Rocky Brands, Inc. reported sales climbed 12 percent in the second quarter ended June 30, its first double-digit gain in a quarter since 2022. Solid double-digit growth was seen by Georgia Boot, Rocky and the Lehigh safety shoe business, but Jason Brooks, chairman, president and CEO, told analysts that XTRATUF remained the company’s “fastest-growing brand.”

Earnings saw a strong rebound due to the recovery of IEEPA tariffs and the footwear maker raised its revenue guidance for the year. Shares of Rocky Brand on Wednesday jumped $6.37, or 14.9 percent, to $49.10.

“We are very pleased to start receiving these funds after the amount of work and costs we incurred following the implementation of last year’s IEEPA tariffs,” Brooks said on the quarterly call. “The actual and expected refund had a very positive impact on gross margins and profitability this quarter, and we plan to reinvest a portion into the business while also paying down debt.”

Sales in the quarter reached $118.4 million versus $105.6 million in the year-ago quarter, with the 12 percent gain following high-single-digit growth in the prior two quarters. Wholesale segment sales increased 7.9 percent to $78.8. Retail segment sales grew 21.8 percent to $36.2 million. Contract Manufacturing segment sales advanced 17.2 percent to $3.3 million.

Brand Performance
XTRATUF delivered “another outstanding quarter,” according to Brooks, with wholesale posting a “large increase” year over year, e -commerce topping last year’s “already strong results,” and marketplace platforms continuing to grow “at a healthy clip.”

“Account momentum remained broad-based,” said Brooks. “Top performers included our authorized Amazon partner, a major outdoor retailer, and our fastest-growing Western market account. A major sporting goods retailer that brought XTRATUF in-store this year has quickly become one of our largest key accounts and is looking to add doors and styles going forward.”

Brooks said the neoprene boot brand continues to benefit by moving beyond its marine roots serving fishermen, offshore workers and sailors to see customers turn to XTRATUF for everyday use. The gains were led by the 15-inch Legacy boot, alongside strong sales of Ankle Deck Boot styles in olive and duck camo. In spring-summer product, new ADV colorways, kids’ Tuff Cruiser collection, and new Guy Harvey collaboration aimed at  women and girls sold well.

Brooks said, “Looking ahead, Q3 and Q4 hold the largest set of pre-book orders in the brand’s history, with a substantial new fall line and winter bookings ahead of last year, positioning XTRATUF for a strong back half of 2026 across both wholesale and e-commerce.”

Muck sales were down “modestly” year over year due to a shift in timing of sell-in to the waterproof rubber boot’s brand’s U.S. business “maintained good momentum” across its e-commerce site and wholesale partners, with both field and key accounts up year over year. Strong sellers included the Rainscape collection, along with the brand’s Chicken boot and original ankle boot styles, offsetting offset some softness in Arctic products due to the milder and drier spring versus the extended cold weather experienced a year ago.

Brooks said, “Hardware and sporting goods channels grew nicely as we continued to expand shelf space and land new partnerships, and we’re encouraged by the continued strength in the farm and ranch despite the drought conditions weighing on two of our largest customers in the channel.”

Georgia Boot generated an “outstanding quarter” with broad-based growth across e-commerce and key and field accounts. One of Georgia Boot’s largest farm and ranch customers expanded its best-selling wedge into more than 500 additional doors, a large work and western retailer “significantly expanded” its Georgia Boot assortment behind the popular BOA Carbon Flex Wedge, and Georgia Boot’s largest online retail partner saw “exceptional growth” with the help of replenishments during the quarter.

Said Brooks, “Field accounts grew nicely despite ongoing macro uncertainty and cautious retailer inventory management, with growth widespread across the territories and healthy carryover business in work-focused accounts supported by employer voucher programs.

The Carbon Flex Wedge, launched in August 2025, has become Georgia Boot’s second highest-selling franchise behind only the Romeo, and the brand will continue to expand BOA technology into women’s products and warmer climate, non-waterproof options. Said Brooks, “Early response to our spring 2027 line has also been encouraging, led by new safety versions of the Romeo SuperLyte and a refreshed Eagle Light collection.”

The company’s Rocky-branded Work, Outdoor, and Western segments all saw growth, led by “particular strength” with independent retailers who are reporting “strong sell-through” with the flagship Rocky brand. The Rocky brand also growth at the key national retailer level and was able to secure a “sizable new rugged casual program with a large southern sporting goods retailer and a southeastern family shoe chain.” Hunting and outdoor sales were also strong for the Rocky brand as several Midwest farm and ranch retailers brought in product early for the fall season. E-commerce also “remains strong” at Rocky brand’s two largest online partners.

Product highlights for the Rocky brand include continuing strong sell-through on the Ride LTE collection with a new Duck Camo colorway seeing strong fall bookings, BOA-equipped safety toe styles, and the Outback and Ridgetop Gore-Tex collection. Brooks added, “Retail partners are also stocking up ahead of hunting season on our snake boots and insulated Wildcat collection.”

The Durango western and work footwear brand were down year over year,  in line with expectations and due to tough comparisons as two major chains last year placed “significant bulk buy orders” ahead of 2025 price increases. Excluding that impact, Durango posted “solid growth,” with the farm and ranch channel seeing strength in Rebel and Westward collections. E-commerce partner accounts, along with sporting goods and outdoor chains, “also had a good quarter.”

Said Brooks of Durango, “New WorkHorse and Shyloh product delivered in Q2 continue to perform well at retail. And early sentiment and bookings for Spring ’27, including our Rebel USA made boots, WorkHorse Light, and the new women’s Shyloh and Crush styles are solid, giving us confidence heading into the back half of the year.”

The commercial military and public service segment exceeded Q2 expectations, up mid-single digits versus last year, continuing the positive momentum from Q1. B2B Lehigh delivered “another strong quarter of growth,” driven by new customer acquisitions and supported by an expanded product portfolio.

Profitability
Gross margin in the quarter expanded to 51.4 percent from 41.0 percent for the same period last year, primarily due to the recognition of actual and expected IEEPA tariff refunds, partially offset by tariff costs and sourcing variances. The net impact of the tariff activity in the quarter was an approximate $15.0 million reduction to cost of goods sold.

Operating expenses increased 13.9 percent to $41.1 million while increasing slightly as a percent of sales, to 34.7 percent from 34.2 percent a year ago due to a $1.1 million write-off of accounts receivable associated with a customer bankruptcy in the latest quarter.

Operating income nearly triple to $19.7 million from $7.2 million. Adjusted income from operations was $20.4 million compared to adjusted income from operations of $7.8 million, reflecting the tariff refunds.

Net income of $13.9 million, or $1.83 per share, compared to $3.6 million, or 48 cents per diluted share, in the second quarter of 2025. Adjusted net income was $14.4 million, or $1.90, compared to $4.1 million, or 55 cents, in the year-ago period.

Balance Sheet Review
Cash and cash equivalents were $2.6 million as of June 30, 2026 compared to $2.8 million and $2.9 million as of June 30, 2025 and December 31, 2025, respectively.

Other receivables were $20.1 million as of June 30, 2026 compared to $0.1 million and $5.0 million as of June 30, 2025 and December 31, 2025, respectively. The increase in other receivables as of June 30, 2026 compared to June 30, 2025 and December 31, 2025 was primarily due to the IEEPA tariff refund receivable.

As of June 30, 2026, total debt, net of unamortized debt issuance costs of $1.5 million, was $122.4 million, consisting of a $22.6 million senior term loan and $101.3 million of borrowings under the company’s senior secured asset-backed credit facility. As of June 30, 2026, total debt, net of unamortized debt issuance costs, was down 7.6 percent from June 30, 2025, and was down 0.2 percent compared to December 31, 2025.

Inventories as of June 30, 2026, were $173.5 million, down 7.1 percent compared to $186.8 million on the same date a year ago and down 4.2 percent compared to $181.1 million as of December 31, 2025.

Outlook
Based on the second quarter performance and updated bookings for the second half, Rocky Brands now expects revenue to increase approximately 8.5 percent over 2025. Previously, guidance called for revenue growth of approximately 6 percent Sales projections were increased “modestly” for the third and fourth quarter, with the fourth quarter growing modestly faster than the third quarter.

EPS, excluding the actual and expected tariff refunds, is now expected to be similar to last year’s $3.26 and EPS on a reported basis to be approximately $5. Previously, Rocky Brands predicted EPS growth, assuming no tariff refunds are collected, in the low-teen range.

Tom Robertson, the company’s chief operating and chief financial officer, said gross margins are now expected to be approximately 40 percent versus prior guidance calling for margins be down “modestly” from the year-ago margin of 40.9 percent.

Robertson noted that Rocky Brands is experiencing additional cost headwinds from adjusting manufacturing and sourcing plans to meet demand with expedited shipping that’s expected to continue during the second half of this year. It’s also continuing to see higher inbound freight rates, higher outbound freight costs due to fuel surcharges, and increased component costs due to higher oil prices. The guidance also includes the $1.1 million bankruptcy receivable write-off.

“We have good momentum across our business heading into the second half,” said Brooks. “While we feel confident in the strength of our brands and our product offering, we think it is prudent to balance this optimism with some level of conservatism given the shifting tariff landscape and uncertainty regarding the near-term health of the consumer.”

 

Balance Sheet Review
Cash and cash equivalents were $2.6 million as of June 30, 2026 compared to $2.8 million and $2.9 million as of June 30, 2025 and December 31, 2025, respectively.

Other receivables were $20.1 million as of June 30, 2026 compared to $0.1 million and $5.0 million as of June 30, 2025 and December 31, 2025, respectively. The increase in other receivables as of June 30, 2026 compared to June 30, 2025 and December 31, 2025 was primarily due to the IEEPA tariff refund receivable.

As of June 30, 2026, total debt, net of unamortized debt issuance costs of $1.5 million, was $122.4 million, consisting of a $22.6 million senior term loan and $101.3 million of borrowings under the company’s senior secured asset-backed credit facility. As of June 30, 2026, total debt, net of unamortized debt issuance costs, was down 7.6 percent from June 30, 2025, and was down 0.2 percent compared to December 31, 2025.

Inventories as of June 30, 2026, were $173.5 million, down 7.1 percent compared to $186.8 million on the same date a year ago and down 4.2 percent compared to $181.1 million as of December 31, 2025.

The company’s brands include Rocky, Georgia Boot, Durango, Lehigh, The Original Muck Boot Company, Xtratuf, and Ranger.

Image courtesy Xtratuf