Fashion
US’ Rocky Brands delivers solid Q3 performance with higher sales
The gross margin expanded 210 basis points (bps) to 40.2 per cent of net sales, up from 38.1 per cent last year, driven by full-price selling, selective price adjustments, and a favourable product and channel mix.
Rocky Brands, Inc has reported strong Q3 2025 results, with net sales up 7 per cent YoY to $122.5 million and gross margin improving 210 bps to 40.2 per cent.
Net income rose 36.6 per cent to $7.2 million, driven by strong brand demand and pricing strategies.
Debt declined 7.5 per cent YoY, while inventories increased 12.7 per cent to support future growth.
The income from operations rose 16.5 per cent to $11.7 million, while adjusted operating income grew to $12.4 million, or 10.1 per cent of sales. Net income surged 36.6 per cent to $7.2 million, or $0.96 per diluted share, compared to $5.3 million, or $0.7 per diluted share, a year ago. Adjusted net income climbed 33.4 per cent to $7.8 million, or $1.03 per diluted share, Rocky Brands said in a press release.
Interest expenses declined to $2.6 million from $3.3 million, aided by reduced debt levels and lower interest rates. Total debt decreased 7.5 per cent YoY, underscoring improved financial discipline.
Wholesale net sales increased 6.1 per cent to $89.1 million, supported by strong performance from XTRATUF, Georgia Boot, The Original Muck Boot Company, and Rocky. Retail sales grew 10.3 per cent to $29.5 million, reflecting sustained e-commerce momentum, while contract manufacturing improved 4.1 per cent to $3.9 million.
The gross margin expanded to $49.3 million, reflecting gains in both wholesale and retail divisions. Operating expenses rose to $37.6 million, or 30.6 per cent of sales, from $33.6 million, or 29.3 per cent, mainly due to higher logistics, selling, and marketing investments. Excluding acquisition-related amortisation, adjusted operating expenses were $36.8 million, or 30.1 per cent of sales.
Inventories rose 12.7 per cent YoY to $193.6 million, positioning the company to meet demand for the upcoming quarters.
“We delivered another quarter of solid results amidst a challenging operating environment,” said Jason Brooks, chairman, president and chief executive officer (CEO) of Rocky Brands. “The improvement in our top line was led by XTRATUF, complemented by strong performances from Georgia Boot, The Original Muck Boot Company, and Rocky. Our price adjustments and sourcing diversification—including our facilities in the Dominican Republic and Puerto Rico—will help mitigate tariff pressures in the near term. We are confident our strong brand portfolio and agile supply chain will capture growth opportunities in 2026 and beyond.”
As of September 30, 2025, total assets stood at $494 million, compared to $475 million a year earlier. Shareholders’ equity increased to $246.1 million from $228.3 million in September 2024, driven by higher retained earnings, added the release.
Fibre2Fashion News Desk (SG)