Rocky Brands Soars 16.06% on Q1 Earnings Surge

On April 30, 2025, Rocky Brands experienced a significant surge in its stock price, rising by 16.06% in pre-market trading, reflecting strong investor confidence and market optimism.

Rocky Brands reported a robust performance in the first quarter of 2025, with a notable 20% increase in retail sales, driven by strong demand and a record high gross margin of 41.2%. This growth was fueled by significant gains in direct-to-consumer sales and the Lehigh safety shoe business, which contributed to a 210-basis point increase in gross margin. The company's strategic sourcing shifts and tariff mitigation efforts have also played a crucial role in maintaining profitability.

Despite a modest 1.1% increase in net sales to $114.1 million, Rocky Brands saw an impressive 88.5% rise in net income, highlighting the company's operational efficiency and financial resilience. The company's diversified sourcing structure, including its own manufacturing facilities in the Dominican Republic and Puerto Rico, has enabled it to navigate the challenges posed by higher tariffs and maintain its financial targets for the year.

Looking ahead, Rocky Brands plans to implement price increases on most of its footwear styles in the second quarter, which may put some pressure on consumer demand. However, the company remains optimistic about its ability to achieve its financial targets for the year, thanks to the strength and desirability of its brands and products, as well as its diversified sourcing structure.