Rocky Brands (NASDAQ:RCKY) Releases Earnings Results, Beats Expectations By $1.55 EPS

Rocky Brands (NASDAQ:RCKY) released its earnings results on Tuesday. The textile maker reported $1.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.35 by $1.55, FiscalAI reports. The business had revenue of $118.37 million during the quarter, compared to the consensus estimate of $110.08 million. Rocky Brands had a return on equity of 12.44% and a net margin of 5.72%.

Here are the key takeaways from Rocky Brands’ conference call:

• Second-quarter sales rose 12% to $118.4 million, the company’s strongest growth rate since 2022, with broad-based gains led by XTRATUF, Georgia Boot, Rocky, and Lehigh B2B. Retail sales grew 21.8%, while direct-to-consumer performance was particularly strong.
• Rocky Brands raised its 2026 revenue outlook to approximately 8.5% growth, supported by stronger-than-expected Q2 results, robust second-half bookings, new retail doors, and expected fill-in orders.
• XTRATUF is expected to exceed $100 million in annual sales, representing roughly 30% growth, as the brand expands beyond its marine heritage into lifestyle, winter, casual, and additional seasonal categories.
• Underlying Q2 gross margin was approximately 38.7% excluding the tariff benefit, pressured by expedited freight, sourcing products from Asia rather than the Dominican Republic, higher component and fuel costs, and selected discounts to secure shelf space. Full-year gross margin guidance was set at about 40% excluding tariff refunds.
• Reported profitability benefited substantially from approximately $18 million of actual and expected tariff refunds; management expects about $20 million of gross tariff benefit for the year and plans to reinvest part of the proceeds while paying down debt. Excluding tariff effects, full-year EPS is expected to be similar to 2025’s $3.26, versus roughly $5 on a reported basis.

Rocky Brands Price Performance

Shares of NASDAQ RCKY traded up $0.15 during midday trading on Thursday, hitting $49.25. 53,627 shares of the company’s stock were exchanged, compared to its average volume of 55,865. The company has a current ratio of 2.90, a quick ratio of 1.02 and a debt-to-equity ratio of 0.45. The business’s fifty day moving average price is $39.89 and its two-hundred day moving average price is $38.50. The company has a market cap of $371.35 million, a price-to-earnings ratio of 12.89 and a beta of 2.37. Rocky Brands has a 12-month low of $24.67 and a 12-month high of $50.73.

Rocky Brands Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were given a dividend of $0.17 per share. This is a boost from Rocky Brands’s previous quarterly dividend of $0.15. The ex-dividend date was Monday, June 1st. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.4%. Rocky Brands’s dividend payout ratio is 27.53%.

Hedge Funds Weigh In On Rocky Brands

A number of hedge funds and other institutional investors have recently bought and sold shares of RCKY. Panagora Asset Management Inc. lifted its position in Rocky Brands by 6.3% in the 4th quarter. Panagora Asset Management Inc. now owns 62,531 shares of the textile maker’s stock worth $1,834,000 after buying an additional 3,696 shares during the last quarter. Empowered Funds LLC boosted its stake in shares of Rocky Brands by 10.5% in the 4th quarter. Empowered Funds LLC now owns 45,628 shares of the textile maker’s stock valued at $1,338,000 after purchasing an additional 4,322 shares in the last quarter. Millennium Management LLC purchased a new stake in shares of Rocky Brands in the 3rd quarter valued at $1,024,000. Aristides Capital LLC grew its holdings in shares of Rocky Brands by 3.3% during the 4th quarter. Aristides Capital LLC now owns 30,922 shares of the textile maker’s stock valued at $907,000 after purchasing an additional 979 shares during the last quarter. Finally, Two Sigma Investments LP bought a new position in shares of Rocky Brands during the 3rd quarter valued at $621,000. Hedge funds and other institutional investors own 75.06% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on RCKY. Weiss Ratings reiterated a “hold (c+)” rating on shares of Rocky Brands in a research note on Tuesday, May 26th. Wall Street Zen downgraded shares of Rocky Brands from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Robert W. Baird upped their price target on shares of Rocky Brands from $53.00 to $56.00 and gave the company an “outperform” rating in a research note on Wednesday. Finally, BTIG Research reaffirmed a “neutral” rating on shares of Rocky Brands in a report on Wednesday. One equities research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Rocky Brands currently has an average rating of “Hold” and an average price target of $56.00.

About Rocky Brands

Rocky Brands, Inc is a designer, manufacturer and marketer of premium footwear, apparel and accessories for a diverse range of end-users. The company serves outdoor enthusiasts, hardworking professionals and military personnel under a family of brands that includes Rocky, Georgia Boot, Durango and Xtratuf. Products span hunting and hiking boots, work and safety footwear, western and lifestyle boots, as well as performance socks and outerwear.

Rocky Brands operates multiple production and distribution facilities in North America, with its corporate headquarters located in Nelsonville, Ohio.