Rocky Brands Beats Q3 Estimates, Raises 2026 Outlook; Shares Jump After Hours
The boot maker posted sales growth of 13.3% and profit well above Wall Street's forecasts, and investors cheered the results after the bell.
Rocky Brands beat Wall Street's expectations for its third quarter of fiscal 2026, and it raised its full-year forecast for both revenue and earnings. The boot and footwear company reported adjusted earnings of $1.76 per share, well above the $1.50 analysts had expected. Revenue reached $138.8 million, comfortably ahead of the $129.4 million forecast.
The numbers were strong across the board. Sales climbed 13.3% from a year earlier, marking the second straight quarter of double-digit growth. Gross margin rose to 45%, up from 40.2% a year ago, and the company credited better pricing and a shift in its product mix. Operating income also grew faster than sales, which is a sign that the business is spending its money more efficiently.
Not every brand carried its weight equally. XTRATUF, Muck and Durango drove much of the gain, with Durango posting what management described as an exceptional quarter. Lehigh CustomFit also grew. Georgia Boot slipped compared with a year earlier, and commercial military sales were weaker. Management said the inventory problems that hurt military sales have been resolved.
For shoppers, the quiet engine behind the growth was the company's direct-to-consumer push. Selling straight to customers online and through its own channels lets a brand keep more of each sale and build closer ties with buyers. Rocky also pointed to new product launches and better full-price selling, which suggests demand is strong enough that the company is not relying on discounts to move boots.
Investors want to know whether a beat like this will last, and that is where the tariff question comes in. The quarter included tariff-related benefits. Stripping those out, the normalized gross margin was 40.7%, still higher than the prior year but a more modest improvement. That distinction matters, because it separates one-time accounting help from growth in the underlying business.
The market reacted sharply. Rocky Brands shares closed the regular session at $44.57, down 2.52% from the previous close. After hours, the stock climbed to $49.40, a gain of 10.84%, pushing it closer to the top of its 52-week range. Debt also fell 16.6% from a year earlier, to $116 million, giving the company more room to invest in new products and stores.
For the full earnings details and the management commentary behind them, read the original transcript at Investing.com's earnings call transcript on Rocky Brands.
