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1. Company Snapshot

1.a. Company Description

Rocky Brands, Inc.designs, manufactures, and markets footwear and apparel under the Rocky, Georgia Boot, Durango, Lehigh, Muck, XTRATUF, Servus, NEOS, Ranger, and licensed Michelin brand names in the United States, Canada, and internationally.It operates through Wholesale, Retail, and Contract Manufacturing segments.


The Wholesale segment offers products in approximately 10,000 retail locations through a range of distribution channels comprising sporting goods stores, outdoor retailers, independent shoe retailers, hardware stores, catalogs, mass merchants, uniform stores, farm store chains, specialty safety stores, and specialty and online retailers.The Retail segment sells its products directly to consumers through its e-commerce websites, including rockyboots.com, georgiaboot.com, durangoboot.com, lehighoutfitters.com, lehighsafetyshoes.com, slipgrips.com,muckbootcompany.com,xtratuf.com, and Rocky outlet store in Nelsonville, Ohio, and retail stores.The Contract Manufacturing segment include private label sales and any sales to customers which are contracted to manufacture a specific footwear product for a customer and include sales to the U.S. Military.


It serves industrial and construction workers, as well as workers in the hospitality industry, such as restaurants or hotels; farmers and ranchers; consumers enamored with western influenced fashion; commercial military personnel; hunting, fishing, camping, and hiking enthusiasts; law enforcement, security personnel, and postal employees; and for the U.S. military personnel.Rocky Brands, Inc.was founded in 1932 and is headquartered in Nelsonville, Ohio.

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1.b. Last Insights on RCKY

Rocky Brands, Inc.'s recent performance was negatively impacted by higher SG&A costs, which led to decreased margins in Q4 2024. The company's earnings growth of 8.8% year-over-year was overshadowed by increased expenses, including logistics costs and higher tariffs on Chinese imports, which are expected to affect EPS by $0.60 in FY 2025. Additionally, the company's Q3 results were marred by slow wholesale orders, inventory shortages, and dry weather, which have yet to fully recover.

1.c. Company Highlights

2. Rocky Brands' Q4 2025 Earnings: A Strong Finish to a Good Year

Rocky Brands concluded 2025 with a 9% increase in net sales, marking its highest quarterly growth rate of the year. The strong results reflect momentum in the business, despite industry headwinds from higher tariffs and deteriorating consumer sentiment. Net sales for the full year grew 6%, and gross margins expanded by 150 basis points. Earnings per share (EPS) came in at $0.94, significantly beating estimates of $0.3. The company's diversified brand portfolio, operational flexibility, and strong balance sheet provide multiple avenues for continued growth and value creation.

Publication Date: Mar -08

📋 Highlights
  • Q4 Net Sales Growth:: 9% increase in net sales, highest quarterly growth rate of 2025 despite industry headwinds from tariffs and declining consumer sentiment.
  • XTRATUF Performance:: Fastest-growing brand with strong performance across all channels, led by e-commerce, continuing its exceptional quarterly trend.
  • Muck Sales Surge:: 20%+ sales growth driven by branded website and marketplace volumes, reflecting strong consumer demand.
  • Gross Margin Expansion:: Full-year 2025 gross margins expanded by 150 basis points despite $10 million in IEEPA tariffs impacting 2026 P&L in the first half.
  • 2026 Revenue & EPS Outlook:: 6% revenue growth expected, with EPS growth in the low teens due to SG&A leverage, interest expense reduction, and a 21.5% tax rate.

Segment Performance

The company's direct-to-consumer channel saw exceptional demand during the holiday season, highlighting the power of its brand portfolio. XTRATUF delivered another exceptional quarter, continuing its position as the fastest-growing brand with strong performance across all channels, led by e-commerce. Muck also had a very good quarter, with sales increasing in the low 20% range, driven by the branded website and marketplace volumes. Durango finished the quarter with a good December performance, especially in farm and ranch accounts, benefiting from increased foot traffic due to wet and snowy weather conditions.

Outlook and Guidance

The company expects revenue to increase approximately 6% over 2025, with the retail segment growing faster than wholesale. Gross margins are forecasted to be similar to that of 2025, including roughly $10 million in IEEPA tariffs that will hit the P&L in the first half of the year. The company is optimistic about several key developments across its brand portfolio, including XTRATUF and Muck, which are expected to grow significantly in 2026. With a current P/E Ratio of 14.74 and an ROE of 9.15%, the stock appears reasonably valued. However, the EV/EBITDA ratio of 8.29 suggests that the company's enterprise value is relatively in line with its earnings before interest, taxes, depreciation, and amortization.

Operational Highlights

The company is leveraging its manufacturing facilities to maintain a competitive advantage, particularly in the face of tariffs. Thomas Robertson mentioned that the business has continued to see momentum in 2026, benefiting from weather in the first part of the year. The order book for spring 2026 is up across the board, and feedback on the spring '26 product is extremely positive. The company's investment in e-commerce, digital marketing, and inventory is expected to support growth in its key brands.

3. NewsRoom

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Guidefitter Deepens Strategic Partnership with Rocky Brands, Inc., Expands Platform to Include Muck and XTRATUF

Apr -02

Source: prnewswire.com

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Top 2 Consumer Stocks You May Want To Dump This Quarter

Feb -26

Source: benzinga.com

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Rocky Brands Sells More But Generates Less Profit Because Of Ecommerce Deleverage

Feb -25

Source: seekingalpha.com

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Rocky Brands Starts 2026 Off On The Right Foot

Feb -25

Source: seekingalpha.com

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Rocky Brands, Inc. (RCKY) Q4 2025 Earnings Call Transcript

Feb -24

Source: seekingalpha.com

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Rocky Brands, Inc. Announces Fourth Quarter and Full Year 2025 Results

Feb -24

Source: businesswire.com

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Rocky Brands, Inc. to Report Fourth Quarter and Full Year 2025 Results on February 24, 2026

Feb -17

Source: businesswire.com

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Diamond Hill Capital Management Inc. Sells 16,502 Shares of Rocky Brands, Inc. $RCKY

Feb -09

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.90%)

6. Segments

Wholesale

Expected Growth: 1.8%

Rocky Brands, Inc.'s wholesale segment growth of 1.8% is driven by increasing demand for outdoor and work footwear, expansion into new channels, and strategic partnerships. Additionally, the company's focus on innovative products, such as waterproof and insulated footwear, has contributed to the growth. Furthermore, the company's efforts to strengthen its distribution network and improve operational efficiency have also supported the segment's growth.

Retail

Expected Growth: 2.2%

Rocky Brands, Inc.'s 2.2% retail growth is driven by increasing demand for outdoor and work footwear, expansion of e-commerce channels, and strategic partnerships with key retailers. Additionally, the company's focus on innovative products, such as waterproof and insulated footwear, has contributed to its growth in the retail segment.

Contract Manufacturing

Expected Growth: 1.9%

Rocky Brands, Inc.'s 1.9% growth in Contract Manufacturing is driven by increasing demand for outdoor and work footwear, strategic partnerships, and capacity expansions. Additionally, the company's focus on operational efficiency, cost savings, and investments in technology have contributed to the growth. Furthermore, the trend towards outsourcing manufacturing to specialized partners has also boosted the segment's performance.

7. Detailed Products

Work Boots

High-quality, durable boots designed for workers in various industries such as construction, manufacturing, and outdoor occupations.

Outdoor Apparel

Waterproof and breathable clothing designed for outdoor enthusiasts, including jackets, pants, and shirts.

Military Boots

Tactical boots designed for military personnel, law enforcement, and first responders.

Western Boots

Handcrafted boots with a focus on style, comfort, and durability, inspired by traditional Western designs.

Hunting Boots

Waterproof and insulated boots designed for hunters and outdoor enthusiasts, providing warmth and protection in harsh environments.

Work Apparel

Durable and comfortable clothing designed for workers in various industries, including flame-resistant and high-visibility apparel.

8. Rocky Brands, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Rocky Brands, Inc. is medium due to the presence of alternative footwear and apparel brands in the market. However, the company's strong brand recognition and quality products help to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Rocky Brands, Inc. due to the company's strong brand portfolio and wide distribution network, which reduces the dependence on individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Rocky Brands, Inc. due to the presence of multiple suppliers in the market. However, the company's large scale of operations and long-term relationships with suppliers help to mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low for Rocky Brands, Inc. due to the high barriers to entry in the footwear and apparel industry, including significant capital requirements and established distribution networks.

Intensity Of Rivalry

The intensity of rivalry is high for Rocky Brands, Inc. due to the presence of several established players in the footwear and apparel industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 44.02%
Debt Cost 13.75%
Equity Weight 55.98%
Equity Cost 13.75%
WACC 13.75%
Leverage 78.62%

11. Quality Control: Rocky Brands, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Buckle

A-Score: 6.8/10

Value: 5.0

Growth: 4.0

Quality: 7.6

Yield: 10.0

Momentum: 7.0

Volatility: 7.3

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Weyco

A-Score: 6.4/10

Value: 7.1

Growth: 5.9

Quality: 7.1

Yield: 10.0

Momentum: 3.0

Volatility: 5.0

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Rocky Brands

A-Score: 5.7/10

Value: 7.9

Growth: 5.6

Quality: 5.3

Yield: 4.0

Momentum: 8.5

Volatility: 3.0

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Wolverine World Wide

A-Score: 3.6/10

Value: 5.0

Growth: 2.8

Quality: 5.1

Yield: 4.0

Momentum: 2.5

Volatility: 2.3

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Stock-Card
Caleres

A-Score: 3.5/10

Value: 7.9

Growth: 3.7

Quality: 3.5

Yield: 3.0

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

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Vera Bradley

A-Score: 2.9/10

Value: 10.0

Growth: 0.7

Quality: 4.0

Yield: 0.0

Momentum: 1.5

Volatility: 1.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

38.69$

Current Price

38.69$

Potential

-0.00%

Expected Cash-Flows