Weyco Group Files $18.6M Tariff Refund Claim, Boosts Dividend 4%
Weyco Group posted flat Q1 net sales of $68.0 million, while operating earnings rose 7% to $7.5 million and diluted EPS climbed to $0.64 from $0.57. The company submitted $18.6 million in tariff refund claims following the Supreme Court ruling and raised its dividend 4% to $0.28 per share.
1. Q1 Financial Performance
Weyco Group reported net sales of $68.0 million for the quarter ended March 31, 2026, unchanged from Q1 2025. Gross margin compressed slightly to 44.2% from 44.6%, but earnings from operations increased 7% to $7.5 million and net earnings rose 10% to $6.1 million, yielding diluted EPS of $0.64 versus $0.57.
2. Segment Breakdown
North American wholesale sales dipped 1% to $53.6 million, driven by a 5% gain at Florsheim offset by declines of 9% at Stacy Adams and 11% at BOGS. Retail net sales climbed 2% to $8.8 million on stronger e-commerce performance, while Florsheim Australia saw a 10% sales increase to $5.6 million due to currency appreciation.
3. Tariff Refund Process
Following the Supreme Court ruling that invalidated IEEPA tariffs, Weyco submitted $18.6 million in Phase 1 refund claims to U.S. Customs on April 20, 2026, with $1.2 million in Phase 2 claims pending timing. A new 10% tariff has been announced under separate authority, leaving gross margin exposure subject to evolving trade policy.
4. Dividend Hike and Outlook
On May 5, 2026, Weyco’s board declared a $0.28 per share quarterly dividend payable June 30, up 4% from $0.27. Management cited cost controls and refund progress as supportive factors and indicated ongoing mitigation strategies to navigate a fluid tariff environment.