American premium footwear manufacturer Rocky Brands has reported net sales growth of 9.1 per cent to $124.4 million in the first quarter (Q1) of 2026, with retail segment sales up 16.5 per cent to $42.7 million, reflecting strong demand across channels and online. However, higher tariffs of about $7.1 million led to a gross margin decline to 36.5 per cent and a sharp fall in profitability.

“The momentum we experienced in our business last year carried over into 2026, driving net sales growth of approximately 9 per cent for the second consecutive quarter,” said Jason Brooks, chairman, president and CEO at Rocky Brands.

Rocky Brands has reported net sales up 9.1 per cent to $124.4 million in Q1 2026, with retail rising 16.5 per cent.
However, $7.1 million tariff costs reduced gross margin to 36.5 per cent and hit profits, with net income down 74.5 per cent.
Adjusted EPS fell to $0.24.
The company expects easing tariff pressure and improved margins in the second half of 2026.

He added that performance was driven by strength in XTRATUF and Muck across channels and robust online demand. “Profitability was in line with our expectations as we anticipated higher sourcing variances, mainly as a result of increased tariffs,” said Brooks.

The Rocky Brands earnings report 2026 shows net income declined 74.5 per cent to $1.3 million, while operating income fell 58.2 per cent, reflecting tariff-related cost pressures across the footwear industry financial results landscape. Adjusted diluted earnings per share (EPS) came in at $0.24, down from $0.73, reflecting the impact of tariffs on companies and broader footwear industry financial results, Rocky Brands said in a press release.

“Moving forward, the impact from higher tariffs begins to lessen in the second quarter which, along with current top-line trends, provides a clear path back to gross margins in the low 40 per cent range and improvement in profitability over the second half of the year,” Brooks noted.

Wholesale sales rose 4.8 per cent, while contract manufacturing grew 25 per cent, indicating diversified growth across segments. Inventory declined 1.6 per cent to $172.6 million and total debt fell 5 per cent to $122.2 million, signalling improved balance sheet management.

Fibre2Fashion News Desk (SG)

According to the Turkish Statistical Institute and the Ministry of Trade, category-wise, exports of knitted and crocheted garments (HS **) fell *.* per cent to $*.*** billion, while woven apparel and accessories (HS **) dropped *.* per cent to $*.*** billion, indicating sharper weakness in structured and formalwear segments. Knits continue to account for the larger share, but even this relatively resilient segment is now losing momentum.

March data signalled a sharper deterioration in momentum. Knitted apparel exports dipped **.* per cent year on year to $***.** million, while non-knitted exports declined **.* per cent to $***.** million. Combined shipments under HS ** and HS ** fell **.** per cent to $*.*** billion during the month, pointing to weakening order flows towards the end of the quarter.

The American Apparel & Footwear Association (AAFA) celebrated 50 years of the AAFA American Image Awards last evening in New York City at the historic Gotham Hall in Midtown Manhattan. The gala honored fashion leaders from across the industry and was emceed by Emmy-winning journalist, Alina Cho. The Council of Fashion Designers of America (CFDA) Foundation is the event’s longstanding charitable beneficiary.

The 2026 American Image Awards celebrated honorees including Fabletics as Company of the Year, accepted by Adam Goldenberg, Co-Founder and CEO; Zac Posen as Designer of the Year; Timberland as Fashion Maverick, accepted by Nina Flood, Global Brand President; Avery Dennison as Global Innovator, accepted by Bill Toney, Vice President, Advanced Technology, Solutions Group; Trailblazer co-recipients  Josue Solano, CEO of BBC International and Seth Campbell, Corporate President of BBC International; AFIRM Group was honored as Eco-Steward of the Year, accepted by Nathaniel Sponsler, Director; and the Icon Award was presented to Ruben Toledo.

AAFA’s 50th American Image Awards highlighted a future-focused industry shaped by innovation, sustainability and collaboration.
Leaders stressed regulatory readiness, AI-driven transformation and evolving partnerships.
Honourees reflected resilience and creativity, signalling a more accountable, diverse and globally connected fashion landscape.

Throughout the program, speakers and honorees alike emphasized community, incredible change over the decades, and a bright outlook for the future of the industry, ever-more global, more diverse, and more accountable. Emcee Alina Cho set that tone at the outset, stating, “Tonight’s honorees represent the very best of what this industry can be; designers, executives, visionaries, and strategists, who honor the craft while having the courage to evolve it.”

Momentum built with Nathaniel Sponsler, Director of the AFIRM Group, the Eco-Steward of the Year honoree, underscoring the importance of continued leadership in addressing evolving environmental challenges. “Chemicals will always be a sensitive issue for apparel and footwear,” he said. “We must demonstrate leadership and stay ahead of these issues as they continue to get more attention from regulators and the public. In many ways it feels like our work is only beginning.”

AAFA’s Chair Joe Preston, President and CEO, New Balance Athletics, Inc. introduced BBC International CEO Josue Solano and Corporate President Seth Campbell accepting the evening’s dual Trailblazer honors for their work pioneering dynamic partnerships in the footwear sector. Solano reflected on the company’s proactive approach during recent global uncertainty, noting, “At BBC, we believe there is a time to play offense and there is a time to play defense. You would think that in the past five years where the world seems to be upside down, BBC would have taken the position to play defense.” He continued, “but, it has been quite the opposite.” This mindset, he explained, helped define a “new North Star” for the company.

Reinforcing a future forward perspective, Campbell highlighted the opportunity that lies ahead. “As we look ahead, we know the path isn’t set — and that’s what makes it really exciting. We’ll continue to build, to evolve, to work hard and to create new tracks for BBC, just as those before us did.”

AAFA President and CEO Steve Lamar then introduced Rosie Rios, the 43rd Treasurer of the United States and Chair of the America250 initiative, who thanked AAFA for its partnership and spoke to the scale of the national milestone ahead. “At America250, we have a simple goal: to engage all 350 million Americans for the 250th – a goal we call 350 for 250.”

Steven Kolb, President and CEO of the CFDA, the event’s charitable beneficiary, brought to the stage actress Katie Holmes, who joined the evening to present the Designer of the Year honor to Zac Posen. In his remarks, Posen reflected on his creative journey and the partnerships that have shaped his work, while also looking ahead to continued innovation in American fashion. In his closing comments, he said, “What a gift it is to be on this journey with all of you, to continue to extend that invitation, far and wide, and to push the boundaries of what is possible in American fashion.”

A defining and emotional moment of the evening came as legendary artist Ruben Toledo accepted the Icon Award for his role in designing the award statuette presented to each honoree for more than a decade. Created alongside his late wife, fashion designer Isabel Toledo, the statuette remains a lasting symbol of their shared creative vision. In accepting the honor, Toledo made clear the recognition was for them both. “So, to stand here tonight, receiving this… is overwhelming. Because this was never mine. It was ours.” He continued, “And I carry her [Isabel] with me… in every line, every shape, every idea that still finds its way into the world.”

Innovation and technology remained central themes as Bill Toney, Vice President, Advanced Technology, Solutions Group, accepted the Global Innovator honor on behalf of Avery Dennison. Looking ahead to the role of connected products and data, Toney stated, “What started as a simple label now connects the physical and digital — at scale, delivering the ground truth data that will optimize AI in the future. And the most exciting part is, we’re only at the beginning of what’s possible.” He added, “This progress isn’t ours alone. It’s been shared by the companies in this room.”

Bracken Darrell, CEO of VF Corp., next introduced Timberland as the Fashion Maverick honoree. Accepting the award, Global Brand President Nina Flood spoke to the importance of balancing heritage with innovation, reinforcing the evening’s overarching theme. “For us, being a maverick isn’t about standing apart for the sake of it. It’s about standing for something—standing tall in our heritage, rooted in our values, and consistently shaping what comes next.”

The final award of the evening was presented to Fabletics, recipient of the Company of the Year honor. Adam Goldenberg, Co-Founder, President and COO, accepted on behalf of the company, highlighting its continued focus on customer-driven innovation. “From day one, we set out to build not just a great product, but a different kind of business. A membership model built around personalization and value, with the customer at the center of every decision,” said Goldenberg. “A little over a decade later, it’s incredible to see how far that idea has come.”

The evening underscored a clear and consistent message: while the American Image Awards marked a milestone 50th year, the industry it celebrates remains firmly focused on the future — driven by innovation, responsibility, and a shared commitment to continued evolution.

“It’s remarkable to celebrate both the 50th anniversary of the American Image Awards and 250 years of American history. What unites us all is our shared thread of excellence in American fashion,” said Steve Lamar, President and CEO of AAFA. “Tonight, we honor iconic brands that have defined that excellence for generations, alongside new voices and innovations that are shaping the future of our industry. As we reflect on these milestones, one thing remains constant: change. What we do best is meet it head-on, rising to the challenge and continuing to innovate.”  

“I’m truly inspired by passionate leaders across our industry whom we celebrate tonight at the American Image Awards” said Joe Preston, chair of AAFA and New Balance President and CEO. “Our industry continues to thrive due to the creative talents of so many across footwear and apparel companies.”

“We are once again proud to celebrate the American Image Awards alongside the American Apparel & Footwear Association, and its exceptional honorees,” said Steven Kolb, CEO and President, CFDA. “Our longstanding partnership with AAFA provides the CFDA Foundation an opportunity to support the vital work of advancing the fashion industry from local manufacturing and business grants to scholarships.”

As guests arrived, the red carpet buzzed with energy, drawing fashion executives, designers, influencers, and other notable figures together in anticipation of the evening’s celebration.

Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.

Fibre2Fashion News Desk (MS)