Weyco Group (WEYS) investor relations material

Executive summary

• Net sales for Q2 2026 reached $62.2 million, up 7% year-over-year, with growth in three of four major brands and strong e-commerce performance.

• Net earnings surged to $13.3 million from $2.3 million last year, with diluted EPS at $1.39 versus $0.24, driven by tariff refunds and sales growth.

• Significant benefit from $15.3 million in tariff refunds recognized as a reduction to cost of sales, boosting gross margins.

Financial highlights

• Gross earnings margin surged to 70.4% in Q2 2026 from 43.3% last year, mainly due to $15.3 million in tariff refunds.

• Earnings from operations increased to $17.0 million from $3.9 million year-over-year.

• Interest income totaled $1.5 million, including $700,000 from tariff refunds.

• Cash and marketable securities stood at $98.1 million at June 30, 2026, with no debt on a $40 million credit line.

Outlook and guidance

• Inventory is planned to rise to $70 million by year-end to mitigate tariff-related supply risks and support retailer demand.

• Annual capital expenditures for 2026 are estimated between $2 million and $3 million.

• Management remains cautious due to ongoing tariff and macroeconomic uncertainties, but has mitigation strategies in place.