Weyco Group Stock Earnings Reports

Weyco reported flat consolidated net sales of $68.0 million for Q1 2026, with diluted EPS rising to $0.64 (up from $0.57) and net earnings up 10% to $6.1 million. Gross margin compressed to 44.2% (vs. 44.6% a year ago), primarily from elevated tariff costs; operating earnings increased to $7.5 million. By segment: North American wholesale was down 1% (Florsheim +5%, Nunn Bush flat, Stacy Adams -9%, BOGS -11%), retail sales were +2% driven by stronger e-commerce and cleaner closeout inventory, and Florsheim Australia was +10% in USD but flat in local currency. The company paid roughly $9.2 million in IEPA tariffs in 2025–2026, submitted $18.6 million of phase-one refund claims after the Supreme Court invalidated IEPA, and warned that a new administration tariff (currently 10%) leaves near-term gross margin uncertainty. Liquidity remains strong: $93.9 million in cash and marketable securities, no outstanding borrowings on a $40 million revolver, $17.4 million cash from operations in the quarter, $23.9 million paid in dividends YTD, and expected 2026 capex of $2–3 million. The Board raised the quarterly cash dividend 4% to $0.28 per share. Inventory was materially reduced sequentially (to $50.5 million at 3/31/26 from $65.9 million at 12/31/25), expected to normalize into the $60–$70 million range later in the year. Management emphasized ongoing margin pressure from evolving U.S. trade policy, active work with trade groups, continued investment in designs and e-commerce, disciplined expense management, and expectations for improved BOGS performance in H2.