Rocky Brands reported second-quarter 2026 net sales of $118.4 million, up 12.0% year-over-year, and gross margin of $60.8 million, or 51.4% of net sales. Income from operations rose to $19.7 million and net income was $13.9 million, or $1.83 per diluted share; adjusted diluted EPS was $1.90. Inventories and total debt both declined year-over-year, while the quarter benefited from recognition of IEEPA tariff refunds.

Financial Highlights

  • Revenue: Net sales $118.4 million for the three months ended June 30, 2026, up 12.0% from $105.6 million a year earlier.
  • Gross profit and margin: Gross margin $60.8 million, representing 51.4% of net sales for Q2 2026 (vs. $43.3 million, 41.0% in Q2 2025).
  • Operating income: Income from operations $19.7 million, or 16.6% of net sales for the quarter.
  • Net income and EPS: Net income $13.9 million, or $1.83 per diluted share for Q2 2026.
  • Adjusted results: Adjusted net income $14.4 million, or $1.90 per diluted share for Q2 2026 (adjustment excludes $0.7 million acquisition-related amortization).

Business Highlights

  • Segment performance: Wholesale segment sales increased 7.9% to $78.8 million; Retail segment sales increased 21.8% to $36.2 million; Contract Manufacturing sales rose 17.2% to $3.3 million.
  • Channel strength: Robust direct-to-consumer website performance and strong bookings in the quarter expected to drive Wholesale momentum in H2 2026.
  • Tariff impact and operations: Quarter benefited from recognition of actual and expected IEEPA tariff refunds, which reduced cost of goods sold by approximately $15.0 million and more than offset incremental costs from adjusted sourcing and shipping plans.
  • Working capital and balance sheet trends: Inventories decreased 7.1% year-over-year to $173.5 million; other receivables increased primarily due to the IEEPA tariff refund receivable.
  • Leverage: Total debt (net of unamortized issuance costs) decreased 7.6% year-over-year to $122.4 million as of June 30, 2026.

Original SEC Filing:

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