The gross margin for the quarter stood at 41.3 per cent of net sales, slightly below 41.5 per cent a year earlier. The marginal decline reflected tariff-driven pressure on wholesale margins, partially offset by improved retail profitability and a higher retail sales mix. Operating expenses increased to $48.1 million, or 34.5 per cent of net sales, mainly due to higher logistics costs linked to retail growth as well as increased incentive compensation and discretionary spending.
Rocky Brands has posted net sales of $139.7 million in Q4 2025, up 9.1 per cent YoY, driven by a 30.8 per cent surge in retail sales, while wholesale and contract manufacturing declined.
Net income rose 35.7 per cent to $6.5 million.
Full-year sales grew 6.2 per cent to $482 million with improved margins and profitability, supported by strong DTC demand despite tariff pressures.
Income from operations increased 12.8 per cent to $9.6 million, representing 6.9 per cent of net sales, compared with $8.5 million in the prior-year quarter. Net income rose sharply by 35.7 per cent to $6.5 million, or $0.86 per diluted share, versus $4.8 million, or $0.64 per diluted share, a year earlier, Rocky Brands said in a press release.
Adjusted net income for the quarter was $7.2 million, or $0.94 per diluted share, compared with $8.9 million, or $1.19 per diluted share in the corresponding period of 2024. Interest expense declined to $2.5 million from $3 million due to lower debt levels and easing interest rates.
For the full year 2025, Rocky Brands recorded net sales of $482 million, up 6.2 per cent from $453.8 million in 2024. Wholesale sales grew modestly by 1 per cent to $316.6 million, while retail sales climbed 20.5 per cent to $152.9 million, highlighting the continued shift towards direct-to-consumer (DTC) channels. Contract manufacturing revenue declined 7.7 per cent to $12.5 million.
Annual gross margin improved significantly by 150 basis points to 40.9 per cent, driven by stronger wholesale profitability and favourable channel mix. Operating expenses totalled $160.1 million, or 33.2 per cent of net sales, reflecting investments to support growth initiatives. Income from operations increased 19.7 per cent to $37.2 million, representing 7.7 per cent of net sales.
Net income for 2025 nearly doubled to $22.3 million, or $2.96 per diluted share, compared with $11.4 million, or $1.52 per diluted share in 2024. Adjusted net income reached $24.5 million, or $3.26 per diluted share, up from $19.0 million, or $2.54 per diluted share the previous year. Interest expense declined to $10.0 million following debt refinancing in April 2024 and continued deleveraging, with total debt falling to $122.6 million at year-end from $128.7 million in 2024.
“We concluded 2025 with our highest quarterly net sales growth rate for the year in the fourth quarter, reflecting the momentum that has been building in our business,” said Jason Brooks, chairman, president and CEO at Rocky Brands. “Our performance during the key holiday selling season was highlighted by strong demand in our direct-to-consumer channel led by XTRATUF, which delivered nearly triple digit sales growth online. These results contributed to a very good year for our Company, especially considering the industry headwinds caused by higher tariffs and deteriorating US consumer sentiment.”
Fibre2Fashion News Desk (SG)
