026 increased to $25.2 million from $14.4 million. CEO Thomas Florsheim Jr. said Weyco delivered wholesale growth despite continued pressure on discretionary consumer categories. Management highlighted momentum at Florsheim, where traditional dress shoes remained strong and hybrid and casual footwear showed encouraging growth. It also described BOGS as being in the early stages of a turnaround, supported by growth in its seamless-construction products. For Nunn Bush, management cited intense competition from private-label and lower-priced licensed brands and said it is emphasizing comfort technology and higher-quality materials to differentiate the brand. Tariff refunds were the biggest contributor to the earnings increase. After the U.S. Supreme Court invalidated tariffs imposed under the International Emergency Economic Powers Act, Weyco submitted $18.6 million of Phase 1 refund claims. The company recognized $15.3 million of refunds as a reduction to cost of sales, including $14.3 million in wholesale and $1 million in retail, along with a $3.3 million inventory reduction and $0.7 million of interest income. Another $1.2 million of potential refunds remains unrecognized because recovery timing and amounts are uncertain. Interest income also increased to $1.5 million from $0.8 million, partly reflecting the tariff-related interest. Meanwhile, the effective tax rate declined to 28.4% from 51.1%; the prior-year rate included a $1.1 million valuation allowance related to Florsheim Australia. Management said Weyco was positioned for a strong second half and cited a healthy backlog. The company expects inventory to rise to about $70 million by year-end as it builds supply amid tariff uncertainty and prepares to support anticipated customer demand. Management also estimated 2026 capital expenditures of $2 million to $3 million. At the same time, evolving U.S. tariff policies are expected to create near-term gross-margin uncertainty. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Weyco Group, Inc. (WEYS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Weyco Group Inc (NASDAQ:WEYS) reported a 7% increase in overall net sales for Q2 2026, driven by growth in three of its four wholesale brands. The company recognized $15.3 million in tariff refunds, significantly boosting gross margins to 70.4% from 43.3% year-over-year. The Florsheim brand delivered strong momentum with a 12% sales increase, supported by solid demand for traditional dress shoes and growth in hybrid/casual footwear. Bogs brand sales grew 10%, and the company believes its seamless construction technology provides a key competitive advantage for continued growth. Weyco Group Inc (NASDAQ:WEYS) maintains a strong balance sheet with $98.1 million in cash and marketable securities and no debt, allowing it to support inventory builds and pay dividends. The company's retail segment grew 4%, driven by very strong e-commerce sales on its Florsheim website. The company faces significant uncertainty from evolving US trade and tariff policies, with a new 12.5% incremental tariff imposed on imports from China, Dominican Republic, and Vietnam in late July 2026. Nunn Bush brand sales declined 3% in the quarter, as the brand faces intense competition from private label and lower-priced licensed products in the opening price point segment. Florsheim Australia's net sales declined 1% in local currency, indicating underlying weakness despite a reported 10% increase due to favorable foreign exchange. The company plans to increase inventory to approximately $70 million by year-end, a conscious decision to mitigate tariff risks but which could tie up cash and increase carrying costs. The challenging environment for discretionary consumer goods, including footwear, persists, with retailers hesitant to take price increases due to inflationary pressures on consumers. Wholesale selling and administrative expenses increased significantly to 37% of net sales from 29% last year, primarily due to higher employee costs. Warning! GuruFocus has detected 7 Warning Sign with WEYS. Is WEYS fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide any color on back-to-school sales, given the current retail environment? A: Tom Florsheim Jr., Chairman and CEO, noted that back-to-school is not a major factor for Weyco's business, though it does create retail traffic in August. He observed that retailers are generally hesitant to take price increases in the kids' footwear market due to inflationary pressures on discretionary income, but he had limited insight into overall market performance at this early stage. Q: Can you explain the planned increase in inventory to about $70 million by the end of the fourth quarter, up roughly 4% from year-end 2025? A: Tom Florsheim Jr., Chairman and CEO, explained that the inventory build is a deliberate strategy driven by tariff uncertainty. The company brought in as much product as possible before the Section 122 tariffs increased on July 24th, aiming to get goods on the water. With a healthy backlog for the second half and ample cash to support the increase, management believes it is better to have extra inventory than to risk stockouts, especially given potential supply chain disruptions from evolving trade policies. Q: What drove the significant increase in wholesale gross margins to 70% in Q2 2026 from 37.6% in Q2 2025? A: Judy Anderson, CFO, attributed the margin expansion primarily to the recognition of $14.3 million in tariff refunds as a reduction to cost of sales in the wholesale segment. Additionally, selling price increases implemented in the second half of 2025 provided a further benefit to margins during the quarter. Q: How did the tariff refunds impact the company's financial results in Q2 2026? A: Judy Anderson, CFO, detailed that the company recognized $15.3 million in tariff refunds as a reduction to cost of sales ($14.3 million wholesale, $1 million retail), $3.3 million as a reduction of inventory, and $700,000 in interest income. These refunds were related to phase 1 entries totaling $18.6 million submitted in April, substantially all of which were approved during the quarter. The company received $1.8 million in cash during Q2 and an additional $17.5 million in early July. Q: What is the status of the remaining tariff refund claims? A: Judy Anderson, CFO, stated that remaining entries totaling $1.2 million are now classified as phase 3 entries. No refunds related to these phase 3 entries have been recognized, as the timing and amount of these recoveries remain uncertain and are subject to execution by US Customs and Border Protection (CBP). Q: How did the individual brands perform in the wholesale segment during Q2 2026? A: Tom Florsheim Jr., Chairman and CEO, reported that Florsheim led with a 12% sales increase, driven by strong traditional dress shoe sales and growth in hybrid and casual footwear. Stacy Adams sales increased 4%, with strong retail sell-through in dress shoes. Nunn Bush sales declined 3%, facing competition from private label and lower-priced licensed brands. Bogs sales increased 10%, benefiting from its differentiated seamless construction technology. Q: What is the outlook for the Bogs brand and its competitive positioning? A: Tom Florsheim Jr., Chairman and CEO, stated that Bogs is well positioned for a strong second half. The brand's seamless construction offers a meaningful point of differentiationbeing significantly lighter and more durable than traditional vulcanized construction used by competitors. While still in the early stages of a turnaround, the company is encouraged by the brand's performance and continues to educate retailers and consumers about its advantages. Q: How did the retail segment and Florsheim Australia perform in Q2 2026? A: Judy Anderson, CFO, reported that retail net sales increased 4% to $7 million, driven by higher sales on the Florsheim website. Retail gross margins improved to 79.2% from 66.6%, mainly due to $1 million in tariff refunds. Florsheim Australia's reported net sales increased 10% to $6.4 million, but declined 1% in local currency, reflecting the favorable impact of foreign exchange. Its operating results improved to break-even versus a $200,000 loss last year. Q: What are the current tariff policies and how might they affect future margins? A: Judy Anderson, CFO, explained that following the Supreme Court's invalidation of IEEPA tariffs in February, the administration imposed a 10% incremental tariff under a separate statutory authority, which remained in effect through Q2. On July 24th, the incremental tariff on imports from China, Dominican Republic, and Vietnam increased to 12.5%. US trade policies remain highly dynamic and unpredictable, creating near-term gross margin uncertainty. The company has mitigation strategies in place and will continue to adjust as appropriate. Q: What is the company's cash position and capital allocation strategy? A: Judy Anderson, CFO, noted that at June 30, 2026, cash and marketable securities totaled $98.1 million with no debt outstanding on the $40 million revolving line of credit. During the first six months, the company generated $25.2 million in cash from operations and paid $26.6 million in dividends. Capital expenditures were $1.5 million, with full-year 2026 estimates between $2 and $3 million. The board declared a cash dividend of $0.28 per share payable September 30, 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Weyco Group, Inc.? Here are five stocks we like better. Second-quarter results surged: Sales rose 7% year over year to $62.2 million, while net earnings climbed to $13.3 million from $2.3 million. Results were boosted substantially by $15.3 million in tariff refunds, lifting gross margin to 70.4% from 43.3%. Wholesale performance improved across most brands: Wholesale sales increased 7%, led by Florsheim, Stacy Adams and BOGS, while Nunn Bush sales declined 3% amid competition from lower-priced alternatives. Retail sales rose 4%, supported by Florsheim’s website, and the Australia and South Africa operation reached breakeven. Strong liquidity but ongoing tariff uncertainty: Weyco held $98.1 million in cash and marketable securities with no revolver debt, and inventory fell to $49.1 million. Management warned that changing tariffs—including a recent increase to 12.5% on imports from certain countries—could create future gross-margin uncertainty, while the board declared a quarterly dividend of $0.28 per share. High-Yield Weyco Group Returns To Reasonable Levels Weyco Group (NASDAQ:WEYS) reported higher second-quarter sales and sharply increased earnings, with results substantially supported by tariff refunds following the invalidation of certain import duties by the U.S. Supreme Court. Net sales for the second quarter of 2026 rose 7% year over year to $62.2 million. Net earnings increased to $13.3 million, or $1.39 per diluted share, from $2.3 million, or $0.24 per diluted share, in the prior-year quarter. Operating earnings rose to $17 million from $3.9 million. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control The company’s consolidated gross margin reached 70.4% of net sales, compared with 43.3% a year earlier. Chief Financial Officer Judy Anderson said the increase reflected the recognition of $15.3 million in tariff refunds as a reduction in cost of sales during the quarter. Anderson said Weyco paid approximately $19.8 million in tariffs imposed under the International Emergency Economic Powers Act, or IEEPA, during 2025 and the first quarter of 2026. After the Supreme Court invalidated IEEPA tariffs in February 2026, U.S. Customs and Border Protection began accepting refund claims in April. → 3 Drone Stocks That Should Soar After the Summer Slump Weyco submitted phase-one refund claims totaling $18.6 million in April, and substantially all of those claims were approved during the second quarter. The company recognized $14.3 million of tariff refunds in its wholesale segment and $1 million in its retail segment. It also recognized a $3.3 million reduction in inventory and $700,000 of interest income tied to the refunds. The company said $1.2 million of remaining entries are classified as phase-three entries. No refunds associated with those entries have been recognized because the timing and amount of recoveries remain uncertain. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Anderson cautioned that tariff-related uncertainty remains. Following the Supreme Court ruling, the administration imposed a separate 10% incremental tariff under another statutory authority. On July 24, that tariff was increased to 12.5% on imports from China, the Dominican Republic and Vietnam. “U.S. trade policies continue to evolve and remain unpredictable, creating near-term gross margin uncertainty,” Anderson said. The company said it has mitigation strategies in place and will adjust them in response to policy developments. Wholesale net sales increased 7% to $58.8 million, compared with $45.6 million in the prior-year quarter, driven by higher sales of Florsheim, Stacy Adams and BOGS. Wholesale gross margin rose to 70% from 37.6%, reflecting tariff refunds and selling price increases implemented in the second half of 2025. Wholesale selling and administrative expenses increased to $18.1 million, or 37% of sales, from $13.1 million, or 29% of sales, primarily because of higher employee costs. Still, wholesale operating earnings rose to $16 million from $4.1 million, mainly due to the tariff refunds. Chairman and Chief Executive Officer Tom Florsheim Jr. said the company’s combined legacy business increased sales by 6%, led by a 12% increase at Florsheim. He said the brand continued to benefit from demand for traditional dress shoes, as well as growth in hybrid and casual footwear. Stacy Adams sales rose 4%. Florsheim said the brand’s dress-shoe business has produced strong retail sell-through, while the company is seeking to translate that performance into greater demand for casual lifestyle products. Nunn Bush sales declined 3%. Florsheim said the opening-price-point brand faces competition from private-label products and lower-priced licensed brands. Weyco is working to differentiate Nunn Bush through comfort technology and higher-quality materials, he said. BOGS sales increased 10% during the quarter. Florsheim said the outdoor brand’s seamless construction provides a differentiating feature because it is lighter and more durable than traditional vulcanized construction used in many competing rubber boots. He described the company as being in the early stages of a BOGS turnaround. Retail sales increased 4% to $7 million, primarily due to higher sales through the Florsheim website. Retail gross margin rose to 79.2% from 66.6%, driven largely by the $1 million reduction in cost of sales from tariff refunds. Retail operating earnings were $1 million, compared with $100,000 a year earlier. Florsheim said Weyco continues to invest in its direct-to-consumer platform and is encouraged by U.S. e-commerce growth so far this year. Florsheim Australia, which includes the company’s retail and wholesale businesses in Australia and South Africa, reported sales of $6.4 million, up 10% in U.S. dollars. However, sales declined 1% in local currency, with the reported increase reflecting appreciation of the Australian dollar against the U.S. dollar. The operation reached breakeven operating results, improving from a $200,000 operating loss a year earlier. Florsheim said the Australian team continued to pursue sales opportunities while maintaining expense discipline in a challenging retail environment. At June 30, Weyco had $98.1 million in cash and marketable securities and no debt outstanding under its $40 million revolving credit line. During the first six months of 2026, the company generated $25.2 million in operating cash flow, paid $26.6 million in dividends and spent $1.5 million on capital expenditures. The company expects full-year capital expenditures of $2 million to $3 million. It received $1.8 million in tariff-refund and related interest proceeds during the second quarter and another $17.5 million in early July. Weyco said the benefits of those payments had already been recognized in second-quarter results because they related to entries approved during the quarter. Inventory totaled $49.1 million at June 30, down from $65.9 million at the end of 2025. Florsheim said the company expects inventory to rise to roughly $70 million by the end of the fourth quarter as it seeks to support a healthy second-half backlog and manage potential supply disruptions tied to tariff uncertainty. On Aug. 4, Weyco’s board declared a quarterly cash dividend of $0.28 per share, payable Sept. 30 to shareholders of record as of Aug. 18. Weyco Group, Inc is a publicly traded footwear company (NASDAQ: WEYS) based in Glendale, Wisconsin, that designs, sources, markets and distributes branded footwear products. The company operates through a portfolio of five consumer brands—Florsheim, Stacy Adams, Nunn Bush, BOGS and Rafters—offering a full range of dress, casual and performance footwear for men and women. The Florsheim brand, with roots dating back to 1892, provides classic and contemporary men's dress shoe styles, while Stacy Adams and Nunn Bush deliver fashion-forward and casual offerings. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Weyco Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was significantly bolstered by $15.3 million in tariff refunds following a U.S. Supreme Court ruling that invalidated previous IEEPA levies. Wholesale growth of 7% was driven by momentum in the Florsheim brand, which successfully expanded into hybrid and casual footwear categories. Management attributed the Stacy Adams recovery to strong retail sell-through of traditional dress shoes, now being leveraged to pivot into casual lifestyle products. Nunn Bush faced headwinds in the opening price point segment, prompting a strategy to differentiate through superior materials and comfort technology against lower-priced private labels. The BOGS brand turnaround is gaining traction via a focus on 'seamless construction' technology, which offers a weight and durability advantage over traditional vulcanized rubber boots. Retail segment gains were primarily powered by direct-to-consumer investments, specifically within the Florsheim e-commerce platform. International results in Australia showed local currency weakness, but reported figures were elevated by favorable foreign exchange movements. Management is intentionally increasing inventory levels to approximately $70 million by year-end to hedge against unpredictable tariff hikes and potential supply chain disruptions. Guidance assumes a challenging environment for discretionary goods will persist, with a focus on maintaining a healthy backlog to support retail partners. The company is monitoring a recent increase in incremental tariffs to 12.5% on imports from China, Dominican Republic, and Vietnam, which creates near-term margin uncertainty. Future recoveries of $1.2 million in Phase 3 tariff entries remain uncertain and are excluded from current financial recognition pending CBP execution. Capital expenditure for the full year 2026 is projected to be between $2 million and $3 million. Recognized $15.3 million in tariff refunds as a reduction to cost of sales and $700,000 in related interest income during the second quarter. The effective tax rate dropped to 28.4% from 51.1% in the prior year, primarily due to the absence of a prior-year valuation allowance on Australian deferred tax assets. U.S. trade policy remains the primary risk factor, with management noting that policies are 'highly dynamic and unpredictable' despite current mitigation strategies. Inflationary pressures on consumer discretionary income are causing retailers to be hesitant about accepting price increases, particularly in the kids' footwear market. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that back-to-school is not a primary driver for their specific market segments other than increasing general retail foot traffic. Retailers are currently exhibiting caution regarding price increases in the children's category due to inflationary pressures on household discretionary income. The planned rise to $70 million in inventory is a proactive move to secure product before further tariff changes or supply disruptions occur. Management emphasized that having 'a little extra inventory' is a deliberate choice supported by their strong cash position to ensure they can meet existing backlog demand.

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 OperationsOther 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 TariffsIn 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 24th, 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 IncomeInterest 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 TaxesOur 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 DeclarationOn 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 DetailsWeyco 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 GroupWeyco 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 StatementsThis 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 AndersonVice President, Chief Financial Officer and Secretary414‑908‑1833

Shares of Weyco Group, Inc. WEYS have gained 6.9% since the company reported results for the quarter ended March 31, 2026, outperforming the S&P 500 index’s 2.9% rise over the same period. However, over the past month, the stock has declined 1.6%, lagging the S&P 500’s 8.6% increase. Weyco reported first-quarter 2026 earnings per share of 64 cents, which increased from 57 cents in the prior-year quarter. Net sales of $68 million remained essentially flat from the year-ago quarter. Despite stagnant revenues, profitability improved, aided by lower expenses. Earnings from operations increased 7% year over year to $7.5 million from $7 million, while net earnings rose 10% to $6.1 million from $5.5 million. Gross margin narrowed to 44.2% from 44.6% due to tariff-related cost pressures. Weyco Group, Inc. price-consensus-eps-surprise-chart | Weyco Group, Inc. Quote Weyco’s North American wholesale segment generated net sales of $53.6 million, down 1% year over year. Performance varied across brands. Florsheim sales increased 5%, benefiting from continued strength in the dress shoe category, while Stacy Adams and BOGS sales declined 9% and 11%, respectively, because of softer retailer demand. Nunn Bush sales were unchanged from the prior year. Wholesale operating earnings rose 5% to $7 million as lower selling and administrative expenses offset weaker margins. Retail segment sales rose 2% to $8.8 million, supported by stronger e-commerce demand, particularly for Florsheim products. Retail operating earnings improved to $0.8 million from $0.6 million in the prior-year quarter. Meanwhile, Florsheim Australia sales increased 10% to $5.6 million, largely due to favorable currency movements, though sales in local currency were flat. The business recorded an operating loss of $0.2 million, unchanged from the prior year. Management said incremental tariffs remained a major headwind during the quarter. The company disclosed that it paid approximately $19.8 million in tariffs during 2025 and the first quarter of 2026, with the tariffs increasing product costs by 19% to 50%. Although price increases implemented in the second half of 2025 helped offset some of the pressure, gross margins remained compressed. CEO Thomas Florsheim Jr. noted that Weyco raised prices by 10% last July, which partially mitigated the impact of the tariffs. He added that margins improved somewhat under the current 10% tariff framework, though they remained below historical levels. Management also highlighted cleaner inventory positions across several brands, which supported wholesale and retail margins. The company’s inventory position improved significantly during the quarter. Inventories declined to $50.5 million as of March 31, 2026, from $65.9 million at the end of 2025. Management attributed the decline primarily to timing factors and inventory cleanup efforts. Executives described the broader operating environment as uncertain, particularly for discretionary footwear categories. Florsheim continued gaining market share in dress footwear, while Stacy Adams remained under pressure as retailers reduced investments in fashion dress shoes. Management said the brand is shifting toward more casual offerings aligned with changing consumer preferences. BOGS also faced challenges during the quarter, though management expressed optimism about the second half of 2026 as colder winter weather helped clear excess inventory. The company also pointed to encouraging early demand for new spring footwear products and a revamped marketing strategy focused on authenticity and product storytelling. Weyco emphasized expense management as another driver of earnings growth. Selling and administrative expenses declined year over year due mainly to lower employee-related costs, including lower benefit expenses and improved operational efficiency in distribution operations. Management stated that headcount reductions did not contribute to the savings. The company ended the quarter with $93.9 million in cash and marketable securities and no outstanding debt on its revolving credit facility. Weyco estimated 2026 capital expenditures between $2 million and $3 million. In April 2026, Weyco submitted claims totaling $18.6 million for potential refunds of tariffs previously paid under the International Emergency Economic Powers Act after the U.S. Supreme Court ruled the tariffs invalid. An additional $1.2 million in claims remains pending future filing phases. The company said the timing and amount of any recovery remain uncertain. The board also approved a quarterly cash dividend of 28 cents per share, payable June 30, 2026, representing a 4% increase from the prior dividend rate of 27 cents per share. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Weyco Group, Inc. (WEYS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, May 6, 2026 at 11 a.m. ET Chief Executive Officer and Chairman — Thomas W. Florsheim President and Chief Operating Officer — John W. Florsheim Chief Financial Officer — Judy Anderson Judy Anderson: Thank you. Good morning, and welcome to Weyco Group, Inc.'s conference call to discuss first quarter 2026 results. On the call with me today are Thomas W. Florsheim, chairman and chief executive officer, and John W. Florsheim, president and chief operating officer. Before we begin to discuss the results for the quarter, I will read a brief cautionary statement. During this call, we may make projections or other forward-looking statements regarding our current expectations concerning future events and the future financial performance of the company. We wish to caution you that these statements are just projections and that actual events or results may differ materially. We refer you to the section entitled Risk Factors in our most recent annual report on Form 10-K, which provides discussion of important factors and risks that could cause our actual results to differ materially from our projections. These risk factors are incorporated herein by reference. They include, in part, the uncertain impact of U.S. trade and tariff policies, which remain highly dynamic and unpredictable; the impact of inflation on our costs and consumer demand for our products; increased interest rates; and other macroeconomic factors that may cause a slowdown or contraction in the U.S. or Australian economies. Overall net sales for 2026 were $68 million, flat compared to 2025. Consolidated gross earnings were 44.2% of net sales compared to 44.6% of net sales last year. Earnings from operations were $7.5 million for the quarter, up 7% from $7 million in 2025. Net earnings totaled $6.1 million, up 10% from $5.5 million last year. Diluted earnings per share were $0.64 in 2026, up from $0.57 in the prior year. Net sales in our North American wholesale segment totaled $53.6 million for the quarter, down 1% from $54.3 million last year. Florsheim sales were up, but the increase was more than offset by lower sales of the Stacy Adams and BOGS brands. Nunn Bush sales were flat for the quarter. Wholesale gross earnings as a percent of net sales were 38.7% and 39.4% in 2026 and 2025, respectively. Gross margins 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, versus $14.8 million, or 27% of net sales, last year. The decrease in 2026 was largely due to lower employee costs. Wholesale operating earnings totaled $7 million for the quarter, up 5% from $6.6 million in 2025, mainly due to lower selling and administrative expenses. Net sales in our retail segment totaled $8.8 million for the quarter, up 2% from $8.7 million in 2025 due to increased sales of our e-commerce businesses. Retail gross earnings as a percent of net sales were 66.1% and 66.6% in 2026 and 2025, respectively. Retail operating earnings totaled $800,000 for the quarter versus $600,000 last year. Our other operations consist of our retail and wholesale business in Australia and South Africa, collectively referred to as Florsheim Australia. Net sales of Florsheim Australia were $5.6 million in the quarter, 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 2026 and 2025, respectively, and its quarterly operating losses totaled $200,000 in both periods. In February 2025, the U.S. imposed reciprocal and retaliatory tariffs on certain imported goods under the International Emergency Economic Powers Act, also known as IEPA. We paid a total of approximately $9.198 million in IEPA tariffs in 2025 and 2026. The IEPA tariffs increased the cost of our products by 19% to 50%, resulting in gross margin compression. On 02/20/2026, the U.S. Supreme Court ruled that IEPA had not authorized the president to impose tariffs, declaring the IEPA tariffs invalid. In April 2026, U.S. Customs and Border Protection, or CBP, commenced a phased process to accept claims for potential refunds of IEPA tariffs previously paid. The refund process formally opened on 04/20/2026, and on that date, we submitted claims covering our phase one entries totaling $18.6 million. The timing for submitting claims related to our phase two entries totaling $1.2 million has not yet been established. The timing and amount of any recoveries remain uncertain and subject to execution by the CBP. Following the 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. At 12/31/2026, our cash and marketable securities totaled $93.9 million, and we had no outstanding debt on our $40 million revolving line of credit. During the first three months of 2026, we generated $17.4 million in cash from operations and used funds to pay $23.9 million in dividends. We also had $600,000 of capital expenditures. We estimate that annual capital expenditures in 2026 will be between $2 million and $3 million. On 05/05/2026, our Board of Directors declared a cash dividend of $0.28 per share to all shareholders of record on 05/19/2026, payable 06/30/2026. This represents an increase of 4% above the previous quarterly dividend rate of $0.27. I would now like to turn the call over to Thomas W. Florsheim, chairman and CEO. Thomas W. Florsheim: Thanks, Judy, and good morning, everyone. Our overall company sales were flat for the quarter, with wholesale segment sales down 1%. Given the uncertainty in the economic environment, we believe we are holding our position within our competitive market segments, with Florsheim continuing its strong performance streak. Our legacy business, which includes Florsheim, Nunn Bush, and Stacy Adams, was flat for the quarter. The Florsheim division was up 5%, driven by strong sales in the traditional dress category. As discussed in previous conference calls, while the overall dress footwear market has been trending downward over time, Florsheim continues to gain market share. Retailers see the brand as the go-to choice to meet consumer demand in this category. From a design perspective, we continue to invest in developing fresh shoe concepts and believe we can leverage Florsheim's heritage to expand our penetration in hybrid and casual footwear. We are making steady inroads in both categories and feel confident about our long-term growth prospects. Nunn Bush was flat for the quarter. We believe the brand is well positioned as a leading value option in comfort casual and comfort dress footwear in an economy where many consumers are feeling stretched to cover day-to-day expenses. In the current market, the biggest competition comes from private label footwear that retailers import to pursue higher margins. Nunn Bush provides a compelling alternative with a trusted brand name, proven comfort technology, competitive pricing, and in-stock inventory that retail partners can use to match demand. Our Stacy Adams division was down 9% for the quarter. At retail, Stacy Adams sell-throughs have been solid; however, retailers are not investing in fashion dress shoes as they have in the past. This is especially true in department store and family footwear channels. We are focused on diversifying the Stacy Adams product assortment to be less centered on dress shoes, with more casual offerings that align with today's lifestyle. Our BOGS brand was down 11% for the quarter. We anticipate a strong second half of the year as cold weather and precipitation last winter in the Midwest and East Coast helped clear excess inventory of weather boots. We are also encouraged by the launch of new, less-insulated spring footwear, which is selling well and paving the way for more year-round BOGS business. This spring, BOGS implemented a marketing reset focused on storytelling with an emphasis on user authenticity and real-world use of the brand's products. The campaign highlights what differentiates BOGS from a performance standpoint and is being featured across multiple channels, including social media, as well as streaming on YouTube. Net sales in our retail segment were up 2% for the quarter, led by strong Florsheim e-commerce sales. In 2025, we were still working through excess inventory across various areas of our branded portfolio. This year, we had less closeout inventory to sell through our websites, resulting in higher web margins as we sold more full-price footwear. We continue to invest in our e-commerce platform to better showcase our brands and drive long-term growth in direct-to-consumer sales. Florsheim Australia's net sales were up 10% for the quarter but flat in local currency. Consumers in these markets, including Australia, New Zealand, South Africa, and other Pacific countries, are facing many of the same pressures as in North America. As a result, sales remain somewhat soft. We are focused on keeping expenses in line as we work to return to a growth trajectory. Our overall gross margins were 44.2% for the quarter. Our first-quarter margins are down approximately 50 basis points compared to the same period in 2025. With all the remaining uncertainty surrounding tariffs, it is hard to know how the margin picture will play out for the remainder of the year. Our overall inventory as of 03/31/2026 was $50.5 million compared to $65.9 million at 12/31/2025. Our inventories are also down about $18 million compared to March 31 last year. The decrease in inventory was due to timing, and our inventory is expected to get back into the $60 million to $70 million range as we move through the year. This concludes our formal remarks. Thank you for your interest in Weyco Group, Inc., and I would now like to open the call to any questions. We will now open the call for questions. Operator: Thank you. And so at this time, again, we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press 1-1 again. And please stand by while we compile Q&A questions. Okay. At this time, we have David Wright of Henry Investment Trust. Your line is now open. David Wright: Good morning, everyone. Good morning. I commend you for a surprisingly good quarter given the environment, and thanks for raising the dividend. I also commend you for some really outstanding, clear disclosure about your tariff picture; that is appreciated. Judy, a question. If you receive tariff refunds, what is the tax treatment? Judy Anderson: We will be taxed on them. David Wright: Yes, right. So you had a deduction when you paid the tariff, and you have income when you get a refund. Judy Anderson: That is correct. It was part of our cost of sales last year, and so when we get a refund this year, it will be a credit in our cost of sales, and we will have to pay taxes on it. David Wright: Okay. Can you give any sense of the annualized run-rate tariff burden at the current 10%? Thomas W. Florsheim: Well, at 10%, if it was 10% all year, it would be about an extra $10 million over and above what we normally pay in tariffs, and those normal tariffs are baked in, but the tariffs in the shoe industry are actually high compared to a lot of other categories. The problem, David, is the administration has said that their intent is to get these tariffs back up to where they were under IEPA, and so it makes planning very difficult, but we are assuming that will happen. They are doing these 301 investigations, which they say are going to be complete by July, and then we are going to find out what the incremental tariff rate will be under Section 301 for the different countries where we import shoes. And so it is not a clear picture, which is why we did not really want to commit to where margins are going to be this year. We are happy to answer any additional questions about that because we are well versed. We have been studying it. David Wright: Well, just kind of big picture, I assume you are communicating somehow through a trade group or directly with, I guess, the Commerce Department. Does anybody in the administration really think that shoe manufacturing is coming back to America? Thomas W. Florsheim: We actually do have a very good trade group called the FDRA, and they have been holding regular conference calls about this. And they are trying to talk to the administration about exactly what you just asked about. I think they are aware that virtually no shoes—less than 1%—are made in the U.S., and we are really hoping that the 301 tariffs are going to be more targeted than these IEPA tariffs or the tariffs that they have in place right now under Section 122, which are just 10% across the board, all countries, on all products. It would make sense to have this more targeted in our opinion, and we are trying to get that message across to the administration. But we do not know if these 301 tariffs will be done in a more strategic way. David Wright: Okay. I just have a couple more. It seems like your price increases were pretty well absorbed because that is what the results suggest. Would that be your observation as well? Thomas W. Florsheim: We raised our prices 10% July 1, so it does not really cover what we were paying in IEPA tariffs. It does cover—right now, the extra tariff is 10%, so that is looking better. And so our margins have come back somewhat. We are still below where we were the last couple of years before the tariffs, and we have really been watching the expense side of the business. John W. Florsheim: The other thing that is going on, David—this is John—is our inventory is pretty clean. Last year, we had some heavy closeout inventory in a couple of brands, and it has been cleaned up, and that helps from an overall wholesale market perspective. Thomas W. Florsheim: That is a very good point. That definitely plays into this, and it impacts in a positive way both our wholesale margins and our retail margins. And we also have cleaner inventories in Australia, which helps our margins there. David Wright: Okay. And then last one would be on SG&A. I mean, you took $1 million out of SG&A year over year. That is a lot. You highlighted lower employee costs. Was that staff reduction or less compensation? How was that accomplished? Judy Anderson: The lower employee cost was really lower employee benefit costs, and it was a combination of a few different categories. For example, last year, we did not give out annual bonuses in the first quarter, and therefore we had less FICA expense. So it was just something as mundane as that. Our health insurance costs were down, the FICA cost was down. It was a few things that added up in the first quarter. Thomas W. Florsheim: In the warehouse, our overall costs are down because we used fewer temps. David Wright: Yeah, correct. So you have not reduced headcount here, though? Thomas W. Florsheim: We have not reduced headcount. David Wright: So your workforce flexes a little depending on your inventory level? Thomas W. Florsheim: Depending upon our needs, especially in the distribution center. We were able to operate more efficiently this last quarter versus a year ago. David Wright: Okay. Well, efficiency is a good word. You just continue to deliver great results, so great job, and thanks for taking my questions. Thomas W. Florsheim: Thanks, David. We appreciate your interest. David Wright: Thank you. Operator: And at this time, we are not showing any further questions. If anyone has a last question, please hit 1-1 on your telephone. Okay. This concludes the question-and-answer session. I would like now to turn it back to Judy Anderson for closing remarks. Judy Anderson: Thank you. I just wanted to wish everybody a great day and a good rest of your week, and we will talk to you next quarter. Thomas W. Florsheim: Thank you. Operator: Thank you. That concludes our program. You may now disconnect, and thank you for participating in today's conference. Before you buy stock in Weyco Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Weyco Group wasn’t one of them. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Weyco (WEYS) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Interested in Weyco Group, Inc.? Here are five stocks we like better. Weyco posted Q1 2026 results with flat net sales of $68 million but improved profitability—operating earnings rose to $7.5 million and diluted EPS increased to $0.64—as lower operating expenses and cleaner inventory helped offset tariff-driven gross margin pressure. The company paid about $19.8 million in IEEPA tariffs and has filed $18.6 million in phase‑1 refund claims after the Supreme Court invalidated those tariffs, but recoveries remain uncertain as CBP processes claims and a new across‑the‑board ~10% tariff adds planning risk; any refunds would be taxable. Weyco ended the quarter with $93.9 million in cash and marketable securities and no outstanding revolver debt, inventory down to $50.5 million (expected to normalize to $60–$70 million), and the board raised the quarterly cash dividend to $0.28 per share (a 4% increase). High-Yield Weyco Group Returns To Reasonable Levels Weyco Group (NASDAQ:WEYS) reported first-quarter 2026 results that showed higher earnings on flat revenue, as lower operating expenses and improved inventory conditions helped offset tariff-driven gross margin pressure. Management also discussed ongoing uncertainty around U.S. trade policy following a Supreme Court decision invalidating certain tariffs and the company’s steps to seek refunds. Chief Financial Officer Judy Anderson said overall net sales for the first quarter of 2026 were $68 million, flat compared with the first quarter of 2025. Consolidated gross earnings were 44.2% of net sales versus 44.6% a year earlier. Earnings from operations rose to $7.5 million from $7.0 million, while net earnings increased to $6.1 million from $5.5 million. Diluted earnings per share were $0.64, up from $0.57 in the prior-year quarter. → Berkshire Hathaway’s Record Cash Hoard: Why and What's Next? Chairman and CEO Tom Florsheim Jr. said the company’s overall sales were flat and wholesale sales slipped 1%, adding that, given economic uncertainty, the company believes it is “holding our position within our competitive market segments,” with Florsheim continuing “its strong performance streak.” Anderson said North American wholesale net sales totaled $53.6 million, down 1% from $54.3 million last year. She said Florsheim sales were up, while lower sales at Stacy Adams and BOGS more than offset that growth; Nunn Bush was flat. Wholesale gross earnings were 38.7% of net sales, down from 39.4%, with Anderson citing incremental tariffs as a headwind that was partially offset by selling price increases instituted in the second half of the prior year. → A Prada Payday: Is AMC Back in Style? Wholesale selling and administrative expenses fell to $13.8 million, or 26% of net sales, from $14.8 million, or 27%, “largely due to lower employee costs,” Anderson said. Wholesale operating earnings increased to $7.0 million from $6.6 million, mainly due to the lower expense base. Retail segment net sales rose to $8.8 million from $8.7 million, driven by increased e-commerce sales, Anderson said. Retail gross earnings were 66.1% of net sales compared with 66.6% last year, while retail operating earnings improved to $800,000 from $600,000. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Other operations, referred to as Florsheim Australia, posted net sales of $5.6 million, up 10% from $5.1 million. Anderson said the increase was due to the appreciation of the Australian dollar versus the U.S. dollar, as local-currency sales were flat. Florsheim Australia’s gross earnings were 62.9% of net sales, and operating losses totaled $200,000, unchanged from the year-ago period. Florsheim Jr. said the company’s “legacy business,” which includes Florsheim, Nunn Bush, and Stacy Adams, was flat for the quarter. He said the Florsheim division increased 5%, driven by strength in traditional dress footwear. While the broader dress category has been “trending downward over time,” he said Florsheim continues to gain share and is viewed by retailers as a key brand for consumers in that category. He added the company is investing in new designs and aims to expand Florsheim’s penetration in hybrid and casual footwear. Nunn Bush was flat, and Florsheim Jr. described the brand as positioned as a “leading value option” in comfort casual and comfort dress footwear as consumers face pressure on household budgets. He said private-label imports remain a key competitive factor for retailers seeking higher margins, while Nunn Bush offers a branded alternative with “proven comfort technology, competitive pricing, and in-stock inventory.” Stacy Adams sales declined 9%. Florsheim Jr. said retail sell-throughs have been solid, but retailers “are not investing in fashion dress shoes as they have in the past,” particularly in department stores and family footwear channels. He said the company is working to diversify the Stacy Adams assortment with more casual offerings. BOGS sales fell 11%. Florsheim Jr. said the company anticipates a stronger second half, citing winter weather conditions that helped clear excess inventory of weather boots in parts of the U.S. He also pointed to new, less insulated spring footwear that is “selling well” and supporting efforts to build a more year-round business. He said BOGS launched a marketing reset focused on “storytelling” and “user authenticity,” running across social and streaming channels including YouTube. In retail, Florsheim Jr. said e-commerce sales were led by Florsheim and that the company had less closeout inventory than the prior-year quarter, resulting in “higher web margins as we sold more full-price footwear.” He said Weyco continues to invest in its e-commerce platform to support direct-to-consumer growth. Anderson said the U.S. imposed reciprocal and retaliatory tariffs on certain imported goods in February 2025 under the International Emergency Economic Powers Act (IEEPA), and that the company paid approximately $19.8 million in IEEPA tariffs in 2025 and the first quarter of 2026. She said the IEEPA tariffs increased product costs by 19% to 50%, contributing to gross margin compression. Anderson said the U.S. Supreme Court ruled on Feb. 20, 2026, that IEEPA did not authorize the president to impose tariffs, declaring the IEEPA tariffs invalid. She said U.S. Customs and Border Protection began a phased refund-claim process in April 2026, formally opening on April 20. Weyco submitted claims totaling $18.6 million for phase 1 entries on that date, while the timing for claims tied to phase 2 entries totaling $1.2 million had not been established. Anderson emphasized that the timing and amount of any recoveries remain uncertain and depend on CBP execution. She also said that following the ruling, the president announced a new across-the-board tariff under a separate authority, currently set at 10%, with scope and rate subject to change. Florsheim Jr. told a caller that if a 10% incremental tariff stayed in place all year, it would amount to “about an extra $10 million, over and above what we normally pay in tariffs,” while noting that tariff levels in the footwear category are already high relative to other goods. He added that the administration has indicated an intent to raise tariffs again, making planning difficult, and referenced ongoing Section 301 investigations expected to conclude by the end of July. Asked about the tax treatment of any tariff refunds, Anderson said the refunds would be taxable, explaining that the tariffs were included in cost of sales when paid and any refund would become a credit to cost of sales, triggering taxes. Florsheim Jr. said first-quarter gross margin was down about 50 basis points year over year and that tariff uncertainty makes it difficult to forecast margins for the rest of the year. He and President and COO John Florsheim also highlighted “cleaner” inventory levels versus last year, which they said supported both wholesale and retail margins. Inventory as of March 31, 2026 was $50.5 million, down from $65.9 million at Dec. 31, 2025, and down about $18 million from March 31 of last year. Florsheim Jr. said the decrease was due to timing and that inventory is expected to return to the $60 million to $70 million range through the year. On operating expenses, Anderson attributed lower employee costs to several factors, including lower benefit costs and items such as reduced FICA expense tied to bonus timing. John Florsheim added that temporary labor needs in the warehouse were lower, reflecting improved operating efficiency. Tom Florsheim Jr. said the company had not reduced headcount. Anderson said the company ended the period with $93.9 million in cash and marketable securities and no outstanding debt on its $40 million revolving credit facility. During the first three months of 2026, Weyco generated $17.4 million in cash from operations, paid $23.9 million in dividends, and spent $600,000 on capital expenditures. The company expects 2026 capital spending of $2 million to $3 million. Anderson also said the board declared a quarterly cash dividend of $0.28 per share, payable June 30, 2026, to shareholders of record on May 19, 2026. The dividend represents a 4% increase from the prior quarterly rate of $0.27 per share. Weyco Group, Inc is a publicly traded footwear company (NASDAQ: WEYS) based in Glendale, Wisconsin, that designs, sources, markets and distributes branded footwear products. The company operates through a portfolio of five consumer brands—Florsheim, Stacy Adams, Nunn Bush, BOGS and Rafters—offering a full range of dress, casual and performance footwear for men and women. The Florsheim brand, with roots dating back to 1892, provides classic and contemporary men's dress shoe styles, while Stacy Adams and Nunn Bush deliver fashion-forward and casual offerings. The article "Weyco Group Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.