Rocky Brands Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw 12% sales growth, record gross margins from a major tariff refund, and strong performance across brands and channels. Full-year guidance was raised, with continued investment in D2C, inventory quality, and debt reduction, despite ongoing cost and tariff headwinds.
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Founded in 1932, the company has grown through acquisitions and now operates a diversified portfolio of footwear brands, with a strong focus on DTC and digital expansion. XTRATUF leads growth, especially online, while owned manufacturing provides cost and supply chain advantages. 2026 outlook projects 6% sales growth, with ongoing investments in digital and apparel initiatives.
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Q1 2026 net sales rose 9.1% year-over-year, driven by strong brand and channel performance, though gross margins fell due to higher tariffs. Guidance for 2026 is reiterated, with revenue growth of ~6% and EPS growth in the low teens expected as tariff headwinds ease in H2.
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Despite tariff headwinds, achieved solid growth in 2025 by shifting production, raising prices, and leveraging in-house manufacturing. XTRATUF and Muck brands are driving expansion, while Lehigh's recurring revenue model and e-commerce growth support a positive 2026 outlook.
Fiscal Year 2025
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Q4 2025 saw 9% sales growth and strong retail momentum, with e-commerce and key brands like XTRATUF and Muck outperforming expectations. Despite tariff headwinds, gross margins held steady, and 2026 guidance calls for 6% revenue growth and EPS gains in the low teens.
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Third-quarter sales rose 7% with strong brand performance and improved margins, despite tariff headwinds and supply chain delays. Guidance for 2025 is reiterated, with tariff impacts expected to peak in Q4 and abate by mid-2026.
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Q2 saw 7.5% sales growth, a 230 bps gross margin increase, and adjusted EPS more than tripled year-over-year, led by strong outdoor brand performance and disciplined cost control. 2025 guidance was raised for both revenue and EPS, despite tariff headwinds.
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Q1 2025 saw strong retail and brand growth, record gross margins, and a 78% rise in adjusted net income. Despite tariff headwinds, guidance is reiterated with price increases and sourcing diversification to protect gross profit.
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The business is leveraging a diversified brand portfolio and expanding DTC and digital channels, with XTRATUF as the fastest growing brand. Financial discipline has improved profitability despite lower sales, and strategic investments in marketing and inventory are set to drive growth in 2025.
Fiscal Year 2024
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Q4 2024 saw strong retail and recurring wholesale growth, led by Durango and XTRATUF brands, with record DTC sales and improved gross margins. 2025 guidance calls for low single-digit revenue growth, modest margin pressure from tariffs, and continued focus on debt reduction and shareholder returns.
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Q3 sales declined 2.4% year-over-year, with strong double-digit growth in Durango, XTRATUF, and Lehigh nearly offsetting softness in other brands. Gross margin improved by 110 basis points, and debt was reduced by nearly 30% year-over-year. Full-year sales are expected at the low end of guidance.
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Q2 results modestly exceeded expectations, with strong gains from Durango and XTRATUF offsetting softness elsewhere. Net sales rose 6.1% year-over-year excluding non-recurring items, and debt refinancing is set to reduce interest expense. Gross margin guidance was revised lower due to rising freight costs.