Rocky Brands (RCKY) Q2 2026 earnings summary

Executive summary

• Net sales rose 12% year-over-year to $118.4 million in Q2 2026, the highest since 2022, with broad-based strength across brands and channels, led by XTRATUF, Georgia Boot, and Rocky.

• Gross margin improved to 51.4% from 41.0% last year, driven by IEEPA tariff refunds, which reduced cost of goods sold and boosted profitability.

• Net income for Q2 2026 was $13.9 million ($1.83/share), up from $3.6 million ($0.48/share) last year; adjusted net income was $14.4 million ($1.90/share).

• Direct-to-consumer and B2B segments outperformed, with significant new customer acquisitions and expanded product offerings.

Financial highlights

• Q2 net sales rose 12% year-over-year to $118.4 million; wholesale up 7.9%, retail up 21.8%, contract manufacturing up 17.2%.

• Gross profit was $60.8 million (51.4% of sales), up from $43.3 million (41.0%) last year; excluding tariffs, gross margin was 38.7%.

• GAAP net income was $13.9 million ($1.83/share), adjusted net income was $14.4 million ($1.90/share).

• Debt reduced by 7.6% year-over-year to $122.4 million; inventories down 7.1% to $173.5 million.

• Repurchased 54,000 shares for $2 million; increased quarterly dividend to $0.17.

Outlook and guidance

• Raised full-year 2026 revenue growth guidance to 8.5% over 2025, with Q4 expected to outpace Q3.

• Gross margins forecasted at ~40% (excluding tariff refund), with sequential improvement in Q3 and Q4.

• EPS guidance: ~$5 reported, ~$4 excluding tariff refund, similar to last year’s $3.26 excluding one-time items.

• SG&A as a percentage of sales expected to rise slightly due to higher freight, logistics, and digital advertising investments.

• Management expects continued growth, supported by digital marketing, product expansion, and mitigation strategies for tariff impacts.