Weyco Group Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw 7% sales growth and a sharp rise in net earnings, driven by $15.3 million in tariff refunds and strong wholesale and retail performance. Gross margin surged to 70.4%, and the company remains cautious amid evolving tariff policies and macroeconomic risks.
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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% and 24% year-over-year, respectively, due to tariff-driven margin compression and softer demand. Florsheim brand achieved record sales, while other brands declined. The company is seeking a $16M tariff refund and continues to diversify sourcing.
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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 driven by improved margins and higher interest income. New tariffs on Chinese imports will increase costs in 2025, prompting price hikes and supplier negotiations.
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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.