Rocky Brands Extends Double-Digit Sales Growth

The Tip Desk · October 27, 2026 · 3 min read

Net sales reached $138.8 million in the third quarter, up 13.3% from a year earlier, as wholesale and retail both posted double-digit gains.

Rocky Brands, Inc. (RCKY) reported net sales of $138.8 million for the third quarter ended September 30, 2026, up 13.3% from $122.5 million a year earlier, a faster pace than the 12.0% increase to $118.4 million in the second quarter. Chairman, President and Chief Executive Officer Jason Brooks called it a second consecutive quarter of double-digit top-line growth.

Wholesale segment sales increased 11.8% to $99.6 million, after 7.9% growth to $78.8 million in the prior quarter. Retail segment sales increased 20.0% to $35.4 million. Contract Manufacturing sales decreased 3.1% to $3.8 million. Brooks said demand was broad based, with several brands achieving double-digit sales gains led by Durango, Muck and XTRATUF, as well as the Lehigh CustomFit business.

Gross margin was $62.5 million, or 45.0% of net sales, compared with $49.3 million, or 40.2%, in the year-ago quarter. The company said the increase was primarily due to $2.5 million of IEEPA tariff refunds and a temporary $3.5 million benefit from selling inventory from its free trade zone that carried no incremental tariffs, partially offset by sourcing variances. Excluding the net benefit from those refunds, Brooks said gross margins reflected strong full-price selling.

Income from operations increased to $18.2 million, or 13.1% of net sales, from $11.7 million, or 9.6%, a year earlier. Adjusted income from operations was $18.9 million, or 13.6% of net sales, compared with $12.4 million, or 10.1%, reflecting the net impact of tariffs. Net income increased to $12.8 million, or $1.69 a share, from $7.2 million, or $0.96 a share. Adjusted net income was $13.4 million, or $1.76 a share, from $7.8 million, or $1.03 a share.

Operating expenses were $44.3 million, or 31.9% of net sales. Excluding $0.7 million of acquisition-related amortization in both periods, adjusted operating expenses were $43.6 million, or 31.4% of net sales, compared with $36.8 million, or 30.1%, a year ago. The company said the increase was partially due to higher outbound logistics costs associated with Retail sales, an increase in digital advertising spend, and higher performance-based compensation.

Interest expense fell to $2.0 million from $2.6 million a year earlier, which the company tied to lower debt levels. Total debt, net of unamortized issuance costs, was $116.0 million as of September 30, 2026, down 16.6% from $139.0 million a year earlier. The balance consisted of a $20.5 million senior term loan and $96.8 million of borrowings under the senior secured asset-backed credit facility. Cash and cash equivalents were $2.3 million. Other receivables were $11.2 million, primarily an IEEPA tariff refund receivable. Inventories were $189.7 million.

Brooks said the company is encouraged with momentum heading into the holiday season and believes it is well positioned to deliver a strong finish to 2026.