Weyco Group (WEYS) investor relations material

Executive summary

• Q3 net sales rose 5% YoY to $77.024 million; operating earnings were $13.741 million, net earnings $11.511 million, and diluted EPS $1.19.

• Stronger gross margins and $3.3 million of tariff refunds boosted results; North American wholesale growth was led by Florsheim, Stacy Adams and BOGS.

• Management cited a choppy retail environment, confidence in its brands and continued focus on sales growth and profitability.

Financial highlights

• Q3 gross earnings were $38.255 million, or 49.7% of sales, versus $29.788 million, or 40.7%, a year earlier; Q3 included $3.3 million of tariff refunds.

• Q3 operating earnings increased from $8.055 million to $13.741 million; net earnings rose from $6.586 million to $11.511 million, and diluted EPS from $0.69 to $1.19.

• Nine-month sales rose to $207.245 million from $199.372 million; operating earnings were $38.265 million versus $18.979 million, and diluted EPS was $3.23 versus $1.50.

• Nine-month gross earnings were 54.1% of sales versus 42.8%, primarily reflecting tariff refunds and lower incremental tariff rates.

Outlook and guidance

• FY2026 capital expenditures are estimated at $3 million; inventory is planned to rise to ~ $70 million by year-end from $60 million at September 30.

• Florsheim Australia expects challenging near-to-medium-term conditions and plans to align expenses and its cost structure with the market.

• Trade policy remains unpredictable; mitigation strategies are in place, while supply-chain inflation and reluctance to raise wholesale prices may pressure future margins.