Rocky Brands, Inc. (NASDAQ: RCKY) shares surged when the company’s second-quarter 2025 financial results were made public. After-market activity saw the stock rise 30.55%, at $30.00.
Compared to the same period previous year, net revenues for the quarter ending June 30, 2025, grew 7.5% to $105.6 million. Compared to a net loss of $1.2 million, or $0.17 per diluted share, in the previous year quarter, net income increased to $3.6 million, or $0.48 per diluted share.
Performance in Operations and Brand Momentum
Rocky Brands attributed its success to excellent execution, which was fueled by the robustness of its production network and diverse brand portfolio. With increased demand in both wholesale and e-commerce channels, XTRATUF drove the rise, while Muck had its most robust quarterly gain in recent memory.
Significant profitability benefits were achieved as a consequence of a 230-basis point rise in gross margins brought about by strategic supply chain agility and advantageous pricing.
Updates on the Financial Situation and Inventory
As of June 30, 2025, Rocky Brands reported inventory of $186.8 million, up 12.1% from December 31, 2024, and 6.8% from the year prior. Net of $2.0 million in unamortized issuance expenditures, the total debt was $132.5 million, down 13.1% from June 30, 2024, but up 2.9% from the end of 2024.
The debt structure included borrowings of $103.6 million under the senior secured asset-backed credit facility and a $30.9 million senior term loan. Cash and cash equivalents totaled $2.8 million, a decrease from $4.1 million during the same period last year.
Prospects and Strategic Projects
Rocky Brands has the confidence it needs to take on the remainder of the year thanks to strong momentum and strong wholesale reservations for the second half of 2025. RCKY uses strategies like using its production facilities in Puerto Rico and the Dominican Republic to mitigate the effects of tariffs and maintains a cautious sense of optimism in the face of broader market uncertainty.
Management emphasized that the business is in a strong position to sustain both short-term resilience and long-term development, despite the fact that it is still challenging to predict client demand.
