Companies

Rocky Brands delivers solid third quarter

Nov 5, 2025 United States

In a challenging market environment, the US-based footwear manufacturer achieved solid third quarter results, characterised by increased sales, improved margins and stronger profitability

“We delivered another quarter of solid results amidst a challenging operating environment. 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”, commented Jason Brooks, Chairman, President and Chief Executive Officer of Rocky Brands.

Third Quarter Results

In the third quarter of the year, which ended on the 30^thof September, the company’s net sales totalled 122.5 million US dollars, marking a 7.0% increase on a comparable basis to the same period last year.

Wholesale net sales contributed 89.1 million US dollars to the total, representing a year-on-year increase of 6.1%, while retail net sales contributed 29.5 million US dollars, representing a year-on-year increase of 10.3%. Meanwhile, contract manufacturing net sales contributed 3.9 million US dollars, up by 4.1% year-on-year.

Rocky Brands reported an improvement in gross margin from 38.1% in the same quarter last year to 40.2% this quarter. “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”, emphasied Brooks.

In the third quarter of this year, the company’s operating expenses increased to 37.6 million US dollars, up from 33.6 million US dollars in the same period of the previous year. This was driven by higher logistics, sales and marketing costs. Excluding amortisation, adjusted operating expenses were 36.8 million US dollars, as compared to 32.9 million US dollars in the same period of the previous year.

The US-based manufacturer recorded an operating income of 11.7 million US dollars in the third quarter, as compared to 10.1 million US dollars in the same period last year, while adjusted operating income grew by 10.1% year-on-year to reach 12.4 million US dollars.

Rocky Brands’ third quarter net income was 7.2 million US dollars, or 0.96 US dollars per diluted share, as compared to 5.3 million US dollars, or 0.70 US dollars per diluted share. Third quarter adjusted net income stood at 7.8 million US dollars, or 1.03 US dollars per diluted share, as compared to 5.8 million US dollars, or 0.77 US dollars per diluted share, in the same quarter last year.

As of the 30^th of September, inventories had increased by 12.7%, as compared to the same date in 2024, primarily due to increased tariff costs. Meanwhile, total debt declined by 7.5% year-on-year.

“Looking ahead, we believe the actions we have taken, namely raising prices and diversifying our sourcing, including leveraging our manufacturing facilities in the Dominican Republic and Puerto Rico will help to offset some of the impact from the higher tariffs that will pressure margins over the next few quarters”, concluded the Rocky Brands CEO.

Image Credits: overlookboots.com

United States Companies Footwear Quarter Results Results Rocky Brands