Rocky Brands, Inc. reported first‑quarter 2026 net sales of $124.4 million, a 9.1% year‑over‑year increase. Wholesale sales grew 4.8% to $78.4 million, while retail sales expanded 16.5% to $42.7 million, driven by continued strength in its XTRATUF and Muck brands.
Gross margin fell to 36.5% of net sales from 41.2% in the same period last year, largely due to a $7.1 million tariff impact. The tariff hit reflects higher sourcing variances; management expects tariffs to ease in the second half of 2026 as in‑house manufacturing ramps up.
Adjusted earnings per share were $0.24, missing consensus estimates of $0.3825—a miss of roughly 36%. The shortfall is attributed to the tariff hit and higher logistics costs associated with increased retail sales, which offset the revenue growth.
Management reiterated its full‑year 2026 guidance, maintaining a revenue growth target of about 6% over 2025 and low‑teen EPS growth. The guidance signals confidence that tariff headwinds will recede and domestic production will improve margins.
Investors reacted negatively, focusing on the EPS miss and margin compression. Analysts noted that while revenue beat expectations, the sharp decline in profitability raised concerns about the company’s ability to convert sales into earnings.
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