Rocky Brands, Inc. reported financial results for the third quarter ended September 30, 2026, showing a 13.3% increase in net sales to $138.8 million compared to the prior year. The company attributes this growth to broad-based demand across its portfolio of brands, including Durango, Muck, and XTRATUF, as well as its Lehigh CustomFit business.
Revenue growth was driven by both distribution channels. Wholesale segment net sales increased 11.8% to $99.6 million, while retail segment net sales rose 20.0% to $35.4 million. Contract manufacturing segment net sales decreased 3.1% to $3.8 million.
Gross margin for the quarter was 45.0% of net sales, an increase of 480 basis points from the prior year. This improvement is attributed to $2.5 million in IEEPA tariff refunds and a $3.5 million benefit from the sale of inventory from a free trade zone, partially offset by sourcing variances.
Operating income for the third quarter of 2026 was $18.2 million, or 13.1% of net sales, compared to $11.7 million, or 9.6% of net sales, in the prior year. Net income for the quarter was $12.8 million, or $1.69 per diluted share, compared to $7.2 million, or $0.96 per diluted share, in the prior year. Adjusted net income increased to $13.4 million, or $1.76 per diluted share.
On the balance sheet, total debt decreased 16.6% year-over-year to $116.0 million as of September 30, 2026. Inventories as of September 30, 2026, were $189.7 million, a decrease of 2.0% compared to the same date in 2025.
