Financial Data and Key Metrics Changes - The company is on track to deliver 4%-5% revenue growth and approximately 10% earnings growth for 2025 [6] - The impact of tariffs resulted in about $2 million in the third quarter and an expected $10 million in Q4 [11] - The balance sheet at the end of the third quarter showed approximately $20 million of tariffs [11] Business Line Data and Key Metrics Changes - Significant growth was noted in the XTRATUF brand, which has expanded into a fashion product while maintaining functionality [23] - The Muck product has rebounded well after a period of over-inventory, with new product introductions like the RainScape expected to drive sales in 2026 [23][25] - The Rocky, Georgia, and Durango brands' performance varies seasonally, with work boots seeing increased demand [24][32] Market Data and Key Metrics Changes - The company has successfully navigated tariff impacts by implementing price increases, which did not significantly affect sales [10][11] - The e-commerce business showed strong performance, particularly for the XTRATUF brand, with positive sales trends in regions like Colorado and Wisconsin [29][30] Company Strategy and Development Direction - The company is focusing on leveraging its manufacturing capabilities in the Dominican Republic and Puerto Rico to mitigate tariff impacts [8][14] - There is an emphasis on expanding the e-commerce business and enhancing digital marketing efforts to drive growth [41][42] - The Lehigh business model, which provides safety footwear services, is seen as a recurring revenue stream with growth potential [36][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs but expressed optimism about achieving gross margins above pre-tariff levels by the second half of 2026 [12][40] - The company is excited about its product offerings for Spring 2026, indicating a strong pipeline of new products [25][39] - Management noted that the competitive landscape is intense, particularly for the Muck and XTRATUF brands, which are market leaders [44][46] Other Important Information - The company plans to experiment with adding prescription safety glasses to its Lehigh offerings, which could provide additional revenue [37] - The company is focused on maintaining a strong balance sheet and plans to pay down debt while optimizing inventory levels [50][51] Q&A Session Summary Question: Can you discuss the tariff exposure and pricing strategies? - Management highlighted that retailers understood the need for price increases due to tariffs, and there was no significant negative impact on sales [10][11] Question: What are the growth opportunities for XTRATUF and Muck? - Management discussed efforts to expand XTRATUF's presence in the central U.S. and noted Muck's steady performance, with new product launches expected to drive growth [29][30] Question: How does the Lehigh business model work? - The Lehigh business provides safety footwear services through employer partnerships, allowing employees to purchase footwear with subsidies, which has shown consistent growth [34][36] Question: What is the outlook for annual growth? - Management indicated a potential increase in growth guidance for 2026, driven by the performance of XTRATUF, e-commerce, and Lehigh [39] Question: How is the competitive landscape? - Management acknowledged the competitive nature of the rubber boot market, emphasizing the need for innovation and creativity in product launches [44][46]

Financial Data and Key Metrics Changes - Rocky Brands is on track to deliver 4%-5% revenue growth and approximately 10% earnings growth for FY 2025 [7][8] - The company faced a $20 million impact from tariffs on the balance sheet by the end of Q3 2025, with an expected $10 million impact in Q4 [12][13] Business Line Data and Key Metrics Changes - Significant growth was observed in the XTRATUF brand, which has expanded into a fashion product while maintaining functionality [22] - The Muck brand has shown a recovery in 2025 after a period of over-inventory, with new product introductions like the RainScape boot expected to drive sales in 2026 [22][24] - The Lehigh division has experienced low double-digit growth over the last five years, with plans to introduce prescription safety glasses in 2026 [30][32] Market Data and Key Metrics Changes - The company has successfully navigated tariff impacts by implementing price increases and shifting production to the Dominican Republic and Puerto Rico [9][10] - E-commerce sales have been strong, particularly for the XTRATUF brand, indicating a growing demand for online shopping [26][34] Company Strategy and Development Direction - The company is focusing on leveraging its manufacturing capabilities to mitigate tariff impacts and improve gross margins [15][34] - There is an emphasis on expanding the e-commerce business and enhancing digital marketing efforts to drive brand awareness and sales [36][34] - The company aims to maintain a competitive edge by innovating product offerings and exploring new market opportunities [38] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs in 2025 but expressed optimism about the company's ability to adapt and grow [8][10] - The outlook for 2026 includes expectations for gross margins to exceed pre-tariff levels due to improved manufacturing efficiencies and brand mix [13][34] Other Important Information - The company has a unique position in the market due to its in-house manufacturing capabilities, which allows for flexibility in sourcing and production [15][19] - Management highlighted the importance of the Lehigh business model, which provides recurring revenue and insights into market trends [43] Q&A Session Summary Question: How has the company navigated tariff impacts? - Management discussed implementing price increases and shifting production to mitigate tariff effects, noting that retailers were understanding of the price adjustments [10][11] Question: What growth opportunities exist for the XTRATUF brand? - The company is focusing on expanding XTRATUF's presence in the central U.S. and leveraging social media and influencer marketing to drive brand awareness [26][29] Question: What is the outlook for the Lehigh business? - The Lehigh division is expected to continue its growth trajectory, with plans to introduce new products and explore additional offerings like apparel [30][32]

And it looks coolerLars (@larsmoravy):@PP3RR3AULT @DriveTeslaca @ItsKimJava Cost, supply chain and manufacturing efficiency in our factories ...