Rocky Brands reports net sales growth amid tariff challenges

US footwear manufacturer Rocky Brands has reported its financial results for the first quarter (Q1) ended April 29, 2026. The group saw net sales increase 9.1 percent to 124.4 million dollars compared to the year-ago quarter, driven by strong performance in its retail and contract manufacturing segments.

Despite the top-line growth, profitability was impacted by significant sourcing variances. Gross margin decreased 470 basis points to 36.5 percent of net sales, down from 41.2 percent in the prior year. This decline was primarily attributed to an increase in tariff-related costs, which amounted to approximately 7.1 million dollars during the period.

Segment performance and retail expansion

The retail segment emerged as a primary growth driver, with net sales increasing 16.5 percent to 42.7 million dollars. This was bolstered by robust demand across the brand portfolio’s e-commerce platforms. The wholesale segment also grew, rising 4.8 percent to 78.4 million dollars, while contract manufacturing saw a 25 percent increase to 3.3 million dollars.

Rocky Brands chairman, president and chief executive officer, Jason Brooks, noted that the momentum from the previous year has continued into the current fiscal period. Brooks highlighted the performance of the Xtratuf and Muck brands across multiple selling channels as a key factor in the Q1 results.

Impact of tariffs on operating income

Income from operations fell 58.2 percent to 3.6 million dollars, compared to 8.7 million dollars in the year-ago period. On an adjusted basis, income from operations was 4.3 million dollars. These figures reflect the weight of the aforementioned 7.1 million dollars in additional tariffs, which the company has attempted to mitigate through price increases and diversified sourcing.

Net income for the quarter was 1.3 million dollars, or 0.17 dollars per diluted share, representing a 74.5 percent decrease from the 4.9 million dollars reported in the first quarter of 2025. Adjusted net income stood at 1.8 million dollars.