Rocky Brands, Inc. is engaged in the comprehensive process of designing, manufacturing, and distributing footwear and apparel globally, spanning markets in the ...
Rocky Brands, Inc. (NASDAQ: RCKY) is a leading designer, manufacturer, and marketer of premium footwear and apparel. Founded in 1932 by brothers William and F.M. Brooks in Nelsonville, Ohio, the company has grown into a global enterprise with a diverse brand portfolio including Rocky, Georgia Boot, Durango, Lehigh, Muck, XTRATUF, ...Rocky Brands, Inc. (NASDAQ: RCKY) is a leading designer, manufacturer, and marketer of premium footwear and apparel. Founded in 1932 by brothers William and F.M. Brooks in Nelsonville, Ohio, the company has grown into a global enterprise with a diverse brand portfolio including Rocky, Georgia Boot, Durango, Lehigh, Muck, XTRATUF, Servus, NEOS, and Ranger, as well as licensed Michelin brand products. The company operates through three segments: Wholesale, Retail, and Contract Manufacturing. The Wholesale segment supplies products to approximately 10,000 retail locations, including major sporting goods chains, outdoor retailers, independent shoe stores, hardware stores, and online retailers. The Retail segment connects directly with consumers via e-commerce platforms and physical stores, such as the Rocky outlet in Nelsonville. The Contract Manufacturing segment produces private label and bespoke footwear, including orders for the U.S. Military. Catering to a wide customer base—from industrial professionals and farmers to outdoor enthusiasts and military personnel—Rocky Brands emphasizes quality and durability. Financially, the company has shown resilience with a market cap of approximately $371 million and a trailing twelve-month revenue per share of $67.14. With a gross profit margin of 42.2% and a net profit margin of 5.7%, the company maintains solid profitability. Led by President and CEO Jason S. Brooks, who has been at the helm since 2017 and Chairman since 2021, Rocky Brands continues to uphold its legacy of craftsmanship and innovation. The company is committed to its communities and associates, focusing on sustainable growth and expanding its reach in the global footwear market.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$482.0M
+6.2%
-4.8%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$22.3M
+95.6%
+1002.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+40.9%
+3.8%
+40.7%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+7.7%
+12.7%
+469.1%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+4.6%
+84.2%
+1058.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$9.7M
-79.8%
+456.6%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+2.0%
-81.0%
+485.0%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
50.4%
-13.4%
+2.0%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.82x
+3.3%
+2.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Rocky Brands Second Quarter 26 Earnings Conference Call. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. Instructions will be provided at that time for you to queue up for questions. If anyone has technical difficulties during the conference, I would like to remind everyone that this conference is being recorded. And I will now turn the conference over to Brendon Frey of ICR.
Brendon Frey: Thanks, everyone, for joining us. Before we begin, please note that today's session, including the Q&A period, may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 2 thousand. Such statements are based on information and assumptions available at this time and are subject to changes, risks and uncertainties, which may cause actual results to differ materially. We assume no obligation to update such statements. For a complete discussion of the risks and uncertainties, please refer to today's press release, our reports filed with the Securities and Exchange Commission including our 10-Ks for the year ended 12/31/2025. In addition, the company may refer to certain adjusted non-GAAP metrics on this call. Explanation of these metrics can be found in the earnings release filed earlier today. I will now turn the conference over to Mr. Jason S. Brooks, President and Chief Executive Officer of Rocky Brands. Jason?
Jason S. Brooks: Thank you, Brendon. With me on today's call is Tom Robertson, our Chief Operating and Chief Financial Officer. After our prepared remarks, we will take questions. After 2 consecutive quarters of high single digit sales growth, our momentum accelerated in the second quarter with a sales increase of 12% on top of a 7.5% gain in the year-ago period. We are encouraged by the broad-based strength across our portfolio with several brands delivering solid double digit growth. Led by XTRATUF, followed by Georgia, Rocky, and our Lehigh B2B safety-shoe business. Direct-to-consumer sales were particularly strong, while increased sell through in our wholesale channel during the second quarter fueled strong bookings for the second half of the year. Tom will walk through the financials in detail shortly. But as you saw from our earnings release, we recorded a tariff refund receivable in Q2. We are very pleased to start receiving these funds after the amount of work and costs we incurred following the implementation of last year's IEEPA tariffs. The actual and expected refund had a very positive impact on gross margins and profitability this quarter. And we plan to reinvest a portion into the business while also paying down debt. Now let me walk you through our second quarter brand performance. XTRATUF delivered another outstanding quarter extending its position as the fastest growing brand in the portfolio. Wholesale posted a large …
