Rocky Brands (RCKY) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 13.3% YoY to $138.8M, marking a second consecutive quarter of double-digit growth.

• Broad demand and DTC strength supported growth; Durango, Muck, XTRATUF and Lehigh CustomFit posted double-digit sales gains.

Financial highlights

• Gross profit was $62.5M, or 45.0% of sales, versus $49.3M, or 40.2%, in Q3 2025; normalized gross margin excluding tariff and free-trade-zone benefits was 40.7%.

• Operating income was $18.2M versus $11.7M; adjusted operating income was $18.9M versus $12.4M.

• GAAP net income was $12.8M, or $1.69 per diluted share, versus $7.2M, or $0.96; adjusted net income was $13.4M and adjusted diluted EPS was $1.76.

• Nine-month net sales rose 11.5% to $381.6M; net income was $28.0M and diluted EPS was $3.68.

Outlook and guidance

• FY 2026 revenue growth guidance increased to ~10.5% from 8.5%; Q4 sales growth implied by guidance is ~8%.

• FY 2026 gross margin is projected at ~41% normalized for tariff and free-trade-zone impacts; reported EPS guidance rose to ~$5.30, while net EPS guidance remains ~$4.

• Operating expenses as a percentage of sales are expected to rise slightly YoY, reflecting higher Q4 performance-based compensation.

• Q4 retail is expected to grow faster than wholesale; contract manufacturing sales are expected to fall by a couple million dollars as military contracts wind down.

• Long-term gross margin target remains 40%; pricing actions are planned to help offset cost pressures, and FY 2027 guidance is planned for the next earnings call.