MILWAUKEE, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Weyco Group, Inc. (NASDAQ: WEYS) (“we,” “our,” “us” and the “Company”) today announced financial results for the quarter ended June 30, 2026.
Second Quarter 2026 Overview
- Net sales: $62.2 million (up 7% compared to Q2 2025)
- Gross earnings: 70.4% of net sales (includes $15.3 million of tariff refunds)
- Earnings from operations: $17.0 million (compared to $3.9 million in Q2 2025)
- Net earnings: $13.3 million (up from $2.3 million in Q2 2025)
- Diluted earnings per share: $1.39 (up from $0.24 in Q2 2025)
North American Wholesale Segment
Wholesale net sales were $48.8 million for the quarter, up 7% from $45.6 million in the second quarter of 2025. Sales of our Florsheim brand were up 12%, due to its continued growth in the dress shoe category. BOGS sales were up 10% for the quarter, driven by increased sales volumes across most major channels. Sales of our Stacy Adams brand increased 4% for the quarter, primarily due to favorable pricing. Nunn Bush sales were down 3% for the quarter.
Wholesale gross earnings as a percent of net sales were 70.0% and 37.6% in the second quarters of 2026 and 2025, respectively. The increase was primarily due to the recognition of $14.3 million in tariff refunds, discussed below, as well as the benefit of selling price increases implemented in the second half of 2025. Wholesale selling and administrative expenses totaled $18.1 million, or 37% of net sales, for the quarter versus $13.1 million, or 29% of net sales, last year. The increases in 2026 were primarily due to higher employee costs. Wholesale operating earnings were $16.0 million for the quarter, up from $4.1 million in 2025, due mainly to tariff refunds partially offset by higher employee costs.
North American Retail Segment
Net sales in our retail segment totaled $7.0 million for the quarter, up 4% from $6.8 million in 2025. The increase was primarily due to higher sales on our Florsheim website. Retail gross earnings as a percent of net sales increased to 79.2% in the second quarter of 2026, up from 66.6% in the second quarter of 2025, driven mainly by the recognition of $1.0 million in tariff refunds. Retail operating earnings reached $1.0 million for the quarter, compared to $0.1 million in last year’s second quarter, driven mainly by the tariff refunds.
Other Operations
Other operations consist of our retail and wholesale businesses in Australia and South Africa (collectively, “Florsheim Australia”). Net sales of Florsheim Australia were $6.4 million in the second quarter of 2026, up 10% from $5.8 million in 2025. The increase was due to the appreciation of the Australian dollar relative to the U.S. dollar, as Florsheim Australia’s net sales in local currency were down 1% for the quarter. Florsheim Australia’s gross earnings as a percent of net sales were 63.1% and 60.9% in the second quarters of 2026 and 2025, respectively. Its second quarter operating earnings were break-even in 2026 versus operating losses of $0.2 million last year.
Incremental Tariffs
In early 2025, the U.S. imposed tariffs on certain imported goods under the International Emergency Economic Powers Act (“IEEPA”). During 2025 and the first quarter of 2026, we paid approximately $19.8 million in IEEPA tariffs. In February 2026, the U.S. Supreme Court invalidated IEEPA tariffs, and in April 2026, U.S. Customs and Border Protection (“CBP”) commenced a phased process for accepting refund claims. Accordingly, in April, we submitted refund claims for our Phase 1 entries totaling $18.6 million, substantially all of which were approved during the second quarter. As a result, during the quarter we recognized: $15.3 million in tariff refunds as a reduction to cost of sales ($14.3 million in the Wholesale segment and $1.0 million in the Retail segment), $3.3 million as a reduction of inventory, and $0.7 million of interest income.
Our remaining entries, totaling $1.2 million (now classified as Phase 3 entries), have not yet been assigned a claim submission timeline. No refunds related to Phase 3 entries have been recognized, as the timing and amount of these recoveries remain uncertain and subject to execution by CBP.
Following the U.S. Supreme Court's ruling in February, the Administration imposed a 10% incremental tariff under a separate statutory authority, which remained in effect throughout the second quarter. On July 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 Income
Interest income totaled $1.5 million compared to $0.8 million in last year’s second quarter. This year included $0.7 million of interest income on tariff refunds recognized in the second quarter.
Provision for Income Taxes
Our effective tax rates for the second quarters of 2026 and 2025 were 28.4% and 51.1% respectively. The higher effective tax rate in 2025 was primarily due to the establishment of a $1.1 million valuation allowance on deferred tax assets at Florsheim Australia.
"We are pleased with our performance this quarter, with three of our brands posting solid wholesale sales growth, led by our Florsheim brand, as well as gains in Florsheim's e-commerce business," stated Thomas W. Florsheim, Jr., Chairman and Chief Executive Officer. "This sales growth led to strong second-quarter earnings, which were further bolstered by the recovery of previously paid IEEPA tariffs. Overall, we are encouraged by our current momentum and believe we are well positioned for a strong second-half."
Dividend Declaration
On August 4, 2026, our Board of Directors declared a cash dividend of $0.28 per share to all shareholders of record on August 18, 2026, payable September 30, 2026.
Conference Call Details
Weyco Group will host a conference call on August 5, 2026, at 11:00 a.m. Eastern Time to discuss the second quarter 2026 financial results in more detail. To participate in the call, you will first need to pre-register online. Pre-registration takes only a few minutes, and you may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://register-conf.media-server.com/register/BIdbf49246d29d49fdb28efc4756dd1e16
The pre-registration process will provide the conference call phone number and a passcode required to enter the call. A replay will be available for one year beginning about two hours after the completion of the call at the following webcast link: https://edge.media-server.com/mmc/p/rqug7zo8. Alternatively, the replay will be available by visiting the investor relations section of Weyco Group’s website at www.weycogroup.com.
About Weyco Group
Weyco Group, Inc., designs and markets quality and innovative footwear principally for men, but also for women and children, under a portfolio of well-recognized brand names including: Florsheim, Nunn Bush, Stacy Adams, and BOGS. The Company’s products can be found in leading footwear, department, and specialty stores, as well as on e-commerce websites worldwide. Weyco Group also operates Florsheim stores in the United States, Australia, and South Africa.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Various factors could cause our results to be materially different from the results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the uncertain impacts of U.S. trade and tariff policies – particularly incremental tariffs on goods sourced from China - which remain highly dynamic and unpredictable; the impact of inflation generally and, specifically, increases in our costs for materials, labor and other manufacturing inputs; a slow-down or contraction in the overall U.S. or Australian economies; our ability to successfully market and sell our products in a highly competitive industry and in view of changing and unpredictable consumer trends; the effect of unseasonable weather conditions on the demand for certain of our products; our ability to successfully procure our products from independent manufacturers on a timely basis; consumer acceptance of products and other factors affecting retail market conditions, changes in interest rates, the uncertain impact of the wars in Ukraine, Israel, and Iran and the related economic and other sanctions imposed by the U.S. and European Union; and other factors detailed from time to time in our filings made with the Securities and Exchange Commission, including our annual report on Form 10-K filed on March 13, 2026, which are incorporated herein by reference. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
For more information, contact:
Judy Anderson
Vice President, Chief Financial Officer and Secretary
414‑908‑1833
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED) June 30, December 31, 2026
2025
(Dollars in thousands)ASSETS: Cash and cash equivalents$93,691 $96,006 Marketable securities, at amortized cost 1,780 1,425 Tariff refund receivable 17,447 — Accounts receivable, net 34,283 38,899 Inventories 49,069 65,887 Prepaid expenses and other current assets 2,609 3,218 Total current assets 198,879 205,435 Marketable securities, at amortized cost 2,640 3,460 Property, plant and equipment, net 27,674 27,414 Operating lease right-of-use assets 8,621 10,257 Goodwill 12,317 12,317 Trademarks 32,868 32,868 Other assets 28,076 27,916 Total assets$311,075 $319,667 LIABILITIES AND EQUITY: Accounts payable$6,358 $11,198 Dividend payable — 21,385 Operating lease liabilities 3,672 4,354 Accrued liabilities 14,351 11,062 Accrued income tax payable 1,977 638 Total current liabilities 26,358 48,637 Deferred income tax liabilities 13,716 13,828 Long-term pension liability 10,387 10,787 Operating lease liabilities 5,437 6,437 Other long-term liabilities 382 410 Total liabilities 56,280 80,099 Common stock 9,531 9,532 Capital in excess of par value 74,843 73,967 Reinvested earnings 184,084 169,923 Accumulated other comprehensive loss (13,663) (13,854)Total equity 254,795 239,568 Total liabilities and equity$311,075 $319,667
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, 2026 2025
2026
2025
(In thousands, except per share amounts) Net sales$62,216 $58,221 $130,221 $126,251 Cost of sales 18,432 32,998 56,371 70,653 Gross earnings 43,784 25,223 73,850 55,598 Selling and administrative expenses 26,764 21,330 49,326 44,674 Earnings from operations 17,020 3,893 24,524 10,924 Interest income 1,519 785 2,204 1,419 Interest expense — (1) (4) (2)Other income (expense), net 51 (59) 208 (186) Earnings before provision for income taxes 18,590 4,618 26,932 12,155 Provision for income taxes 5,275 2,362 7,496 4,356 Net earnings$13,315 $2,256 $19,436 $7,799 Weighted average shares outstanding Basic 9,412 9,475 9,412 9,511 Diluted 9,561 9,561 9,536 9,612 Earnings per share Basic$1.41 $0.24 $2.06 $0.82 Diluted$1.39 $0.24 $2.04 $0.81 Cash dividends declared (per share)$0.28 $0.27 $0.55 $0.53
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) Six Months Ended June 30, 2026
2025
(Dollars in thousands)CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings$19,436 $7,799 Adjustments to reconcile net earnings to net cash provided by operating activities - Depreciation 1,271 1,203 Amortization 63 131 Bad debt expense 4 148 Deferred income taxes (145) 838 Net foreign currency transaction (gains) losses (71) 66 Share-based compensation expense 863 802 Pension (benefit) expense (36) 240 Loss on disposal of fixed assets — 5 Increase in cash surrender value of life insurance (240) (230)Changes in operating assets and liabilities - Accounts receivable 4,610 5,301 Tariff refund receivable (17,447) — Inventories 16,828 2,705 Prepaid expenses and other assets 644 791 Accounts payable (4,848) (1,277)Accrued liabilities and other 2,913 (3,458)Accrued income taxes 1,331 (707)Net cash provided by operating activities 25,176 14,357 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from maturities of marketable securities 470 5 Purchases of property, plant and equipment (1,490) (677)Net cash used for investing activities (1,020) (672) CASH FLOWS FROM FINANCING ACTIVITIES: Cash dividends paid (26,562) (5,039)Shares purchased and retired (34) (3,135)Net proceeds from stock options exercised 13 — Net cash used for financing activities (26,583) (8,174) Effect of exchange rate changes on cash and cash equivalents 112 956 Net (decrease) increase in cash and cash equivalents$(2,315) $6,467 CASH AND CASH EQUIVALENTS at beginning of period 96,006 70,963 CASH AND CASH EQUIVALENTS at end of period$93,691 $77,430 SUPPLEMENTAL CASH FLOW INFORMATION: Income taxes paid, net of refunds$6,304 $4,208 Interest paid$— $1 NON-CASH FINANCING ACTIVITY: Settlement of dividend payable with prefunded dividend$— $21,579