Rocky Brands, Inc. reported a modest increase in financial performance for the first quarter of 2025, with net sales rising 1.1% to $114.1 million compared to $112.9 million in the same period last year. The company's gross margin improved to $47.0 million, representing 41.2% of net sales, up from 39.1% in the prior year. This increase in gross margin was attributed to a favorable shift in product mix and improved efficiencies in the Wholesale segment, despite a decrease in Wholesale sales due to a significant military order in the previous year that inflated sales figures.
The company experienced notable changes in its operational metrics. Retail sales surged by 20.5% to $36.6 million, driven by growth in the Lehigh CustomFit platform and increased online sales through e-commerce channels. Conversely, Wholesale sales declined by 6.3% to $74.8 million, reflecting a reset in inventory assortments among key partners. The Contract Manufacturing segment remained stable, generating $2.6 million in sales, consistent with the previous year.
Rocky Brands also reported a strategic increase in inventory, which rose 6.3% to $175.5 million, as part of a proactive approach to mitigate potential tariff impacts. The company’s total debt decreased by 17.5% to $128.6 million, aided by lower interest expenses following a refinancing of its debt in April 2024. The effective tax rate for the quarter was 22.2%, down from 23.4% in the prior year, reflecting changes in projected income from international operations.
Looking ahead, Rocky Brands aims to capitalize on the growth of its Retail segment while managing the challenges in Wholesale. The company plans to continue investing in digital marketing and enhancing its online presence to drive sales. With sufficient liquidity, including $2.6 million in cash and $53.0 million available under its asset-based lending facility, Rocky Brands is positioned to support its operational needs and strategic initiatives in the coming quarters.
About ROCKY BRANDS, INC.
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