Weyco Group Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw flat sales but higher earnings, with EPS up 12% and strong cash generation. Gross margins compressed due to tariffs, but inventory and SG&A efficiencies supported profitability. Tariff refunds are pending, and dividend was raised 4%.
Fiscal Year 2025
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Net sales and earnings declined 5–24% year-over-year due to tariffs, margin compression, and cautious consumer demand. Florsheim brand achieved record sales, while other brands saw declines. Management is pursuing a $16 million tariff refund and expects continued margin uncertainty in 2026.
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Q3 2025 net sales fell 2% and net earnings dropped 18% year-over-year, with gross margin pressured by tariffs. Price increases and cost controls partially offset volume declines, while a special $2 dividend was declared amid strong liquidity.
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Q2 2025 saw a 9% sales decline and a 60% drop in net earnings, driven by tariff headwinds, weak consumer demand, and cautious retailer inventory management. Management expects continued challenges in the second half as tariff and economic uncertainties persist.
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Net sales declined 5% year-over-year amid macroeconomic and tariff headwinds, with operating and net earnings also down. Proactive inventory management and supply chain diversification are underway to address new 161% tariffs on Chinese imports, while liquidity remains strong.
Fiscal Year 2024
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Net sales were flat in Q4 and down 9% for the year, with record net earnings despite lower sales. New tariffs on Chinese imports will increase costs in 2025, prompting price hikes and supplier negotiations. A special $2 dividend was paid in January.
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Net sales fell 12% year-over-year to $74.3 million, with net earnings down to $8.1 million amid soft consumer demand and macroeconomic headwinds. Gross margin improved to 44.3%, and a special $2 per share dividend was declared, reflecting strong liquidity and capital discipline.
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Q2 2024 net sales declined 5% year-over-year, but net earnings hit a record $5.6 million, up 15%. Wholesale margins improved, retail was flat, and Australia sales dropped 23%. Strong cash position, no debt, and cautious optimism for fall demand.