ROCKY BRANDS, INC. (RCKY) SEC Filings & Earnings Calls

Tariff uncertainty

“There remains substantial uncertainty regarding the potential changes or pauses to existing and newly announced tariffs, tariff levels, and whether additional tariffs or other reciprocal actions may be imposed, modified, or suspended.” · word for word

Customer concentration risk

“an approximate $1.1 million write-off of accounts receivable associated with a customer bankruptcy during the second quarter of 2026” · word for word

Seasonal fluctuations

“We frequently experience significant seasonal fluctuations in our business as many of our footwear products and product lines are used by consumers in adverse weather conditions.” · word for word

Customer bankruptcy led to $1.1M accounts receivable write-off, indicating credit risk in the customer base.

“The increase in operating expenses as a percentage of net sales was due to an approximate $1.1 million write-off of accounts receivable associated with a customer bankruptcy in the second quarter of 2026.” · word for word

Tariff refunds are non-recurring; future tariff costs and sourcing variances could pressure margins.

“The increase in gross margin as a percentage of net sales was primarily due to the recognition of actual and expected IEEPA tariff refunds, which lowered cost of goods sold in the current quarter, partially offset by tariff costs and sourcing variances.” · word for word

Tariff cost pressure on margins

“The 470-basis point decrease in gross margin was primarily driven by increased sourcing variances, mainly higher tariffs, in the first quarter of 2026 compared to the first quarter of 2025.” · word for word

Uncertainty around tariff refunds

“There can be no guarantee that a refund, if received, will equal the full amount of IEEPA tariffs paid, and any refund may be subject to further legal and regulatory developments.” · word for word

Ongoing tariff policy uncertainty

“There remains substantial uncertainty regarding the potential changes or pauses to existing and newly announced tariffs, tariff levels, and whether additional tariffs or other reciprocal actions may be imposed, modified, or suspended.” · word for word

Concentrated Ownership

“All directors and executive officers as a group (11 persons) beneficially own 7.6% of common stock” · word for word

Related Party Transactions

“During 2025, the Company employed Mark Pitts, Mr. Brooks’s brother-in-law, who served as a Key Account Manager for the Company and earned a base salary and commission of $290,760 in 2025” · word for word

Tariff-related cost pressure of $7.1M in Q1 2026 significantly impacted gross margin and profitability.

“higher sourcing variances, mainly as a result of increased tariffs of approximately $7.1 million in the first quarter of 2026 compared to the year-ago-period.” · word for word

Gross margin decline of 470bps to 36.5% from 41.2% YoY.

“Gross margin decreased 470-basis points to 36.5% of net sales compared to 41.2% of net sales in the year-ago quarter” · word for word

Tariff Exposure

“During the year ended December 31, 2025, we paid approximately $18.7 million in IEEPA tariffs.” · word for word

Customer Concentration

“We currently do not have long-term contracts with any of our retailers.” · word for word

Inventory Risk

“Total inventory increased 8.7% or $14.4 million from December 31, 2024 and was approximately $181.1 million at December 31, 2025.” · word for word

Tariff headwinds pressuring wholesale gross margins; management cites higher tariffs as a key challenge.

“The 20-basis point decrease in gross margin was primarily attributable to a decrease in Wholesale gross margins due to higher tariffs.” · word for word

Deteriorating U.S. consumer sentiment cited as an industry headwind.

“CEO commentary: 'especially considering the industry headwinds caused by higher tariffs and deteriorating U.S. consumer sentiment.'”

Tariff exposure

“These additional tariffs, along with the unpredictability of any future delays, postponements, or other changes to these tariffs, and any actions taken by countries in the response thereto, pose a significant risk to our business operations, financial condition and results of operations, and may materially increase our cost of goods sold and reduce our gross” · word for word

Inventory build risk

“An increase in inventory resulted in a use of cash of $26.9 million and $2.6 million for the nine months ended September 30, 2025 and 2024, respectively. The increase in cash used to purchase inventory was a result of the additional tariffs imposed during 2025 as well as increased purchases in order to meet estimated demand for the fourth quarter of 2025.” · word for word

Tariff pressure on margins expected in coming quarters

“higher tariffs that will pressure margins over the next few quarters” · word for word

Inventory build of 12.7% YoY may signal demand mismatch

“Inventories as of September 30, 2025 increased 12.7% compared to September 30, 2024” · word for word