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Investing.com -- Rocky Brands , Inc. (NASDAQ:RCKY) reported second quarter earnings that significantly exceeded analyst expectations, driving shares up 25.7% as investors cheered the company’s strong performance across its brand portfolio.
The footwear manufacturer posted adjusted earnings of $0.55 per diluted share for the quarter ended June 30, 2025, more than double the analyst estimate of $0.25. Revenue climbed 7.5% YoY to $105.6 million, surpassing the consensus estimate of $102.54 million.
The company’s gross margin improved substantially, increasing 230 basis points to 41.0% compared to 38.7% in the same quarter last year. This margin expansion, coupled with strong sales growth, helped boost adjusted income from operations by 50% to $7.8 million.
"We executed well during the second quarter, capitalizing on the strength of our brand portfolio and the benefits of our diversified manufacturing and sourcing base to deliver results that well exceeded last year and expectations," said Jason Brooks, Chairman, President and Chief Executive Officer.
The strong performance was broad-based across the company’s segments, with wholesale sales increasing 7.1% to $73.1 million and retail sales jumping 13.9% to $29.7 million. The XTRATUF and Muck brands were particularly strong performers, with the latter posting its strongest growth in several quarters.
Rocky Brands has also made progress in reducing its debt, which decreased 13.1% compared to the same period last year. However, inventory levels rose 6.8% YoY to $186.8 million.
Looking ahead, the company expressed optimism about its business momentum while acknowledging market uncertainties. Management noted that bookings for its U.S. Wholesale business for the second half are up solidly YoY, and the company has plans to mitigate the impact of higher tariffs by leveraging its manufacturing facilities in the Dominican Republic and Puerto Rico.
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