Education
About Us
Working with TipRanks
Follow Us
Rocky Brands (RCKY)
NASDAQ:RCKY
Top Page
Rocky Brands
(NASDAQ:RCKY)
Select Model
Select Model
Rating:76Outperform
Price Target:
$34.00
▲(11.62% Upside)
Rocky Brands' strong earnings performance and attractive valuation are the most significant factors driving the score. The company's ability to manage challenges such as tariffs and delayed shipments, along with positive technical indicators, further supports the stock's favorable outlook.
Positive Factors
Revenue Growth
The 7% sales increase and improved gross margins indicate strong demand and effective cost management, supporting long-term growth.
Sourcing Diversification
Diversifying sourcing reduces reliance on specific regions, mitigating risks from tariffs and supply chain disruptions, enhancing resilience.
Product Innovation
New product launches and collaborations drive consumer interest and sales, supporting brand strength and market position.
Negative Factors
Higher Tariffs Impact
Higher tariffs pressure margins, potentially reducing profitability and requiring strategic adjustments to maintain financial health.
Delayed Shipments
Delayed shipments due to sourcing changes can disrupt sales and customer relationships, affecting short-term revenue and brand reliability.
Increased Operating Expenses
Rising operating expenses can strain margins and cash flow, necessitating efficiency improvements to sustain profitability.
Rocky Brands (RCKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$228.26M
Dividend Yield2.08%
Average Volume (3M)49.54K
Price to Earnings (P/E)11.1
Beta (1Y)1.18
Revenue Growth4.13%
EPS Growth53.56%
CountryUS
Employees2,530
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)1.03
Shares Outstanding7,493,687
10 Day Avg. Volume51,288
30 Day Avg. Volume49,540
Financial Highlights & Ratios
PEG Ratio1.92
Price to Book (P/B)0.73
Price to Sales (P/S)0.37
P/FCF Ratio3.53
Enterprise Value/Market Cap1.59
Enterprise Value/Revenue0.77
Enterprise Value/Gross Profit1.88
Enterprise Value/Ebitda6.08
Forecast
1Y Price Target
$42.00Price Target Upside37.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Rocky Brands Business Overview & Revenue Model
Company DescriptionRocky 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.
How the Company Makes MoneyRocky Brands generates revenue through the sale of its footwear, apparel, and accessories across multiple channels, including wholesale distribution to retailers and direct-to-consumer sales through its e-commerce platform. The company has several key revenue streams, such as its branded products under labels like Rocky, Georgia Boot, Durango, and others. Additionally, Rocky Brands benefits from strategic partnerships with retailers and distributors, which enhance its market reach. The company's focus on innovation and product development also plays a critical role in driving sales and customer loyalty, contributing to its overall earnings.
Rocky Brands Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong revenue and EPS growth, improved gross margins, and strategic brand expansions. However, challenges remain with specific brands like Georgia Boot and the impact of tariffs. Overall, the company showed resilience and adaptability in a complex market environment.Q2-2025 Updates
Positive Updates
Significant Revenue and EPS Growth
The company reported high single-digit revenue growth and adjusted EPS more than tripled to $0.55 per diluted share, driven by strong execution across a diversified portfolio.
XTRATUF Brand Performance
XTRATUF maintained its position as the fastest-growing brand, showing accelerating momentum across multiple quarters with strong performance in U.S. Wholesale and e-commerce.
Improved Gross Margin
Gross margin expanded by 230 basis points to 41.0%, primarily driven by higher wholesale margins and a higher percentage of Retail sales.
Operating Income Growth
Operating income increased by 58.7% to $7.2 million, showing significant improvement compared to last year.
Debt Reduction
Total debt decreased by 13.1% since June 30 of last year, reflecting improved financial health.
Strong Performance in Outdoor Category
The Outdoor category saw significant growth, becoming a key engine alongside traditional Work and Western strengths.
Negative Updates
Challenges with Georgia Boot and Inventory Issues
Georgia Boot finished down modestly for the quarter, with tariff-related timing shifts delaying fall product shipment by a month.
Tariff-Related Challenges
The company faced global tariff uncertainties and economic pressures, with an estimated $11 million of incremental tariffs impacting financial performance.
Mixed Consumer Demand
Confusion around consumer behavior was noted, with fluctuations in week-to-week sales performance, indicating uncertain consumer demand.
Company Guidance
During the second quarter of fiscal year 2025, Rocky Brands reported a 7.5% increase in net sales to $105.6 million, with Wholesale sales up 7.1% to $73.1 million and Retail sales rising 13.9% to $29.7 million. The gross profit improved to $43.3 million, representing a gross margin of 41.0%, up 230 basis points from the previous year. Operating income surged by 58.7% to $7.2 million, or 6.8% of net sales, bolstered by a disciplined cost management strategy. Adjusted EPS more than tripled to $0.55 per diluted share, while interest expenses decreased significantly due to a strategic debt refinancing. The company raised its full-year guidance, now expecting revenue growth between 4% to 5%, supported by strong performances in the Outdoor category, particularly from the XTRATUF and Muck brands, and a strategic focus on manufacturing efficiencies. The balance sheet showed continued strength with a 13.1% reduction in total debt compared to the previous year, positioning Rocky Brands favorably for sustained growth despite global economic challenges.Rocky Brands Financial Statement Overview
Summary
Rocky Brands shows solid recovery in revenue growth and profitability with improved margins and a healthier balance sheet. However, cash flow challenges persist, necessitating a focus on operational efficiency and cash flow management.Income Statement
Rocky Brands has shown a positive revenue growth rate of 1.73% in the TTM, recovering from a decline in the previous year. The gross profit margin has improved to 40.98%, indicating efficient cost management. The net profit margin has also increased to 4.37%, reflecting better profitability. However, the EBIT and EBITDA margins are relatively stable, suggesting room for operational efficiency improvements.Balance Sheet
The company's debt-to-equity ratio has decreased to 0.57, indicating a healthier leverage position compared to previous years. Return on equity is at 8.63%, showing moderate profitability on shareholders' equity. The equity ratio stands at 49.82%, suggesting a balanced capital structure. Overall, the balance sheet reflects improved financial stability, though further reduction in debt could enhance financial health.Cash Flow
Operating cash flow has decreased significantly, impacting the free cash flow growth rate, which is down by 35.16%. The operating cash flow to net income ratio is 0.30, indicating a weaker cash conversion efficiency. However, the free cash flow to net income ratio remains strong at 79.29%, suggesting effective cash management despite the decline in free cash flow.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 470.31M | 453.77M | 461.83M | 615.48M | 514.23M | 277.31M |
| Gross Profit | 192.74M | 179.01M | 178.60M | 225.22M | 194.54M | 104.73M |
| EBITDA | 59.60M | 41.32M | 46.31M | 56.36M | 47.29M | 32.41M |
| Net Income | 20.56M | 11.39M | 10.43M | 20.46M | 20.56M | 20.96M |
Balance Sheet | ||||||
| Total Assets | 494.01M | 457.30M | 479.38M | 592.76M | 624.58M | 230.38M |
| Cash, Cash Equivalents and Short-Term Investments | 3.32M | 3.72M | 4.47M | 5.72M | 5.91M | 28.35M |
| Total Debt | 141.23M | 135.05M | 181.27M | 268.18M | 278.85M | 1.57M |
| Total Liabilities | 247.92M | 225.08M | 255.83M | 377.29M | 426.72M | 50.87M |
| Stockholders Equity | 246.10M | 232.22M | 223.56M | 215.47M | 197.85M | 179.50M |
Cash Flow | ||||||
| Free Cash Flow | 15.90M | 48.10M | 69.66M | 12.42M | -75.93M | 19.73M |
| Operating Cash Flow | 23.11M | 52.76M | 73.58M | 19.12M | -54.88M | 31.44M |
| Investing Cash Flow | -7.20M | -2.96M | 13.38M | -1.23M | -233.46M | -11.71M |
| Financing Cash Flow | -16.29M | -50.55M | -88.21M | -18.08M | 265.89M | -6.89M |
Rocky Brands Technical Analysis
Positive
30.46
Price Trends
29.69
Positive
29.19
Positive
24.89
Positive
Market Momentum
-0.11
Positive
57.19
Neutral
47.55
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 30.46 is above the 20-day moving average (MA) of 30.06, above the 50-day MA of 29.69, and above the 200-day MA of 24.89, indicating a bullish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 57.19 is Neutral, neither overbought nor oversold. The STOCH value of 47.55 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 32 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $228.26M | 11.11 | 8.67% | 2.08% | 4.13% | 53.56% | |
70 Outperform | $295.71M | 12.22 | 9.57% | 9.66% | -3.64% | -16.12% | |
67 Neutral | $469.11M | 22.42 | 3.33% | 2.11% | -2.83% | -86.19% | |
64 Neutral | $3.31B | 57.21 | 6.68% | 1.97% | 6.26% | -66.51% | |
63 Neutral | $4.49B | 28.23 | 11.82% | ― | <0.01% | -77.31% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.52B | 18.15 | 25.57% | 2.28% | 3.61% | ― |
* Consumer Cyclical Sector Average
RCKY
Rocky Brands
30.46
8.30
37.45%
CROX
Crocs
86.57
-19.20
-18.15%
SHOO
Steven Madden
45.59
6.41
16.36%
WEYS
Weyco Group
31.56
-1.89
-5.65%
WWW
Wolverine World Wide
18.58
-3.60
-16.23%
CAL
Caleres
13.84
-6.16
-30.80%
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.