Rocky Brands Q2 Earnings Surge on $18M Tariff Refund Windfall
RCKY has more than doubled off its 52-week low of $25.08.
Summary
Rocky Brands Q2 net income soared to $13.9M ($1.83 EPS) from $3.6M a year ago, fueled by an $18M IEEPA tariff refund that boosted gross margins to 51.4%. Sales rose 12% across all segments, and the company repurchased $2M in stock.
Key Events · Earnings and Guidance · RCKY
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Q2 Net Income Surges to $13.9M
Net income of $13.9 million ($1.83 diluted EPS) compared to $3.6 million ($0.48) in Q2 2025, driven by an $18.0 million IEEPA tariff refund benefit that reduced cost of goods sold.
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Gross Margin Expands to 51.4%
Gross margin reached 51.4% of net sales, up from 41.0% a year ago, as the tariff refund offset tariff-related costs. Wholesale margin hit 51.5%, Retail 54.8%.
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Revenue Growth Across All Segments
Net sales increased 12.0% to $118.4 million, with Wholesale up 7.9%, Retail up 21.8%, and Contract Manufacturing up 17.2%, reflecting price increases and demand strength.
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$2.0M Share Repurchase Executed
The company repurchased 53,664 shares at an average price of $37.09 under its $7.5 million buyback program, with $5.5 million remaining authorization.
Analysis · RCKY · Manufacturing
A massive Q2 beat saw net income leap to $13.9 million from $3.6 million a year ago, almost entirely because an $18 million IEEPA tariff refund slashed cost of goods sold. Gross margin exploded to 51.4% from 41.0%, and net sales rose 12% across all segments. The company also bought back $2 million in stock and has already collected $8.2 million more in tariff refunds after the quarter ended. While the refund is a one-time event, it dramatically strengthens the balance sheet and validates the company's ability to navigate trade policy chaos.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 36% of the 1040 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.56%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, RCKY was trading at $50.47 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $380.6M. The 52-week trading range was $25.08 to $53.01. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.