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][7] - The impact of tariffs was noted, with $2 million impact in Q3 and a projected $10 million impact in Q4 [11] - The balance sheet at the end of Q3 showed about $20 million of tariffs [11] Business Line Data and Key Metrics Changes - Significant growth was observed in the XTRATUF brand, which has expanded into a fashion product [22] - The Muck product has rebounded well after a period of over-inventory, with new product introductions like the RainScape [23] - The Rocky, Georgia, and Durango brands showed variable performance based on seasonal demand [24] Market Data and Key Metrics Changes - The company is seeing growth in the work boot segment, particularly among younger consumers who are embracing new technologies in footwear [32] - The Lehigh business has shown low double-digit growth over the last five years, providing insights into market trends and consumer behavior [36] Company Strategy and Development Direction - The company is focusing on leveraging its manufacturing capabilities to navigate tariffs and optimize production costs [8][14] - There is a strong emphasis on e-commerce growth and digital marketing to drive sales [41] - The company plans to experiment with expanding its product offerings in the Lehigh business, including prescription safety glasses [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving gross margins in the latter half of 2026 that exceed pre-tariff levels [12][40] - The competitive landscape is acknowledged as challenging, with Muck and XTRATUF being market leaders facing increased competition [45][47] Other Important Information - The company is carrying more raw materials due to sourcing changes, which may affect inventory levels [51] - Management highlighted the recurring revenue model of the Lehigh business as a key strength that is not well understood by the market [53] Q&A Session Summary Question: Can you discuss the tariff exposure and pricing strategies? - Management noted that retailers were understanding of price increases due to tariffs, and there was no significant negative impact on sales [10] Question: What are the growth opportunities for XTRATUF and Muck? - Management is excited about expanding XTRATUF into new markets and noted that Muck remains a steady business with consistent demand [30][31] Question: How does the company view the competitive landscape? - Management acknowledged the competitive nature of the rubber boot market and emphasized the need for innovation to stay ahead [45][48]

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]

Financial Data and Key Metrics Changes - Reported net sales for Q2 increased by 7.5% to $105.6 million, with wholesale sales up 7.1% to $73.1 million and retail net sales up 13.9% to $29.7 million [19] - Adjusted EPS more than tripled to $0.55 per diluted share compared to $0.17 per diluted share a year ago [22] - Gross profit was $43.3 million, representing 41% of net sales, an increase from 38.7% in the same period last year [19][20] - Operating income increased by 58.7% to $7.2 million, or 6.8% of net sales [21] Business Line Data and Key Metrics Changes - The Outdoor category, led by Extra Tough and Muck, is emerging as a key growth engine alongside traditional work and Western strengths [6] - Extra Tough maintained its position as the fastest-growing brand, with strong demand and expanding distribution [7] - Muck delivered its best quarter-to-quarter comparison since 2023, with strong performance driven by improved inventory positions and favorable weather [9] - Durango achieved high single-digit growth, while Georgia Boot showed progressive improvement throughout the quarter [10][11] Market Data and Key Metrics Changes - U.S. Wholesale significantly outpaced last year with strong double-digit growth, and e-commerce growth was equally strong [8] - The Outdoor category made up about one-third of sales for Q2, indicating its growing importance [41] - The work category remains the largest segment, followed by outdoor, with growth primarily in Extra Tough and Muck [40] Company Strategy and Development Direction - The company is focused on shifting production to its Dominican Republic and Puerto Rican facilities to mitigate tariff impacts and improve cost competitiveness [60][61] - The strategic positioning and operational efficiencies are expected to drive continued growth and increased shareholder value [16] - The company is optimistic about military prospects, having earned a USMC hot weather boot certification [15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer demand, noting positive sell-through rates in key categories despite some volatility [46][47] - The company is increasing its 2025 revenue guidance to a growth of 45% compared to 2024 levels, up from previous low single-digit expectations [23] - Management highlighted the importance of maintaining competitive pricing while ensuring retailer margins are preserved [33] Other Important Information - The company has approximately $11 million of incremental tariffs on the balance sheet that will impact the P&L over the remainder of the year [22] - Inventory at the end of Q2 was $186.8 million, up 6.8% year-over-year, driven by higher tariffs [22] Q&A Session Summary Question: How have the supply chain shifts been going? - Management reported being ahead of schedule in shifting production to the Dominican Republic and Puerto Rico, with boots already inbound [28][29] Question: How is pricing flowing through to retail partners? - Management noted some pushback but overall positive reception, with price increases implemented in June [31][32] Question: What are the drivers behind the guidance raise? - The guidance increase is primarily driven by strong Q2 performance and positive order indications for the second half of the year [34][35] Question: How does the outdoor business compare to the work business? - The outdoor category is growing faster than the work category, which remains the largest segment [40][41] Question: What is the state of consumer demand? - Management indicated mixed signals, with positive sell-through in certain categories but caution due to market volatility [46][47] Question: What are the prospects for market share gains from in-house manufacturing? - Management believes in-house operations will provide a competitive advantage, with plans to increase in-house production to around 45% [61][62] Question: What is the breakdown between wholesale and direct-to-consumer sales? - Management disclosed that over half of retail sales come from the Lehigh business, with branded e-commerce growing [65][66] Question: How much debt is expected to be paid down in the second half of the year? - Management anticipates a debt reduction of 10% to 13% from the prior year, though not as significant as the previous year [70]

Financial Data and Key Metrics Changes - Reported net sales for Q1 increased 1.1% year over year to $114.1 million, slightly ahead of expectations [17] - Retail sales increased 20.5% to $36.6 million, while wholesale sales decreased by 6.3% to $74.8 million [18] - Gross profit for Q1 was $47 million, representing 41.2% of sales, the highest gross margin reported in Q1 [18] - Adjusted net income for Q1 was $5.5 million or $0.73 per diluted share, compared to $3.1 million or $0.41 per diluted share a year ago [20] Business Line Data and Key Metrics Changes - The XTRA TUF brand experienced double-digit growth, with bookings up approximately 80% versus last year [8] - MUC brand saw better-than-expected growth, particularly in the women's segment, with double-digit increases [9] - Rocky work category delivered the strongest performance, while Rocky Outdoor returned to growth with a single-digit increase [12] Market Data and Key Metrics Changes - The retail segment showed healthy demand, particularly in the B2B Lehigh business, which saw high teens sales growth [14] - Direct-to-consumer business grew faster than Lehigh, driven by marketplace volumes [15] - Wholesale sales were impacted by a planned reduction in commercial military sales, contributing to the overall decline [17] Company Strategy and Development Direction - The company plans to implement price increases on most footwear styles in response to higher tariffs [6] - Efforts are being made to reduce sourcing from China, with a goal to have less than 20% of total volume from China by year-end [27] - The company is leveraging its manufacturing facilities in the Dominican Republic and Puerto Rico to mitigate tariff impacts [37] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a higher degree of uncertainty for the remainder of the year but expressed confidence in maintaining financial targets [16] - The company is well-positioned to navigate current challenges due to its diversified sourcing structure and strong brand portfolio [6] - Management noted that consumer demand has not shown signs of panic despite economic uncertainties [34] Other Important Information - Interest expense decreased significantly to $2.4 million from $4.5 million year over year due to lower interest rates from refinancing [19] - Inventory levels increased by 6.3% year over year, reflecting proactive measures taken in anticipation of tariff impacts [21] Q&A Session Summary Question: Can you elaborate on the guidance and the migration out of China? - Management indicated a strong inventory position allowing them to navigate tariff impacts and transition sourcing out of China effectively [26][27] Question: What are wholesale partners saying about consumer ability to absorb price increases? - Management noted that retail partners are cautiously optimistic, with no significant panic from consumers regarding price increases [34] Question: How are pricing increases being planned? - The company is focused on preserving gross profit dollars while implementing price increases to offset higher costs [46][47] Question: What is the capacity shift to third-party manufacturers in Vietnam, India, and Cambodia? - Management confirmed that approximately 90-92% of products have found new homes, with ongoing efforts to transition remaining capacity [56]

Financial Data and Key Metrics Changes - Reported net sales for Q1 increased 1.1% year over year to $114.1 million, slightly ahead of expectations [18] - Retail sales increased 20.5% to $36.6 million, while wholesale sales decreased by $5 million or 6.3% to $74.8 million [18] - Gross profit for Q1 was $47 million, representing 41.2% of sales, the highest gross margin reported in Q1, compared to 39.1% in the same period last year [19] - Adjusted net income for Q1 was $5.5 million or $0.73 per diluted share, compared to $3.1 million or $0.41 per diluted share a year ago [21] Business Line Data and Key Metrics Changes - The rubber boot business, particularly the XTRA TUF brand, experienced strong demand with double-digit growth in Q1 [6][8] - MUC brand also saw better than expected growth, particularly in the women's segment, driven by improved winter weather [10] - The Rocky brand group showed increases in both work and outdoor categories, with Rocky work delivering the strongest performance [12][13] - Georgia Boot faced a softer March due to economic uncertainty, but new product introductions continued to perform well [11] Market Data and Key Metrics Changes - Retail segment saw a 20% top line growth, indicating strong demand across distribution channels [5] - The company is shifting sourcing from China to countries like Vietnam, Cambodia, and India, aiming to reduce reliance on Chinese manufacturing [7][28] - The B2B Lehigh business reported high teens sales growth, marking the third consecutive quarter of double-digit gains [16] Company Strategy and Development Direction - The company plans to implement price increases on most footwear styles in response to higher tariffs, while maintaining flexibility to adjust prices based on future changes [7][29] - There is a focus on diversifying sourcing to mitigate tariff impacts, with a goal to reduce product sourced from China to less than 20% by year-end [28] - The company aims to maintain gross profit dollars despite anticipated pressure on gross margins due to tariffs [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged growing macroeconomic uncertainty but expressed confidence in navigating the current retail environment due to a diverse brand portfolio [5][18] - The company reiterated its full-year 2025 guidance, expecting low single-digit revenue growth over 2024 levels [23] - Management noted that consumer demand has not shown panic despite rising prices, indicating a stable retail environment [34] Other Important Information - Interest expense decreased significantly to $2.4 million from $4.5 million year over year due to lower interest rates from refinancing [20][21] - Inventory levels increased by 6.3% year over year, as the company accelerated receipts to mitigate tariff impacts [22] Q&A Session Summary Question: Can you elaborate on the guidance and the migration out of China? - Management indicated a strong inventory position allowing them to navigate tariff impacts and transition sourcing out of China effectively [27][28] Question: What are wholesale partners saying about consumer ability to absorb price increases? - Management noted that retail partners are cautiously optimistic, with no significant panic from consumers regarding price increases [32][34] Question: How much capacity is being shifted to third-party manufacturers in Vietnam and India? - Management stated that approximately 90-92% of products have found new homes, with ongoing efforts to transition the remaining 8% from China [56][57]

Financial Data and Key Metrics Changes - For Q4 2024, sales increased by 1.7% year-over-year to $128.1 million, or 8.8% when excluding non-recurring sales from Q4 2023 [30] - Gross profit for Q4 was $53.2 million, representing 41.5% of net sales, up from 40.3% in the same period last year [31] - Net income for Q4 was $4.8 million, or $0.64 per diluted share, compared to $6.7 million, or $0.91 per diluted share in Q4 2023 [36] - For the full year, net sales were down 1.7% on a reported basis but up 5.3% on a recurring basis to $453.8 million [37] 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 by 15.3% to $43.6 million, marking the segment's highest ever quarterly sales figure [30] - Contract manufacturing sales increased by 39.1% to $3.2 million [30] Market Data and Key Metrics Changes - The direct-to-consumer channel saw strong demand, particularly for the Durango and XTRATUF brands, leading to the highest sales volume quarter for the retail segment [6][7] - The Georgia Boot brand experienced a slight increase in Q4, driven by better boot weather and strong demand [14] Company Strategy and Development Direction - The company plans to increase investments in marketing to drive brand awareness and 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 third-party exposure in manufacturing from China to below 35% by the end of 2025 while maintaining a competitive cost structure [43] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, anticipating low single-digit revenue growth, driven by strong retail segment gains and steady wholesale growth [44] - There is recognition of consumer uncertainty affecting retail partners' inventory commitments, but sell-through rates have been strong [27][41] - The company expects to face pressure from increased tariffs on products sourced from China, impacting gross margins modestly [46] Other Important Information - The company recorded a $4 million non-cash trademark impairment charge related to the Muck brand during Q4 [33] - A new share repurchase program of up to $7.5 million has been 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 cautious with inventory orders [52][53] Question: Can you clarify the tariff impact on gross margins? - The 110 basis points impact is based on existing tariffs, and the company is evaluating pricing strategies to mitigate this [56][59] Question: What are the key growth drivers for 2025? - Key drivers include strong performance from XTRATUF, Muck, and women's and kids' offerings from Durango [64][66] Question: What is the sourcing exposure to Mexico and potential tariff impacts? - The company sources a very small proportion from Mexico, and while it would negatively impact them, it may disrupt competitors more significantly [81][82] Question: How is the momentum carried into the beginning of 2025? - The Muck and XTRATUF brands have continued strong performance, but guidance remains cautious due to non-recurring sales and inventory shifts [84][86]