Rocky Brands, Inc. Announces Third Quarter 2025 Results
Net Sales Increased
Income from Operations Increased
Net Income Increased
Adjusted Net Income Increased
Total Debt Decreased
Third Quarter 2025 Overview
-
Net sales increased
7.0% to$122.5 million -
Gross margin increased 210-basis points to
40.2% of net sales compared to38.1% of net sales in the year-ago quarter -
Income from operations increased
16.5% to$11.7 million $10.1 million -
Net income increased
36.6% to$7.2 million $0.96 $5.3 million $0.70 -
Adjusted net income increased
33.4% to$7.8 million $1.03 $5.8 million $0.77 -
Inventories as of September 30, 2025 increased
12.7% compared to September 30, 2024 -
Total debt as of September 30, 2025, decreased
7.5% compared with September 30, 2024
“We delivered another quarter of solid results amidst a challenging operating environment,” said Jason Brooks, Chairman, President and Chief Executive Officer. “The improvement in our top-line was led by XTRATUF as demand for the brand remains strong across our wholesale and e-commerce channels, combined with solid growth in our other work and outdoor brands including Georgia Boot, The Original Muck Boot Company and Rocky. At the same time, strong full price selling, select price increases implemented year-to-date and favorable brand and channel mix contributed to over 200 basis points of gross margin improvement in the third quarter of 2025. Looking ahead, we believe the actions we have taken, namely raising prices and diversifying our sourcing, including leveraging our manufacturing facilities in the
Third Quarter 2025 Review
Third quarter net sales increased
Gross margin in the third quarter of 2025 was
Operating expenses were
Income from operations for the third quarter of 2025 was
Interest expense for the third quarter of 2025 was
The Company reported third quarter net income of
Balance Sheet Review
Cash and cash equivalents were
As of September 30, 2025, total debt, net of unamortized debt issuance costs of
Inventories as of September 30, 2025, were
Conference Call Information
The Company's conference call to review third quarter 2025 results will be broadcast live over the internet today, Tuesday, October 28, 2025, at 4:30 pm Eastern Time. Investors and analysts interested in participating in the call are invited to dial (877) 704-4453 (domestic) or (201) 389-0920 (international). The conference call will also be available to interested parties through a live webcast at www.rockybrands.com. Please visit the website and select the “Investors” link at least 15 minutes prior to the start of the call to register and download any necessary software.
About Rocky Brands, Inc.
Rocky Brands, Inc. is a leading designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names. Brands in the portfolio include Rocky®, Georgia Boot®, Durango®, Lehigh®, The Original Muck Boot Company®, XTRATUF® and Ranger®. More information can be found at RockyBrands.com.
Safe Harbor Language
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but may not be limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management and include statements in this press release regarding the continued strength of demand for the XTRATUF brand across Wholesale and e-commerce channels (Paragraph 2), the effectiveness of the actions taken by the Company (namely rising prices and diversifying sourcing, including leveraging our manufacturing facilities in the
Rocky Brands, Inc. and Subsidiaries |
||||||||||||
Condensed Consolidated Balance Sheets |
||||||||||||
(In thousands, except share amounts) |
||||||||||||
(Unaudited) |
||||||||||||
|
|
September 30, |
|
|
December 31, |
|
|
September 30, |
|
|||
|
|
2025 |
|
|
2024 |
|
|
2024 |
|
|||
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,319 |
|
|
$ |
3,719 |
|
|
$ |
3,705 |
|
Trade receivables – net |
|
|
82,564 |
|
|
|
71,983 |
|
|
|
77,130 |
|
Other receivables |
|
|
96 |
|
|
|
1,028 |
|
|
|
177 |
|
Inventories – net |
|
|
193,613 |
|
|
|
166,701 |
|
|
|
171,847 |
|
Prepaid expenses |
|
|
5,658 |
|
|
|
3,008 |
|
|
|
5,205 |
|
Total current assets |
|
|
285,250 |
|
|
|
246,439 |
|
|
|
258,064 |
|
LEASED ASSETS |
|
|
4,890 |
|
|
|
6,030 |
|
|
|
6,705 |
|
PROPERTY, PLANT & EQUIPMENT – net |
|
|
50,533 |
|
|
|
49,666 |
|
|
|
50,380 |
|
GOODWILL |
|
|
47,844 |
|
|
|
47,844 |
|
|
|
47,844 |
|
IDENTIFIED INTANGIBLES – net |
|
|
103,730 |
|
|
|
105,823 |
|
|
|
110,521 |
|
OTHER ASSETS |
|
|
1,767 |
|
|
|
1,498 |
|
|
|
1,503 |
|
TOTAL ASSETS |
|
$ |
494,014 |
|
|
$ |
457,300 |
|
|
$ |
475,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
63,323 |
|
|
$ |
58,069 |
|
|
$ |
63,148 |
|
Current portion of long-term debt |
|
|
8,361 |
|
|
|
8,361 |
|
|
|
8,361 |
|
Accrued expenses and other liabilities |
|
|
32,471 |
|
|
|
23,977 |
|
|
|
20,845 |
|
Total current liabilities |
|
|
104,155 |
|
|
|
90,407 |
|
|
|
92,354 |
|
LONG-TERM DEBT |
|
|
130,684 |
|
|
|
120,376 |
|
|
|
141,929 |
|
LONG-TERM LEASE |
|
|
2,183 |
|
|
|
3,537 |
|
|
|
4,232 |
|
DEFERRED INCOME TAXES |
|
|
10,044 |
|
|
|
10,044 |
|
|
|
7,475 |
|
DEFERRED LIABILITIES |
|
|
851 |
|
|
|
712 |
|
|
|
777 |
|
TOTAL LIABILITIES |
|
|
247,917 |
|
|
|
225,076 |
|
|
|
246,767 |
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, no par value; |
|
|
- |
|
|
|
- |
|
|
|
- |
|
25,000,000 shares authorized; issued and outstanding September 30, 2025 - 7,488,341; December 31, 2024 - 7,454,465; September 30, 2024 - 7,449,020 |
|
|
|
|
|
|
|
|
|
|
|
|
Additional paid-in-capital |
|
|
75,449 |
|
|
|
73,866 |
|
|
|
73,537 |
|
Retained earnings |
|
|
170,648 |
|
|
|
158,358 |
|
|
|
154,713 |
|
Total shareholders' equity |
|
|
246,097 |
|
|
|
232,224 |
|
|
|
228,250 |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
|
$ |
494,014 |
|
|
$ |
457,300 |
|
|
$ |
475,017 |
|
Rocky Brands, Inc. and Subsidiaries |
||||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||||
(In thousands, except share amounts) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
NET SALES |
|
$ |
122,540 |
|
|
$ |
114,554 |
|
|
$ |
342,260 |
|
|
$ |
325,718 |
|
COST OF GOODS SOLD |
|
|
73,264 |
|
|
|
70,908 |
|
|
|
202,695 |
|
|
|
199,886 |
|
GROSS MARGIN |
|
|
49,276 |
|
|
|
43,646 |
|
|
|
139,565 |
|
|
|
125,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
OPERATING EXPENSES |
|
|
37,541 |
|
|
|
33,575 |
|
|
|
111,968 |
|
|
|
103,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
INCOME FROM OPERATIONS |
|
|
11,735 |
|
|
|
10,071 |
|
|
|
27,597 |
|
|
|
22,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
INTEREST EXPENSE AND OTHER – net |
|
|
(2,493 |
) |
|
|
(3,180 |
) |
|
|
(7,367 |
) |
|
|
(13,964 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
INCOME BEFORE INCOME TAX EXPENSE |
|
|
9,242 |
|
|
|
6,891 |
|
|
|
20,230 |
|
|
|
8,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
INCOME TAX EXPENSE |
|
|
2,030 |
|
|
|
1,612 |
|
|
|
4,468 |
|
|
|
2,011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME |
|
$ |
7,212 |
|
|
$ |
5,279 |
|
|
$ |
15,762 |
|
|
$ |
6,586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
INCOME PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.96 |
|
|
$ |
0.71 |
|
|
$ |
2.11 |
|
|
$ |
0.89 |
|
Diluted |
|
$ |
0.96 |
|
|
$ |
0.70 |
|
|
$ |
2.10 |
|
|
$ |
0.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
7,475 |
|
|
|
7,449 |
|
|
|
7,465 |
|
|
|
7,432 |
|
Diluted |
|
|
7,543 |
|
|
|
7,503 |
|
|
|
7,511 |
|
|
|
7,479 |
|
Rocky Brands, Inc. and Subsidiaries |
||||||||||||||||
Reconciliation of GAAP Measures to Non-GAAP Measures |
||||||||||||||||
(In thousands, except share amounts) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
||||
OPERATING EXPENSES, AS REPORTED |
|
$ |
37,541 |
|
|
$ |
33,575 |
|
|
$ |
111,968 |
|
|
$ |
103,271 |
|
LESS: ACQUISITION-RELATED AMORTIZATION |
|
|
(692 |
) |
|
|
(692 |
) |
|
|
(2,076 |
) |
|
|
(2,076 |
) |
ADJUSTED OPERATING EXPENSES |
|
$ |
36,849 |
|
|
$ |
32,883 |
|
|
$ |
109,892 |
|
|
$ |
101,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
ADJUSTED INCOME FROM OPERATIONS |
|
$ |
12,427 |
|
|
$ |
10,763 |
|
|
$ |
29,673 |
|
|
$ |
24,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
INTEREST EXPENSE AND OTHER – net, AS REPORTED |
|
$ |
(2,493 |
) |
|
$ |
(3,180 |
) |
|
$ |
(7,367 |
) |
|
$ |
(13,964 |
) |
ADD: TERM LOAN FACILITY EXTINGUISHMENT COSTS |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,597 |
|
ADJUSTED INTEREST EXPENSE AND OTHER – net |
|
|
(2,493 |
) |
|
|
(3,180 |
) |
|
|
(7,367 |
) |
|
|
(11,367 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME, AS REPORTED |
|
$ |
7,212 |
|
|
$ |
5,279 |
|
|
$ |
15,762 |
|
|
$ |
6,586 |
|
TOTAL NON-GAAP ADJUSTMENTS |
|
|
692 |
|
|
|
692 |
|
|
|
2,076 |
|
|
|
4,673 |
|
TAX IMPACT OF ADJUSTMENTS |
|
|
(152 |
) |
|
|
(162 |
) |
|
|
(459 |
) |
|
|
(1,093 |
) |
ADJUSTED NET INCOME |
|
$ |
7,752 |
|
|
$ |
5,809 |
|
|
$ |
17,379 |
|
|
$ |
10,166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME PER SHARE, AS REPORTED |
|
|
|
|
|
|
|
|
|
|
|
|
||||
BASIC |
|
$ |
0.96 |
|
|
$ |
0.71 |
|
|
$ |
2.11 |
|
|
$ |
0.89 |
|
DILUTED |
|
$ |
0.96 |
|
|
$ |
0.70 |
|
|
$ |
2.10 |
|
|
$ |
0.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
ADJUSTED NET INCOME PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
||||
BASIC |
|
$ |
1.04 |
|
|
$ |
0.78 |
|
|
$ |
2.33 |
|
|
$ |
1.37 |
|
DILUTED |
|
$ |
1.03 |
|
|
$ |
0.77 |
|
|
$ |
2.31 |
|
|
$ |
1.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
||||
BASIC |
|
|
7,475 |
|
|
|
7,449 |
|
|
|
7,465 |
|
|
|
7,432 |
|
DILUTED |
|
|
7,543 |
|
|
|
7,503 |
|
|
|
7,511 |
|
|
|
7,479 |
|
Use of Non-GAAP Financial Measures
In addition to GAAP financial measures, we present the following non-GAAP financial measures: "non-GAAP adjusted operating expenses," "non-GAAP adjusted income from operations," "non-GAAP adjusted interest expense and other - net", "non-GAAP adjusted net income," and "non-GAAP adjusted net income per share." Adjusted results exclude the impact of items that management believes affect the comparability or underlying business trends in our consolidated financial statements in the periods presented. We believe that these non-GAAP measures are useful to management and investors and other users of our consolidated financial statements as an additional tool for evaluating operating performance. We believe they also provide a useful baseline for analyzing trends in our operations.
Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. See "Reconciliation of GAAP Measures to Non-GAAP Measures" accompanying this press release.
|
Definition |
Usefulness to management and investors |
Acquisition-related amortization |
Amortization of acquisition-related intangible assets consists of amortization of intangible assets such as brands and customer relationships acquired in connection with the acquisition of the performance and lifestyle footwear business of Honeywell International Inc. Charges related to the amortization of these intangibles are recorded in operating expenses in our GAAP financial statements. Amortization charges are recorded over the estimated useful life of the related acquired intangible asset and are generally recorded over multiple years. |
We excluded amortization charges for our acquisition-related intangible assets for purposes of calculating certain non-GAAP measures because these charges are inconsistent in size and are significantly impacted by the valuation of our acquisition. These adjustments facilitate a useful evaluation of our current operating performance and comparison to past operating performance and provide investors with additional means to evaluate cost and expense trends. |
Term loan facility extinguishment costs |
Term debt extinguishment costs relate to the loss incurred on the extinguishment of debt during the second quarter 2024. The prepayment penalty associated with the early termination of the term debt, as well as the accelerated amortization of deferred financing fees of the term debt, was recorded as expense within Interest Expense and Other - net accompanying unaudited condensed consolidated financial statements. |
We excluded these costs for purposes of calculating non-GAAP measures because these costs do not reflect our current operating performance. This adjustment is a one-time cost for refinancing the term debt and is not reoccurring. This adjustment facilitates a useful evaluation of our current operations performance and comparisons to past operating results and provide investors with additional means to evaluate expense trends. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20251028040657/en/
Company Contact:
Tom Robertson
Chief Operating Officer, Chief Financial Officer and Treasurer
(740) 753-9100
Investor Relations:
Brendon Frey
ICR, Inc.
(203) 682-8200
Source: Rocky Brands, Inc.
