Weyco Group, Inc.

Second-quarter 2026 net sales were $62.2 million, up 7% year over year. Consolidated gross earnings were 70.4% of net sales versus 43.3% last year, operating earnings were $17 million versus $3.9 million, net earnings were $13.3 million versus $2.3 million, and diluted EPS was $1.39 versus $0.24. The quarter included $15.3 million of tariff refunds as a reduction to cost of sales, plus $3.3 million recognized as a reduction of inventory and $700,000 of interest income related to those refunds. For guidance, management did not give formal revenue or EPS outlook, but said annual capital expenditures in 2026 are expected to be between $2 million and $3 million and inventory is planned to rise to about $70 million by the end of the fourth quarter.

Tom Florsheim said the company is pleased with Wholesale growth despite a very challenging discretionary consumer environment. He highlighted momentum in Florsheim, encouraging growth in Stacy Adams, a planned turnaround in BOGS, and disciplined execution in Florsheim Australia and Retail. He was upbeat but cautious, emphasizing that tariff policy remains unpredictable and could affect margins in the second half.

Judy Anderson reported strong second-quarter results with $62.2 million of sales, 70.4% gross margin, $17 million of operating earnings, and $13.3 million of net income. She detailed the tariff refund benefit: $15.3 million recognized in cost of sales, $3.3 million as an inventory reduction, and $700,000 of interest income, with $1.2 million of Phase 3 entries still unresolved. She also said cash and marketable securities were $98.1 million at June 30, 2026, there was no debt on the $40 million revolver, $25.2 million of cash came from operations in the first six months, dividends totaled $26.6 million, capital expenditures were $1.5 million, and annual capex should be $2 million to $3 million.

An analyst asked about back-to-school trends, and John Florsheim said it was too early to tell and that the category is not a major factor for Weyco beyond generating traffic, though retailers are cautious about price increases amid inflation and pressure on discretionary income. Another question focused on inventory rising toward $70 million by year-end; Tom Florsheim said the company is intentionally building inventory because of tariff uncertainty, recent tariff rate changes, and a healthy second-half backlog, and noted the company has the cash to support that plan.