Companies

Rocky Brands posts sales growth as tariffs weigh on margins and profits

May 6, 2026 United States

The US-based footwear manufacturer posted a 9.1% year-on-year increase in net sales in the first quarter, but margins and profitability were under pressure from higher tariff-related costs during the period

“The momentum we experienced in our business last year carried over into 2026, driving net sales growth of approximately 9% for the second consecutive quarter”, said Jason Brooks, Chairman, President and Chief Executive Officer. “Our first quarter top-line performance was driven by continued strength in XTRATUF and Muck across selling channels, combined with robust demand online for our entire brand portfolio”.

First-Quarter Results

In the first quarter of the 2026 financial year, Rocky Brands reported net sales of 124.4 million US dollars, reflecting a 9.1% increase compared to the same period last year. Growth was widespread across all segments.

The wholesale segment generated 78.4 million US dollars in the first quarter, a year-on-year increase of 4.8%, while the retail segment generated 42.7 million US dollars, a year-on-year increase of 16.5%. Meanwhile, the contract manufacturing segment generated 3.3 million US dollars, representing a year-on-year increase of 25.0%.

The company’s gross margin fell from 41.2% in the first quarter of 2025 to 36.5% in this first quarter. This was mainly due to an increase in tariff-related sourcing variances of approximately 7.1 million US dollars in the period.

In the first quarter of the year, income from operations was 3.6 million US dollars, compared to 8.7 million US dollars in the same period a year ago. Adjusted income from operations was 4.3 million US dollars, compared to 9.4 million US dollars in the same period a year ago. This also reflects the impact of higher tariffs in the first quarter of 2026.

Still, “these tariffs were partially offset with strong full-price selling, channel mix, and our mitigation actions last year, namely raising prices and diversifying our sourcing, including leveraging our own manufacturing facilities”, highlighted Jason Brooks.

Rocky Brands reported a net income of 1.3 million US dollars for the first quarter, or 0.17 US dollars per diluted share, compared to 4.9 million US dollars, or 0.66 US dollars per diluted share, in the same period last year. Adjusted net income stood at 1.8 million US dollars, or 0.24 US dollars per diluted share, compared to 5.5 million US dollars, or 0.73 US dollars per diluted share in the same period last year.

The CEO of the company concluded: “Moving forward, the impact from higher tariffs begins to lessen in the second quarter which, along with current top-line trends, provides a clear path back to gross margins in the low 40 percent range and improvement in profitability over the second half of the year”.

Image Credits: internationalsafety.com

United States Companies Footwear Quarter Results Results Rocky Brands