Q1 2026 Rocky Brands Inc Earnings Call Transcript
Key Points
- Rocky Brands Inc (RCKY) reported a 9% increase in Q1 sales, continuing the momentum from the previous quarter.
- The company experienced robust growth in its D2C segment and improving wholesale trends, driven by legacy styles and new product introductions.
- XTRATUF brand showed exceptional momentum with high-teen growth, supported by strong performance across all channels.
- Muck brand posted its best first quarter in over three years, with high-teen growth and strong demand for its Arctic collections.
- The company is optimistic about returning gross margins to the 40% range in the second half of the year as tariff impacts lessen.
- Higher tariffs significantly impacted gross and operating margins, contributing to a 470 basis points decrease in gross profit margin.
- Operating expenses increased due to higher logistics costs, affecting overall profitability.
- Net income decreased to $1.3 million from $4.9 million in the same period last year, reflecting the impact of tariffs.
- The commercial military segment faced challenges due to a lack of new contracts from the US government.
- The company anticipates continued tariff-related headwinds in Q2, which will affect profitability.
Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Rocky Brands first-quarter 2026 earnings conference call. (Operator Instructions) I would like to remind everyone that this conference is being recorded, and we'll now turn the conference over to Brendon Frey of ICR.
Thank you, and thanks to everyone joining us today.
Before we begin, please note that today's session, including the Q&A period, may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Such statements are based on information and assumptions available at this time and are subject to changes, risks, and uncertainties, which may cause actual results to differ materially. We assume no obligation to update such statements.
For a complete discussion of the risks and uncertainties, please refer to today's press release and our reports follow Securities and Exchange Commission, including our 10-K for the year ended December 31, 2025.
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