Rocky Brands (RCKY) Q4 2025 earnings summary

Executive summary

• Achieved highest quarterly growth rate of the year in Q4 2025, with net sales up 9.1% year-over-year to $139.7 million, driven by strong direct-to-consumer demand and robust holiday season performance.

• Full-year 2025 net sales increased 6.2% to $482.0 million, with gross margin expansion of 150 basis points and net income up 95.6% to $22.3 million.

• Adjusted net income for 2025 was $24.5 million, or $3.26 per diluted share, up from $19.0 million, or $2.54 per share, in 2024.

• Operational agility in supply chain and diversified sourcing offset tariff impacts and positioned the company for future margin tailwinds.

• Board authorized a new $7.5 million share repurchase program, replacing the previous plan.

Financial highlights

• Q4 2025 net sales rose 9.1% to $139.7 million; retail sales up 30.8% to $57 million, wholesale down 2.1% to $79.6 million, contract manufacturing flat at $3.2 million.

• Q4 gross profit was $57.7 million (41.3% margin), slightly down from 41.5% last year due to $8.3 million in tariffs and sourcing variances.

• Q4 operating expenses were $48.1 million (34.5% of sales); adjusted operating expenses were $47.4 million (34.0% of sales).

• Q4 GAAP net income was $6.5 million ($0.86 per diluted share); adjusted net income was $7.2 million ($0.94 per share), down from $8.9 million ($1.19 per share) last year.

• Full-year gross margin improved 150 bps to 40.9% of net sales, driven by higher wholesale margins and retail mix.

Outlook and guidance

• 2026 revenue expected to grow ~6%, with retail segment outpacing wholesale.

• Gross margins forecasted to remain similar to 2025, despite ~$10 million in tariffs, mostly impacting the first half.

• SG&A to increase in dollars due to higher marketing spend, but expected to leverage by 80 basis points as a percentage of revenue.

• Interest expense to decline modestly; EPS growth projected in the low teens, with all earnings growth expected in the second half, especially Q4.

• Management expects to capitalize on growth opportunities in 2026, citing strong brand momentum and diversified sourcing to offset tariffs.