Earnings

Weyco Declares $2.00 Special Dividend After Third-Quarter Profit

The Tip Desk · November 10, 2026 · 3 min read

Net earnings were $11.5 million, or $1.19 a share, as sales reached $77.0 million and gross earnings included $3.3 million of tariff refunds.

Weyco Group, Inc. (WEYS), the footwear designer and marketer, reported net earnings of $11.5 million, or $1.19 a share, for the quarter ended September 30, 2026, up from $6.6 million, or $0.69 a share, a year earlier.

Net sales were $77.0 million, up 5% from the year-ago quarter. Gross earnings were 49.7% of net sales and included $3.3 million in tariff refunds, compared with 40.7% in the third quarter of 2025. Earnings from operations were $13.7 million.

Chairman and CEO Thomas W. Florsheim, Jr. said third-quarter sales were up across North America, led by Florsheim, with support from Stacy Adams and BOGS. He said Florsheim delivered another record-breaking quarter at wholesale, surpassing the brand’s prior third-quarter sales record set last year, and that sales growth and improved gross margins drove profitability, further enhanced by tariff refunds.

Wholesale net sales were $64.0 million, up 6% from $60.2 million a year earlier. Florsheim and Stacy Adams each increased 9%, due mainly to higher dress-shoe sales. BOGS sales were up 6%, with volumes up across most major channels. Nunn Bush sales were down 1%. The company said last year’s third-quarter sales were negatively impacted by reduced business with a large customer who failed to timely adopt a new pricing structure, resulting in order cancellations.

Wholesale gross earnings were 46.0% of net sales, versus 35.7% a year earlier. The company attributed the increase primarily to lower incremental tariff rates and the recognition of $3.2 million in tariff refunds. Wholesale selling and administrative expenses were $16.0 million, or 25% of net sales, versus $14.0 million, or 23%, a year earlier, primarily from higher employee costs. Wholesale operating earnings were $13.4 million, up from $7.5 million.

In the second quarter, wholesale gross earnings had been 70.0% of net sales after $14.3 million of tariff refunds were recognized, and wholesale operating earnings were $16.0 million.

Retail net sales were $7.2 million, up 3% from $7.0 million a year earlier, primarily from higher Florsheim website sales, largely offset by lower sales from closed stores. Retail gross earnings were 70.7% of net sales, versus 66.4% a year earlier, driven mainly by lower incremental tariff rates. Retail operating earnings were $0.7 million.

Florsheim Australia net sales were $5.8 million, down 3% from $6.0 million a year earlier. In local currency, sales were down 10%, mainly at wholesale; the company said the local-currency decrease translated to a 3% U.S.-dollar decline because of a stronger Australian dollar. Florsheim Australia operating losses were $0.4 million, versus $0.1 million a year earlier, due to lower wholesale sales.

During the third quarter, the $3.3 million previously recorded to inventory was recognized as a reduction to cost of sales — $3.2 million in Wholesale and $0.1 million in Retail — upon sale of related inventory. No refunds related to Phase 3 entries were recognized. The company said Phase 3 entries totaling $1.2 million were submitted in early October, of which $0.4 million have been approved for liquidation and $0.8 million remain under review, and that the timing and amount of those recoveries remain uncertain.

Following the U.S. Supreme Court’s February ruling invalidating IEEPA tariffs, the Administration imposed a 10% incremental tariff under a separate statutory authority. On July 24, the Administration increased the incremental tariff on imports from China, the Dominican Republic, and Vietnam to 12.5%, which remained in effect for the duration of the quarter. The company said U.S. trade policies continue to evolve and remain unpredictable, creating near-term gross margin uncertainty, and that it has mitigation strategies in place.

On November 3, 2026, the board declared a regular quarterly cash dividend of $0.28 a share and a special cash dividend of $2.00 a share, both payable January 8, 2027.

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