Weyco Group Inc. posted higher earnings due to expense controls in the first quarter. Sales were flat as revenue gains at its Florsheim brand were offset by continued declines at Bogs and Stacy Adams.

First Quarter 2026 Overview

  • Net sales: $68.0 million (flat compared to Q1 2025)
  • Gross earnings: 44.2 percent of net sales (compared to 44.6 percent of net sales in Q1 2025)
  • Earnings from operations: $7.5 million (up 7 percent compared to $7.0 million in Q1 2025)
  • Net earnings: $6.1 million (up 10 percent from $5.5 million in Q1 2025)
  • Diluted earnings per share: $0.64 (up from $0.57 in Q1 2025)

North American Wholesale Segment
Wholesale net sales were $53.6 million for the quarter, down 1 percent from $54.3 million in the first quarter of 2025. Florsheim’s first-quarter sales were up 5 percent, due to continued success in the dress shoe category. Florsheim’s increase was more than offset by lower sales of the Stacy Adams and Bogs brands, down 9 percent and 11 percent, respectively, due to lower retailer demand. Nunn Bush sales remained flat for the quarter.

Wholesale gross earnings as a percent of net sales were 38.7 percent and 39.4 percent in the first quarters of 2026 and 2025, respectively. Gross margins for the quarter continued to be negatively impacted by incremental tariffs, partially offset by selling price increases instituted in the second half of last year. Wholesale selling and administrative expenses totaled $13.8 million, or 26 percent of net sales, for the quarter versus $14.8 million, or 27 percent of net sales, last year. The decreases in 2026 were largely due to lower employee costs. Wholesale operating earnings totaled $7.0 million for the quarter, up 5 percent from $6.6 million in 2025, mainly due to lower selling and administrative expenses.

North American Retail Segment
Net sales in its retail segment totaled $8.8 million for the quarter, up 2 percent from $8.7 million in 2025. The increase resulted from higher sales of its e-commerce businesses. Retail gross earnings as a percent of net sales were 66.1 percent and 66.6 percent in the first quarters of 2026 and 2025, respectively. Retail operating earnings totaled $0.8 million for the quarter and $0.6 million in last year’s first quarter.

Other Operations
Other operations consist of its retail and wholesale businesses in Australia and South Africa (collectively, “Florsheim Australia”). Net sales of Florsheim Australia were $5.6 million in the first quarter of 2026, up 10 percent from $5.1 million in 2025. The increase was due to the appreciation of the Australian dollar relative to the U.S. dollar, as Florsheim Australia’s net sales in local currency were flat for the quarter. Florsheim Australia’s gross earnings as a percent of net sales were 62.9 percent and 62.7 percent in the first quarters of 2026 and 2025, respectively, and its quarterly operating losses totaled $0.2 million in both periods.

Incremental Tariffs
In February 2025, the U.S. imposed reciprocal and retaliatory tariffs on certain imported goods under the International Emergency Economic Powers Act (“IEEPA”). Weyco said it paid a total of approximately $19.8 million in IEEPA tariffs in 2025 and the first quarter of 2026. The IEEPA tariffs increased the cost of its products by 19 percent to 50 percent, resulting in gross margin compression.

On February 20, 2026, the U.S. Supreme Court ruled that IEEPA does not authorize the President to impose tariffs, declaring the IEEPA tariffs invalid. In April 2026, U.S. Customs and Border Protection (“CBP”) commenced a phased process to accept claims for potential refunds of IEEPA tariffs previously paid. The refund process formally opened on April 20, 2026, and on that date, Weyco submitted claims covering its Phase 1 entries totaling $18.6 million. The timing for submitting claims related to its Phase 2 entries, totaling $1.2 million, has not yet been established. The timing and amount of any recoveries remain uncertain and subject to execution by CBP.

Following the U.S. Supreme Court’s ruling, the President announced the implementation of a new across-the-board tariff under a separate statutory authority, currently set at 10 percent, although the scope and rate remain subject to change. U.S. trade policies continue to evolve and remain unpredictable, creating near-term gross margin uncertainty. Weyco said it has mitigation strategies in place and will continue to adjust, as appropriate, in response to future policy developments.

“Florsheim delivered another strong quarter following its record 2025 performance, while our other brands continued to face headwinds resulting from ongoing market uncertainty,” stated Thomas W. Florsheim, Jr., CEO. “Despite flat top-line results, our operating earnings improved, supported by lower costs. We are encouraged by the recent progress in the tariff refund process and believe it represents a constructive step toward recovering costs previously paid. At the same time, we remain focused on executing within a fluid trade environment. Our team is actively monitoring potential tariff developments and is prepared to respond, as appropriate, through future pricing and/or continued cost-management actions.”

Image courtesy Bogs