0001437749-26-014746
SEC filingRevenue grew 9.1% to $124.4M, but profitability compressed significantly as elevated tariff costs eroded margins, resulting in a 58.2% decline in operating income.
Rocky Brands reported first quarter fiscal 2026 revenue of $124.4 million, an increase of 9.1% compared to $114.1 million in the prior year period. This topline expansion was attributed to increased demand across several key styles and brands, coupled with tariff-related price increases. The company's Lehigh CustomFit business contributed to the growth, driven by an expanded customer base and broader product offerings.
Despite the revenue gains, profitability faced significant pressure. Gross profit decreased 3.3% to $45.4 million, resulting in a gross margin of 36.5%. Management noted that gross margin as a percentage of sales decreased in both Wholesale and Retail segments due to increased product costs stemming from elevated tariff costs recognized during the quarter. These cost pressures were only partially offset by tariff-related price increases. Consequently, operating income declined 58.2% to $3.6 million, and operating margin compressed to 2.9%. Net income fell to $1.3 million, or $0.17 per diluted share, compared to $4.9 million, or $0.66 per diluted share, in the first quarter of fiscal 2025.