WEYS · Weyco Group, Inc.

Weyco Group's Q1 2026 results showed resilience with flat net sales of $68.0 million despite a 1% decline in North American wholesale to $53.6 million, where Florsheim's 5% growth in dress shoes was offset by double-digit drops in Stacy Adams and BOGS due to lower retailer demand. Gross margins contracted slightly to 44.2% from 44.6%, pressured by incremental tariffs increasing product costs 19-50%, though partially mitigated by prior price hikes. Operating earnings rose 7% to $7.5 million, driven by a 3% reduction in selling and administrative expenses to $22.6 million, primarily from lower employee costs. Retail sales edged up 2% to $8.8 million on e-commerce strength, while Florsheim Australia sales grew 10% in USD terms due to currency appreciation despite flat local sales. CEO Thomas W. Florsheim, Jr. highlighted Florsheim's momentum amid market uncertainty and progress on tariff refunds, with $18.6 million in Phase 1 claims submitted after the Supreme Court's February 2026 ruling invalidating IEEPA tariffs; Phase 2 claims of $1.2 million are pending. A new 10% tariff looms under separate authority, prompting ongoing mitigation via pricing and cost controls. The board's 4% dividend hike to $0.28 per share signals confidence in cash generation, supported by $17.4 million in operating cash flow, though offset by $23.9 million in dividend payments, reducing cash to $89.0 million.