10-Q · May 5, 2026
Rocky Brands reported a 9.1% year-over-year increase in Q1 2026 revenue, totaling $124.4 million, despite a decline in gross margin to 36.5% due to elevated tariff costs. EPS came in at $0.24, missing consensus…
Earnings analysis · 10-Q
RCKY earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Rocky Brands delivered strong Q2 reported results, with revenue up 12.0% year over year to $118.368 million, gross margin up to 51.4%, and GAAP diluted EPS of $1.83. Retail led segment growth, while Wholesale and…
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Rocky Brands delivered strong Q2 reported results, with revenue up 12.0% year over year to $118.368 million, gross margin up to 51.4%, and GAAP diluted EPS of $1.83. Retail led segment growth, while Wholesale and Contract Manufacturing also expanded. However, the profit surge was substantially aided by an $18.0 million tariff-refund benefit, and the company retains $16.8 million of related receivables amid ongoing tariff-policy uncertainty. Liquidity appears adequate, with $2.6 million of cash and $46.3 million of ABL availability, but no quantitative forward guidance was provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.83
What stood out
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Revenue up 12% year over year
Q2 revenue rose $12.721 million, or 12.0%, year over year to $118.368 million. It declined sequentially from $124 million in Q1 2026, consistent with the company’s stated seasonal sales pattern, but exceeded the $110.075 million consensus estimate by $8.293 million.
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Margins rebounded sharply
Gross margin expanded 10.4 percentage points year over year to 51.4%, and operating margin rose 9.8 points to 16.6%, from 41.0% and 6.8%, respectively. Sequentially, margins improved from 36.5% gross and 2.9% operating in Q1 2026.
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EPS rose materially
GAAP diluted EPS was $1.83, versus $0.48 in Q2 2025 and $0.17 in Q1 2026. The result was supported by Q2 operating income of $19.685 million, up from $7.156 million a year earlier.
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Retail growth led all segments
Retail was the fastest-growing segment, increasing $6.499 million, or 21.8%, to $36.245 million. Management attributed growth to owned e-commerce, Lehigh CustomFit, third-party marketplaces, digital advertising, broader customer offerings, and pricing.
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All three segments posted growth
Wholesale sales increased $5.738 million, or 7.9%, to $78.830 million, while Contract Manufacturing increased $0.484 million, or 17.2%, to $3.293 million. Wholesale benefited from demand, 2025 price increases, distribution initiatives, incentives, and discontinued-style sales; Contract Manufacturing benefited from U.S. Military sales.
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Operating cash flow improved
Six-month operating cash flow improved to $9.7 million from $2.0 million, while capital expenditures were $4.8 million versus $3.9 million. This represents capex equal to roughly 2.0% of $242.769 million of first-half sales, although the company does not report free cash flow as a GAAP metric.
What to watch
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Tariff refunds materially boosted Q2 profit
The quarter’s margin and earnings step-up was heavily influenced by an $18.0 million reduction to cost of goods sold for actual and expected IEEPA tariff refunds. The company had received only $3.7 million by June 30 and carried $16.8 million of tariff receivables, while warning that tariff policies can be changed, paused, removed, or reinstated.
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Receivable and credit-risk pressure
Working-capital absorption remained substantial: accounts receivable increased cash usage by $16.5 million in the first half, principally from tariff-refund receivables. The company also recorded an approximately $1.1 million accounts-receivable write-off tied to a customer bankruptcy.
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Contract Manufacturing margin compressed
Contract Manufacturing margin fell to 9.3% from 12.4% despite segment sales rising to $3.293 million from $2.809 million. Management attributed the 3.1-percentage-point decline to reduced economies of scale at the Puerto Rico manufacturing facility.
Management's outlook
The 10-Q contains no explicit quantitative revenue or EPS guidance. Management states it believes operating cash flow and ABL availability of $46.3 million will provide sufficient liquidity for operations and debt and lease obligations over the next 12 months and beyond.
Earlier filings 4
10-K · March 11, 2026
Rocky Brands emphasizes a multi-brand strategy (eight proprietary brands) focused on work, outdoor, western, commercial military, duty and military markets, with growth priorities in e-commerce, Lehigh CustomFit B2B…
10-Q · November 6, 2025
Rocky Brands reported Q3 net sales of $122,540 (in thousands), up from $114,554 in Q3 2024, with gross margin expanding to $49,276 (40.2%) and diluted EPS of $0.96 (vs $0.70). Profitability improved (income from…
10-Q · November 12, 2024
Rocky Brands reported third-quarter net sales of $114.554 million, down from $125.614 million a year earlier, driving a drop in operating income and EPS versus the prior-year quarter. Management completed a refinancing…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.