Rocky Brands (RCKY) 16th Annual East Coast IDEAS Conference summary

Company history and brand portfolio

• Founded in 1932, expanded manufacturing to the Dominican Republic and Puerto Rico in the 1980s, and went public in 1993.

• Acquired EJ Footwear in 2005 and several brands including Muck, XTRATUF, NEOS, Servus, and Ranger in 2021; NEOS and Servus were sold in 2023.

• Operates across wholesale (66%), retail/DTC, and contract manufacturing segments.

• Major brands include Muck, Rocky, Georgia Boot, Durango, and XTRATUF, each targeting specific market segments.

• Apparel is a small but growing part of the business, with plans to expand further.

Brand and channel performance

• Muck brand sales are 75% wholesale and 25% DTC, targeting farm, ranch, and outdoor consumers.

• Rocky and Georgia Boot brands are primarily wholesale, with growing DTC efforts; Durango is 89% wholesale.

• XTRATUF is the fastest-growing brand, expanding from coastal to broader markets, with 73% wholesale and 27% DTC.

• Lehigh CustomFit operates as a digital marketplace for safety footwear and is expanding into apparel subsidy programs.

Manufacturing, distribution, and strategic advantages

• Owns manufacturing facilities in the U.S., Dominican Republic, Puerto Rico, and China, providing flexibility and tariff advantages.

• Ability to shift production between facilities to optimize costs and manage tariffs, especially for rubber boots.

• Two U.S. distribution centers (Ohio and Nevada) support efficient DTC and wholesale logistics.

• Approximately 1,000 employees in the Dominican Republic, 400 in Puerto Rico, and 400-500 in China.

• Capital expenditures for manufacturing are less than 2% of sales, with long-lasting equipment.