Rocky Brands (RCKY)
NASDAQ:RCKY
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Rocky Brands
(NASDAQ:RCKY)
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Rating:69Neutral
Price Target:
$43.00
▲(7.02% Upside)
Action:DowngradedDate:03/12/26
The score is anchored by improving profitability and a stronger balance sheet, plus strong technical momentum and a low P/E. It is held back primarily by weak/volatile cash generation and near-term tariff and cost headwinds highlighted in guidance (front-loaded into early 2026).
Positive Factors
Margin expansion & profitability improvement
Sustained gross margin expansion (~41%) and a large rise in adjusted net income signal durable improvements in pricing, mix, and cost control. Higher structural margins increase earnings resiliency versus cost shocks, improve return on invested capital and support reinvestment or shareholder returns over the medium term.
Negative Factors
Volatile and weakened cash generation
Sharp decline and historical volatility in operating cash flow undermine the company's ability to consistently fund capex, dividends, buybacks or inventory buildups internally. Inconsistent cash conversion increases reliance on external financing and elevates execution risk during cyclical or cost‑shock periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion & profitability improvement
Sustained gross margin expansion (~41%) and a large rise in adjusted net income signal durable improvements in pricing, mix, and cost control. Higher structural margins increase earnings resiliency versus cost shocks, improve return on invested capital and support reinvestment or shareholder returns over the medium term.
Read all positive factors
Rocky Brands (RCKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$302.82M
Dividend Yield2.08%
Average Volume (3M)49.54K
Price to Earnings (P/E)9.8
Beta (1Y)1.15
Revenue Growth4.13%
EPS Growth53.56%
CountryUS
Employees2,530
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)0.94
Shares Outstanding7,536,488
10 Day Avg. Volume51,288
30 Day Avg. Volume49,540
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)0.87
Price to Sales (P/S)0.45
P/FCF Ratio22.55
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue0.90
Enterprise Value/Gross Profit2.21
Enterprise Value/Ebitda7.67
Forecast
1Y Price Target
$53.00Price Target Upside31.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)3.11
Revenue Forecast (FY)$496.57M
Rocky Brands Business Overview & Revenue Model
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...
How the Company Makes Money
Rocky Brands primarily makes money by selling branded footwear (its core product category) and, to a lesser extent, apparel and accessories through two main routes: (1) wholesale distribution and (2) direct-to-consumer (DTC) sales. In wholesale, t...
Rocky Brands Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presents a generally positive outlook driven by strong retail and e-commerce momentum, notable brand acceleration (XTRATUF and Muck), full-year margin expansion and significant adjusted net income growth. These positives are tempered by meaningful near-term headwinds from tariffs (front-loaded into early 2026), wholesale and contract manufacturing softness, higher operating expenses tied to logistics and marketing, and some channel-specific order timing issues. Management highlights operational agility and balance sheet improvements, and provides guidance for modest revenue growth (~6% in 2026) with earnings skewed toward the back half of the year.Positive Updates
Quarterly and Full-Year Revenue Growth
Net sales increased 9.1% year-over-year in Q4 to $139.7 million (the company's highest quarterly growth rate of the year and highest in over 3 years). Full-year net sales grew 6.2% to $482 million.
Negative Updates
Tariff Headwinds Impacting Margins
Q4 was impacted by $8.3 million in tariffs and sourcing variances; the company absorbed approximately $10.9 million in IEEPA tariffs in 2025 and expects roughly $10 million of tariffs to hit the P&L in the first half of 2026 (with ~80% occurring in Q1), pressuring margins and front-loading 2026 earnings headwinds.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly and Full-Year Revenue Growth
Net sales increased 9.1% year-over-year in Q4 to $139.7 million (the company's highest quarterly growth rate of the year and highest in over 3 years). Full-year net sales grew 6.2% to $482 million.
Read all positive updates
Company Guidance
For 2026 the company guided to roughly 6% revenue growth versus 2025 (with retail growing faster than wholesale), gross margins to be similar to 2025, and about $10 million of IEEPA tariffs hitting the P&L in the first half of the year (approximately 80% of that in Q1); SG&A dollars are expected to increase due to higher marketing but to leverage by ~80 basis points as a percent of revenue, interest expense should decline modestly, the estimated tax rate is 21.5%, and management expects EPS percentage growth in the low teens with sales growth fairly consistent each quarter but all earnings growth back‑loaded to the second half (primarily Q4); guidance was modeled on the recent tariff actions (headline 15% change) with the assumption tariffs remain in place for the year.Rocky Brands Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
72
Positive
Cash Flow
48
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 481.98M | 453.77M | 461.83M | 615.48M | 514.23M |
| Gross Profit | 197.29M | 179.01M | 178.60M | 225.22M | 194.54M |
| EBITDA | 47.03M | 41.32M | 46.31M | 56.36M | 47.29M |
| Net Income | 22.27M | 11.39M | 10.43M | 20.46M | 20.56M |
Balance Sheet | |||||
| Total Assets | 477.49M | 457.30M | 479.38M | 592.76M | 624.58M |
| Cash, Cash Equivalents and Short-Term Investments | 2.90M | 3.72M | 4.47M | 5.72M | 5.91M |
| Total Debt | 124.37M | 135.05M | 181.27M | 268.18M | 278.85M |
| Total Liabilities | 225.40M | 225.08M | 255.83M | 377.29M | 426.72M |
| Stockholders Equity | 252.09M | 232.22M | 223.56M | 215.47M | 197.85M |
Cash Flow | |||||
| Free Cash Flow | 9.72M | 48.10M | 69.66M | 12.42M | -75.93M |
| Operating Cash Flow | 16.30M | 52.76M | 73.58M | 19.12M | -54.88M |
| Investing Cash Flow | -6.20M | -2.96M | 13.38M | -1.23M | -233.46M |
| Financing Cash Flow | -10.91M | -50.55M | -88.21M | -18.08M | 265.89M |
Rocky Brands Technical Analysis
Positive
40.18
Price Trends
38.13
Positive
34.19
Positive
30.46
Positive
Market Momentum
-0.12
Positive
54.09
Neutral
63.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCKY, the sentiment is Positive. The current price of 40.18 is below the 20-day moving average (MA) of 40.36, above the 50-day MA of 38.13, and above the 200-day MA of 30.46, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 54.09 is Neutral, neither overbought nor oversold. The STOCH value of 63.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RCKY.
Rocky Brands Risk Analysis
Rocky Brands disclosed 30 risk factors in its most recent earnings report. Rocky Brands reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rocky Brands Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $310.16M | 12.56 | 9.35% | 9.66% | -3.64% | -16.12% | |
69 Neutral | $302.82M | 9.84 | 9.15% | 2.08% | 4.13% | 53.56% | |
62 Neutral | $4.54B | -57.09 | -5.37% | ― | <0.01% | -77.31% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.32B | 11.34 | 26.62% | 2.28% | 3.61% | ― | |
56 Neutral | $2.56B | 66.08 | 5.21% | 1.97% | 6.26% | -66.51% | |
54 Neutral | $367.19M | -56.33 | -1.16% | 2.11% | -2.83% | -86.19% |
* Consumer Cyclical Sector Average
RCKY
Rocky Brands
40.18
25.80
179.38%
CROX
Crocs
90.47
-9.12
-9.16%
SHOO
Steven Madden
35.13
13.56
62.86%
WEYS
Weyco Group
32.54
4.27
15.09%
WWW
Wolverine World Wide
16.21
4.14
34.24%
CAL
Caleres
10.85
-5.86
-35.06%
Rocky Brands Corporate Events
Business Operations and StrategyStock Buyback
Rocky Brands Announces New $7.5 Million Share Buyback
Positive
Feb 24, 2026
On February 23, 2026, Rocky Brands, Inc.’s board authorized a new 12‑month share repurchase program of up to $7.5 million of the company’s common stock, effective February 24, 2026. The authorization allows purchases in open mark...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.