Weyco Group Reports 7% Revenue Growth in Q2 2026, Highlights Strategic Shift to Online Sales

Weyco Group, Inc. reported significant financial improvements in its second quarter and first half of 2026, as detailed in its latest 10-Q filing. For the three months ended June 30, 2026, the company achieved net sales of $62.2 million, a 7% increase from $58.2 million in the same period last year. Gross earnings surged to $43.8 million, representing 70.4% of net sales, compared to 43.3% in the prior year. The company’s earnings from operations reached $17.0 million, a substantial increase from $3.9 million in the second quarter of 2025. Net earnings for the quarter were $13.3 million, or $1.39 per diluted share, compared to $2.3 million, or $0.24 per diluted share, in the previous year.

In the first half of 2026, Weyco's consolidated net sales totaled $130.2 million, up 3% from $126.3 million in the same period of 2025. The increase in revenue was primarily driven by higher sales in the Wholesale segment, particularly from the Florsheim brand, which saw a 12% increase in sales. The company also recognized $15.3 million in tariff refunds during the second quarter, which significantly contributed to the improved gross earnings and operating income. Selling and administrative expenses increased to $26.8 million for the quarter, reflecting higher employee costs.

Weyco's strategic focus on its Wholesale and Retail segments has yielded positive results. The Wholesale segment's net sales increased by 7% to $48.8 million, while the Retail segment saw a 4% increase to $7.0 million, driven by strong e-commerce sales. The company has also made the decision to close its four U.S. brick-and-mortar retail stores, transitioning to a more robust online sales strategy. Additionally, Florsheim Australia's net sales increased by 10%, although local currency sales declined by 1%, indicating the impact of foreign exchange rates.

The company’s operational metrics reflect a strong performance, with cash and marketable securities totaling $98.1 million as of June 30, 2026, and no outstanding debt on its $40 million revolving line of credit. Weyco generated $25.2 million in cash from operations during the first half of 2026, a significant increase from $14.4 million in the same period last year. The company declared a cash dividend of $0.28 per share, payable on September 30, 2026, indicating a commitment to returning value to shareholders.

Looking ahead, Weyco Group remains cautious about the evolving U.S. trade policies and their potential impact on gross margins. The company is actively monitoring market conditions and has implemented mitigation strategies to adapt to any changes. With a focus on enhancing its product offerings and expanding its direct-to-consumer platform, Weyco is positioned to navigate the challenges of the retail environment while capitalizing on growth opportunities in its core segments.