Rocky Brands Reports 7.5% Revenue Growth and Net Income Turnaround in Q2 2025

Rocky Brands, Inc. reported a notable increase in financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. For the three months ended June 30, 2025, the company achieved net sales of $105.6 million, a 7.5% increase from $98.3 million in the same period of 2024. The gross margin also improved, rising to 41.0% from 38.7%, reflecting enhanced operational efficiencies and a favorable product mix. Net income for the quarter was $3.6 million, or $0.48 per diluted share, compared to a net loss of $1.2 million, or $(0.17) per diluted share, in the prior year.

In the first half of 2025, Rocky Brands reported net sales of $219.7 million, up 4.1% from $211.2 million in the first half of 2024. The gross margin for this period increased to 41.1%, compared to 38.9% in the previous year. Operating income also saw a significant rise, reaching $15.9 million, up from $12.5 million, driven by improved sales in the Retail segment, which grew by 17.5% year-over-year. The company’s strategic focus on enhancing its e-commerce presence and expanding its Lehigh CustomFit business contributed to this growth.

Operationally, Rocky Brands has made strategic shifts in sourcing and manufacturing to mitigate the impact of new tariffs imposed in 2025. The company has increased its inventory levels to $186.8 million, a 6.8% rise from the previous year, in anticipation of demand and to counteract potential supply chain disruptions. The Wholesale segment generated $73.1 million in sales for the second quarter, while the Retail segment contributed $29.7 million, reflecting a growing consumer preference for direct-to-consumer channels.

The company’s financial health is further underscored by a reduction in total debt, which decreased by 13.1% to $132.5 million as of June 30, 2025. Interest expenses also declined significantly, down 59.3% to $2.5 million, attributed to lower interest rates following a debt refinancing in April 2024. Rocky Brands remains compliant with its credit facility covenants and has sufficient liquidity, with $2.8 million in cash and $45.7 million available under its asset-based lending facility.

Looking ahead, Rocky Brands anticipates continued growth driven by its strategic initiatives in e-commerce and product offerings. The company is actively monitoring the impact of tariffs and is implementing strategies to mitigate potential adverse effects on its operations. The management remains optimistic about maintaining profitability and expanding market share in the footwear and apparel sectors.