Companies

Rocky Brands kicks off 2025 with solid results

May 8, 2025 United States

The US-based footwear company has reported a strong first quarter and maintained its full year net sales guidance, as it prepares to raise prices due to tariffs

“We experienced healthy demand across our brand portfolio and throughout our distribution channels to start the new year. Our first quarter performance was highlighted by 20% top-line growth in our retail segment fueled by strong gains in both direct-to-consumer sales and our Lehigh safety shoe business. We also experienced solid sell-through for several of our leading brands with key wholesale accounts, which is driving an acceleration in bookings for the remainder of 2025”, commented Jason Brooks, Chairman, President and Chief Executive Officer.

First Quarter Results

In the first quarter of fiscal 2025, Rocky Brands’ net sales totalled 114.1 million US dollars, an increase of 1.1%, as compared to the same period of the last year. While wholesale sales decreased by 6.3% year-over-year to 74.8 million US dollars, retail sales increased by 20.4% year-over-year to 36.6 million US dollars. Contract manufacturing sales remained flat at 2.7 million US dollars.

The company’s first quarter gross margin rose to 41.2% from 39.1% in the same quarter of 2024, driven by higher wholesale margins as well as increased retail sales, which have stronger margins than the other segments.

In the first quarter of the current year, Rocky Brands recorded an income from operations of 8.7 million US dollars and an adjusted income from operations of 9.4 million US dollars, as compared to 8.0 million US dollars and 8.7 million US dollars, respectively, in the same period of the prior year.

The company also reported a first quarter net income of 4.9 million US dollars, or 0.66 US dollars per diluted share, on a comparable basis to 2.6 million US dollars, or 0.34 US dollars per diluted share, in the same year-ago period. Adjusted net income was 5.5 million US dollars, or 0.73 US dollars per diluted share, on a comparable basis to 3.1 million US dollars, or 0.41 US dollars per diluted share in the same year-ago period.

Rocky Brands reported that inventories as of the 31^st of March increased by 6.3% year-over-year to 175.5 million US dollars, and total debt decreased by 17.5% year-over-year to 128.6 million US dollars.

Outlook

“We’ve been working quickly to mitigate the impact of higher tariffs recently imposed by the US (…). Later in the second quarter, we expect to implement price increases on most of our footwear styles. At the same time, we are moving faster to reduce the amount of product that we source from China”, explained Brooks.

He continued: “While we expect that higher price points will put some pressure on consumer demand, we believe the strength and desirability of our brands and products along with our diversified sourcing structure that includes our own manufacturing facilities in the Dominican Republic and Puerto Rico will allow us to achieve our financial targets for the year”.

For 2025, Rocky Brands expects net sales to increase by a low single-digit percentage over 2024, as higher prices should compensate for the lower volumes expected to result from these higher prices.

Image Credits: sgbonline.com

United States Companies Footwear Quarter Results Results Rocky Brands