Rocky Brands (RCKY) 27th Annual ICR Conference 2025 summary

Company overview and brand portfolio

• Founded in 1932, went public in 1993, and expanded through key acquisitions in 2005 and 2021, doubling business size each time.

• Operates three segments: wholesale (70% of sales), retail (27%), and contract manufacturing (3%).

• Owns manufacturing facilities in the U.S., Dominican Republic, and China, with ongoing diversification outside China due to tariff concerns.

• Brand portfolio includes Muck, Georgia Boot, Durango, Rocky, Lehigh, XTRATUF, and Ranger, each targeting specific market segments.

• Distribution is primarily through wholesale partners, with a growing focus on direct-to-consumer (DTC) channels.

Brand performance and growth strategies

• XTRATUF is the fastest growing brand, doubling in size since 2021, with expansion into women's and kids' segments and inland markets.

• Durango and Rocky brands are seeing renewed interest, especially in Western and work categories, with opportunities to grow DTC sales.

• Lehigh B2B business is growing in low double digits, leveraging digital platforms to serve large national accounts and displace traditional truck-based competitors.

• Marketing investments are focused on digital, social media, and collaborations, especially for XTRATUF and Durango, with notable partnerships like Guy Harvey and upcoming Sesame Street.

• Strategic inventory management and selective retail partnerships are key to maintaining brand strength and profitability.

Financial highlights and operational updates

• 2021 acquisition doubled company size; 2022 was a high point, followed by a 2023 sales decrease due to divestitures and retail inventory corrections.

• Despite lower sales in 2023, operating income improved, driven by better inventory management and gross margin expansion.

• Debt reduced by over 50% and inventory by 30% in the last 18 months, aided by a 2024 debt refinancing that lowered interest expenses.

• 2024 net sales guidance is $450–$460 million, reflecting the absence of $30 million in non-recurring 2023 revenue and a shift to a more profitable distributor model in Canada.

• Gross margins are expected to remain around 39%, with increased investment in marketing and people to drive long-term growth.