Rocky Brands, Inc. reported a 6.2% increase in net sales for the fiscal year ending December 31, 2025, reaching $482.0 million compared to $453.8 million in 2024. The company's gross margin improved by 150 basis points to 40.9%, driven by a favorable product mix and increased sales in its higher-margin Retail segment, which saw a 20.5% rise in sales to $152.9 million. Net income surged 95.6% to $22.3 million, or $2.96 per diluted share, up from $11.4 million, or $1.52 per diluted share, in the previous year. This growth was attributed to higher gross margins, reduced interest expenses, and a lower effective tax rate.
The company experienced notable changes in its operational segments, with the Retail segment's growth outpacing that of Wholesale and Contract Manufacturing. The Wholesale segment saw a modest increase of 1.0% in sales to $316.6 million, while Contract Manufacturing sales decreased by 7.7% to $12.5 million, primarily due to a lack of new contracts with the U.S. Military. The increase in Retail sales was largely driven by enhanced direct-to-consumer efforts, including upgrades to e-commerce platforms and increased digital marketing expenditures.
Rocky Brands has also made strategic moves to strengthen its market position, including a share repurchase program approved in early 2025, allowing for the repurchase of up to $7.5 million of its common stock. The company repurchased 10,456 shares during the year, reflecting its commitment to returning value to shareholders. Additionally, the company is focused on expanding its product offerings and market reach, particularly in the outdoor and work footwear categories, which are expected to benefit from ongoing consumer trends.
As of December 31, 2025, Rocky Brands employed over 2,200 individuals, with approximately 1,700 working in manufacturing facilities located in the Dominican Republic, Puerto Rico, and China. The company reported total debt of $122.6 million, a decrease of 4.7% from the previous year, and maintained a strong liquidity position with cash and cash equivalents of approximately $2.9 million. The company continues to monitor macroeconomic conditions, including the impact of tariffs and supply chain dynamics, as it navigates its growth strategy.
Looking ahead, Rocky Brands aims to leverage its strong brand portfolio and expand into new markets while enhancing its e-commerce capabilities. The company remains cautious about potential challenges, including fluctuating consumer preferences and geopolitical uncertainties, but is optimistic about its growth trajectory and operational efficiencies.
About ROCKY BRANDS, INC.
Rocky Brands, Inc. designs, manufactures, and markets premium footwear and apparel under brands like Muck, Rocky, Georgia Boot, Durango, Lehigh, XTRATUF, Ranger, and licensed Michelin. Serving work, outdoor, western, military, and duty markets, it distributes products globally through wholesale, retail, and contract manufacturing channels. The company emphasizes brand strength, product innovation, and diverse sourcing to deliver durable, high-quality products to a broad customer base.
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