Rocky Brands(RCKY) - 2025 Q2 - Quarterly Results

Financial Performance - Net sales increased 7.5% to $105.6 million compared to $98.3 million in Q2 2024[5] - Income from operations rose 58.7% to $7.2 million, up from $4.5 million in the same quarter last year[9] - Net income increased to $3.6 million or $0.48 per diluted share, compared to a net loss of $1.2 million or $0.17 per diluted share in Q2 2024[11] - Adjusted net income increased to $4.1 million or $0.55 per diluted share, compared to $1.3 million or $0.17 per diluted share in the prior year[11] - Net sales for the three months ended June 30, 2025, were $105,647 million, a 7.3% increase from $98,258 million in the same period of 2024[23] - Income from operations for the three months ended June 30, 2025, was $7,156 million, up 58.5% from $4,508 million in 2024[23] - Net income for the six months ended June 30, 2025, reached $8,550 million, significantly higher than $1,308 million in the same period of 2024[23] - Adjusted net income for the three months ended June 30, 2025, was $4,146 million, compared to $1,276 million in 2024, marking an increase of 225.5%[25] - Basic earnings per share for the three months ended June 30, 2025, were $0.48, compared to a loss of $0.17 per share in 2024[25] Sales and Revenue Breakdown - Wholesale net sales increased 7.1% to $73.1 million, while retail net sales rose 13.9% to $29.7 million[5] - Gross margin improved by 230 basis points to 41.0% of net sales, up from 38.7% in Q2 2024[6] - Gross margin for the six months ended June 30, 2025, improved to $90,289 million, compared to $82,187 million in 2024, reflecting a year-over-year increase of 9.5%[23] Expenses and Debt - Operating expenses were $36.1 million, or 34.2% of net sales, compared to $33.5 million, or 34.1% of net sales in Q2 2024[7] - Adjusted operating expenses for the three months ended June 30, 2025, were $35,433 million, a decrease from $32,838 million in the same period of 2024[25] - Total debt decreased 13.1% year-over-year to $132.5 million as of June 30, 2025[13] - The company reported a significant reduction in interest expense, with net interest expense for the three months ended June 30, 2025, at $(2,519) million, down from $(6,131) million in 2024[25] Inventory and Bookings - Inventories increased 6.8% to $186.8 million compared to $175.0 million a year ago[14] - Bookings for the U.S. Wholesale business for the second half of 2025 are solidly up year-over-year, indicating positive momentum[4] Non-GAAP Adjustments - Total non-GAAP adjustments for the six months ended June 30, 2025, amounted to $1,384 million, compared to $3,981 million in 2024, indicating a decrease in adjustments impacting comparability[25]