Weyco Group (WEYS) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 were $68 million, flat year-over-year, with operating earnings up 7% and net earnings up 10% to $6.1 million, or $0.64 per diluted share, driven by lower costs and improved segment performance.

• Wholesale segment sales declined 1% to $53.6 million, while retail segment sales increased 2% to $8.8 million, led by e-commerce.

• Florsheim brand grew 5%, offsetting declines in Stacy Adams (-9%) and BOGS (-11%); Nunn Bush was flat.

• Florsheim Australia sales rose 10% in USD, but were flat in local currency; operating losses remained at $0.2 million.

• Diluted EPS increased to $0.64 from $0.57, reflecting improved profitability despite flat sales.

Financial highlights

• Consolidated gross margin was 44.2%, down from 44.6% year-over-year, mainly due to higher costs from incremental tariffs.

• Operating earnings reached $7.5 million, up from $7 million.

• Net earnings totaled $6.1 million, up from $5.5 million.

• Cash and marketable securities at quarter-end were $93.9 million, with no debt; operating cash flow was $17.4 million, up from $4.1 million last year.

• Wholesale gross margin was 38.7%, retail gross margin 66.1%, and Florsheim Australia 62.9%.

Outlook and guidance

• Gross margin outlook remains uncertain due to evolving U.S. tariff policies; management is focused on cost management and pricing actions.

• Inventory expected to return to $60–$70 million range as year progresses.

• Annual capital expenditures projected at $2–$3 million.

• Dividend increased 4% to $0.28 per share for Q2 2026.

• Tariff refund process is underway, but timing and amount of recoveries remain uncertain.