# ROCKY BRANDS, INC. (RCKY)

Informational only - not investment advice.

CIK: 0000895456
SIC: 3140 Footwear, (No Rubber)
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 31](/major-group/31/) > [SIC 3140 Footwear, (No Rubber)](/industry/3140/)
Latest 10-K filed: 2026-03-11
SEC page: https://www.sec.gov/edgar/browse/?CIK=895456
Filing source: https://www.sec.gov/Archives/edgar/data/895456/000143774926007634/rcky20251231_10k.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-11 · accession 0001437749-26-007634 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000895456.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 481,976,000 USD | 2025 | verified |
| Net income | 22,274,000 USD | 2025 | verified |
| Assets | 477,488,000 USD | 2025 | verified |
| Free cash flow | 9,723,000 USD | 2025 | computed |
| Net margin | 4.62% | 2025 | computed |
| Operating margin | 7.72% | 2025 | computed |
| Revenue YoY | +6.22% | 2025 | computed |
| ROE | 8.84% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.


## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 481976000 | USD | 2025 | 2026-03-11 |
| Net income | 22274000 | USD | 2025 | 2026-03-11 |
| Assets | 477488000 | USD | 2025 | 2026-03-11 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000895456.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 253,197,000 | 252,694,000 | 270,408,000 | 277,309,000 | 514,227,000 | 615,475,000 | 461,833,000 | 453,772,000 | 481,976,000 |
| Net income | -2,139,396 | 9,586,000 | 14,553,000 | 17,462,000 | 20,964,000 | 20,559,000 | 20,465,000 | 10,426,000 | 11,387,000 | 22,274,000 |
| Operating income | -3,060,927 | 11,826,000 | 18,061,000 | 22,085,000 | 27,170,000 | 35,972,000 | 44,038,000 | 35,372,000 | 31,066,000 | 37,187,000 |
| Gross profit | 76,730,090 | 80,769,000 | 87,029,000 | 97,685,000 | 104,735,000 | 194,536,000 | 225,219,000 | 178,598,000 | 179,010,000 | 197,290,000 |
| Diluted EPS | -0.29 | 1.29 | 1.95 | 2.35 | 2.86 | 2.77 | 2.78 | 1.41 | 1.52 | 2.96 |
| Operating cash flow | 21,298,341 | 17,107,000 | 17,570,000 | 18,088,000 | 31,441,000 | -54,875,000 | 19,123,000 | 73,576,000 | 52,764,000 | 16,299,000 |
| Capital expenditures | 5,906,479 | 4,308,000 | 4,238,000 | 7,719,000 | 11,716,000 | 21,055,000 | 6,702,000 | 3,918,000 | 4,663,000 | 6,576,000 |
| Dividends paid | 3,297,066 | 3,269,000 | 3,484,000 | 3,987,000 | 4,093,000 | 4,299,000 | 4,538,000 | 4,565,000 | 4,611,000 | 4,634,000 |
| Share buybacks | 1,950,114 | 688,000 | 1,310,000 | 1,500,000 | 2,938,000 | 0.00 | 0.00 |  | 0.00 | 201,000 |
| Assets | 178,939,262 | 173,479,000 | 184,663,000 | 205,826,000 | 229,091,000 | 624,575,000 | 582,390,000 | 479,385,000 | 457,300,000 | 477,488,000 |
| Liabilities | 43,845,938 | 32,386,000 | 33,088,000 | 41,170,000 | 49,586,000 | 426,720,000 | 366,917,000 | 255,830,000 | 225,076,000 | 225,400,000 |
| Stockholders' equity | 135,093,000 | 141,093,000 | 151,575,000 | 164,656,000 | 179,505,000 | 197,855,000 | 215,473,000 | 223,555,000 | 232,224,000 | 252,088,000 |
| Cash and cash equivalents | 4,481,000 | 3,681,000 | 10,173,000 | 15,518,000 | 28,353,000 | 5,909,000 | 5,719,000 | 4,470,000 | 3,719,000 | 2,902,000 |
| Free cash flow | 15,391,862 | 12,799,000 | 13,332,000 | 10,369,000 | 19,725,000 | -75,930,000 | 12,421,000 | 69,658,000 | 48,101,000 | 9,723,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 3.79% | 5.76% | 6.46% | 7.56% | 4.00% | 3.33% | 2.26% | 2.51% | 4.62% |
| Operating margin |  | 4.67% | 7.15% | 8.17% | 9.80% | 7.00% | 7.16% | 7.66% | 6.85% | 7.72% |
| Return on equity | -1.58% | 6.79% | 9.60% | 10.61% | 11.68% | 10.39% | 9.50% | 4.66% | 4.90% | 8.84% |
| Return on assets | -1.20% | 5.53% | 7.88% | 8.48% | 9.15% | 3.29% | 3.51% | 2.17% | 2.49% | 4.66% |
| Liabilities / equity | 0.32 | 0.23 | 0.22 | 0.25 | 0.28 | 2.16 | 1.70 | 1.14 | 0.97 | 0.89 |
| Current ratio | 6.70 | 5.95 | 5.24 | 4.63 | 4.08 | 2.68 | 3.54 | 3.61 | 2.73 | 2.82 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/RCKY/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000895456.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.77 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | -0.05 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | -0.37 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | -2,715,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 125,614,000 |  | 0.93 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 125,952,000 | 6,713,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 112,906,000 | 2,550,000 | 0.34 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 |  | 2,550,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 98,258,000 |  | -0.17 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 |  | -1,243,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 114,554,000 |  | 0.70 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 128,054,000 | 4,801,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 114,073,000 | 4,941,000 | 0.66 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 |  | 4,941,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 105,647,000 |  | 0.48 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | 3,608,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 122,540,000 |  | 0.96 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 139,716,000 | 6,512,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 124,401,000 | 1,259,000 | 0.17 | reported discrete quarter |
| 2026-Q2 | 2026-03-31 |  | 1,259,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 118,368,000 |  | 1.83 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from RCKY's latest 10-K: [/company/RCKY/business/](/company/RCKY/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from RCKY's latest 10-K: [/company/RCKY/risk-factors/](/company/RCKY/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/895456/000143774926025672/rcky20260630_10q.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-04
Report date: 2026-06-30

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

BUSINESS OVERVIEW

We are a leading designer, manufacturer, and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names including Muck, XTRATUF, Rocky, Durango, Georgia Boot, Lehigh, Ranger, and the licensed brand Michelin. Our portfolio of brands is organized into three reportable segments in which our product is distributed: Wholesale, Retail, and Contract Manufacturing. The reportable segments are targeted around six distinct product lines: work, outdoor, western, duty, commercial military, and military. We frequently experience significant seasonal fluctuations in our business as many of our footwear products and product lines are used by consumers in adverse weather conditions. Accordingly, average inventory levels have been highest during the second and third quarters of each year and sales have been highest in the last two quarters of the year.

Our business is subject to a highly evolving and everchanging macroeconomic environment, including changes in tariffs, taxes and industry changes. We continue to monitor changes in policy impacting global trade, including tariffs, which have been dynamic, unpredictable, and subject to ongoing modification. Beginning in early 2025, pursuant to the International Emergency Economic Powers Act ("IEEPA"), significant additional tariffs were imposed on products imported from various countries, including those countries where we primarily source our products. In February 2026, the U.S. Supreme Court invalidated certain tariffs imposed under the IEEPA and in March 2026, the U.S. Court of International Trade ordered the U.S. Customs and Border Protection Agency to suspend collection of the invalidated tariffs and to establish a process to refund certain IEEPA tariffs previously collected. As a result of this ruling, we are eligible to receive refunds of tariffs previously paid on qualifying imports, including interest. We have paid approximately $20.5 million in tariffs for products that were subject to the invalidated IEEPA tariffs. We applied the loss recovery model and determined the expected receipt of the refund of the previously paid IEEPA tariffs is probable. Accordingly, we recognized a benefit of $18.0 million as a reduction to cost of goods sold within the accompanying Unaudited Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2026. Additionally, $2.5 million has been recorded as a reduction of inventory within the accompanying Unaudited Condensed Consolidated Balance Sheet as of June 30, 2026, and will be recognized as a reduction to cost of goods sold as the inventory is sold. As of June 30, 2026, we have received $3.7 million in refunds and recorded $16.8 million of outstanding IEEPA tariff receivables, which is included in "other receivables" within the accompanying Unaudited Condensed Consolidated Balance Sheet. Subsequent to June 30, 2026, we have received an additional $8.2 million of the IEEPA tariff receivable.

There remains substantial uncertainty regarding the potential changes or pauses to existing and newly announced tariffs, tariff levels, and whether additional tariffs or other reciprocal actions may be imposed, modified, or suspended. We have implemented, and plan to continue to implement, as needed, various mitigation strategies including adjusting the prices of our products, adjusting the countries from which we source our products and further leveraging our own manufacturing facilities in the Dominican Republic and Puerto Rico. Proposed or enacted tariffs and changes to U.S. trading policies may be reinstituted, paused, removed, or changed at any time and to the extent we are unable to successfully mitigate any negative resulting impacts, our business, financial condition, and results of operation could be materially and adversely affected.

During the second quarter of 2026, we experienced an increase in net sales over the second quarter of 2025. This increase was attributable to an increase in net sales across all three of our reportable segments, Retail, Wholesale, and Contact Manufacturing. The price increase implemented in the third quarter of 2025 allowed us to experience steady growth during the first half of 2026 over the first half of 2025. Our Retail segment continues to be our fastest growing reportable segment, with double digit growth in the first and second quarters of 2026 over the prior year periods, driven by growth across all of our Retail selling channels. The increase in net sales on our e-commerce websites and third-party marketplace platforms was driven by a continued focus on our digital marketing and expansion into new marketplaces. The increase in net sales in our Lehigh CustomFit business was attributed to expanding our customer base and product offerings. We saw an increase in gross margin as a percentage of sales in our Wholesale and Retail segments as a result of the recognition of actual and expected IEEPA tariff refunds in the second quarter of 2026, which reduced cost of goods sold. 

Our operating expenses as a percentage of net sales for the three and six months ending June 30, 2026 increased due to an approximate $1.1 million write-off of accounts receivable associated with a customer bankruptcy during the second quarter of 2026.

Interest expense declined for the three and six months ending June 30, 2026 compared to the same periods in 2025 due to continued debt repayments over the past twelve months, which have reduced the overall outstanding principal balances, as well as a decrease in interest rates.

The decrease in inventory as of June 30, 2026 compared to June 30, 2025 was primarily due to our efforts to optimize our inventory position by reducing our discontinued inventory levels throughout the year.

SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS COMPARED TO SECOND QUARTER 2025

[[GREPCENT_TABLE]]
[["\u25cf","Net sales increased 12.0% to $118.4 million"],["\u25cf","Gross margin increased to 51.4% of net sales compared to 41.0% of net sales"],["\u25cf","Inventories decreased 7.1% to $173.5 million"],["\u25cf","Total debt decreased 7.6% to $122.4 million"]]
[[/GREPCENT_TABLE]]

FIRST HALF OF 2026 FINANCIAL HIGHLIGHTS COMPARED TO FIRST HALF OF 2025

[[GREPCENT_TABLE]]
[["\u25cf","Net sales increased 10.5% to $242.8 million"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["\u25cf","Gross margin increased to 43.8% of net sales compared to 41.1% of net sales"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["\u25cf","Income from operations increased to $23.3 million compared to $15.9 million"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["\u25cf","Net income increased to $15.1 million, or $1.99 per diluted share"]]
[[/GREPCENT_TABLE]]

14

Table of Contents

RESULTS OF OPERATIONS

The following tables set forth, for the periods indicated, information derived from our Unaudited Condensed Consolidated Financial Statements. The discussion that follows each table should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements as well as our Annual Report on Form 10-K for the year ended December 31, 2025.

[[GREPCENT_TABLE]]
[["","","Three Months Ended","","","Six Months Ended"],["","","June 30,","","","June 30,"],["($ in thousands)","","2026","","","2025","","","2026","","","2025"],["Net sales","","$","118,368","","","$","105,647","","","$","242,769","","","$","219,720"],["Cost of goods sold","","","57,564","","","","62,366","","","","136,531","","","","129,431"],["Gross margin","","","60,804","","","","43,281","","","","106,238","","","","90,289"],["Operating expenses","","","41,119","","","","36,125","","","","82,919","","","","74,427"],["Income from operations","","$","19,685","","","$","7,156","","","$","23,319","","","$","15,862"]]
[[/GREPCENT_TABLE]]

Net sales increased to $118.4 million in the second quarter of 2026 compared to $105.6 million in the second quarter of 2025. The increase in net sales in the current year quarter compared to the prior year quarter was due to an increase in net sales across all of our reportable segments: Wholesale, Retail, and Contract Manufacturing.

Gross margin in the second quarter of 2026 was $60.8 million, or 51.4% of net sales, compared to $43.3 million, or 41.0% of net sales, in the second quarter of 2025. The increase in gross margin as a percentage of net sales was primarily due to the recognition of actual and expected IEEPA tariff refunds, which reduced cost of goods sold in the second quarter of 2026.

Operating expenses for the second quarter of 2026 were $41.1 million, or 34.7% of net sales, compared to $36.1 million, or 34.2% of net sales, for the second quarter of 2025. The increase in operating expenses as a percentage of net sales was due to an approximate $1.1 million write-off of accounts receivable associated with a customer bankruptcy in the second quarter of 2026.

Income from operations for the second quarter of 2026 was $19.7 million, or 16.6% of net sales, compared to $7.2 million, or 6.8% of net sales, in the year-ago period. The increase in income from operations was primarily driven by the increase in gross margin for the three months ended June 30, 2026 compared to the year-ago period.

Net sales increased to $242.8 million in the six months ended June 30, 2026 compared to $219.7 million in the six months ended June 30, 2025. The increase in net sales in the current year quarter compared to the prior year quarter was due to an increase in net sales across all of our reportable segments: Wholesale, Retail, and Contract Manufacturing.

Gross margin in the 
six months ended June 30, 2026
 was $106.2 million, or 43.8% of net sales, compared to $90.3 million, or 41.1% of net sales, in the 
six months ended June 30, 2025.
The increase in gross margin was primarily due to the recognition of actual and expected IEEPA tariff refunds, which lowered cost of goods sold in the second quarter of 2026.

Operating expenses for the 
six months ended June 30, 2026 wer
e $82.9 million, or 34.2% of net sales, compared to $74.4 million, or 33.9% of net sales, for the 
six months ended June 30, 2025. The increase in operating expenses as a percentage of net sales was due to an approximate $1.1 million write-off of accounts receivable associated with a customer bankruptcy in the second quarter of 2026.

Income from operations for the 
six months ended June 30, 2026 was

$23.3 million, or 9.6% of net sales, compared to $15.9 million, or 7.2% of net sales, in the year-ago period. The in
crease in income from operations was primarily driven by the increase in gross margin for the 
six months ended June 30, 2026 compared to the year-ago period.

15

Table of Contents

Three Months Ended June 30, 2026 compared to Three Months Ended June 30, 2025

[[GREPCENT_TABLE]]
[["","","Three Months Ended"],["","","June 30,"],["($ in thousands)","","2026","","","2025","","","Inc./ (Dec.)","","","Inc./ (Dec.)"],["NET SALES:"],["Wholesale","","$","78,830","","","$","73,092","","","$","5,738","","","","7.9","%"],["Retail","","","36,245","","","","29,746","","","","6,499","","","","21.8"],["Contract Manufacturing","","","3,293","","","","2,809","","","","484","","","","17.2"],["Total Net Sales","","$","118,368","","","$","105,647","","","$","12,721","","","","12.0","%"]]
[[/GREPCENT_TABLE]]

Wholesale segment net sales for the three months ended June 30, 2026 were $78.8 million compared to $73.1 million for the three months ended June 30, 2025. The increase in Wholesale segment net sales was due to increased demand across several key styles and brands coupled with price increases implemented in the third quarter of 2025. As part of a strategic initiative, we continued to build upon the lifestyle component of our outdoor category to broaden our distribution and consumer reach. Additionally, we offered select incentives to capture additional shelf s

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/895456/000143774926007634/rcky20251231_10k.htm
Complete FY 2025 MD&A: /company/RCKY/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-03-11
Report date: 2025-12-31

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") describes the matters that we consider to be important to understanding the results of our operations for each of the two years in the period ended December 31, 2025 and 2024, and our capital resources and liquidity as of December 31, 2025 and 2024. For the discussion of the changes in our results of operations and statement of cash flows between the years ended December 31, 2024 and December 31, 2023, refer to Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations", of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 17, 2025, which is available on the SEC's website at https://www.sec.gov/edgar/search/ and our corporate website at www.rockybrands.com. We analyze the results of our operations for the last two years (including trends in the overall business), followed by a discussion of our cash flows and liquidity, our credit facilities, and our contractual commitments. We then provide a review of the critical accounting policies and estimates we have made that we believe are most important to the understanding of our MD&A and our Consolidated Financial Statements. We conclude our MD&A with information on recent accounting pronouncements we adopted during the year, as well as those not yet adopted that are expected to have an impact on our financial accounting practices.

The following discussion should be read in conjunction with our Consolidated Financial Statements and the notes thereto, included elsewhere herein. The forward-looking statements in this section and other parts of this Annual Report on Form 10-K involve risks and uncertainties including statements regarding our plans, objectives, goals, strategies and financial performance. Our actual results could differ materially from the results anticipated in these forward-looking statements as a result of factors set forth under the caption "Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995" below. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements made by or on behalf of the Company.

BUSINESS OVERVIEW

We are a leading designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names including Muck, XTRATUF, Rocky, Durango, Georgia Boot, Lehigh, Ranger, and the licensed brand Michelin. Our portfolio of brands is organized into three reportable segments in which our product is distributed: Wholesale, Retail, and Contract Manufacturing. The reportable segments are targeted around six distinct product lines: work, outdoor, western, duty, commercial military, and military. We frequently experience significant seasonal fluctuations in our business as many of our footwear products and product lines are used by consumers in adverse weather conditions. Accordingly, average inventory levels have been highest during the second and third quarters of each year and sales have been highest in the last two quarters of the year. Our footwear products incorporate varying features and are positioned across a range of suggested retail price points from $45.00 for our value priced products to $680.00 for our premium products. As a part of our strategy of outfitting consumers from head-to-toe, we market complementary branded apparel and accessories that we believe leverage the strength and positioning of each of our brands.

16

Table of Contents

In our Wholesale business, we distribute our products through a wide range of distribution channels representing thousands of retail store locations in the U.S., the U.K. and other international markets such as Europe. Our Wholesale channels vary by product line and include sporting goods stores, outdoor retailers, independent shoe retailers, hardware stores, mass merchants, uniform stores, farm store chains, specialty safety stores, specialty retailers, and online retailers. Our Retail business includes direct sales of our products to consumers through our business-to-business web platform, e-commerce websites, third-party marketplaces and our Rocky Outdoor Gear Store. Our Contract Manufacturing segment includes sales to the U.S. Military, private label sales and any sales to customers in which we are contracted to manufacture or source a specific footwear product for a customer. 

Over the last two years, we have seen a shift in our total mix of sales, as the growth of our Retail segment continues to outpace the growth in our Wholesale and Contract Manufacturing segments. Growth in our Retail segment was primarily driven by increased sales on our owned e-commerce websites and third-party marketplaces, as we placed an emphasis on our direct-to-consumer business, partially through increased digital marketing in response to an ongoing shift among consumers to online retailers. 

During the second quarter of 2024, we amended and restated our Original ABL Facility (as such term is defined in Note 7 - Long-Term Debt of our Consolidated Financial Statements) which resulted in a restated $175.0 million revolving credit facility and a new $50.0 million term facility. The proceeds from this transaction were used to retire our existing senior secured term loan facility with TCW Asset Management Company, LLC as of April 26, 2024. This transaction resulted in an expense of $2.6 million, consisting of a loss on extinguishment of term debt in the amount of $1.1 million and a $1.5 million prepayment penalty, which are included in Interest Expense and Other -net within the Consolidated Statements of Operations for the twelve months ended December 31, 2024. See Note 7 - Long-Term Debt of our Consolidated Financial Statements for further information regarding our long-term debt.

In the first quarter of 2025, we announced a share repurchase program, which was approved by the Board of Directors to allow the Company to repurchase up to $7.5 million of the Company's outstanding common stock. During the first quarter of 2025, the Company repurchased 10,456 shares of common stock under the plan using cash flows generated from operations.

The year ended December 31, 2025 was a year of growth, led by top-line expansion in our Retail segment, particularly in our direct-to-consumer selling channel. We delivered higher margins in 2025 compared to 2024 in both our Wholesale and Retail segments. While the additional tariffs imposed in the second quarter of 2025 created margin pressures in the latter half of the year, we were able to ease the burden by diversifying our sourcing and leveraging our manufacturing facilities in the Dominican Republic and Puerto Rico as well as benefit from implementing price increases prior to realizing the impact of the tariffs. While operating expenses were up slightly to the year ago period, we were able to significantly increase our bottom line as a result of interest expense and tax savings.

ECONOMIC CONDITIONS AND UNCERTAINTIES

Our growth strategy is founded substantially on the expansion of our brands into new footwear and apparel markets. New products that we introduce may not be successful with consumers or one or more of our brands may fall out of favor with consumers. If we are unable to anticipate, identify or react appropriately to changes in consumer preferences, we may not grow as fast as we plan to grow, or our sales may decline, and our brand image and operating performance may suffer.

Furthermore, achieving market acceptance for new products will likely require us to exert substantial product development and marketing efforts, which could result in a material increase in expenses to which there can be no assurance that we will have the resources necessary to undertake such efforts. Material increases in expenses could adversely impact our results of operations and cash flows.

We may also encounter difficulties in producing new products that we did not anticipate during the development stage. Our development schedules for new products are difficult to predict and are subject to change as a result of shifting priorities in response to consumer preferences and competing products. If we are not able to efficiently manufacture newly developed products in quantities sufficient to support retail distribution, we may not be able to recoup our investment in the development of new products. Failure to gain market acceptance for new products that we introduce could impede our growth, reduce our profits, adversely affect the image of our brands, erode our competitive position, and result in long term harm to our business.

Our business is subject to a highly evolving and everchanging macroeconomic environment, including changes in tariffs, taxes, and industry changes. We continue to monitor changes in policy impacting global trade, including tariffs, which have been dynamic, unpredictable, and subject to ongoing modification. Beginning in early 2025, pursuant to the International Emergency Economic Powers Act ("IEEPA"), the U.S. presidential administration modified and imposed significant additional tariffs on products imported from various countries, including those countries where we primarily source our products. During the year ended December 31, 2025, we paid approximately $18.7 million in IEEPA tariffs. More recently, in February 2026, the U.S. Supreme Court ruled that certain tariffs imposed under the IEEPA were unlawful. Following the Supreme Court's decision, the U.S. presidential administration announced its intention to invoke other laws to collect tariffs and announced new tariffs on imports from all countries, in addition to any existing non-IEEPA tariffs. There remains substantial uncertainty regarding the duration of existing and newly announced tariffs, potential changes or pauses to such tariffs, tariff levels, and whether additional tariffs or other retaliatory actions may be imposed, modified, or suspended. During 2025, we have implemented, and plan to continue to implement, as needed, various mitigation strategies including adjusting the prices of our products, adjusting the countries from which we source our products and further leveraging our own manufacturing facilities in the Dominican Republic and Puerto Rico. Proposed or enacted tariffs and changes to U.S. trading policies may be restituted, paused, removed, or changed at any time and to the extent we are unable to successfully mitigate any negative impacts it could adversely affect our business, financial condition and results of operation. 

2025 FINANCIAL OVERVIEW

[[GREPCENT_TABLE]]
[["\u25cf","Net sales increased 6.2% to $482.0 million compared to 2024;"],["\u25cf","Gross margin increased 150-basis points to 40.9% of net sales in 2025 compared to 39.4% of net sales in 2024;"],["\u25cf","Income from operations increased 19.7% to $37.2 million in 2025 compared to $31.1 million in 2024;"],["\u25cf","Net income increased 95.6% to $22.3 million, or $2.96 per diluted share, in 2025, compared to $11.4 million, or $1.52 per diluted share, in 2024; and"]]
[[/GREPCENT_TABLE]]

17

Table of Contents

[[GREPCENT_TABLE]]
[["\u25cf","Total debt on December 31, 2025 was $122.6 million, down 4.7%, compared to $128.7 million at December 31, 2024."]]
[[/GREPCENT_TABLE]]

During the twelve months ended December 31, 2025, we reported an increase in net sales compared to the twelve months ended December 31, 2024, which was attributable to an increase in net sales in our Wholesale and Retail reporting segments, partially offset by a decrease in net sales in our Contract Manufacturing reporting segment.

The 150-basis point increase in gross margin to 40.9% of net sales in 2025 compared to 39.4% of net sales in 2024 was primarily driven by an 170-basis point increase in our Wholesale gro

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/RCKY/mda/fy2025/
All MD&A years: /company/RCKY/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/RCKY/mda/fy2024/): filed 2025-03-17; accession 0001437749-25-008025 (https://www.sec.gov/Archives/edgar/data/895456/000143774925008025/rcky20241231_10k.htm)
- [FY 2023 MD&A](/company/RCKY/mda/fy2023/): filed 2024-03-15; accession 0001437749-24-007987 (https://www.sec.gov/Archives/edgar/data/895456/000143774924007987/rcky20231231_10k.htm)
- [FY 2022 MD&A](/company/RCKY/mda/fy2022/): filed 2023-03-10; accession 0001437749-23-006169 (https://www.sec.gov/Archives/edgar/data/895456/000143774923006169/rcky20221231_10k.htm)
- [FY 2021 MD&A](/company/RCKY/mda/fy2021/): filed 2022-03-15; accession 0001437749-22-006288 (https://www.sec.gov/Archives/edgar/data/895456/000143774922006288/rcky20211231_10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3140 Footwear, (No Rubber)) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/RCKY.md · JSON record: /company/RCKY.json · verified financials: /company/RCKY/financials.json / /company/RCKY/financials.csv · machine TOC for the whole site: /llms.txt