Jonathan Komp

Bruce Geller

Ethan Saghi

Janine Hoffman Stichter

Janine Stichter

- Rocky Brands reported **strong Q3 2025 results** with **net sales increasing 7% to $122.5 million** and **adjusted diluted EPS rising 34% to $1.03** compared to the prior year.  **[0000895456_2209136_1]** **[0000895456_2209136_3]**  Gross profit was **$49.3 million**, or **40.2% of net sales**, an improvement of **210 basis points**.  **[0000895456_2209136_3]** 
- The company reiterated its **full-year 2025 guidance**, expecting revenue to increase **4% to 5%** and EPS to increase approximately **10%** over last year's **$2.54**.  **[0000895456_2209136_4]** 
- Rocky Brands is actively **diversifying its sourcing base** and increasing in-house production to mitigate the impact of higher tariffs, projecting **50% of inventory needs manufactured in-house by 2026**.  **[0000895456_2209136_1]** **[0000895456_2209136_4]** 
- Higher tariffs are expected to **significantly pressure gross margins in Q4 2025**, with approximately **$10 million** flowing through the P&L, but gross margins are anticipated to return to the high 30s/low 40s % range in the **second half of 2026**.  **[0000895456_2209136_3]** **[0000895456_2209136_4]** **[0000895456_2209136_6]**

Rocky Brands Reports Strong Q3 2025 Results and Reiterates Full-Year Guidance

- Rocky Brands reported strong Q3 2025 results with **net sales increasing 7% to $122.5 million** and **adjusted diluted EPS rising 34% to $1.03**.  **[0000895456_2213326_1]** **[0000895456_2213326_3]** 
- Gross margins improved by **210 basis points to 40.2%** of net sales, despite **160 basis points** of pressure from higher tariffs.  **[0000895456_2213326_3]** 
- The company is actively diversifying its sourcing, projecting **50%** of 2026 inventory needs to be manufactured in-house (up from **30%** in 2025), to abate tariff headwinds by mid-2026.  **[0000895456_2213326_1]** **[0000895456_2213326_2]** **[0000895456_2213326_4]** 
- Management expects Q4 2025 to be the "worst quarter from a tariff perspective," with approximately **$10 million** in incremental tariffs impacting the P&L, but anticipates gross margins to recover to the high 30s/low 40s % range in the second half of 2026.  **[0000895456_2213326_3]** **[0000895456_2213326_4]** **[0000895456_2213326_7]** 
- Full-year 2025 guidance was reiterated, projecting revenue growth of **4% to 5%** and EPS growth of approximately **10%** over 2024's **$2.54**.  **[0000895456_2213326_4]**

- Rocky Brands reported a **7%** increase in net sales to **$122.5 million** and adjusted diluted EPS of **$1.03**, a **34%** increase, for Q3 2025.  **[0000895456_2213358_1]** **[0000895456_2213358_3]**  Gross margins improved by **210 basis points** to **40.2% of net sales**.  **[0000895456_2213358_1]** **[0000895456_2213358_3]** 
- The company is actively diversifying its sourcing base, including increasing in-house production to **50%** of inventory needs in 2026 (up from 30% in 2025), and shifting third-party manufacturing away from China and Vietnam to mitigate higher tariffs.  **[0000895456_2213358_1]** **[0000895456_2213358_4]**  These actions are expected to help gross margins return to the high 30s, low 40s% range in the second half of 2026.  **[0000895456_2213358_4]** 
- Inventories at the end of Q3 2025 were **$193.6 million**, up **12.7%** year-over-year, with approximately **$17 million** of the increase attributed to higher tariffs.  **[0000895456_2213358_3]**  **$10 million** of this tariff impact is expected to flow through the P&L in Q4 2025, with the remainder in the first half of 2026.  **[0000895456_2213358_3]** 
- For the full year 2025, Rocky Brands reiterated its guidance, expecting revenue to increase between **4% to 5%** compared to 2024 levels, and EPS to increase approximately **10%** over last year's **$2.54**.  **[0000895456_2213358_4]**  Full-year gross margins are projected to be down approximately **70 basis points** to between **38% and 39%**.  **[0000895456_2213358_4]** 
- Brand performance was strong for **XTRATUF** and **Muck**, with **Georgia Boot** and **Rocky Work/Outdoor** also showing solid growth, while **Durango** sales were down year-over-year in Q3 due to pulled-forward orders.  **[0000895456_2213358_1]** **[0000895456_2213358_2]**

- Rocky Brands, Inc. reported **net sales** of **$122.5 million** for Q3 2025, an increase of **7.0%** compared to the prior year quarter.  **[895456_0001437749-25-031962_ex_857236.htm:0]** **[895456_0001437749-25-031962_ex_857236.htm:1]** 
- **Net income** for Q3 2025 increased **36.6%** to **$7.2 million**, or **$0.96 per diluted share**, compared to $5.3 million, or $0.70 per diluted share, in Q3 2024.  **[895456_0001437749-25-031962_ex_857236.htm:0]** **[895456_0001437749-25-031962_ex_857236.htm:1]** **[895456_0001437749-25-031962_ex_857236.htm:2]** 
- **Adjusted net income** rose **33.4%** to **$7.8 million**, or **$1.03 per diluted share**, in Q3 2025, up from $5.8 million, or $0.77 per diluted share, in the year-ago period.  **[895456_0001437749-25-031962_ex_857236.htm:0]** **[895456_0001437749-25-031962_ex_857236.htm:1]** **[895456_0001437749-25-031962_ex_857236.htm:2]** 
- **Gross margin** improved by **210-basis points** to **40.2%** of net sales in Q3 2025.  **[895456_0001437749-25-031962_ex_857236.htm:1]** 
- Total debt as of September 30, 2025, was **$139.0 million**, representing a **7.5% decrease** compared to September 30, 2024.  **[895456_0001437749-25-031962_ex_857236.htm:1]** **[895456_0001437749-25-031962_ex_857236.htm:2]**

Rocky Brands, Inc. Announces Third Quarter 2025 Results

- **Rocky Brands, Inc.** reported **net sales** of **$122.5 million** for the third quarter ended September 30, 2025, an increase of **7.0%** compared to the year-ago quarter.  **[895456_b3a2e7f537494336969b1336d223d8a8_0]** **[895456_b3a2e7f537494336969b1336d223d8a8_1]** 
- **Net income** for Q3 2025 increased **36.6%** to **$7.2 million**, or **$0.96 per diluted share**, compared to $5.3 million, or $0.70 per diluted share, in the third quarter of 2024.  **[895456_b3a2e7f537494336969b1336d223d8a8_0]** **[895456_b3a2e7f537494336969b1336d223d8a8_1]** 
- **Adjusted net income** for Q3 2025 rose **33.4%** to **$7.8 million**, or **$1.03 per diluted share**, compared to $5.8 million, or $0.77 per diluted share, in the year-ago period.  **[895456_b3a2e7f537494336969b1336d223d8a8_0]** **[895456_b3a2e7f537494336969b1336d223d8a8_5]** 
- **Gross margin** improved by **210-basis points** to **40.2%** of net sales in Q3 2025, up from 38.1% in the prior year.  **[895456_b3a2e7f537494336969b1336d223d8a8_0]** **[895456_b3a2e7f537494336969b1336d223d8a8_1]** 
- **Total debt** as of September 30, 2025, was **$139.0 million** (net of unamortized debt issuance costs), representing a **7.5% decrease** compared to September 30, 2024.  **[895456_b3a2e7f537494336969b1336d223d8a8_0]** **[895456_b3a2e7f537494336969b1336d223d8a8_2]**

ROCKY BRANDS (RCKY)