Xtratuf drives Rocky Brands' strong Q3 growth

Rocky Brands, Inc. reported a strong third quarter ended September 30, 2025, with growth across both the top and bottom lines despite what CEO Jason Brooks called a "challenging operating environment."

Net sales increased 7 percent to 122.5 million dollars compared to the year-ago quarter, driven by strong demand for Xtratuf across its wholesale and e-commerce channels, along with solid growth in its other work and outdoor brands including Georgia Boot, The Original Muck Boot Company, and Rocky.

The company also saw an increase in profitability, with net income rising 36.6 percent to 7.2 million dollars, or 96 cents per diluted share, compared to 5.3 million dollars a year ago, while adjusted net income increased 33.4 percent to 7.8 million dollars, or 1.03 dollars per diluted share. This improved performance was supported by a 210-basis point jump in gross margin to 40.2 percent of net sales, which the company attributed to strong full-price selling, selective price increases, and a favourable brand and channel mix.

Wholesale net sales grew by 6.1 percent to 89.1 million dollars, and retail net sales rose by 10.3 percent to 29.5 million dollars. Furthermore, the company improved its financial health, as total debt decreased by 7.5 percent compared to the prior year.

Looking ahead, the company is raising prices and diversifying its sourcing, utilising manufacturing facilities in the Dominican Republic and Puerto Rico, to offset the impact of higher tariffs that are expected to pressure margins in the coming quarters.