Rocky Brands Reports Strong Q2 2025 Financial Performance

Rocky Brands ( (RCKY) ) has released its Q2 earnings. Here is a breakdown of the information Rocky Brands presented to its investors.

Rocky Brands, Inc. is a prominent designer, manufacturer, and marketer of premium footwear and apparel, known for its diverse brand portfolio including Rocky, Georgia Boot, and XTRATUF, operating primarily in the footwear industry.

In its second quarter of 2025, Rocky Brands reported a notable increase in financial performance, with net sales rising by 7.5% to $105.6 million and a significant improvement in net income, which surged by 390.3% to $3.6 million. The company also achieved a substantial reduction in total debt by 13.1% year-over-year.

Key financial metrics highlighted in the report include a 230-basis point increase in gross margin to 41.0% of net sales and a 58.7% rise in income from operations to $7.2 million. The company’s adjusted net income also saw a remarkable increase of 224.9% to $4.1 million. The growth was driven by strong demand in the Wholesale and e-Commerce channels, particularly for the XTRATUF and Muck brands, and effective supply chain and pricing strategies.

Despite a decrease in contract manufacturing net sales, Rocky Brands managed to enhance its overall profitability and maintain a healthy balance sheet, with inventories up by 6.8% and cash equivalents slightly lower than the previous year. The company also benefited from lower interest expenses following a debt refinancing.

Looking forward, Rocky Brands remains optimistic about its business momentum while exercising caution due to market uncertainties. The company is strategically positioned to navigate economic challenges and aims to continue delivering value to its shareholders through leveraging its manufacturing facilities and managing tariffs effectively.