Weyco Group (WEYS) investor relations material

Executive summary

• Net sales for Q1 2026 were $68.0 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 sales declined 1% to $53.6 million, while retail sales increased 2% to $8.8 million, led by e-commerce growth.

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

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

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 $7.0 million in Q1 2025.

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

• Cash and marketable securities stood at $93.9 million at quarter-end, with no outstanding debt.

• Net cash provided by operating activities was $17.4 million, up from $4.1 million last year, mainly due to lower inventory levels.

Outlook and guidance

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

• Dividend increased 4% to $0.28 per share, payable June 30, 2026.

• Management is focused on cost management and pricing actions to mitigate evolving tariff and trade policy impacts.

• Margin outlook remains uncertain due to evolving U.S. trade and tariff policies.

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