Rocky Brands reported a strong uptick in earnings in the second quarter ended June 30, boosted by strong performances by its Xtratuf and Muck brands as well as robust full-price selling across wholesale. Sales advanced 7.5 percent in the period.

Second Quarter 2025 Overview

  • Net sales increased 7.5 percent to $105.6 million versus the year-ago quarter
  • Gross margin increased 230-basis points to 41.0 percent of net sales compared to 38.7 percent of net sales in the year-ago quarter
  • Income from operations increased 58.7 percent to $7.2 million compared to $4.5 million in the year-ago quarter
  • Net income increased to $3.6 million, or 48 cents per diluted share, as compared to net loss of $1.2 million, or 17 cents per diluted share, in the year-ago quarter
  • Adjusted net income increased to $4.1 million, or $0.55 per diluted share, as compared to $1.3 million or $0.17 per diluted share, in the year-ago quarter
  • Inventories as of June 30, 2025 increased 6.8 percent compared to June 30, 2024
  • Total debt as of June 30, 2025, decreased 13.1 percent compared with June 30, 2024

“We executed well during the second quarter, capitalizing on the strength of our brand portfolio and the benefits of our diversified manufacturing and sourcing base to deliver results that well exceeded last year and expectations,” said Jason Brooks, chairman, president and chief executive officer. “The drivers of our top-line performance were broad based and led by Xtratuf, as demand for the brand in our Wholesale and e-Commerce channels accelerated, along with Muck, which posted its strongest growth in several quarters. We were particularly pleased with the strong full-price selling we experienced, which, combined with our nimble supply chain and recent pricing actions, contributed to a 230-basis point increase in gross margins and significant improvement in profitability.”

Brooks continued, “Looking ahead, we are approaching the remainder of 2025 with optimism about the momentum in our business coupled with the appropriate level of caution given the overall market uncertainty. Bookings for our U.S. Wholesale business for the second half are up solidly year-over-year, and we’ve enacted plans including leveraging our manufacturing facilities in the Dominican Republic and Puerto Rico to mitigate the impact from higher tariffs. While visibility into consumer demand is currently more challenging, we believe we are well positioned to navigate the current macroeconomic backdrop and continue delivering value for our shareholders over the near and long-term.”

Second Quarter 2025 Review
Second quarter net sales increased 7.5 percent to $105.6 million compared with $98.3 million in the second quarter of 2024. Wholesale net sales for the second quarter increased 7.1 percent to $73.1 million compared to $68.3 million in the second quarter of 2024. Retail net sales for the second quarter increased 13.9 percent to $29.7 million compared to $26.1 million in the second quarter of 2024. Contract Manufacturing net sales for the second quarter decreased 27.8 percent to $2.8 million compared to $3.9 million in the second quarter of 2024.

Gross margin in the second quarter of 2025 was $43.3 million, or 41.0 percent of net sales, compared to $38.0 million, or 38.7 percent of net sales, for the same period last year. The increase in gross margin as a percentage of net sales was attributable to a 300-basis point increase in Wholesale segment margins as well as increased Retail segment net sales, which carry a higher gross margin than the Wholesale and Contract Manufacturing segments.

Operating expenses were $36.1 million, or 34.2 percent of net sales, for the second quarter of 2025 compared to $33.5 million, or 34.1 percent of net sales, for the same period a year ago. Excluding $0.7 million of acquisition-related amortization in the second quarter of 2025 and 2024, adjusted operating expenses were $35.4 million in the current year period and $32.8 million in the year ago period. As a percentage of net sales, adjusted operating expenses were 33.5 percent in the second quarter of 2025 compared with 33.4 percent in the year ago period. The increase in operating expenses was driven primarily by higher selling costs associated with the increase in our direct-to-consumer business, as well as an increase in our marketing investments compared with the year ago period.

Income from operations for the second quarter of 2025 was $7.2 million, or 6.8 percent of net sales, compared to $4.5 million, or 4.6 percent of net sales, for the same period a year ago. Adjusted income from operations for the second quarter of 2025 was $7.8 million, or 7.4 percent of net sales, compared to adjusted income from operations of $5.2 million, or 5.3 percent of net sales, a year ago.

Interest expense for the second quarter of 2025 was $2.5 million compared with $6.1 million, inclusive of a $2.6 million one-time term loan extinguishment charge for the prior year period. Excluding the one-time term loan extinguishment charge, interest expense in the second quarter of 2024 was $3.5 million. The decrease in interest expense was driven by lower interest rates as a result of the debt refinancing completed in April 2024 as well as lower debt levels.

The company reported second quarter net income of $3.6 million, or $0.48 per diluted share, compared to a net loss of $1.2 million, or 17 cents per diluted share, in the second quarter of 2024. Adjusted net income for the second quarter of 2025 was $4.1 million, or 55 cents per diluted share, compared to $1.3 million, or 17 cents per diluted share, in the year ago period.

Balance Sheet Review
Cash and cash equivalents were $2.8 million as of June 30, 2025, compared to $4.1 million on the same date a year ago.

As of June 30, 2025, total debt, net of unamortized debt issuance costs of $2.0 million, was $132.5 million consisting of a $30.9 million senior term loan and $103.6 million of borrowings under the company’s senior secured asset-backed credit facility. As of June 30, 2025, total debt, net of unamortized debt issuance costs was down 13.1 percent from June 30, 2024, and was up 2.9 percent compared to December 31, 2024.

Inventories as of June 30, 2025, were $186.8 million, up 6.8 percent compared to $175.0 million on the same date a year ago and up 12.1 percent compared to $166.7 million as of December 31, 2024.

Rocky Brands’ portfolio includes Rocky, Georgia Boot, Durango, Lehigh, The Original Muck Boot Company, Xtratuf, and Ranger.

Image courtesy Rocky Brands/Georgia Boot