Core Insights - The article discusses the investment strategies and achievements of Paul Franke, a seasoned investor with 38 years of trading experience, emphasizing his unique stock selection methods and performance metrics [1]. Group 1: Investment Strategies - Paul Franke employs a contrarian stock selection style, utilizing daily algorithm analysis of fundamental and technical data to identify investment opportunities [1]. - His system, named "Victory Formation," focuses on supply/demand imbalances indicated by specific stock price and volume movements [1]. - The "Bottom Fishing Club" articles highlight deep-value candidates or stocks showing significant upward technical momentum reversals [1]. - "Volume Breakout Report" articles analyze positive trend changes supported by strong price and volume trading actions [1]. Group 2: Performance Metrics - Franke was consistently ranked among the top investment advisors nationally during the 1990s, recognized for his macro views on stock markets and commodities [1]. - He achieved the 1 ranking in the Motley Fool® CAPS stock picking contest during parts of 2008 and 2009, out of over 60,000 portfolios [1]. - As of September 2024, he is ranked in the Top 3% of bloggers by TipRanks® for 12-month stock picking performance based on suggestions made over the last decade [1]. Group 3: Risk Management - Franke advises investors to implement stop-loss levels of 10% or 20% on individual stock choices and to maintain a diversified portfolio of at least 50 well-positioned stocks to enhance regular stock market outperformance [1].

Rocky Brands (RCKY) Q1 2025 Earnings Call April 29, 2025 09:19 PM ET Speaker0 Ladies and gentlemen, greetings, and welcome to the Rocky Brands Inc. First Quarter Fiscal twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Cody McAllister of ICR. Please go ahead. Speaker1 Thank you, and thanks ...

Exhibit 99 Rocky Brands, Inc. Announces First Quarter 2025 Results Net Sales Increased 1.1% to $114.1 Million Income from Operations Increased 8.8% to $8.7 Million Net Income Increased 88.5% to $4.9 Million or $0.66 Per Diluted Share Total Debt Decreased 17.5% Year-Over-Year NELSONVILLE, Ohio, April 29, 2025 – Rocky Brands, Inc. (NASDAQ: RCKY) today announced financial results for its first quarter ended March 31, 2025. First Quarter 2025 Overview "We experienced healthy demand across our brand portfolio an ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-34382 ROCKY BRANDS, INC. (Exact name of registrant as specified in its charter) Ohio No. 31-1364046 (State or other jurisdiction of incorporation or ...

Long-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competitive dynamics of the industries where they participate, and buying companies that we would like to hold independently of how the price moves in the future. Most QC calls will be holds, and that is by design. Only a very sm ...

Financial Data and Key Metrics Changes - For Q4 2024, sales increased 1.7% year-over-year to $128.1 million, or 8.8% when excluding non-recurring sales from Q4 2023 [30] - Gross profit was $53.2 million, representing 41.5% of net sales, compared to $50.7 million or 40.3% in the same period last year, indicating a 120 basis point increase in gross margin [31] - Net income for Q4 2024 was $4.8 million or $0.64 per diluted share, down from $6.7 million or $0.91 per diluted share in Q4 2023 [36] Business Line Data and Key Metrics Changes - Wholesale sales were $81.3 million, a decrease of 5.2%, but up 4.5% on a recurring basis [30] - Retail sales increased 15.3% to $43.6 million, marking the segment's highest ever quarterly sales figure [30] - Contract manufacturing sales increased 39.1% to $3.2 million [30] Market Data and Key Metrics Changes - The direct-to-consumer channel saw strong demand, particularly for Durango and XTRATUF brands, contributing to record sales volumes [6][10] - The Georgia Boot brand experienced a slight increase in Q4 due to better boot weather and strong demand [14] - The commercial military and duty segments were down as expected, influenced by a sizable military blanket purchase agreement from the previous year [21] Company Strategy and Development Direction - The company plans to increase investments in marketing to enhance brand awareness and drive traffic to retail and wholesale partners [7] - There is a focus on launching new products and expanding into new categories, particularly for the Durango brand [10] - The company aims to reduce reliance on Chinese manufacturing, anticipating that total goods from China will be below 35% by the end of 2025 [43] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, noting that consumer purchasing behaviors have been unpredictable, leading retailers to be cautious with inventory commitments [27] - The company expects low single-digit revenue growth for 2025, driven by strong retail segment gains and steady wholesale growth [44] - Management acknowledged the impact of increased tariffs on products sourced from China, projecting a modest decline in gross margins [45] Other Important Information - The company reported a $4 million non-cash trademark impairment charge related to the Muck brand during Q4 [33] - Cash and cash equivalents stood at $3.7 million, with total indebtedness down 25.7% compared to the end of the previous year [39][40] - A new share repurchase program of up to $7.5 million was approved by the Board [40] Q&A Session Summary Question: Can you clarify recent mixed indicators and sell-through performance? - Management noted good sell-through from retailers but acknowledged their cautious approach moving forward [50][51] Question: What factors give confidence in low single-digit revenue growth for the year? - The order book is up year-over-year, but retailers are exhibiting cautious behavior in ordering [52][53] Question: Can you clarify the tariff impact on gross margins? - The 110 basis point impact is based on existing tariffs, and the company is evaluating options to mitigate this [56][59] Question: What are the key growth drivers for 2025? - Key drivers include XTRATUF, Muck, and Durango, with a focus on women's and kids' offerings [64][66] Question: Update on sourcing exposure to Mexico and potential tariffs? - The company sources a small proportion from Mexico, and while tariffs would negatively impact, it may disrupt competitors more significantly [81][82] Question: What is the current momentum across brands and categories? - The Muck and XTRATUF brands have continued strong performance into Q1, with e-commerce also showing positive trends [84][85]

Financial Performance - Fourth quarter net sales increased 1.7% to $128.1 million compared to $126.0 million in Q4 2023, or 8.8% after excluding non-recurring sales[5] - Full year 2024 net sales decreased 1.7% to $453.8 million compared to $461.8 million in 2023, but increased 5.3% when excluding non-recurring sales[13] - Net sales for Q4 2024 were $128,054,000, a slight increase of 0.87% compared to $125,952,000 in Q4 2023[31] - Retail segment sales for Q4 increased 15.3% to $43.6 million compared to $37.8 million in Q4 2023[5] - Contract Manufacturing segment sales increased 72.2% to $13.6 million compared to $7.9 million in 2023[13] Profitability - Adjusted net income for Q4 2024 rose 22.7% to $8.9 million, or $1.19 per diluted share, compared to $7.3 million, or $0.98 per diluted share in Q4 2023[12] - Net income for Q4 2024 was $4,801,000, a decrease of 28.4% from $6,712,000 in Q4 2023[31] - The company reported a basic income per share of $0.64 for Q4 2024, down from $0.91 in Q4 2023[31] Expenses and Margins - Fourth quarter gross margin improved by 120 basis points to 41.5% of net sales, up from 40.3% in the same period last year[6] - Operating expenses for Q4 2024 were $44.7 million, or 34.9% of net sales, compared to $36.0 million, or 28.6% of net sales in Q4 2023[8] - Operating expenses increased to $44,674,000 in Q4 2024, up 24.1% from $35,993,000 in Q4 2023[31] Debt and Liabilities - Total debt decreased by $44.4 million or 25.7% year-over-year to $128.7 million as of December 31, 2024[7] - Total current assets decreased to $246,439,000 as of December 31, 2024, down from $258,173,000 in 2023[29] - Total liabilities decreased to $225,076,000 as of December 31, 2024, compared to $255,830,000 in 2023[29] - Interest expense for 2024 decreased to $17.0 million from $21.2 million in 2023, driven by lower interest rates and reduced debt levels[17] Shareholder Actions - The company announced a new share repurchase program of up to $7.5 million of its outstanding common stock[23] Non-GAAP Measures - Excluded returns related to a supplier dispute for calculating non-GAAP measures, as these returns were inconsistent in size with normal business operations[36] - Supplier dispute inventory adjustment excluded from cost of goods sold for non-GAAP measures, facilitating evaluation of current operating performance[36] - Trademark impairment costs excluded from non-GAAP measures, as they do not reflect current operating performance[36] - Amortization of acquisition-related intangible assets excluded for non-GAAP measures, due to inconsistency in size and impact from acquisition valuation[36] - Costs associated with the closure of the Rock Island manufacturing facility excluded from non-GAAP measures, as they do not reflect current operating performance[37] - Restructuring costs related to headcount reductions excluded from non-GAAP measures, facilitating evaluation of current operations[37] - Term debt extinguishment costs excluded from non-GAAP measures, as they are one-time costs not reflecting current operating performance[37] - Gain on the sale of the brand Servus excluded from non-GAAP measures, as it does not accurately reflect current operating performance[37] Future Outlook - The company expressed optimism about carrying fourth quarter momentum into 2025 and investing in growth for enhanced earnings[27]

Company Overview - Rocky Brands, Inc. (NASDAQ: RCKY) is a manufacturer of boots and other footwear [1] - The company reported weak Q3 results, attributing falling wholesale revenues to transitory weakness [1] Financial Performance - The Q3 results showed a decline in wholesale revenues, indicating challenges in the current market environment [1] - Management anticipates better growth moving forward due to improved capacity and stronger wholesale bookings [1] Future Outlook - Rocky Brands expects to see growth in the upcoming periods as they enhance their production capacity and secure better wholesale orders [1]

Net Sales Performance - Net sales decreased 8.8% to $114.6 million in Q3 2024 compared to $125.6 million in Q3 2023, driven by a decline in Wholesale net sales partially offset by increases in Retail and Contract Manufacturing net sales[78] - Retail net sales increased 9.2% to $26.8 million in Q3 2024, driven by growth in the Lehigh CustomFit platform[89] - Contract Manufacturing net sales increased 172.7% to $3.8 million in Q3 2024 due to a multi-year U.S. Military contract awarded in Q4 2023[90] - Wholesale net sales for the nine months ended September 30, 2024 decreased by $19.1 million (7.6%) compared to the same period in 2023, primarily due to the sale of the Servus brand and changes in the distributor model[99] - Retail net sales for the nine months ended September 30, 2024 increased by $4.2 million (5.3%) compared to the same period in 2023, driven by growth in the Lehigh CustomFit platform and e-commerce business[100] - Contract Manufacturing net sales for the nine months ended September 30, 2024 increased by $4.8 million (86.8%) compared to the same period in 2023, due to a multi-year contract with the U.S. Military[101] - Total net sales for the nine months ended September 30, 2024 decreased by $10.2 million (3.0%) compared to the same period in 2023[99] Gross Margin Performance - Gross margin increased 110 basis points to 38.1% in Q3 2024, driven by a favorable Wholesale product mix and higher Retail net sales[81] - Wholesale gross margin increased to 37.5% in Q3 2024, up from 34.7% in Q3 2023, due to lower promotional activity[92] - Contract Manufacturing gross margin increased to 12.0% in Q3 2024, up from 11.5% in Q3 2023, driven by higher-margin U.S. Military sales[94] - Wholesale gross margin for the nine months ended September 30, 2024 increased to 37.0% from 35.5% in the same period in 2023, driven by the divestiture of the Servus brand and product mix[102] - Retail gross margin for the nine months ended September 30, 2024 decreased to 46.5% from 48.5% in the same period in 2023, due to increased Lehigh sales and promotional efforts[103] - Contract Manufacturing gross margin for the nine months ended September 30, 2024 increased to 11.0% from 7.3% in the same period in 2023, driven by higher-margin sales to the U.S. Military[104] Operating Expenses and Costs - Operating expenses increased 4.1% to $33.6 million in Q3 2024, primarily due to incremental brand building and advertising programs[95] - Operating expenses for the nine months ended September 30, 2024 decreased by $4.0 million (3.7%) compared to the same period in 2023, due to restructuring and cost-saving initiatives[105] Debt and Interest Expenses - Total debt decreased 29.7% to $150.3 million as of September 30, 2024[80] - Interest Expense and Other - net decreased 43.7% to $3.2 million in Q3 2024, driven by lower debt levels and interest rates[96] - Interest Expense and Other - net for the nine months ended September 30, 2024 decreased by $2.0 million (12.4%) compared to the same period in 2023, due to debt refinancing and lower interest rates[106] Inventory and Tax Expenses - Inventory decreased 11.8% to $171.8 million as of September 30, 2024[80] - Income Tax Expense for the nine months ended September 30, 2024 increased by $1.0 million (105.2%) compared to the same period in 2023, driven by a shift in the mix of domestic and foreign earnings[107] Market Risk and Forward-Looking Statements - No material changes to market risk as disclosed in the Annual Report for the year ended December 31, 2023[124] - Forward-looking statements involve risks and uncertainties including sales forecasts, consumer demand changes, and economic factors[121] - The company assumes no obligation to update any forward-looking statements[122]

Group 1 - Rocky Brands, Inc. (NASDAQ: RCKY) reported Q3 2024 results with revenues down year-over-year and more challenged margins [1] - This marks a change in the trend of revenues and operating margins that had previously been growing when adjusted for non-recurring factors [1] - The company is experiencing a shift in financial performance, moving away from a trend of deleveraging [1]