Rocky Brands (RCKY) 28th Annual ICR Conference 2026 summary

2025 performance and tariff management

• Achieved 4%-5% revenue growth and about 10% earnings growth in 2025 despite tariff challenges.

• Implemented pricing increases and shifted production to offset tariff impacts.

• Moved more manufacturing in-house, especially to facilities in the Dominican Republic and Puerto Rico.

• Retailers and consumers adapted well to price increases, with minimal demand impact.

• Tariff-related changes will show full benefits in the second half of 2026, with gross margins expected to surpass pre-tariff levels.

Sourcing strategy and manufacturing flexibility

• Leveraged unique in-house manufacturing to optimize tariff exposure and costs.

• Increased production in Puerto Rico, launching a USA-made boot in February.

• Benefited from increased footwear capacity in Asia, with China becoming more competitive.

• Sourcing changes require higher raw material inventory and longer lead times.

Brand and product portfolio growth

• XTRATUF and Muck brands are driving significant growth, with XTRATUF expanding inland and Muck rebounding after inventory corrections.

• New products like the RainScape boot and Muckster Clog are expanding the consumer base.

• E-commerce and digital marketing investments are fueling brand momentum, especially for XTRATUF.

• Western and work boot segments remain strong, with innovation like BOA lacing attracting younger consumers.