Shoemaker Rocky Brands' Q3 EPS beats estimates as gross margin improves

Rocky Brands

28/10/2025 20:25

Overview

Rocky Brands Q3 net sales rose 7% to $122.5 mln, but just missing analyst expectations

Adjusted EPS for Q3 beats estimates at $1.03 per share

Company's gross margin improved by 210 basis points to 40.2%

Outlook

Company plans to leverage manufacturing in Dominican Republic and Puerto Rico

Rocky Brands aims to capture growth opportunities in 2026 and beyond

Result Drivers

BRAND DEMAND - Strong demand for XTRATUF brand across wholesale and e-commerce channels led sales growth

GROSS MARGIN IMPROVEMENT - Price increases and favorable brand/channel mix contributed to over 200 basis points of gross margin improvement

TARIFF MITIGATION - Co diversifying sourcing and leveraging facilities in Dominican Republic and Puerto Rico to offset tariff impact

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
*SlightMiss
$122.54 mln
$122.90 mln (2 Analysts)
Q3 Adjusted EPS
Beat
$1.03
$0.90 (2 Analysts)
Q3 Net Income
$7.21 mln
Q3 Adjusted Income From Operations
$12.42 mln
Q3 Income From Operations
$11.73 mln
Q3 Operating Expenses
$37.54 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the footwear peer group is "buy"

Wall Street's median 12-month price target for Rocky Brands Inc is $40.00, about 26.6% above its October 27 closing price of $29.37

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw7v68yha

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)