WEYCO GROUP INC
For the period ended Mar 31, 2026. Filed May 7, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
WEYS$60.76+0.1%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001104659-25-108344
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001104659-26-057266
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 78 previous paragraphs and 71 current paragraphs.
24 unchanged; 23 reworded; 23 added; 31 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
In February 2025, the U.S. imposed reciprocal and retaliatory tariffs on certain imported goods under the International Emergency Economic Powers Act (“IEEPA”). We paid a total of approximately $19.8 million in IEEPA tariffs in 2025 and the first quarter of 2026. The IEEPA tariffs increased the cost of our products by 19% to 50%, resulting in gross margin compression.
Current report
On February 20, 2026, the U.S. Supreme Court ruled that IEEPA does not authorize the President to impose tariffs, declaring the IEEPA tariffs invalid. In April 2026, U.S. Customs and Border Protection (“CBP”) commenced a phased process to accept claims for potential refunds of IEEPA tariffs previously paid. The refund process formally opened on April 20, 2026, and on that date, we submitted claims covering our Phase 1 entries totaling $18.6 million. The timing for submitting claims related to our Phase 2 entries, totaling $1.2 million, has not yet been established. The timing and amount of any recoveries remain uncertain and subject to execution by CBP.
Current report
Following the U.S. Supreme Court's ruling, the President announced the implementation of a new across-the-board tariff under a separate statutory authority, currently set at 10%, although the scope and rate remain subject to change. U.S. trade policies continue to evolve and remain unpredictable, creating near-term gross margin uncertainty. We have mitigation strategies in place and will continue to adjust, as appropriate, in response to future policy developments.
Current report
Our overall company sales were flat for the first quarter, with Wholesale segment sales down 1% compared to the first quarter of last year. Given the uncertainty in the economic environment, we believe we are holding our position within our competitive market segments, with Florsheim continuing its strong performance streak.
Current report
Our legacy brands, which include Florsheim, Nunn Bush, and Stacy Adams, were collectively flat for the quarter, compared to the first quarter of 2025. The Florsheim brand was up 5%, driven by strong sales in the traditional dress category. While the overall dress footwear market has been trending downward over time, Florsheim has continued to gain market share.
Current report
Nunn Bush net sales were flat compared to the first quarter of 2025. We believe the brand is well-positioned as a leading value option in comfort casual and comfort dress footwear in an economy where many consumers are feeling stretched to cover day-to-day expenses.
Current report
Our Stacy Adams brand was down 9% compared to the same period last year. At retail, Stacy Adams sell-throughs have been solid; however, we believe retailers are not investing in fashion-dress shoes as they have in the past. This is especially true in department stores and family footwear channels. We are focused on diversifying the Stacy Adams product assortment to be less centered on dress shoes, with more casual offerings that align with today’s lifestyle.
Current report
Our BOGS brand was down 11% compared to the same period last year. We anticipate a strong second half of the year, as cold weather and precipitation last winter in the Midwest and East Coast helped clear excess inventory of weather boots. We are also encouraged by the launch of new, less insulated Spring footwear, which is selling well and paving the way for more year-round BOGS business.
Current report
Net sales in our retail segment were up 2% compared to the first quarter of 2025, led by strong Florsheim e-commerce sales. In the first quarter of 2025, we were still working through excess inventory across various areas of our branded portfolio. This year, we had less closeout inventory to sell through our websites, resulting in higher web margins as we sold more full-price footwear. We continue to invest in our e-commerce platform to better showcase our brands and drive long-term growth in direct-to-consumer sales.
Current report
Florsheim Australia’s net sales were up 10% compared to the first quarter of 2025, but flat in local currency. Consumers in these markets, including: Australia, New Zealand, South Africa, and other Pacific Rim countries, are facing many of the same pressures as in North America. As a result, sales remain somewhat soft. We are focused on keeping expenses in line as we work to return to a growth trajectory.
Current report
First Quarter Highlights
Current report
Consolidated net sales remained flat for the quarter, as a 1% decline in Wholesale sales was offset by higher sales in the Retail segment and at Florsheim Australia.
Current report
Consolidated selling and administrative expenses as a percentage of net sales were 33% and 34% in the first quarters of 2026 and 2025, respectively, with expenses down mainly in our Wholesale segment.
Current report
Wholesale net sales were $53.6 million for the quarter, down 1% from $54.3 million in the first quarter of 2025. Florsheim’s first quarter sales were up 5%, due to continued success in the dress shoe category. Florsheim’s increase was more than offset by lower sales of the Stacy Adams and BOGS brands, down 9% and 11%, respectively, due to lower retailer demand. Nunn Bush sales remained flat for the quarter.
Current report
Wholesale gross earnings as a percent of net sales were 38.7% and 39.4% in the first quarters of 2026 and 2025, respectively. Gross margins for the quarter continued to be negatively impacted by incremental tariffs, partially offset by selling price increases instituted in the second half of last year. Wholesale selling and administrative expenses totaled $13.8 million, or 26% of net sales, for the quarter versus $14.8 million, or 27% of net sales, last year. The decreases in 2026 were largely due to lower employee costs.
Current report
Wholesale operating earnings totaled $7.0 million for the quarter, up 5% from $6.6 million in 2025, mainly due to lower selling and administrative expenses.
Current report
Net sales in our retail segment, which were generated mainly through our e-commerce websites, totaled $8.8 million for the quarter, up 2% from $8.7 million in 2025. The increase resulted from higher sales of our e-commerce businesses, mainly driven by our Florsheim brand.
Current report
Retail gross earnings were 66.1% of net sales for the quarter and 66.6% in last year’s first quarter.
Current report
Retail operating earnings improved to $0.8 million for the quarter, compared to $0.6 million in last year’s first quarter, due to increased net sales and lower selling and administrative costs.
Current report
Net sales of Florsheim Australia were $5.6 million in the first quarter of 2026, up 10% from $5.1 million in 2025. The increase was due to the appreciation of the Australian dollar relative to the U.S. dollar, as Florsheim Australia’s net sales in local currency were flat for the quarter.
Current report
Florsheim Australia’s gross earnings as a percent of net sales were 62.9% and 62.7% in the first quarters of 2026 and 2025, respectively, and its quarterly operating losses totaled $0.2 million in both periods.
Current report
Interest income totaled $0.7 million in the first quarter of 2026 and $0.6 million in last year’s first quarter. The increase in 2026 was due to more interest earned on higher cash balances this year.
Current report
Net cash used for financing activities totaled $23.9 million and $3.2 million in the first three months of 2026 and 2025, respectively. The increase was largely driven by a timing difference in our fourth-quarter and special dividend payments. The 2025 fourth-quarter and special dividend totaling $21.4 million was funded in January 2026 while the 2024 fourth-quarter and special dividend totaling $21.6 million was pre-funded in December 2024.
Removed paragraphs (31)
Previous report
In early 2025, the U.S. government enacted reciprocal and retaliatory tariffs (“incremental tariffs”) on goods imported into the United States. The incremental tariff on goods sourced from China, where a majority of our products originate, remained at 30% throughout the third quarter of 2025. This tariff rate was reduced to 20% on November 4, 2025. The incremental tariffs on goods sourced from other countries, excluding China, ranged from 10% to 50% throughout the third quarter of 2025. U.S. trade and tariff policies currently remain fluid and unpredictable, and the specific tariff rates applicable to goods imported by our company continue to evolve. As such, there is significant ongoing uncertainty regarding the potential near-term impact of incremental tariffs on our gross margins. We have implemented various mitigation strategies, and remain committed to adopting further strategies, including shifting our sourcing in alignment with evolving tariff policies, optimizing our pricing structure, and enhancing operational efficiencies, as needed, in response to future policy developments.
Previous report
Wholesale net sales for the third quarter of 2025 were down 2% in dollars and 7% in volume, compared to last year’s third quarter. We raised selling prices by 10% on July 1, 2025, to help offset tariff cost increases. While shipments were down slightly, we are encouraged by the relative strength of our brands at retail following those price increases. In what remains a difficult market, our brands, especially our legacy business (comprised of our Florsheim, Stacy Adams and Nunn Bush brands), performed well. Even so, the unsettled tariff environment, along with weak consumer sentiment and the cautious approach retailers continue to take toward inventory investment, continues to create mid-term challenges.
Previous report
We continue our efforts to diversify our factory base to reduce our manufacturing concentration in China, while maintaining strong relationships with our long-standing partners there who have been instrumental to Weyco’s reputation for quality and value. Expanding our factory base isn’t a quick process, and we’re very deliberate about partnering only with factories that share our commitment to quality and on-time delivery. As we navigate the uncertainties in this economic environment, we remain confident in the strength of our brands and the resilience of our business model.
Previous report
Sales of our combined legacy business were up 3% for the quarter, despite a 3% decline in volume. Florsheim was the standout brand, with sales up 8% for the quarter. Florsheim continues to be a bright spot in men’s non-athletic footwear for two reasons. First, it’s become the go-to brand for traditional dress and dress-casual footwear priced under $150. While this segment has shrunk with the trend toward more casual lifestyles, it remains an important part of the market that retailers rely on to meet consumer demand for work and occasion-based styles. Florsheim is gaining shelf space as a bridge brand that offers premium quality at a reasonable price. Second, the brand has expanded its presence in hybrid footwear and dress sneakers with good success. The Florsheim brand fits well in the refined-casual category, which remains a key focus for growth.
Previous report
Nunn Bush sales were up 1% for the quarter and continued to show good momentum at retail. With pricing pressures across the industry, Nunn Bush is well-positioned as a branded value alternative in the comfort-casual and traditional dress-casual segments as competitors exit the under-$80 price point. We continue to invest in comfort-technology platforms that differentiate Nunn Bush from private-label options and allow it to compete effectively against higher-priced brands. Stacy Adams brand sales were down 5% for the quarter. We’re focused on expanding Stacy Adams’ casual offerings that capture that same refined aesthetic. While we’re seeing some success, this expansion of casual offerings will be key to returning the Stacy Adams brand to sales growth.
Previous report
The BOGS business remains challenging, with a 17% sales decline for the quarter. The outdoor footwear category became oversaturated after the pandemic, and mild winters in recent years have made many retailers more cautious, waiting to fund weather-boot purchases closer to the season. As a result, BOGS is now more dependent on fourth-quarter cold and precipitation to drive sales. Our focus is on innovation and diversifying away from winter-weather dependence. We believe our seamless construction, with its durability and lightweight feel, gives us a real competitive edge in the marketplace. While we’re making progress with less or non-insulated footwear, that diversification will take time to materially impact sales.
Previous report
During the quarter, we made the strategic decision to wind down operations of the Forsake brand due to its sustained lack of growth and profitability. This decision is part of our ongoing effort to optimize our brand portfolio and focus on those brands with the greatest potential for long-term success. The closure of Forsake is not expected to have a material impact on our consolidated financial statements.
Previous report
Net sales in our retail segment were down 4% for the quarter, driven by a decline in e-commerce sales. We’ve seen increased price sensitivity from consumers in comparison to last year, as more consumers are choosing items at lower prices. We also believe we’re losing some sales to our wholesale partners’ e-commerce sites, since our own sites are often priced at full MSRP while some partners promote our brands more aggressively. The pricing gap widened when we raised retail price points by 10% on July 1, 2025, while our wholesale customers phased in the increase more gradually. This situation should level out over time, but we recognize that consumers with limited discretionary spending will continue to shop around for the best prices across our brands.
Previous report
Florsheim Australia’s net sales were flat for the quarter but up 2% in local currency. Our Florsheim Australia business, which includes the South African and Pacific Rim markets, remains a work in progress from a profitability standpoint. We’re encouraged by the increase in same-store sales during the quarter, but we still need to grow our wholesale business to reach our profitability targets internationally.
Previous report
Third Quarter Highlights
Previous report
Year-To-Date Highlights
Previous report
Consolidated net sales for the nine-month periods ending September 30, totaled $199.4 million in 2025 and $209.8 million in 2024, a decrease of 5%. Consolidated gross earnings were 42.8% of net sales in the first nine months of 2025 versus 44.3% of net sales in the same period of 2024. Year-to-date 2025 earnings from operations totaled $19.0 million, down 24% from $25.1 million in 2024. Net earnings were $14.4 million, or $1.50 per diluted share, in the first nine months of 2025, down from $20.3 million, or $2.12 per diluted share, last year.
Previous report
Consolidated net sales declined 2% for the quarter, due mainly to order cancellations with a large wholesale customer who failed to adopt our new pricing structure in a timely manner. Net sales for the nine-month period also declined, primarily due to softer demand in the first half of the year.
Previous report
Consolidated selling and administrative expenses as a percentage of net sales were 30% and 31% in the third quarters of 2025 and 2024, respectively. For the first nine months of 2025, selling and administrative expenses totaled 33% of net sales compared to 32% of net sales in the same period of 2024.
Previous report
NM – Not meaningful
Previous report
Wholesale net sales for the third quarter of 2025 were down 2% compared to last year’s third quarter. Sales volumes were down 7% for the period, but selling price increases instituted on July 1, 2025, helped mitigate the overall impact. The volume decline was primarily due to reduced business with a large customer who failed to timely adopt our new pricing structure, resulting in order cancellations during the period. These cancellations adversely affected all our major brands’ sales performance for the quarter. This pricing issue has since been resolved and is not expected to significantly impact the fourth quarter of 2025.
Previous report
At the brand level, Stacy Adams’ third-quarter sales decrease was driven by lower sales volumes. Nunn Bush sales were up 1% for the period, as price increases more than offset the brand’s decline in volume. Florsheim sales were up 8% for the quarter, driven by favorable pricing. Florsheim’s sales volumes were flat for the quarter, as its growth in the dress shoe category helped sustain volume levels. BOGS quarterly sales were down due to a reduction in pairs shipped, a reflection of continued softness in the seasonal footwear category.
Previous report
For the nine months ending September 30, 2025, wholesale net sales were down 4% compared to the first nine months of 2024, driven by lower sales of the Stacy Adams, Nunn Bush and BOGS brands, a result of lower demand. Florsheim’s year-to-date sales increased, driven mainly by the brand’s strong performance in the third quarter. Licensing revenues for the nine months ending September 30, 2025 were down $0.4 million, due to decreased sales of licensed products.
Previous report
Wholesale gross earnings were 35.7% of net sales in the third quarter of 2025 compared to 40.1% of net sales in last year’s third quarter. For the nine months ending September 30, wholesale gross earnings were 37.5% in 2025 and 39.4% in 2024. Gross margins for the
Previous report
quarter and year-to-date periods were negatively impacted by incremental tariffs. Although selling price increases introduced on July 1, 2025 helped mitigate the effects of these tariffs, they did not fully offset the resulting costs, leading to margin erosion for the period. Until U.S. trade agreements are finalized, we cannot predict the potential magnitude of the incremental tariffs on our gross margins. We intend to continue our work to mitigate the impact of the tariffs, as needed, by moving our supply chain and adjusting our pricing.
Previous report
Wholesale selling and administrative expenses consist primarily of distribution costs, salaries and commissions, advertising costs, employee benefit costs, and depreciation. Wholesale selling and administrative expenses totaled $14.0 million for the quarter, or 23% of net sales, compared to $15.1 million, or 25% of net sales, in the third quarter of 2024. The decrease was primarily due to lower employee costs. For the nine months ending September 30, these expenses totaled $41.8 million in 2025 down from $43.4 million in 2024. As a percentage of net sales, wholesale selling and administrative expenses remained consistent at 26% in both year-to-date periods.
Previous report
Wholesale operating earnings for the three and nine months ended September 30, 2025, decreased 20% and 19%, respectively, compared to the same periods one year ago. The decreases were driven by lower sales and gross margins this year.
Previous report
Net sales in our Retail segment, which were generated mainly through our e-commerce websites, totaled $7.0 million for the quarter, down 4% from $7.2 million in 2024. The decline was primarily due to softer demand on our Florsheim and Stacy Adams websites, amid the tepid retail environment. Increased promotional activity among online retailers and heightened price sensitivity among consumers also contributed to the pressure on web sales this quarter. For the nine months ended September 30, 2025, retail net sales were $22.4 million, down 9% from record sales of $24.6 million for the first nine months of 2024. The year-to-date sales decrease was primarily on the BOGS and Florsheim websites, caused by lower consumer demand. BOGS website sales were also impacted by less promotional activities in the first half of the year.
Previous report
Retail gross earnings were 66.4% of net sales for the quarter and 66.9% in last year’s third quarter. For the nine months ending September 30, retail gross earnings were 66.5% and 66.4% in 2025 and 2024, respectively.
Previous report
Retail operating earnings declined $0.1 million for the quarter, compared to last year’s third quarter. For the year-to-date period, retail operating earnings declined $1.4 million in 2025, compared to the same period of 2024. The quarter and year-to-date decreases were primarily due to lower sales.
Previous report
Operating results reported in the“Other” category consist of our retail and wholesale businesses primarily based in Australia, with a limited presence in South Africa (collectively,“Florsheim Australia”). We ceased operations in the Asia Pacific region, which was previously included in Florsheim Australia, in 2023 and completed the wind down of that business in 2024. Accordingly, third-quarter and year-to-date 2025 operating results of the“other” category only reflect the operations of Australia and South Africa.
Previous report
Florsheim Australia’s net sales remained flat at $6.0 million in both the third quarters of 2025 and 2024. In local currency, Florsheim Australia’s quarterly net sales were up 2%, driven by growth in its retail businesses. For the year-to-date period, Florsheim Australia’s net sales declined $0.7 million, or 4%, from the same period one year ago. The weaker Australian dollar relative to the U.S. dollar contributed to this decrease, as its year-to-date net sales in local currency were down 1%. This local currency decrease was entirely due to the closing of Asia Pacific, as sales in both Australia and South Africa were up for year-to-date period.
Previous report
Florsheim Australia’s gross earnings as a percent of net sales were 61.0% and 59.2% in the third quarters of 2025 and 2024, respectively. For the nine months ended September 30, Florsheim Australia’s gross earnings as a percent of net sales were 61.5% in 2025 and 60.5% in 2024. Florsheim Australia generated operating losses totaling $0.1 million for the quarter and breakeven results in last year’s third quarter. For the nine months ending September 30, 2025, its operating losses widened to $0.6 million, from $0.3 million in the same period of 2024. The nine-month decrease was largely driven by lower operating results in Australia’s retail businesses.
Previous report
Interest income totaled $0.8 million in the third quarter of 2025 compared to $0.9 million in last year’s third quarter. For the nine months ending September 30, interest income was $2.2 million in 2025 and $2.8 million in 2024. The decreases in 2025 were due to less interest earned on cash balances, resulting mainly from lower interest rates.
Previous report
Net cash used for financing activities totaled $12.0 million and $10.2 million in the first nine months of 2025 and 2024, respectively. The change was primarily due to a $3.5 million increase in shares repurchased partially offset by a $1.9 million decrease in cash dividends paid (see further explanation below).
Previous report
On September 26, 2025, we amended our line of credit agreement. The Amended Credit Agreement extended the maturity of our credit facility to September 25, 2026, and reduced the interest rate margin applicable to amounts outstanding by 15 basis points. Under the terms of the Amended Credit Agreement, there is a maximum available borrowing limit of $40.0 million, and amounts outstanding bear interest at the one-month term secured overnight financing rate (“SOFR”) plus 110 basis points. The Amended Credit Agreement is secured by a lien against our general business assets, and contains representations, warranties and covenants (including a minimum
Reworded paragraphs (23)
Previous wording
This report contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements represent our good faith judgment with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially. Such statements can be identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “likely,” “plans,” “predicts,” “projects,” “should,” “will,” or variations of such words, and similar expressions. Forward-looking statements, by their nature, address matters that are, to varying degrees, uncertain. Therefore, the reader is cautioned that these forward-looking statements are subject to a number of risks, uncertainties or other factors that may cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, the risk factors described under Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the year-ended December 31, 2024, filed on March 14, 2025, which information is incorporated herein by reference, and in Part II, Item 1A, “Risk Factors,” of this Form 10-Q. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
Current wording
This report contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements represent our good faith judgment with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially. Such statements can be identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “forecasts,” “intends,” “likely,” “plans,” “predicts,” “projects,” “should,” “will,” or variations of such words, and similar expressions. Forward-looking statements, by their nature, address matters that are, to varying degrees, uncertain. Therefore, the reader is cautioned that these forward-looking statements are subject to a number of risks, uncertainties or other factors that may cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, the risk factors described under Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the year-ended December 31, 2025, filed on March 13, 2026, which information is incorporated herein by reference. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
Previous wording
We have two reportable segments, North American wholesale operations (“Wholesale”) and North American retail operations (“Retail”). In the Wholesale segment, our products are sold to leading footwear, department, and specialty stores, as well as e-commerce retailers, primarily in the United States and Canada. We also have licensing agreements with third parties who sell our branded apparel, accessories, and specialty footwear in the United States, as well as our footwear in Mexico and certain markets overseas. Licensing revenues are included in our Wholesale segment. Our Retail segment consists of e-commerce businesses and four brick-and-mortar retail stores in the United States. Retail sales are made directly to consumers on our websites, or by our employees in our stores. Our “other” operations consist of our retail and wholesale businesses primarily based in Australia, with a limited presence in South Africa (collectively, “Florsheim Australia”). We ceased operations in the Asia Pacific region, which was previously included in Florsheim Australia, in 2023 and completed the wind down of that business in 2024. The majority of our operations are in the United States and our results are primarily affected by the economic conditions and the retail environment in the United States.
Current wording
We have two reportable segments, North American wholesale operations (“Wholesale”) and North American retail operations (“Retail”). In the Wholesale segment, our products are sold to leading footwear, department, and specialty stores, as well as e-commerce retailers, primarily in the United States and Canada. We also have licensing agreements with third parties who sell our branded apparel, accessories, and specialty footwear in the United States, as well as our footwear in Mexico and certain markets overseas. Licensing revenues are included in our Wholesale segment. Our Retail segment consists of e-commerce businesses and four brick-and-mortar retail stores in the United States. Retail sales are made directly to consumers on our websites, or by our employees in our stores. Our “other” operations include our retail and wholesale businesses in Australia and South Africa (collectively, “Florsheim Australia”). The majority of our operations are in the United States, and our results are primarily affected by the economic conditions and the retail environment in the United States.
Previous wording
Consolidated net sales were $73.1 million, down 2% compared to net sales of $74.3 million in the third quarter of 2024. Consolidated gross earnings were 40.7% of net sales compared to 44.3% of net sales in last year’s third quarter. Earnings from operations totaled $8.1 million for the quarter, down 21% from $10.2 million last year. Third quarter net earnings were $6.6 million, or $0.69 per diluted share, in 2025, versus $8.1 million, or $0.84 per diluted share, in 2024.
Current wording
Consolidated net sales were $68.0 million, flat compared to net sales in the first quarter of 2025. Consolidated gross earnings were 44.2% of net sales compared to 44.6% of net sales in last year’s first quarter. Earnings from operations totaled $7.5 million for the quarter, up 7% from $7.0 million last year. First quarter net earnings were $6.1 million, or $0.64 per diluted share, in 2026, compared to $5.5 million, or $0.57 per diluted share, in 2025.
Previous wording
At September 30, 2025, our cash and marketable securities totaled $78.5 million, and we had no debt outstanding on our $40.0 million revolving line of credit. During the first nine months of 2025, we generated $13.2 million of cash from operations. We used funds to pay $7.7 million in dividends and repurchase $4.1 million of our common stock. We also made $0.9 million in capital expenditures during the period. Additionally, our prefunded dividend of $21.6 million was paid to shareholders in January 2025.
Current wording
At March 31, 2026, our cash and marketable securities totaled $93.9 million, and we had no debt outstanding on our $40.0 million revolving line of credit. During the first three months of 2026, we generated $17.4 million of cash from operations and used funds to pay $23.9 million in dividends. We also made $0.6 million in capital expenditures during the period.
Previous wording
Consolidated gross earnings as a percentage of net sales were 40.7% and 44.3% in the third quarters of 2025 and 2024, respectively. For the year-to-date period, consolidated gross earnings were 42.8% in 2025 and 44.3% and 2024. The decreases in 2025 were primarily due to higher costs resulting from incremental tariffs enacted this year. Our cost of sales does not include distribution costs (e.g., receiving, inspection, warehousing, shipping, and handling costs) which are included in selling and administrative expenses. Consolidated distribution costs totaled $4.3 million and $4.9 million in the third quarters of 2025 and 2024, respectively. For the nine months ended September 30, consolidated distribution costs totaled $13.6 million in 2025 and $14.6 million in 2024, down in line with lower distribution activities this year.
Current wording
Consolidated gross earnings as a percent of net sales were 44.2% and 44.6% in the first quarters of 2026 and 2025, respectively. The decrease in 2026 was primarily due to higher costs resulting from incremental tariffs, partially offset by selling price increases instituted in the second half of last year. Our cost of sales does not include distribution costs (e.g., receiving, inspection, warehousing, shipping, and handling costs) which are included in selling and administrative expenses. Consolidated distribution costs totaled $4.5 million and $5.0 million in the first quarters of 2026 and 2025, respectively.
Previous wording
Consolidated earnings from operations for the three and nine months ended September 30, 2025, were down 21% and 24%, respectively, compared to the same periods one year ago. The decreases in 2025 mainly resulted from lower sales volumes and gross margins in our Wholesale segment.
Current wording
Consolidated earnings from operations for the three months ended March 31, 2026, were up 7% compared to the same period one year ago. The increase in 2026 mainly resulted from lower Wholesale selling and administrative expenses.
Previous wording
Interest income for the third quarter and year-to-date periods decreased $0.1 million and $0.5 million, respectively, due mainly to lower interest rates in 2025. Other income (expense), net, primarily includes the non-service cost components of pension expense and net gains and losses on foreign currency transactions. The income/expense category improved in the third quarter and first nine months of 2025, due to lower pension expense.
Current wording
Interest income for the first quarter increased $0.1 million due mainly to higher cash balances in 2026. Other income (expense), net, primarily includes the non-service cost components of pension (benefit) expense and net gains and losses on foreign currency transactions. The income/expense category improved in the first quarter of 2026, due to decreased pension expense and gains on favorable foreign exchange contracts.
Previous wording
Our effective tax rates for the three months ending September 30, 2025 and 2024 were 26.3% and 25.7%, respectively. For the nine months ending September 30, our effective tax rates were 31.8% in 2025 and 25.8% in 2024. See Note 9 to the Consolidated Financial Statements for additional information on income taxes.
Current wording
Our effective tax rates for the three months ended March 31, 2026 and 2025 were 26.6% and 26.5%, respectively. See Note 9 to the Consolidated Financial Statements for additional information on income taxes.
Previous wording
Consolidated net earnings for the three and nine months ending September 30, 2025, were down 18% and 29%, respectively, compared to the same periods one year ago. The decreases mainly resulted from lower operating earnings in our Wholesale segment this year.
Current wording
Consolidated net earnings for the three months ended March 31, 2026, were up 10% compared to the same period one year ago. The increase mainly resulted from lower selling and administrative expenses in our Wholesale segment this year.
Previous wording
Net sales and earnings from operations for our reportable segments and the “other” category for the three and nine months ended September 30, 2025 and 2024, were as follows:
Current wording
Net sales and earnings from operations for our reportable segments and the “other” category for the three months ended March 31, 2026 and 2025, were as follows:
Previous wording
Net sales in our Wholesale segment for the three and nine months ended September 30, 2025 and 2024, were as follows:
Current wording
Net sales in our Wholesale segment for the three months ended March 31, 2026 and 2025, were as follows:
Previous wording
Selling and administrative expenses for the Retail segment consist primarily of freight, advertising expense, employee costs, rent and occupancy costs. Retail selling and administrative expenses were flat at $4.0 million in both the third quarters of 2025 and 2024. For the nine months ending September 30, retail selling and administrative expenses were also flat at $13.6 million in both 2025 and 2024. As a percentage of net sales, retail selling and administrative expenses were 57% and 56% in the third quarters of 2025 and 2024, respectively, and were 61% and 55% in the first nine months of 2025 and 2024, respectively. Retail expenses constituted a higher percentage of sales this year, as many of our retail costs are fixed and do not vary with sales.
Current wording
Selling and administrative expenses for the Retail segment consist primarily of freight, advertising expense, employee costs, rent and occupancy costs. Retail selling and administrative expenses were $5.1 million in the first quarter of 2026, down 2% from $5.2 million in last year’s first quarter. As a percentage of net sales, retail selling and administrative expenses were 57% and 60% in the first quarters of 2026 and 2025, respectively.
Previous wording
Other income (expense), net, primarily consisted of the non-service cost components of pension expense and net gains and losses on foreign currency transactions. In the third quarter of 2025, other income (expense), net, totaled income of $0.1 million compared to expense of $0.2 million in the third quarter of 2024. For the nine months ending September 30, other income (expense) improved $0.3 million over 2024. The improvements in 2025 were primarily due to lower pension expense in 2025.
Current wording
Other income (expense), net, primarily consisted of the non-service cost components of pension (benefit) expense and net gains and losses on foreign currency transactions. In the first quarter of 2026, other income (expense), net, totaled income of $0.2 million compared to expense of $0.1 million in the first quarter of 2025. The improvement in 2026 was due to decreased pension expense and gains on favorable foreign exchange contracts entered into by Florsheim Australia.
Previous wording
The effective tax rates for the three months ending September 30, 2025 and 2024 were 26.3% and 25.7%, respectively. These rates differed from the U.S. federal rate of 21% primarily because of U.S. state taxes. For the nine months ending September 30, the effective tax rates were 31.8% in 2025 and 25.8% in 2024. The year-to-date 2025 effective tax rate differed from the U.S. federal rate of 21% because of U.S. state taxes and the establishment of a $1.1 million valuation allowance on deferred tax assets at Florsheim Australia, as it was determined more likely than not that these assets will not be realized. The year-to-date 2024 effective tax rate differed from the U.S. federal rate of 21% primarily because of U.S. state taxes.
Current wording
The effective tax rates for the three months ended March 31, 2026 and 2025 were 26.6% and 26.5%, respectively. These rates differed from the U.S. federal rate of 21% primarily because of U.S. state taxes.
Previous wording
Our primary sources of liquidity are cash, short-term marketable securities and our revolving line of credit. The following discussion focuses on information included in the accompanying Consolidated Statements of Cash Flows.
Current wording
Our primary sources of liquidity are cash, short-term marketable securities and our revolving line of credit. The following discussion focuses on information included in the accompanying Condensed Consolidated Statements of Cash Flows.
Previous wording
Net cash provided by operating activities totaled $13.2 million for the first nine months of 2025, down from $17.3 million in the same period last year. The decrease was primarily driven by lower net earnings in 2025.
Current wording
Net cash provided by operating activities totaled $17.4 million for the first three months of 2026, up from $4.1 million in the same period last year. The increase was primarily driven by lower inventory levels in 2026. The decrease in inventory was mainly due to timing; our inventory is expected to get back into the $60 to $70 million range as we move through the year.
Previous wording
Net cash used in investing activities totaled $0.1 million for the nine months ending September 30, 2025, compared to $0.7 million in the same period of 2024. The year-over-year decrease in cash usage was primarily due to higher proceeds from maturities and sales of marketable securities. Capital expenditures amounted to $0.9 million in both the nine-month periods ending September 30, 2025 and 2024. Management anticipates total capital expenditures for the full year 2025 to range between $1.0 million and $3.0 million.
Current wording
Net cash used in investing activities totaled $0.6 million for the three months ended March 31, 2026, compared to $0.4 million in the same period of 2025. Management anticipates total capital expenditures for the full year 2026 to range between $2.0 million and $3.0 million.
Previous wording
Cash dividends paid in the first nine months of 2025 totaled $7.7 million and included three dividend payments that were both declared and paid in 2025. Cash dividends paid in the first nine months of 2024 totaled $9.6 million and included four dividend payments: one that was declared in the fourth quarter of 2023 and paid in 2024 and three that were both declared and paid in 2024.
Current wording
Cash dividends paid in the first quarter of 2026 totaled $23.9 million and included two dividend payments: our regular fourth-quarter and special dividend that was declared in 2025 and paid in 2026, and our regular first quarter dividend. Cash dividends paid in the first quarter of 2025 totaled $2.5 million and included one dividend payment: our regular first quarter dividend.
Previous wording
On November 4, 2025, our Board of Directors declared a cash dividend of $0.27 per share to all shareholders of record on November 17, 2025, payable January 9, 2026. Additionally, on November 4, 2025, our Board of Directors declared a special cash dividend of $2.00 per share to all shareholders of record on November 17, 2025, payable January 9, 2026.
Current wording
On May 5, 2026, our Board of Directors declared a cash dividend of $0.28 per share to all shareholders of record on May 19, 2026, payable June 30, 2026. This represents an increase of 4% above the previous quarterly dividend rate of $0.27.
Previous wording
We repurchase our common stock under our share repurchase program when we believe market conditions are favorable. During the first nine months of 2025, we repurchased 135,501 shares for a total cost of approximately $4.1 million. As of September 30, 2025, there were 713,415 authorized shares available for repurchase under the program. See Part II, Item 2,“Unregistered Sales of Equity Securities and Use of Proceeds” below for more information.
Current wording
We repurchase our common stock under our share repurchase program when we believe market conditions are favorable. During the first three months of 2026, we repurchased 1,149 shares for a total cost of approximately $34,000. As of March 31, 2026, there were 671,076 authorized shares available for repurchase under the program. See Part II, Item 2,“Unregistered Sales of Equity Securities and Use of Proceeds” below for more information.
Previous wording
tangible net worth financial covenant) that are customary for a facility of this type. At September 30, 2025 and December 31, 2024, there were no outstanding borrowings on the line of credit, and we were in compliance with all financial covenants.
Current wording
At March 31, 2026, we had a $40.0 million revolving line of credit with a bank that is secured by a lien against our general business assets and expires on September 25, 2026. Outstanding advances on the line of credit bear interest at the one-month term SOFR plus 110 basis points. Our line of credit agreement contains representations, warranties and covenants (including a minimum tangible net worth financial covenant) that are customary for a facility of this type. At March 31, 2026 and December 31, 2025, there were no outstanding borrowings on the line of credit, and we were in compliance with all financial covenants.
Previous wording
Our regular fourth-quarter 2024 and one-time special cash dividend totaling $21.6 million were prefunded in December 2024 and paid to shareholders in January 2025. This dividend payment was reflected as a non-cash financing activity in the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025.
Current wording
Our regular fourth-quarter 2024 and special dividend totaling $21.6 million were prefunded in December 2024 and paid to shareholders in January 2025. This dividend payment was reflected as a non-cash financing activity in the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025.
Previous wording
As of September 30, 2025, approximately $4.3 million of cash and cash equivalents was held by our foreign subsidiaries.
Current wording
As of March 31, 2026, approximately $5.3 million of cash and cash equivalents was held by our foreign subsidiaries.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Other operations consist of our retail and wholesale businesses in Australia and South Africa (collectively,“Florsheim Australia”).