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Rocky Brands (RCKY) investor relations material
Rocky Brands Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net sales for Q3 2025 increased 7% year-over-year to $122.5 million, with growth across Wholesale, Retail, and Contract Manufacturing segments, driven by strong demand for XTRATUF and other work/outdoor brands.
Gross margin improved by 210 basis points to 40.2%, supported by favorable product mix, price increases, and strong full-price selling.
Adjusted diluted EPS rose 34% to $1.03, with adjusted net income up 33.4% to $7.8 million; reported net income was $7.2 million ($0.96 per diluted share), up 36.6%.
Operating income for Q3 2025 rose to $11.7 million (9.6% of net sales), with adjusted operating income at $12.4 million (10.1%).
Strong brand performance, especially from XTRATUF and Muck, offset by softness in Durango due to order timing and sourcing transitions.
Financial highlights
Net sales for Q3 were $122.5 million, up 7% year-over-year; year-to-date net sales increased 5.1% to $342.3 million.
Gross profit reached $49.3 million (40.2% of net sales), up from $43.6 million (38.1%) last year.
Year-to-date operating income was $27.6 million (8.1% of net sales), up from $22.6 million (6.9%) in 2024.
Adjusted net income was $7.8 million ($1.03 per diluted share), compared to $5.8 million ($0.77) last year; reported net income was $7.2 million ($0.96 per diluted share).
Total debt decreased 7.5% year-over-year to $139 million; inventories increased 12.7% to $193.6 million.
Outlook and guidance
Full-year 2025 revenue expected to grow 4–5% over 2024, with gross margins down about 70 basis points to 38–39%.
2025 EPS projected to increase ~10% over last year’s $2.54.
Tariff headwinds expected to peak in Q4 2025, then gradually abate through mid-2026.
Management expects higher tariffs to pressure margins in coming quarters but anticipates that price increases and diversified sourcing will help offset impacts.
Management expects sufficient liquidity to fund operations and obligations for the next twelve months and beyond.
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