Weyco Group (WEYS) investor relations material

Executive summary

• Net sales for Q2 2026 reached $62.2 million, up 7% year-over-year, with strong growth in wholesale, retail, and e-commerce channels, led by key brands.

• Net earnings surged to $13.3 million from $2.3 million in Q2 2025, driven by $15.3 million in tariff refunds and improved gross margins.

• Diluted EPS increased to $1.39 from $0.24 year-over-year.

• Wholesale sales grew 7%, with Florsheim up 12%, BOGS up 10%, Stacy Adams up 4%, and Nunn Bush down 3%.

• Retail segment sales rose 4%, driven by strong Florsheim e-commerce sales.

Financial highlights

• Gross margin surged to 70.4% in Q2 2026 from 43.3% in Q2 2025, mainly due to $15.3 million in tariff refunds.

• Earnings from operations reached $17.0 million, up from $3.9 million in Q2 2025.

• Cash and marketable securities totaled $98.1 million at quarter-end, with no debt outstanding.

• Cash from operations for the first six months of 2026 was $25.2 million.

• Effective tax rate was 28.4% in Q2 2026, down from 51.1% last year.

Outlook and guidance

• Inventory is planned to rise to about $70 million by year-end to mitigate tariff-related supply risks and support retailer demand.

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

• Management remains cautious and has mitigation strategies in place due to evolving tariff policies and macroeconomic uncertainties.