Rocky Brands turns to net income in Q2 2025, exceeding expectations

Rocky Brands, Inc. financial results for its second quarter ended June 30, 2025, exceeded last year's performance and market expectations. The company reported a 7.5 percent increase in net sales, reaching 105.6 million dollars. This growth was accompanied by a substantial improvement in profitability, with gross margin expanding by 230 basis points to 41 percent of net sales, compared to the same period last year.

Income from operations saw a 58.7 percent increase, climbing to 7.2 million dollars and the company swung to a net income of 3.6 million dollars, or 48 cents per diluted share, a significant turnaround from a net loss of 1.2 million dollars, or a loss of 17 cents per diluted share, in the year-ago quarter. Adjusted net income also saw a strong rise to 4.1 million dollars, or 55 cents per diluted share.

Jason Brooks, chairman, president, and CEO, attributed the strong performance to effective execution, capitalising on the strength of the company's brand portfolio and diversified manufacturing and sourcing base. “The drivers of our top-line performance were broad based and led by XTRATUF, as demand for the brand in our Wholesale and e-Commerce channels accelerated, along with Muck, which posted its strongest growth in several quarters. We were particularly pleased with the strong full-price selling we experienced, which, combined with our nimble supply chain and recent pricing actions, contributed to a 230-basis point increase in gross margins and significant improvement in profitability,” Brooks added.

Breaking down the sales figures, wholesale net sales for the second quarter increased by 7.1 percent to 73.1 million dollars. Retail net sales saw a substantial jump of 13.9 percent to 29.7 million dollars. However, contract manufacturing net sales experienced a decrease of 27.8 percent to 2.8 million dollars.

Looking ahead, Brooks expressed optimism about the business's momentum for the remainder of 2025, while maintaining caution due to overall market uncertainty. "Bookings for our U.S. Wholesale business for the second half are up solidly year-over-year, and we’ve enacted plans including leveraging our manufacturing facilities in the Dominican Republic and Puerto Rico to mitigate the impact from higher tariffs. While visibility into consumer demand is currently more challenging, we believe we are well positioned to navigate the current macroeconomic backdrop and continue delivering value for our shareholders over the near and long-term,” Brooks said.

Rocky Brands is a prominent designer, manufacturer, and marketer of footwear and apparel, boasting a portfolio of brand names including Rocky, Georgia Boot, Durango, Lehigh, The Original Muck Boot Company, XTRATUF, and Ranger.