The net sales increased 13.3 per cent year on year (YoY) to $138.8 million in Q3 ended September 30, 2026. Net income rose to $12.8 million, or $1.69 per diluted share, from $7.2 million, or $0.96 per diluted share, a year earlier. Adjusted net income increased to $13.4 million, or $1.76 per diluted share, from $7.8 million, or $1.03 per diluted share.
Rocky Brands reported Q3 2026 net sales of $138.8 million, up 13.3 per cent year on year, as wholesale and retail sales advanced.
Net income rose to $12.8 million from $7.2 million and gross margin expanded 480 basis points to 45.0 per cent.
Strong full-price selling and tariff-related benefits lifted profitability, while debt declined 16.6 per cent from a year earlier.
“We delivered strong third quarter results highlighted by our second consecutive quarter of double-digit top-line growth,” said Jason Brooks, chairman, president and chief executive officer, Rocky Brands, Inc.
“Demand was broad based with several of our brands achieving double-digit sales gains led by Durango, Muck and XTRATUF, as well as our Lehigh CustomFit business,” added Brooks.
Retail and wholesale sales advance
Wholesale segment sales rose 11.8 per cent to $99.6 million, while retail segment sales increased 20.0 per cent to $35.4 million. Contract manufacturing sales declined 3.1 per cent to $3.8 million, the company said in a press release.
Brooks said retail and wholesale segment sales had grown by approximately 20 per cent and 12 per cent, respectively, with demand supported by several brands posting double-digit sales gains.
Margins and operating income strengthen
Gross profit increased to $62.5 million from $49.3 million, lifting gross margin by 480 basis points to 45.0 per cent. The improvement reflected $2.5 million of tariff refunds and a temporary $3.5 million benefit from selling inventory held in the company’s free trade zone without incremental tariffs, partly offset by sourcing variances.
Operating expenses increased to $44.3 million, or 31.9 per cent of sales, from $37.5 million, or 30.6 per cent. Excluding acquisition-related amortisation, adjusted operating expenses were $43.6 million, or 31.4 per cent of sales, compared with $36.8 million, or 30.1 per cent, a year earlier. Higher outbound logistics costs, digital advertising expenditure and performance-based compensation contributed to the increase.
Income from operations rose to $18.2 million, or 13.1 per cent of sales, from $11.7 million, or 9.6 per cent. Adjusted operating income increased to $18.9 million, or 13.6 per cent of sales, from $12.4 million, or 10.1 per cent. Interest expense declined to $2.0 million from $2.6 million, reflecting lower debt levels.
Fibre2Fashion News Desk (SG)
