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Sep 30, 2025
Rocky Brands Q3 2025 Earnings Report
Rocky Brands reported increased net sales, income from operations, and net income for the third quarter of 2025.
Key Takeaways
Rocky Brands delivered a solid third quarter, with net sales increasing 7.0% to $122.5 million, driven by strong demand for XTRATUF and other work and outdoor brands. The company also saw significant improvements in gross margin and net income, which rose 36.6% to $7.2 million.
Net sales increased 7.0% to $122.5 million compared to the year-ago quarter.
Gross margin improved by 210 basis points to 40.2% of net sales.
Net income surged 36.6% to $7.2 million, or $0.96 per diluted share.
Adjusted net income increased 33.4% to $7.8 million, or $1.03 per diluted share.
Revenue by Segment
Forward Guidance
Rocky Brands anticipates continued pressure on margins from higher tariffs in the coming quarters but expects to offset some of this impact through strategic actions and leverage growth opportunities in 2026 and beyond.
Positive Outlook
- Continued strong demand for the XTRATUF brand across wholesale and e-commerce channels.
- Solid growth in other work and outdoor brands including Georgia Boot, The Original Muck Boot Company, and Rocky.
- Strong full-price selling and select price increases implemented year-to-date.
- Favorable brand and channel mix contributing to gross margin improvement.
- Diversifying sourcing, including leveraging manufacturing facilities in the Dominican Republic and Puerto Rico, to offset tariff impacts.
Challenges Ahead
- Higher tariffs are expected to pressure margins over the next few quarters.
- Increased outbound logistics costs.
- Higher selling costs associated with the increase in direct-to-consumer business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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