“The momentum we experienced in our business last year carried over into 2026, driving net sales growth of approximately 9 per cent for the second consecutive quarter,” said Jason Brooks, chairman, president and CEO at Rocky Brands.
Rocky Brands has reported net sales up 9.1 per cent to $124.4 million in Q1 2026, with retail rising 16.5 per cent.
However, $7.1 million tariff costs reduced gross margin to 36.5 per cent and hit profits, with net income down 74.5 per cent.
Adjusted EPS fell to $0.24.
The company expects easing tariff pressure and improved margins in the second half of 2026.
He added that performance was driven by strength in XTRATUF and Muck across channels and robust online demand. “Profitability was in line with our expectations as we anticipated higher sourcing variances, mainly as a result of increased tariffs,” said Brooks.
The Rocky Brands earnings report 2026 shows net income declined 74.5 per cent to $1.3 million, while operating income fell 58.2 per cent, reflecting tariff-related cost pressures across the footwear industry financial results landscape. Adjusted diluted earnings per share (EPS) came in at $0.24, down from $0.73, reflecting the impact of tariffs on companies and broader footwear industry financial results, Rocky Brands said in a press release.
“Moving forward, the impact from higher tariffs begins to lessen in the second quarter which, along with current top-line trends, provides a clear path back to gross margins in the low 40 per cent range and improvement in profitability over the second half of the year,” Brooks noted.
Wholesale sales rose 4.8 per cent, while contract manufacturing grew 25 per cent, indicating diversified growth across segments. Inventory declined 1.6 per cent to $172.6 million and total debt fell 5 per cent to $122.2 million, signalling improved balance sheet management.
Fibre2Fashion News Desk (SG)
