Rocky Brands Q2 profit beats on on tariff refunds, strong demand

Overview

• Footwear and apparel maker's Q2 net sales rose 12% year-over-year

• Adjusted EPS for Q2 more than tripled from a year ago

• Earnings improvement driven by IEEPA tariff refunds lowering cost of goods sold

Outlook

• Company expects strong wholesale segment momentum in second half of yr due to Q2 bookings

• Rocky Brands sees robust selling across channels, with strength in direct-to-consumer websites

Result Drivers

• TARIFF REFUNDS - Gross margin improvement driven by recognition of actual and expected IEEPA tariff refunds, which reduced cost of goods sold

• BRAND AND CHANNEL GROWTH - Double-digit sales growth led by XTRATUF, Georgia Boot, Rocky, and Lehigh safety shoe brands; strong performance in direct-to-consumer websites

Company press release: ID:nBw5MwBZma

Key Details

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 $53.00, about 27.6% above its July 27 closing price of $41.54

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 28 - Ray-Ban maker EssilorLuxottica beats estimates as tariff refunds boost profit

• July 27 - Netherlands' Philips lifts annual profit, cash flow outlook after US tariff refund

• July 28 - Kering's H1 revenue edges past estimates on Gucci improvement, North America demand

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