Gross margin expanded 210 basis points (bps) to 40.2 percent of net sales, up from 38.1 percent last year, driven by full-price selling, selective price adjustments and a favorable product and channel mix.
Rocky Brands, Inc has reported strong third quarter 2025 results, with net sales increasing 7 percent year-over-year to $122.5 million and gross margin improving 210 bps to 40.2 percent. Net revenue increased 36.6 percent to $7.2 million, driven by strong demand for brand and pricing strategies. Debt decreased 7.5 percent year-on-year, while inventories increased 12.7 percent to support future growth.
Operating income rose 16.5 percent to $11.7 million, while adjusted operating income grew to $12.4 million, or 10.1 percent of sales. Net income rose 36.6 percent to $7.2 million, or $0.96 per diluted share, compared with $5.3 million, or $0.7 per diluted share, a year ago. Adjusted net income rose 33.4 percent to $7.8 million, or $1.03 per diluted share, Rocky Brands said in a news release.
Interest expense decreased to $2.6 million from $3.3 million, helped by reduced debt levels and lower interest rates. Total debt decreased 7.5 percent year-on-year, underscoring improved financial discipline.
Wholesale net sales increased 6.1 percent to $89.1 million, supported by strong performance from XTRATUF, Georgia Boot, The Original Muck Boot Company and Rocky. Retail sales grew 10.3 percent to $29.5 million, reflecting sustained e-commerce momentum, while contract manufacturing improved 4.1 percent to $3.9 million.
Gross margin expanded to $49.3 million, reflecting gains in the wholesale and retail divisions. Operating expenses increased to $37.6 million, or 30.6 percent of sales, from $33.6 million, or 29.3 percent, primarily due to higher investments in logistics, sales and marketing. Excluding acquisition-related amortization, adjusted operating expenses were $36.8 million, or 30.1 percent of sales.
Inventories increased 12.7 percent year-over-year to $193.6 million, positioning the company to meet demand in the coming quarters.
“We delivered another quarter of strong results amid a challenging operating environment,” he said. Jason Brooks, Chairman, President and Chief Executive Officer (CEO) of Rocky Brands. “The improvement in our top line was led by XTRATUF, complemented by strong performance from Georgia Boot, The Original Muck Boot Company and Rocky. Our pricing adjustments and sourcing diversification, including our facilities in the Dominican Republic and Puerto Rico, will help mitigate tariff pressures in the near term. We are confident that our strong brand portfolio and agile supply chain will capture growth opportunities in 2026 and beyond.”
As of September 30, 2025, total assets were $494 million, compared to $475 million a year earlier. Shareholders’ equity increased to $246.1 million from $228.3 million in September 2024, driven by higher retained earnings, the statement added.
Fiber2Fashion News Desk (SG)
