On this page of StockholderLetter.com we present the latest annual shareholder letter from ROCKY BRANDS, INC. — ticker symbol RCKY. Reading current and past RCKY letters to shareholders can bring important insights into the investment thesis.
2025 ROCKY BRANDS ANNUAL REPORT

DEAR SHAREHOLDERS: I am pleased to report that 2025 was an outstanding year for Rocky Brands. Despite navigating one of the most challenging tariff environments our industry has faced, we delivered exceptional results that demonstrate the strength of our diversi ed brand portfolio, the resilience of our team, and the soundness of our strategic initiatives. Our nancial results tell a compelling story. We achieved mid-single digit revenue growth, increased gross margins 150 basis points, and delivered adjusted earnings per share growth of 28% to reach $3.26 per diluted share. These results are particularly impressive given unprecedented tariff pressures that emerged in the spring and intensi ed throughout the year. performance of XTRATUF, which has emerged as a powerful growth engine for our company. XTRATUF delivered exceptional results throughout 2025, consistently exceeding expectations with strong doubledigit growth in every quarter. What began as a functional shing boot brand has evolved into a lifestyle brand with expanding national appeal. Perhaps most exciting is that we believe we re just beginning to tap into XTRATUF s potential. we delivered exceptional results that demonstrate the strength of our diversi ed brand portfolio, the resilience of our team, and the soundness of our strategic initiatives What makes me especially proud is how we achieved these results. We didn t simply manage through challenges we thrived by executing on multiple fronts simultaneously. We grew our top line across most brands and channels, maintained disciplined cost management, and meaningfully expanded gross margins despite tariff headwinds, and continued strengthening our balance sheet through debt reduction while returning capital to shareholders. Our response to the tariff situation exempli es the agility that de nes Rocky Brands today. When tariffs on Chinese-sourced products increased signi cantly in April, we immediately implemented a comprehensive mitigation strategy: accelerating price increases across many of our footwear styles, ramping up production at our own facilities in the Dominican Republic and Puerto Rico, and diversifying our manufacturing base to include new partners in Vietnam, Cambodia, and India. By year-end, we reduced our Chinese sourcing exposure substantially and positioned ourselves to manufacture approximately 50% of our inventory needs in-house during 2026, up from roughly 30% in 2025. This supply chain transformation not only mitigates tariff impacts but provides greater exibility, improved quality control, and enhanced margin potential. The true highlight of 2025 was broad-based strength across our brand portfolio, led by the remarkable Muck rebounded strongly in 2025. More favorable weather conditions combined with improved inventory positions drove consistent growth, with our women s business achieving particularly strong double-digit increases. Strategic marketing initiatives delivered impressive results, including a very successful digital advertising campaign and a highly visible Good Morning America feature that signi cantly boosted brand awareness. Durango maintained solid momentum with high singledigit growth for the year, driven by excellent performance with key accounts and steady strength in farm and ranch channels. Our strategy of balancing fresh, on-trend styles with legacy favorites continued resonating with retailers and consumers alike. Georgia Boot showed progressive improvement throughout 2025. Our focus on optimizing the brand s value proposition through products that hit key price points while maintaining comfort and quality resonated broadly. New product launches featuring innovative exibility and BOA lacing systems drove growth with major accounts and established excellent momentum heading into 2026. Rocky collectively returned to growth this past year. Rocky Work continued steady performance with national safety footwear distributors, while new programs with farm and ranch retailers fueled growth. Rocky Outdoor showed encouraging signs with new product series, and Rocky Western s work/western hybrids excelled across multiple channels. Rocky Commercial Military and Duty rebounded nicely in the second half of 2025, with strong Public Service Division performance and resumed momentum in Commercial Military as government funding deployment returned. A major milestone came when Rocky Brands earned USMC Hot Weather Boot Certi cation, opening access to signi cant future opportunities. Our Retail segment was a standout performer, growing approximately 20% for the year. This growth was driven by robust performance across our direct-to-consumer e-commerce platforms, where enhanced digital marketing initiatives deepened consumer connections, and our Lehigh B2B custom t business, which achieved consistent doubledigit growth following the sales organization realignment completed in 2024. The segment s higher margins and direct consumer relationships make it a strategic priority for continued investment. As we enter 2026, I am more optimistic about Rocky Brands prospects than at any point in recent years. While tariff-related margin pressure will continue into the rst half as we work through existing inventory, we expect to return to our historical gross margin run rate in the second half. Our spring order book is robust, our supply chain transformation provides greater exibility and reduced tariff exposure, our balance sheet is stronger, and our brand portfolio has never been more diversi ed or better positioned. The results we delivered in 2025 re ect the extraordinary dedication of our entire Rocky Brands team. Navigating a rapidly changing tariff environment while simultaneously growing the business required exceptional effort and collaboration. To our shareholders, thank you for your continued con dence and support. The strategic foundation we ve built and the momentum we ve established position Rocky Brands to deliver meaningful value creation in the years ahead. We enter 2026 as a stronger, more diversi ed, and more pro table company, fully equipped to capitalize on the exciting opportunities before us. Sincerely, Jason Brooks Chairman, President, and Chief Executive Officer
FINANCIAL HIGHLIGHTS:* ADJUSTED INCOME STATEMENT DATA ($000, except per share data) 2021 2022 $514,227 Net sales $611,906 2023 2024 2025 $463,375 $453,772 $481,976 Gross margin 38.5% 36.6% 38.9% 39.4% 40.9% Income from Operations 10.0% 7.9% 9.0% 8.3% 8.3% Net income $32,513 $24,073 $14,261 $18,973 $24,542 $4.39 $3.27 $1.93 $2.54 $3.26 $232,464 $235,400 $169,201 $166,701 $181,134 624,575 582,390 479,385 457,300 477,488 270,044 256,896 173,130 128,737 122,642 197,855 215,473 223,555 232,224 252,088 Net income per diluted share NET SALES INCREASE OF 6.2% BALANCE SHEET Inventories Total assets Total debt Shareholders equity * Non-GAAP information presented EPS INCREASE OF $4.39 $611.9 $3.26 $3.27 $514.2 $463.4 $453.8 $482.0 $2.54 28.3% $1.93 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Net Income Per Diluted Share Net Sales ($millions) $270.0 10.0% 9.0% 7.9% 8.3% $256.9 8.3% $173.1 2021 2022 2023 2024 2025 Income from operations as a % of net sales 4 ROCKY BRANDS ANNUAL REPORT 2025 2021 2022 2023 $128.7 $122.6 2024 2025 Total Debt ($millions) FINANCIAL HIGHLIGHTS INCREASE IN GROSS MARGIN 150BPS ROCKY BRANDS 5
Muck is dedicated to delivering boots and footwear that are 100% MUCKPROOF: remarkably protective, exceptionally comfortable, totally waterproof, and designed to brave every element for work (and life) in the Muck. We are here to serve those who serve. Rocky makes rugged, reliable boots for the hard-working men and women who depend on us. We serve the farmer, the hunter those protecting our communities, and serving our country. 6 ROCKY BRANDS ANNUAL REPORT 2025 ROCKY MUCK ROCKY BRANDS ANNUAL REPORT 2025 7
 • shareholder letter icon 4/28/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/29/2024 RCKY Stockholder Letter
 • stockholder letter icon 4/28/2025 RCKY Stockholder Letter
 • stockholder letter icon More "Textiles & Apparel" Category Stockholder Letters
 • Benford's Law Stocks icon RCKY Benford's Law Stock Score = 68


RCKY Shareholder/Stockholder Letter Transcript:

2025
ROCKY BRANDS
ANNUAL REPORT


DEAR SHAREHOLDERS:
I am pleased to report that 2025 was an outstanding year
for Rocky Brands. Despite navigating one of the most
challenging tariff environments our industry has faced,
we delivered exceptional results that demonstrate the
strength of our diversi   ed brand portfolio, the resilience
of our team, and the soundness of our strategic initiatives.
Our    nancial results tell a compelling story. We
achieved mid-single digit revenue growth, increased
gross margins 150 basis points, and delivered adjusted
earnings per share growth
of 28% to reach $3.26 per
diluted share. These results are
particularly impressive given
unprecedented tariff pressures
that emerged in the spring
and intensi   ed throughout the
year.
performance of XTRATUF, which has emerged as a
powerful growth engine for our company.
XTRATUF delivered exceptional results throughout 2025,
consistently exceeding expectations with strong doubledigit growth in every quarter. What began as a functional
   shing boot brand has evolved into a lifestyle brand with
expanding national appeal. Perhaps most exciting is that
we believe we   re just beginning to tap into XTRATUF   s
potential.
   we delivered
exceptional results
that demonstrate
the strength of our
diversi   ed brand
portfolio, the resilience
of our team, and the
soundness of our
strategic initiatives   
What makes me especially
proud is how we achieved
these results. We didn   t
simply
manage
through
challenges   we thrived by
executing on multiple fronts
simultaneously. We grew our
top line across most brands
and
channels,
maintained
disciplined cost management,
and meaningfully expanded
gross margins despite tariff headwinds, and continued
strengthening our balance sheet through debt reduction
while returning capital to shareholders.
Our response to the tariff situation exempli   es the
agility that de   nes Rocky Brands today. When tariffs
on Chinese-sourced products increased signi   cantly in
April, we immediately implemented a comprehensive
mitigation strategy: accelerating price increases across
many of our footwear styles, ramping up production at
our own facilities in the Dominican Republic and Puerto
Rico, and diversifying our manufacturing base to include
new partners in Vietnam, Cambodia, and India.
By year-end, we reduced our Chinese sourcing exposure
substantially and positioned ourselves to manufacture
approximately 50% of our inventory needs in-house
during 2026, up from roughly 30% in 2025. This supply
chain transformation not only mitigates tariff impacts
but provides greater    exibility, improved quality control,
and enhanced margin potential.
The true highlight of 2025 was broad-based strength
across our brand portfolio, led by the remarkable
Muck rebounded strongly in
2025. More favorable weather
conditions
combined
with
improved inventory positions
drove consistent growth, with
our women   s business achieving
particularly strong double-digit
increases. Strategic marketing
initiatives delivered impressive
results,
including
a
very
successful digital advertising
campaign and a highly visible
Good Morning America feature
that signi   cantly boosted brand
awareness.
Durango
maintained
solid
momentum with high singledigit growth for the year, driven
by excellent performance with
key accounts and steady strength in farm and ranch
channels. Our strategy of balancing fresh, on-trend styles
with legacy favorites continued resonating with retailers
and consumers alike.
Georgia Boot showed progressive improvement
throughout 2025. Our focus on optimizing the brand   s
value proposition through products that hit key price
points while maintaining comfort and quality resonated
broadly. New product launches featuring innovative
   exibility and BOA lacing systems drove growth with
major accounts and established excellent momentum
heading into 2026.
Rocky collectively returned to growth this past year.
Rocky Work continued steady performance with national
safety footwear distributors, while new programs with
farm and ranch retailers fueled growth. Rocky Outdoor
showed encouraging signs with new product series,
and Rocky Western   s work/western hybrids excelled
across multiple channels. Rocky Commercial Military and
Duty rebounded nicely in the second half of 2025, with
strong Public Service Division performance and resumed
momentum in Commercial Military as government funding
deployment returned. A major milestone came when Rocky
Brands earned USMC Hot Weather Boot Certi   cation,
opening access to signi   cant future opportunities.
Our Retail segment was a standout performer, growing
approximately 20% for the year. This growth was driven
by robust performance across our direct-to-consumer
e-commerce platforms, where enhanced digital marketing
initiatives deepened consumer connections, and our Lehigh
B2B custom    t business, which achieved consistent doubledigit growth following the sales organization realignment
completed in 2024. The segment   s higher margins and
direct consumer relationships make it a strategic priority
for continued investment.
As we enter 2026, I am more optimistic about Rocky
Brands    prospects than at any point in recent years. While
tariff-related margin pressure will continue into the    rst
half as we work through existing inventory, we expect to
return to our historical gross margin run rate in the second
half.
Our spring order book is robust, our supply chain
transformation provides greater    exibility and reduced
tariff exposure, our balance sheet is stronger, and our
brand portfolio has never been more diversi   ed or better
positioned.
The results we delivered in 2025 re   ect the extraordinary
dedication of our entire Rocky Brands team. Navigating a
rapidly changing tariff environment while simultaneously
growing the business required exceptional effort and
collaboration.
To our shareholders, thank you for your continued
con   dence and support. The strategic foundation we   ve
built and the momentum we   ve established position Rocky
Brands to deliver meaningful value creation in the years
ahead. We enter 2026 as a stronger, more diversi   ed, and
more pro   table company, fully equipped to capitalize on
the exciting opportunities before us.
Sincerely,
Jason Brooks
Chairman, President, and Chief Executive Officer

FINANCIAL HIGHLIGHTS:*
ADJUSTED INCOME STATEMENT
DATA ($000, except per share data)
2021
2022
$514,227
Net sales
$611,906
2023
2024
2025
$463,375
$453,772
$481,976
Gross margin
38.5%
36.6%
38.9%
39.4%
40.9%
Income from Operations
10.0%
7.9%
9.0%
8.3%
8.3%
Net income
$32,513
$24,073
$14,261
$18,973
$24,542
$4.39
$3.27
$1.93
$2.54
$3.26
$232,464
$235,400
$169,201
$166,701
$181,134
624,575
582,390
479,385
457,300
477,488
270,044
256,896
173,130
128,737
122,642
197,855
215,473
223,555
232,224
252,088
Net income per diluted share
NET SALES
INCREASE OF
6.2%
BALANCE SHEET
Inventories
Total assets
Total debt
Shareholders    equity
* Non-GAAP information presented
EPS INCREASE OF
$4.39
$611.9
$3.26
$3.27
$514.2
$463.4
$453.8
$482.0
$2.54
28.3%
$1.93
2021
2022
2023
2024
2025
2021
2022
2023
2024
2025
Net Income Per Diluted Share
Net Sales ($millions)
$270.0
10.0%
9.0%
7.9%
8.3%
$256.9
8.3%
$173.1
2021
2022
2023
2024
2025
Income from operations as a % of net sales
4
ROCKY BRANDS ANNUAL REPORT 2025
2021
2022
2023
$128.7
$122.6
2024
2025
Total Debt ($millions)
FINANCIAL HIGHLIGHTS
INCREASE IN
GROSS MARGIN
150BPS
ROCKY BRANDS
5

Muck is dedicated to delivering
boots and footwear that are
100% MUCKPROOF: remarkably
protective, exceptionally
comfortable, totally waterproof,
and designed to brave every
element for work (and life)
in the Muck.
We are here to serve those who serve.
Rocky makes rugged, reliable boots
for the hard-working men and women
who depend on us. We serve the farmer,
the hunter     those protecting our
communities, and serving our country.
6
ROCKY BRANDS ANNUAL REPORT 2025
ROCKY
MUCK
ROCKY BRANDS ANNUAL REPORT 2025
7


shareholder letter icon 4/28/2026 Letter Continued (Full PDF)
 

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