Rocky Brands (NASDAQ: RCKY) lifts Q2 2026 profit, margins and cuts debt
Rhea-AI Filing Summary
Rocky Brands, Inc. reported strong second quarter 2026 results, with net sales up 12.0% to $118.4 million from $105.6 million a year earlier. Wholesale sales rose to $78.8 million, retail to $36.2 million, and contract manufacturing to $3.3 million.
Gross margin expanded to 51.4% of net sales from 41.0%, driven mainly by actual and expected IEEPA tariff refunds that reduced cost of goods sold by about $15.0 million. Income from operations increased to $19.7 million and net income rose to $13.9 million, or $1.83 per diluted share, with adjusted net income of $14.4 million, or $1.90 per diluted share.
Operating expenses were $41.1 million, including roughly $1.1 million of accounts receivable write-offs tied to a customer bankruptcy. As of June 30, 2026, total debt was $122.4 million, down 7.6% year over year, and inventories were $173.5 million, down 7.1%, while other receivables increased to $20.1 million primarily from the tariff refund receivable. Management highlighted strong brand performance and bookings that are expected to support second-half momentum.
Positive
- Net sales rose 12.0% to $118.4 million while net income increased to $13.9 million from $3.6 million, with diluted EPS at $1.83 versus $0.48.
- Gross margin expanded to 51.4% of net sales from 41.0%, aided by IEEPA tariff refunds that reduced cost of goods sold by approximately $15.0 million in the quarter.
- Total debt fell 7.6% year over year to $122.4 million and inventories declined 7.1% to $173.5 million as of June 30, 2026, indicating balance sheet improvement.
Negative
- Operating expenses increased to $41.1 million, including an approximate $1.1 million write-off of accounts receivable associated with a customer bankruptcy in the second quarter of 2026.
- A large portion of the earnings improvement reflects IEEPA tariff refunds, which produced an approximate $15.0 million reduction in cost of goods sold in the quarter.
Filing Explained
At June 30, cash was $2.6 million against $122.4 million of debt, while $20.1 million of other receivables primarily reflected an expected tariff refund.
Rocky Brands says the July 28 Form 8-K furnishes its second-quarter results under Item 2.02; the release is expressly not treated as filed under Section 18, so the filing reports the quarter's condition without establishing that the expected tariff refund had been received in cash.
The balance sheet presents the refund primarily as an other-receivables balance at
The filing does not provide a collection date for the tariff-refund receivable, so a later filing or balance-sheet update would be needed to establish when that receivable becomes cash.
8-K Event Classification
Key Figures
Key Terms
IEEPA tariffs regulatory
asset-backed credit facility financial
non-GAAP adjusted net income financial
Earnings Snapshot
Management stated that strong bookings in the second quarter are expected to provide Wholesale segment momentum for the second half of the year.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
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| Exhibit 99* | Press Release, dated July 28, 2026, entitled "Rocky Brands, Inc. Announces Second Quarter 2026 Results". |
| Exhibit 104 | Cover Page Interactive Data File (imbedded within the Inline XBRL document) |
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Rocky Brands, Inc.
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/s/ Thomas D. Robertson
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Thomas D. Robertson
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Chief Operating Officer, Chief Financial Officer and Treasurer
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Exhibit 99
Rocky Brands, Inc. Announces Second Quarter 2026 Results
Net Sales Increased 12.0% to $118.4 Million
Wholesale Segment Sales Increased 7.9% to $78.8 Million
Retail Segment Sales Increased 21.8% to $36.2 Million
NELSONVILLE, Ohio, July 28, 2026 – Rocky Brands, Inc. (NASDAQ: RCKY) today announced financial results for its second quarter ended June 30, 2026.
Second Quarter 2026 Overview
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Net sales increased 12.0% to $118.4 million versus $105.6 million in the year-ago quarter |
| ● | Gross margin increased to 51.4% of net sales compared to 41.0% of net sales in the year-ago quarter |
| ● | Income from operations increased to $19.7 million compared to $7.2 million in the year-ago quarter |
| ● | Net income increased to $13.9 million, or $1.83 per diluted share, as compared to net income of $3.6 million, or $0.48 per diluted share, in the year-ago quarter |
| ● | Adjusted net income increased to $14.4 million, or $1.90 per diluted share, as compared to $4.1 million, or $0.55 per diluted share, in the year-ago quarter |
| ● | Inventories as of June 30, 2026 decreased 7.1% to $173.5 million compared to $186.8 million at June 30, 2025 |
| ● | Total debt as of June 30, 2026 decreased 7.6% to $122.4 million compared to $132.5 million at June 30, 2025 |
"Our second quarter performance was highlighted by 12% sales growth as demand further accelerated from the strong trends we experienced last year and early in 2026,” said Jason Brooks, Chairman, President and Chief Executive Officer. “Several of our brands grew strong double digits led by XTRATUF and followed by Georgia Boot and Rocky, as well as our Lehigh safety shoe business. Selling was robust across channels with particular strength on our direct-to-consumer websites, while strong bookings in the quarter will provide good Wholesale segment momentum for the second half of the year. The significant year-over-year improvement in earnings reflects the positive impact from the actual and expected recovery of IEEPA tariffs recognized in the second quarter. These refunds more than offset the incremental costs incurred as a result of adjusting our initial manufacturing, sourcing, and shipping plans to meet customer demand.”
Second Quarter 2026 Review
Second quarter 2026 net sales increased 12.0% to $118.4 million compared with $105.6 million in the second quarter of 2025. Wholesale segment net sales for the second quarter increased 7.9% to $78.8 million compared to $73.1 million in the second quarter of 2025. Retail segment net sales for the second quarter increased 21.8% to $36.2 million compared to $29.7 million in the second quarter of 2025. Contract Manufacturing segment net sales for the second quarter increased 17.2% to $3.3 million compared to $2.8 million in the second quarter of 2025.
Gross margin in the second quarter of 2026 was $60.8 million, or 51.4% of net sales, compared to $43.3 million, or 41.0% of net sales, for the same period last year. The increase in gross margin as a percentage of net sales was primarily due to the recognition of actual and expected IEEPA tariff refunds, which lowered cost of goods sold in the current quarter, partially offset by tariff costs and sourcing variances. The net impact of the tariff activity in the second quarter of 2026 was an approximate $15.0 million reduction to cost of goods sold.
Operating expenses were $41.1 million, or 34.7% of net sales, for the second quarter of 2026 compared to $36.1 million, or 34.2% of net sales, for the same period a year ago. Excluding $0.7 million of acquisition-related amortization in the second quarter of 2026 and 2025, adjusted operating expenses were $40.4 million, or 34.2% of net sales, in the current year period and $35.4 million, or 33.5% of net sales, in the year-ago period. The increase in operating expenses as a percentage of net sales was due to an approximate $1.1 million write-off of accounts receivable associated with a customer bankruptcy in the second quarter of 2026.
Income from operations for the second quarter of 2026 was $19.7 million, or 16.6% of net sales, compared to $7.2 million, or 6.8% of net sales, for the same period a year ago. Adjusted income from operations for the second quarter of 2026 was $20.4 million, or 17.2% of net sales, compared to adjusted income from operations of $7.8 million, or 7.4% of net sales, a year ago, reflecting the net impact of tariffs, including the recognition of the aforementioned tariff refunds, in the second quarter of 2026.
Interest expense for the second quarter of 2026 was $2.1 million compared with $2.5 million for the prior year period. The decrease in interest expense was driven by lower debt levels.
The Company reported second quarter 2026 net income of $13.9 million, or $1.83 per diluted share, compared to $3.6 million, or $0.48 per diluted share, in the second quarter of 2025. Adjusted net income for the second quarter of 2026 was $14.4 million, or $1.90 per diluted share, compared to $4.1 million, or $0.55 per diluted share, in the year-ago period.
Balance Sheet Review
Cash and cash equivalents were $2.6 million as of June 30, 2026 compared to $2.8 million and $2.9 million as of June 30, 2025 and December 31, 2025, respectively.
Other receivables were $20.1 million as of June 30, 2026 compared to $0.1 million and $5.0 million as of June 30, 2025 and December 31, 2025, respectively. The increase in other receivables as of June 30, 2026 compared to June 30, 2025 and December 31, 2025 was primarily due to the IEEPA tariff refund receivable.
As of June 30, 2026, total debt, net of unamortized debt issuance costs of $1.5 million, was $122.4 million, consisting of a $22.6 million senior term loan and $101.3 million of borrowings under the Company's senior secured asset-backed credit facility. As of June 30, 2026, total debt, net of unamortized debt issuance costs, was down 7.6% from June 30, 2025, and was down 0.2% compared to December 31, 2025.
Inventories as of June 30, 2026, were $173.5 million, down 7.1% compared to $186.8 million on the same date a year ago and down 4.2% compared to $181.1 million as of December 31, 2025.
Conference Call Information
The Company's conference call to review second quarter 2026 results will be broadcast live over the internet today, Tuesday, July 28, 2026, 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 Company's expectation that strong bookings in the second quarter will provide momentum for the second half of the year (Paragraph 2). These forward-looking statements involve numerous risks and uncertainties, including, without limitation, the various risks inherent in the Company’s business as set forth in periodic reports filed with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2025 (filed March 11, 2026) and quarterly report on Form 10-Q for the quarter ended March 31, 2026 (filed May 5, 2026). One or more of these factors have affected historical results and could in the future affect the Company’s businesses and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation or warranty by the Company or any other person that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
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Company Contact: |
Tom Robertson |
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Chief Operating Officer, Chief Financial Officer and Treasurer |
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(740) 753-9100 |
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Investor Relations: |
Brendon Frey |
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ICR, Inc. |
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(203) 682-8200 |
Rocky Brands, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
(Unaudited)
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June 30, |
December 31, |
June 30, |
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2026 |
2025 |
2025 |
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ASSETS: |
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CURRENT ASSETS: |
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Cash and cash equivalents |
$ | 2,627 | $ | 2,902 | $ | 2,779 | ||||||
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Trade receivables – net |
76,887 | 77,055 | 66,367 | |||||||||
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Other receivables |
20,084 | 4,952 | 142 | |||||||||
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Inventories – net |
173,525 | 181,134 | 186,836 | |||||||||
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Income tax receivable |
- | 1,050 | - | |||||||||
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Prepaid expenses |
5,506 | 3,623 | 5,345 | |||||||||
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Total current assets |
278,629 | 270,716 | 261,469 | |||||||||
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LEASED ASSETS |
7,497 | 4,175 | 4,724 | |||||||||
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PROPERTY, PLANT & EQUIPMENT – net |
52,360 | 49,929 | 50,908 | |||||||||
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GOODWILL |
47,844 | 47,844 | 47,844 | |||||||||
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IDENTIFIED INTANGIBLES – net |
101,639 | 103,033 | 104,428 | |||||||||
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OTHER ASSETS |
1,939 | 1,791 | 1,647 | |||||||||
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TOTAL ASSETS |
$ | 489,908 | $ | 477,488 | $ | 471,020 | ||||||
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LIABILITIES AND SHAREHOLDERS' EQUITY: |
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CURRENT LIABILITIES: |
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Accounts payable |
$ | 58,747 | $ | 52,958 | $ | 61,483 | ||||||
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Current portion of long-term debt |
8,361 | 8,361 | 8,361 | |||||||||
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Accrued expenses and other liabilities |
26,759 | 34,813 | 24,931 | |||||||||
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Total current liabilities |
93,867 | 96,132 | 94,775 | |||||||||
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LONG-TERM DEBT |
114,030 | 114,281 | 124,167 | |||||||||
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LONG-TERM LEASES |
5,110 | 1,727 | 2,156 | |||||||||
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DEFERRED INCOME TAXES |
12,381 | 12,381 | 10,044 | |||||||||
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DEFERRED LIABILITIES |
888 | 879 | 813 | |||||||||
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TOTAL LIABILITIES |
226,276 | 225,400 | 231,955 | |||||||||
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SHAREHOLDERS' EQUITY: |
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Common stock, no par value; |
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25,000,000 shares authorized; issued and outstanding June 30, 2026 - 7,487,899; December 31, 2025 - 7,505,139; June 30, 2025 - 7,461,167 |
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Additional paid-in-capital |
74,935 | 76,090 | 74,470 | |||||||||
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Retained earnings |
188,697 | 175,998 | 164,595 | |||||||||
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Total shareholders' equity |
263,632 | 252,088 | 239,065 | |||||||||
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ | 489,908 | $ | 477,488 | $ | 471,020 | ||||||
Rocky Brands, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except share amounts)
(Unaudited)
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Three Months Ended |
Six Months Ended |
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June 30, |
June 30, |
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2026 |
2025 |
2026 |
2025 |
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NET SALES |
$ | 118,368 | $ | 105,647 | $ | 242,769 | $ | 219,720 | ||||||||
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COST OF GOODS SOLD |
57,564 | 62,366 | 136,531 | 129,431 | ||||||||||||
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GROSS MARGIN |
60,804 | 43,281 | 106,238 | 90,289 | ||||||||||||
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OPERATING EXPENSES |
41,119 | 36,125 | 82,919 | 74,427 | ||||||||||||
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INCOME FROM OPERATIONS |
19,685 | 7,156 | 23,319 | 15,862 | ||||||||||||
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INTEREST EXPENSE AND OTHER – net |
(1,995 | ) | (2,519 | ) | (4,029 | ) | (4,874 | ) | ||||||||
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INCOME BEFORE INCOME TAX EXPENSE |
17,690 | 4,637 | 19,290 | 10,988 | ||||||||||||
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INCOME TAX EXPENSE |
3,809 | 1,029 | 4,151 | 2,438 | ||||||||||||
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NET INCOME |
$ | 13,881 | $ | 3,608 | $ | 15,139 | $ | 8,550 | ||||||||
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INCOME PER SHARE |
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Basic |
$ | 1.85 | $ | 0.48 | $ | 2.01 | $ | 1.15 | ||||||||
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Diluted |
$ | 1.83 | $ | 0.48 | $ | 1.99 | $ | 1.14 | ||||||||
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WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |
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Basic |
7,509 | 7,461 | 7,522 | 7,460 | ||||||||||||
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Diluted |
7,598 | 7,493 | 7,607 | 7,493 | ||||||||||||
Rocky Brands, Inc. and Subsidiaries
Reconciliation of GAAP Measures to Non-GAAP Measures
(In thousands, except share amounts)
(Unaudited)
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Three Months Ended |
Six Months Ended |
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June 30, |
June 30, |
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2026 |
2025 |
2026 |
2025 |
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OPERATING EXPENSES |
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OPERATING EXPENSES, AS REPORTED |
$ | 41,119 | $ | 36,125 | $ | 82,919 | $ | 74,427 | ||||||||
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LESS: ACQUISITION-RELATED AMORTIZATION |
(692 | ) | (692 | ) | (1,384 | ) | (1,384 | ) | ||||||||
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ADJUSTED OPERATING EXPENSES |
$ | 40,427 | $ | 35,433 | $ | 81,535 | $ | 73,043 | ||||||||
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INCOME FROM OPERATIONS, AS REPORTED |
$ | 19,685 | $ | 7,156 | $ | 23,319 | $ | 15,862 | ||||||||
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ADJUSTED INCOME FROM OPERATIONS |
20,377 | 7,848 | 24,703 | 17,246 | ||||||||||||
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NET INCOME |
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NET INCOME, AS REPORTED |
$ | 13,881 | $ | 3,608 | $ | 15,139 | $ | 8,550 | ||||||||
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TOTAL NON-GAAP ADJUSTMENTS |
692 | 692 | 1,384 | 1,384 | ||||||||||||
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TAX IMPACT OF ADJUSTMENTS |
(149 | ) | (154 | ) | (298 | ) | (307 | ) | ||||||||
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ADJUSTED NET INCOME |
$ | 14,424 | $ | 4,146 | $ | 16,225 | $ | 9,627 | ||||||||
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NET INCOME PER SHARE, AS REPORTED |
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BASIC |
$ | 1.85 | $ | 0.48 | $ | 2.01 | $ | 1.15 | ||||||||
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DILUTED |
$ | 1.83 | $ | 0.48 | $ | 1.99 | $ | 1.14 | ||||||||
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ADJUSTED NET INCOME PER SHARE |
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BASIC |
$ | 1.92 | $ | 0.56 | $ | 2.16 | $ | 1.29 | ||||||||
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DILUTED |
$ | 1.90 | $ | 0.55 | $ | 2.13 | $ | 1.28 | ||||||||
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WEIGHTED AVERAGE SHARES OUTSTANDING |
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BASIC |
7,509 | 7,461 | 7,522 | 7,460 | ||||||||||||
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DILUTED |
7,598 | 7,493 | 7,607 | 7,493 | ||||||||||||
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 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 | |
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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. |