Rocky Brands (RCKY) Q4 2024 earnings summary

Executive summary

• Q4 2024 concluded with strong core business performance, overcoming macroeconomic headwinds and challenging year-over-year comparisons due to non-recurring 2023 sales.

• Q4 2024 net sales rose 1.7% to $128.1M; full-year net sales declined 1.7% to $453.8M year-over-year.

• Adjusted net income for Q4 increased 22.7% to $8.9M; full-year adjusted net income up 32.9% to $19.0M.

• Direct-to-consumer (DTC) channel achieved record sales volume, with retail segment posting its highest-ever quarterly sales.

• Board authorized a new $7.5M share repurchase program.

Financial highlights

• Q4 sales rose 1.7% year-over-year to $128.1M; up 8.8% excluding non-recurring 2023 sales.

• Retail sales increased 15.3% (16.3% recurring) to $43.6M; wholesale sales down 5.2% but up 4.5% recurring; contract manufacturing up 39.1%.

• Q4 gross profit was $53.2M (41.5% margin), up from $50.7M (40.3%) last year.

• Adjusted net income for Q4 was $8.9M ($1.19/share), up from $7.3M ($0.98/share) last year.

• Interest expense for 2024 was $17.0M, including a $2.6M one-time term loan extinguishment charge; excluding this, interest expense was $14.4M.

Outlook and guidance

• 2025 revenue expected to grow low single digits over 2024’s $453.8M, led by retail and steady wholesale growth.

• Gross margins forecasted to decline modestly due to a 110 bps headwind from higher tariffs; otherwise, margins would be up.

• SG&A to rise in dollars but remain similar as a percentage of revenue; interest expense to decline further.

• 2025 EPS projected just below 2024’s adjusted EPS, but up ~20% excluding tariff impact.

• Management is cautiously optimistic about near-term prospects despite macroeconomic uncertainty.