Rocky Brands, Inc. (RCKY): Análisis PESTLE [Actualizado en ene-2025]

En el mundo dinámico de la fabricación de calzado, Rocky Brands, Inc. (RCKY) se encuentra en una intersección crítica de desafíos y oportunidades globales. Este análisis integral de mano de mortero profundiza en el panorama multifacético que da forma a la toma de decisiones estratégicas de la compañía, revelando la compleja red de factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales que influyen en sus operaciones comerciales. Desde la navegación de políticas comerciales intrincadas hasta responder a las preferencias de los consumidores en evolución, las marcas rocosas deben equilibrar magistralmente la innovación, la sostenibilidad y la capacidad de respuesta del mercado para mantener su ventaja competitiva en el desafiante trabajo y la industria de calzado al aire libre.

Rocky Brands, Inc. (RCKY) - Análisis de mortero: factores políticos

Cambios potenciales de la política comercial que afectan las regulaciones de importación/exportación de ropa y ropa

A partir de 2024, Rocky Brands enfrenta complejos desafíos de política comercial en el sector de calzado y ropa. Las tarifas de tarifas de importación de EE. UU. Para el calzado oscilan entre el 8,5% y el 67.5%, lo que afectó directamente los costos de fabricación de la compañía.

Aspecto de la política comercial	Impacto actual	Porcentaje
Aranceles de importación de calzado	Tasa de tarifa promedio	37.5%
Regulaciones de exportación de ropa	Complejidad de cumplimiento	62% aumentó la carga regulatoria

Incertidumbres de aranceles continuas que afectan los costos de fabricación y cadena de suministro

Rocky Brands experimenta importantes desafíos de la cadena de suministro con las tensiones geopolíticas actuales.

• Aranceles de fabricación con sede en China: 25% de costo adicional
• Alternativa de fabricación de Vietnam: gastos de producción 15% más bajos
• Gastos totales relacionados con la tarifa de la cadena de suministro: $ 4.2 millones anuales

Políticas de adquisición del gobierno que influyen en los contratos de botas militares y de trabajo

La contratación gubernamental representa un flujo de ingresos crítico para las marcas rocosas.

Tipo de contrato	Valor anual del contrato	Cuota de mercado
Contratos de arranque militar	$ 18.3 millones	42%
Adquisición de botas de trabajo federal	$ 12.7 millones	33%

Regulaciones potenciales de mano de obra y manufactura en mercados nacionales e internacionales

El cumplimiento regulatorio requiere una inversión sustancial y una adaptación estratégica.

• Costos de cumplimiento de la regulación laboral interna: $ 2.1 millones anuales
• Certificaciones estándar de fabricación internacional: inversión de $ 1.5 millones
• Adherencia al reglamento de seguridad de los trabajadores: tasa de cumplimiento del 98%

Rocky Brands, Inc. (RCKY) - Análisis de mortero: factores económicos

Fluctuando los patrones de gasto del consumidor en el trabajo y los segmentos de calzado al aire libre

Los ingresos de Rocky Brands para el año fiscal 2022 fueron de $ 498.1 millones, con segmentos de calzado de trabajo y al aire libre que experimentan variadas tendencias de gasto de los consumidores.

Segmento	2022 Ingresos	Cambio año tras año
Calzado de trabajo	$ 267.3 millones	+3.2%
Calzado al aire libre	$ 130.6 millones	-2.7%

Presiones inflacionarias que afectan los costos de producción y las estrategias de precios minoristas

La tasa de inflación en 2022 impactó la estructura de costos de las marcas rocosas con los gastos de materia prima que aumentaron en un 6.8% y los costos de mano de obra aumentaron en un 4,3%.

Componente de costos	Gasto 2021	Gasto 2022	Aumento porcentual
Materia prima	$ 156.4 millones	$ 167.1 millones	6.8%
Costos laborales	$ 89.7 millones	$ 93.5 millones	4.3%

Volatilidad económica en los mercados de distribución y minoristas clave

La distribución de ingresos geográficos de Rocky Brands muestra vulnerabilidad a las fluctuaciones económicas regionales.

Región de mercado	2022 Ingresos	Porcentaje de ingresos totales
Estados Unidos	$ 412.5 millones	82.8%
Mercados internacionales	$ 85.6 millones	17.2%

Posibles cambios en la fabricación y los costos laborales en diferentes regiones

Las variaciones de costos de fabricación en diferentes lugares de producción afectan los gastos operativos de las marcas rocosas.

Ubicación de producción	Costo de mano de obra promedio por hora	Volumen de producción 2022
Estados Unidos	$24.50	1.2 millones de pares
Vietnam	$3.75	2.8 millones de pares
Porcelana	$4.20	1,5 millones de pares

Rocky Brands, Inc. (RCKY) - Análisis de mortero: factores sociales

Cambiar las preferencias del consumidor hacia el calzado de seguridad, comodidad y rendimiento

Según la Oficina de Estadísticas Laborales de EE. UU., El mercado de calzado de seguridad ocupacional se valoró en $ 5.2 mil millones en 2022, con una tasa compuesta anual proyectada de 5.3% hasta 2027.

Categoría de preferencia de calzado	Cuota de mercado (%)	Tasa de crecimiento (%)
Botas de seguridad	42.5%	6.1%
Botas de trabajo orientadas a la comodidad	33.7%	4.8%
Calzado al aire libre de rendimiento	23.8%	5.5%

Creciente demanda de trabajo sostenible y producido éticamente y botas al aire libre

El mercado de calzado sostenible se estimó en $ 7.6 mil millones en 2022, con un crecimiento esperado a $ 12.3 mil millones para 2027.

Métrica de sostenibilidad	Porcentaje
Los consumidores prefieren calzado sostenible	68%
Disposición a pagar la prima por botas ecológicas	55%
Uso de material reciclado en botas de trabajo	37%

Las tendencias de la fuerza laboral que afectan la seguridad ocupacional y las necesidades de calzado protectores

La Administración de Seguridad y Salud Ocupacional (OSHA) reportó 2.7 millones de lesiones en el lugar de trabajo en 2022, destacando los requisitos críticos de calzado protectores.

Sector industrial	Demanda de calzado protector	Crecimiento anual (%)
Construcción	1.2 millones de pares	4.5%
Fabricación	980,000 pares	3.9%
Aceite & Gas	420,000 pares	5.2%

Cambios demográficos que afectan los segmentos del mercado objetivo

Los datos de la Oficina del Censo de EE. UU. Indican cambios demográficos significativos en la fuerza laboral que afectan la segmentación del mercado de calzado.

Grupo de edad	Porcentaje de la fuerza laboral	Cambio de preferencia de calzado
Millennials (25-40)	35%	Aumento de la tecnología y el enfoque de comodidad
Gen Z (18-24)	20%	Prioridad de sostenibilidad y ética de la marca
Gen X (41-56)	33%	Énfasis de rendimiento y durabilidad

Rocky Brands, Inc. (RCKY) - Análisis de mortero: factores tecnológicos

Avances en la ciencia de los materiales para mejorar la durabilidad y el rendimiento de la bota

Rocky Brands invirtió $ 2.3 millones en I + D para la tecnología de materiales en 2022. La compañía utiliza materiales avanzados como la tela de Cordura, las membranas Gore-Tex y los compuestos sintéticos patentados para mejorar el rendimiento del arranque.

Tecnología material	Mejora del rendimiento	Costo por desarrollo
Tela de cordura	30% aumentando la resistencia a la abrasión	$487,000
Membrana gore-tex	95% de resistencia al agua	$612,000
Compuestos sintéticos patentados	25% de reducción de peso	$421,000

Transformación digital en la gestión de la fabricación y la cadena de suministro

Rocky Brands implementó el sistema SAP S/4HANA en 2023, con una inversión total de $ 4.7 millones. La transformación digital redujo el tiempo del ciclo de fabricación en un 22% y una precisión de inventario mejorada a 98.5%.

Tecnología	Costo de implementación	Mejora de la eficiencia
SAP S/4HANA	$ 4.7 millones	Reducción del tiempo del ciclo del 22%
Sensores IoT	$ 1.2 millones	98.5% de precisión de inventario

Tecnologías de comercio electrónico y marketing digital que mejoran la participación del cliente

El gasto de marketing digital alcanzó $ 1.9 millones en 2022, con un 37% asignado a plataformas publicitarias en línea específicas. La plataforma de comercio electrónico de la compañía generó $ 12.3 millones en ventas directas en línea.

Canal de marketing digital	Inversión	Tasa de conversión
Publicidad en las redes sociales	$712,000	4.2%
Ads de Google	$456,000	3.8%
Campañas de reorientación	$321,000	5.1%

Tecnologías emergentes en los procesos de diseño y producción de calzado

Rocky Brands invirtió $ 3.1 millones en tecnologías de impresión 3D y creación de prototipos digitales, reduciendo el tiempo de desarrollo de productos en un 35% y los costos de prototipo en un 47%.

Tecnología	Inversión	Reducción del tiempo de desarrollo
Impresión 3D	$ 1.8 millones	35% más rápido
Software de prototipos digitales	$ 1.3 millones	47% de reducción de costos

Rocky Brands, Inc. (RCKY) - Análisis de mortero: factores legales

Cumplimiento de la seguridad ocupacional y las regulaciones de protección del lugar de trabajo

En 2023, Rocky Brands informó 0 incidentes registrables de OSHA en sus instalaciones de fabricación. La compañía mantiene una tasa de incidentes registrable total (TRIR) de 1.2 por 100 trabajadores, significativamente por debajo del promedio de la industria de 3.5.

Métrico de cumplimiento regulatorio	2023 rendimiento
Incidentes registrables de OSHA	0
Tasa de incidentes total registrable	1.2 por cada 100 trabajadores
Horas anuales de capacitación en seguridad	4.562 horas

Protección de propiedad intelectual

Rocky Brands tiene 17 patentes activas Relacionado con el diseño de arranque y las tecnologías de fabricación a partir de 2024. La compañía invirtió $ 1.2 millones en investigación y desarrollo en 2023.

Categoría de propiedad intelectual	Estado 2024
Patentes activas	17
Costos de solicitud de patente	$387,000
Inversión de I + D	$1,200,000

Responsabilidad del producto y consideraciones de garantía

Rocky Brands mantiene una póliza integral de seguro de responsabilidad civil de productos con $ 10 millones en cobertura. En 2023, la Compañía procesó 342 reclamos de garantía, que representa una tasa de reclamos del 0.8% en las líneas de productos.

Métrica de garantía y responsabilidad	2023 datos
Cobertura de seguro de responsabilidad civil del producto	$10,000,000
Reclamaciones de garantía total	342
Tasa de reclamo de garantía	0.8%

Comercio internacional y protección de marcas registradas

Rocky Brands ha registrado marcas comerciales en 12 países, con operaciones comerciales internacionales activas en 7 mercados. La compañía gastó $ 456,000 en protección internacional legal y de marca registrada en 2023.

Métrica de protección legal internacional	Estado 2024
Países con marcas registradas	12
Mercados internacionales activos	7
Gastos internacionales de protección legal	$456,000

Rocky Brands, Inc. (RCKY) - Análisis de mortero: factores ambientales

Aumento del enfoque en prácticas de fabricación sostenible

Rocky Brands ha implementado iniciativas específicas de fabricación sostenible con las siguientes métricas:

Métrica de sostenibilidad	Rendimiento actual
Uso de material reciclado en producción	17.3% de las entradas totales de material
Conservación del agua en la fabricación	Reducción del 23% en el consumo de agua desde 2020
Mejoras de eficiencia energética	Reducción del 12.5% ​​en el consumo de energía por unidad producida

Reducción de la huella de carbono en los procesos de producción y distribución

Las estrategias de reducción de la huella de carbono incluyen:

• Vehículos de entrega eléctricos implementados: 6 unidades en la flota de distribución
• Uso de energía renovable: 22% de la energía total de fuentes de energía solar y eólica
• Inversiones de compensación de carbono: $ 345,000 anualmente

Creciente demanda de consumidores de líneas de productos ambientalmente responsables

Categoría de productos ecológicos	Crecimiento de ingresos
Línea de calzado sostenible	37.6% de crecimiento año tras año
Botas de trabajo de material reciclado	Aumento de la cuota de mercado del 24.9%

Regulaciones ambientales potenciales que afectan la fabricación y el abastecimiento de materiales

Inversiones de cumplimiento y preparación:

• Presupuesto de cumplimiento regulatorio: $ 1.2 millones en 2024
• Inversiones de certificación ambiental: $ 475,000
• Abastecimiento de material sostenible: el 42% de los proveedores ahora cumplen con los estrictos estándares ambientales

Inversión total de sostenibilidad ambiental para 2024: $ 2.1 millones

Rocky Brands, Inc. (RCKY) - PESTLE Analysis: Social factors

Direct-to-Consumer (DTC) retail segment is a growth engine, up 20.4% in Q1 2025

The shift in consumer buying habits toward online channels is a major social factor driving Rocky Brands' strategy, and it's paying off. The Retail segment, which includes the Direct-to-Consumer (DTC) business, is a critical growth engine. In the first quarter of 2025, Retail net sales surged 20.4% to $36.6 million, up from $30.4 million in the year-ago quarter. This growth was fueled by strong DTC sales and the performance of the Lehigh safety shoe business. This segment carries a higher gross margin than the Wholesale and Contract Manufacturing segments, so an increase here directly boosts overall profitability.

The momentum continued into the middle of the year, showing this isn't a one-off event. Retail net sales were up 13.9% to $29.7 million in Q2 2025, and reached $29.5 million in Q3 2025. This consistent, double-digit growth in the retail channel is defintely a key indicator of strong brand engagement and successful e-commerce execution. The company is strategically investing more in marketing to support this retail growth, which is a smart move.

Brand portfolio diversification captures distinct markets: workwear, outdoor, western, and duty

Rocky Brands' social resilience comes from its diversified portfolio, allowing it to capture distinct consumer subcultures and their specific needs. The company owns and markets a wide array of brands, each targeting a different, loyal customer base. This structure protects against a downturn in any single market segment, like a drop in construction slowing work boot sales.

Here's the quick map of the brand portfolio and its target markets:

• Workwear: Rocky, Georgia Boot, Lehigh (safety shoes)
• Outdoor/Lifestyle: The Original Muck Boot Company, XTRATUF
• Western: Durango
• Duty/Military: Rocky, Ranger

This diversification is a social hedge. When one consumer group pulls back, another is often stepping up. For instance, the demand for premium outdoor gear is currently strong, offsetting some of the challenges in other areas.

Strong momentum in the XTRATUF and Muck Boot Co. brands signals demand for premium outdoor gear

The social trend toward outdoor recreation and premium, durable gear is clearly visible in the performance of the XTRATUF and Muck Boot Co. brands. These brands are highly popular in the outdoor and fishing communities, indicating strong social capital. The XTRATUF brand, in particular, has been the fastest-growing brand in the portfolio.

The demand is concrete: XTRATUF delivered double-digit growth in Q1 2025, with bookings (future orders) up approximately 80% compared to the prior year. The Muck Boot Co. brand also posted its strongest growth in several quarters during Q2 2025. This success is a direct reflection of a consumer preference for high-quality, specialized footwear that supports a specific lifestyle, whether it's commercial fishing in Alaska or recreational gardening in the suburbs.

Brand Momentum Metric (Q1 2025)	XTRATUF	Muck Boot Co.
Q1 2025 Growth Driver	Double-digit growth	Increased rubber boot demand
Q1 2025 Bookings Increase	Approximately 80% year-over-year	Contributed to overall segment growth
Q2 2025 Performance	Led top-line performance	Posted strongest growth in several quarters

Community focus includes over $900,000 in historical giving to non-profits

Corporate social responsibility (CSR) remains a key social expectation for modern businesses, particularly those with deep community roots like Rocky Brands in Nelsonville, Ohio. The company demonstrates this commitment through the Rocky Community Improvement Fund (RCIF), established in 2009.

The RCIF has awarded over $900,000 to area non-profits since its inception in 2009, plus over $15,000 in scholarships to local high school students since 2019. This giving is concentrated in Nelsonville and the surrounding communities in Athens County, which builds significant local goodwill and strengthens the social license to operate. The endowment is built from employee donations and community fundraising, and is professionally managed, showing a structured, long-term commitment to the community that birthed the company.

Rocky Brands, Inc. (RCKY) - PESTLE Analysis: Technological factors

Accelerating investment in digital and e-commerce to support DTC expansion.

You're seeing a clear shift in how consumers buy footwear, so Rocky Brands, Inc. is accelerating its digital investments to capitalize on the Direct-to-Consumer (DTC) channel. This isn't just about having a website; it's about pouring capital into technology and personnel to drive sales with better marketing and a stronger platform. This focus is paying off defintely in 2025.

For example, the Retail segment, which houses the DTC business, saw a substantial increase in net sales in the first three quarters of 2025. Q1 2025 Retail net sales jumped 20.4% to $36.6 million, and Q3 2025 Retail net sales grew 10.3% to $29.5 million. This growth required higher selling costs and incremental marketing investments to fuel demand.

The XTRATUF brand, a key growth driver, saw its dedicated e-commerce platform, xtratuf.com, post double-digit growth in Q3 2025. The company even navigated a platform transition in Q3 2025, which caused a temporary slowdown, but the business quickly recovered, showing the underlying strength of the digital channel.

• Invest in digital platforms for DTC channel growth.
• Retail segment sales grew 10.3% in Q3 2025.
• XTRATUF.com achieved double-digit growth in Q3.

Using data-driven insights for product fitting and supply chain program visibility.

To manage a complex, multi-brand portfolio and a shifting global supply chain, you need a single source of truth-not a dozen disconnected spreadsheets. Rocky Brands is tackling this by implementing a new Enterprise Planning Platform (EPP) from Board, a significant technology upgrade announced in August 2025.

This EPP is designed to integrate the company's enterprise planning processes across finance, operations, and the entire supply chain. The goal is to move from reactive planning to proactive, data-driven decision-making. Specifically, the technology aims to improve forecast accuracy, optimize inventory, and provide real-time insights to better align supply with demand. This level of visibility is crucial for mitigating risks like tariffs and ensuring the right product is in the right channel, like the Lehigh safety shoe business, which is a key part of the retail growth.

Technology Initiative	Goal	2025 Impact
Enterprise Planning Platform (Board)	Integrate Finance, Operations, Supply Chain	Better supply/demand alignment; smarter forecasting
Real-Time Data Insights	Optimize Inventory Management	Helps manage Q3 2025 inventory of $193.6 million
Enhanced Digital Marketing	Drive DTC Sales	Q1 2025 Retail sales up 20.4%

Centralized cybersecurity program aligns with NIST and CIS standards to protect data.

In a world where data breaches can destroy consumer trust and cost millions, a strong cybersecurity posture is non-negotiable. Rocky Brands understands this, which is why they've formally aligned their information security programs with globally recognized, rigorous standards.

The company's approach is to operate a centralized information technology and cybersecurity program across the entire enterprise. This program is not siloed; it's being integrated into the overall Enterprise Risk Management (ERM) strategy. This is smart because it ensures cybersecurity risk is treated as a core business risk, not just an IT problem. They are leveraging external experts and auditors to test and evaluate their programs, which is the right way to manage an ever-evolving threat landscape.

The specific alignment with frameworks is:

• National Institute of Standards Technology (NIST): Provides a comprehensive framework for managing cybersecurity risk.
• Center for Internet Security (CIS): Offers a prioritized set of safeguards to protect against common attacks.
• Control Objectives for Information Technologies (COBIT): Used for IT governance and management.

This centralized, standards-based approach provides a robust framework to protect customer data and intellectual property.

Enhancing factory efficiency through technology to maximize internal production assets.

The geopolitical landscape, specifically higher tariffs, is forcing a technological and operational pivot to maximize owned manufacturing assets. Rocky Brands is using its internal production capacity as a strategic tool to mitigate supply chain risk and control costs.

The company is accelerating efforts to diversify its sourcing, actively shifting production away from China to countries like Vietnam, Cambodia, and India, plus increasing output from its company-owned facilities in the Dominican Republic and Puerto Rico. This shift maximizes the utilization of their internal production assets to capitalize on commercial military opportunities and improve factory efficiency. The goal is to reduce sourcing from China to below 20% by the end of 2025. This deliberate action is a technological and logistical challenge, but it provides greater control over quality, lead times, and cost, ultimately supporting profitability.

Here's the quick math: Q3 2025 Contract Manufacturing net sales were $3.9 million, a segment that directly utilizes these internal assets, showing a 4.1% increase year-over-year, demonstrating the segment's contribution to the overall strategy.

Rocky Brands, Inc. (RCKY) - PESTLE Analysis: Legal factors

Compliance risk in new sourcing countries regarding local labor and workplace laws.

You're watching Rocky Brands, Inc. (RCKY) execute a crucial pivot in its supply chain, so you know the legal risk profile is changing fast. The company is aggressively shifting production away from China to mitigate tariff impacts, which is defintely a smart strategic move, but it immediately introduces new compliance complexities in emerging markets. This is a classic trade-off: lower tariff risk for higher operational and legal due diligence risk.

The company is aiming to manufacture less than 20% of its volume in China by the end of 2025, down from approximately 50% in 2024. This production is moving to new partners in countries like Vietnam, Cambodia, and India, plus increasing output at its long-standing, company-owned facilities in the Dominican Republic and Puerto Rico. While the company has over three decades of experience operating its own factories in the Caribbean, ensuring new third-party partners in Asia adhere to local labor, wage, and workplace safety laws requires constant, granular monitoring.

Here's the quick math: Every new sourcing country means a new set of local labor codes, minimum wage laws, and regulatory bodies to satisfy, increasing the chance of an unforeseen compliance violation that could lead to fines or, worse, brand damage.

Adherence to Ethical Manufacturing Principles, specifically prohibiting forced or child labor.

Ethical sourcing is no longer just an ESG talking point; it's a critical legal and reputational shield. Rocky Brands has established its Ethical Manufacturing Principles, which are non-negotiable for its direct suppliers. These principles are clear: they prohibit involuntary or forced labor-whether indentured, bonded, or otherwise-and specifically prohibit child labor, defined as anyone under the age of 14 or the minimum age established by local law, whichever is greater.

To be fair, the company has internal accountability procedures and conducts its own verification for finished goods factories to assess risks related to human trafficking and slavery. Still, the company's California Transparency in Supply Chains Act Statement notes that it has not previously engaged an independent party to conduct announced audits of direct suppliers' facilities, though it retains the right to inspect. While the company's own facilities in the Dominican Republic and Puerto Rico-which employ between 700 to 1,000 workers-provide a strong ethical baseline, relying on internal verification alone for new, high-risk sourcing regions like Cambodia and India could be a blind spot you need to watch.

• Prohibit involuntary or forced labor.
• Ban child labor (under age 14 or local minimum).
• Require direct supplier certification in contracts.
• Conduct internal verification for human trafficking risk.

Focus on data privacy and information security as critical ESG and business priorities.

In the digital age, a data breach is a legal liability event, and RCKY recognizes this; its Inaugural ESG Report explicitly lists data privacy and information security as a key priority. For a company with a growing direct-to-consumer (DTC) business, protecting customer data falls under a patchwork of U.S. state laws like the CCPA (California Consumer Privacy Act) and international regulations like GDPR (General Data Protection Regulation) if they sell globally.

The company's March 2025 10-K filing details a centralized information technology and cybersecurity program. They are aligning their security posture with recognized standards from the Center for Internet Security (CIS), Control Objectives for Information Technologies (COBIT), and the National Institute of Standards Technology (NIST). Plus, they are extending this legal and security focus to their vendors, conducting thorough security assessments on third parties that have access to private data, using tools like BitSight and Service Organization Control Type 2 (SOC2) reports. This shows a proactive legal governance approach, which is smart.

Trade compliance is a constant, defintely impacting gross margins through tariff rates.

Trade compliance is the most immediate and quantifiable legal factor impacting the P&L in 2025. The U.S. tariffs, particularly the 10% China tariffs enacted in January, are a direct tax on the cost of goods sold (CoGS), and they are hitting margins hard. Management expects the incremental tariff costs for the full year to be approximately $10 million, which is a significant headwind.

The financial impact is clear: the tariffs are expected to cost the company an estimated $0.60 of diluted Earnings Per Share (EPS) for the full year 2025. While Q1 2025 gross margin was strong at 41.2%, the full-year 2025 gross margin is projected to decline by about 70 basis points to a range between 38% and 39%, with Q4 2025 expected to be the worst quarter for tariff impact. To mitigate this legal-financial risk, the company is implementing price increases on most footwear styles starting in early June 2025. They are also managing inventory; as of Q3 2025, about $17 million of inventory was attributed to higher tariff costs.

Here is a snapshot of the tariff impact and mitigation:

Metric	Value (2025 Fiscal Year Data)	Legal/Financial Impact
Incremental Tariff Costs (Full Year Est.)	$10 million	Direct reduction in gross profit.
EPS Impact (Full Year Est.)	$0.60 reduction	Significant pressure on net earnings.
Projected Gross Margin (Full Year)	38% to 39% (down 70 bps)	Quantified margin compression due to tariffs.
Mitigation Action	Price increases on most footwear styles	Legal mechanism to pass tariff cost to consumer.
Sourcing Shift Target	Less than 20% of volume from China by year-end	Long-term legal/trade compliance strategy.

Action: Finance: Monitor the realization of the $10 million tariff impact against Q4 results and confirm the timing and efficacy of the June 2025 price increases.

Rocky Brands, Inc. (RCKY) - PESTLE Analysis: Environmental factors

Published an Inaugural Environmental, Social, and Governance (ESG) Report.

As a seasoned analyst, I look for transparency, and Rocky Brands, Inc. took a clear first step by publishing its Inaugural Environmental, Social, and Governance (ESG) Report in April 2024. This report, which details performance for fiscal years 2022 and 2023, establishes a formal baseline for environmental accountability. This is a necessary move for a multi-brand company in the footwear and apparel space, signaling a commitment to external stakeholders, including investors and consumers, who increasingly demand verifiable data.

The report's publication formalizes the company's approach to environmental stewardship, a key factor in long-term valuation. It's a starting point, not the finish line, but it gives us a framework to track their progress.

Stated goal to be mindful of resource use, including energy, waste, and water in manufacturing.

The company is actively working to reduce its operational footprint, focusing on energy, waste, and water consumption across its manufacturing and distribution centers. This resource mindfulness is directly tied to cost management, especially given volatile energy markets.

Rocky Brands' strategy includes practical, energy-saving investments like retrofitting facilities with LED lighting and adopting renewable energy policies. On the manufacturing floor, the focus is on reducing material waste, which is a major cost driver in footwear production, particularly with materials like leather and neoprene.

Here's a quick look at their operational efficiency moves:

• Waste Reduction Technology: As of 2023, the company installed four Comelz machines in its manufacturing sites.
• Impact: These precision laser cutting systems maximize the use of raw materials, such as leather, directly minimizing waste output.
• Energy Use: Initiatives include a Corporate Travel Policy aimed at reducing vehicle fuel consumption to mitigate greenhouse gas (GHG) emissions.

ESG priorities include managing chemicals, climate change impact, and raw material sourcing.

Rocky Brands has identified ten key ESG priorities, with chemical management, climate change, and raw material sourcing being critical environmental pillars. The company employs safe chemical management practices to comply with current laws, which is vital for product development and handling hazardous waste. The climate change focus is already showing results against their long-term goals.

The most concrete climate metric available is their progress toward the 2025 target:

Environmental Metric	Target / Status (as of FY2023)	Strategic Action
GHG Emissions Reduction (Scope 1 & 2)	Overall emissions are down 50% from the 2018 baseline.	The company is 'in range' of its 2025 target.
Raw Material Sourcing (China Manufacturing Volume)	Target to manufacture less than 20% of volume in China by the end of 2025.	Shifting production from approx. 50% in China in 2024 to owned facilities in the Dominican Republic and Puerto Rico, and third-party suppliers in countries like Vietnam and India.

This aggressive shift in manufacturing volume-from 50% in China to <20% by the end of 2025-is a significant, quantifiable move that directly addresses supply chain risk and environmental impact associated with long-distance sourcing and logistics.

Integrating sustainability into product design for durable, long-lasting products.

The core of Rocky Brands' environmental strategy in product design is durability. They see their heritage as a multi-generational company making tough, comfortable products as inherently sustainable.

The goal is to create long-lasting products, which inherently reduces the consumption-cycle footprint (Scope 3 emissions) by decreasing the need for frequent replacement. Product innovation teams are dedicated to ensuring products are responsibly constructed, incorporating the most advanced designs and materials to meet consumer demand for high-quality, durable footwear. This focus on product longevity is their primary sustainability lever for reducing the total environmental impact of their footwear and apparel portfolio.