Rocky Brands (RCKY) Q3 2025 earnings summary

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.