Rocky Brands reports 13.3 percent net sales growth in Q3 2026

US footwear company Rocky Brands (Rocky Brands) posted a 13.3 percent increase in net sales to 138.80 million dollars for the third quarter ended September 30, 2026, up from 122.50 million dollars in the year-ago period.

Net income rose to 12.80 million dollars, or 1.69 dollars per diluted share, compared to 7.20 million dollars, or 0.96 dollars per diluted share, in the third quarter of 2025. Adjusted net income reached 13.40 million dollars, or 1.76 dollars per diluted share, compared to 7.80 million dollars, or 1.03 dollars per diluted share, in the prior-year period.

Rocky Brands chairman, president and chief executive officer (CEO), Jason Brooks, credited broad-based demand and retail performance for the gains.

“We delivered strong third quarter results highlighted by our second consecutive quarter of double-digit top-line growth,” said Brooks. “Demand was broad based with several of our brands achieving double-digit sales gains led by Durango, Muck and XTRATUF, as well as our Lehigh CustomFit business.”

Wholesale and retail drive segment gains

Wholesale net sales for the third quarter increased 11.8 percent year-over-year (YoY) to 99.60 million dollars, compared to 89.10 million dollars in the third quarter of 2025.

Retail segment net sales rose 20 percent to 35.40 million dollars from 29.50 million dollars in the previous year. Contract manufacturing segment net sales decreased 3.1 percent to 3.80 million dollars compared to 3.90 million dollars in the third quarter of 2025.

Income from operations climbed to 18.20 million dollars compared to 11.70 million dollars in the year-ago quarter.

Margin expansion and balance sheet improvements

Gross margin for the quarter was 62.50 million dollars, or 45 percent of net sales, up 480 basis points from 49.30 million dollars, or 40.2 percent of net sales, in the third quarter of 2025.

Gross margin expansion was driven by full-price selling alongside 2.50 million dollars in International Emergency Economic Powers Act tariff refunds and a temporary 3.50 million dollar benefit from selling inventory from the company free trade zone without incremental tariffs, partially offset by sourcing variances.

Total debt as of September 30, 2026, decreased 16.6 percent to 116.00 million dollars from 139.00 million dollars at September 30, 2025. Inventories dropped 2 percent to 189.70 million dollars compared to 193.60 million dollars in the prior year.