Rocky Brands, Inc. (RCKY): Analyse de Pestle [Jan-2025 MISE À JOUR]

Dans le monde dynamique de la fabrication de chaussures, Rocky Brands, Inc. (RCKY) se tient à une intersection critique de défis et d'opportunités mondiales. Cette analyse complète du pilon se plonge profondément dans le paysage multiforme qui façonne la prise de décision stratégique de l'entreprise, révélant le réseau complexe des facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui influencent ses opérations commerciales. De la navigation sur les politiques commerciales complexes à la réponse à l'évolution des préférences des consommateurs, les marques Rocky doivent équilibrer magistralement l'innovation, la durabilité et la réactivité du marché pour maintenir son avantage concurrentiel dans le travail difficile et l'industrie des chaussures extérieures.

Rocky Brands, Inc. (RCKY) - Analyse du pilon: facteurs politiques

Modifications potentielles de politique commerciale affectant les réglementations sur les chaussures et les vêtements / exportation

En 2024, Rocky Brands est confronté à des défis de politique commerciale complexes dans le secteur des chaussures et des vêtements. Les taux de tarif d'importation américains pour les chaussures varient de 8,5% à 67,5%, ce qui concerne directement les coûts de fabrication de l'entreprise.

Aspect politique commercial	Impact actuel	Pourcentage
Tarifs d'importation de chaussures	Taux de tarif moyen	37.5%
Règlement sur les exportations de vêtements	Complexité de conformité	62% ont augmenté le fardeau réglementaire

Incertitudes tarifaires en cours impactant les coûts de fabrication et de chaîne d'approvisionnement

Rocky Brands éprouve d'importants défis de la chaîne d'approvisionnement avec les tensions géopolitiques actuelles.

• Tarifs de fabrication basés en Chine: 25% de coût supplémentaire
• Alternative de fabrication du Vietnam: 15% de frais de production inférieurs
• Dépenses totales liées aux tarifs de la chaîne d'approvisionnement: 4,2 millions de dollars par an

Politiques d'approvisionnement du gouvernement influençant les contrats de démarrage militaires et de travail

Les marchés publics représentent une source de revenus critique pour les marques Rocky.

Type de contrat	Valeur du contrat annuel	Part de marché
Contrats de démarrage militaire	18,3 millions de dollars	42%
Procurements de démarrage de travail fédéral	12,7 millions de dollars	33%

Règlements potentiels de main-d'œuvre et de fabrication sur les marchés nationaux et internationaux

La conformité réglementaire nécessite des investissements substantiels et une adaptation stratégique.

• Coûts de conformité au réglementation du travail intérieur: 2,1 millions de dollars par an
• Certifications standard de fabrication internationale: investissement de 1,5 million de dollars
• Règlement sur la sécurité des travailleurs Adhésion: taux de conformité à 98%

Rocky Brands, Inc. (RCKY) - Analyse du pilon: facteurs économiques

Fluctuant des modèles de dépenses de consommation dans les segments de chaussures de travail et d'extérieur

Les revenus de Rocky Brands pour l'exercice 2022 étaient de 498,1 millions de dollars, avec des segments de chaussures de travail et de chaussures en plein air subissant des tendances de dépenses de consommation variées.

Segment	2022 Revenus	Changement d'une année à l'autre
Chaussures de travail	267,3 millions de dollars	+3.2%
Chaussures extérieures	130,6 millions de dollars	-2.7%

Pressions inflationnistes affectant les coûts de production et les stratégies de tarification au détail

Le taux d'inflation en 2022 a eu un impact sur la structure des coûts des marques Rocheuses avec des dépenses de matières premières augmentant de 6,8% et les coûts de main-d'œuvre augmentant de 4,3%.

Composant coût	2021 dépenses	2022 dépenses	Pourcentage d'augmentation
Matières premières	156,4 millions de dollars	167,1 millions de dollars	6.8%
Coûts de main-d'œuvre	89,7 millions de dollars	93,5 millions de dollars	4.3%

Volatilité économique sur les principaux marchés de vente au détail et de distribution

La distribution des revenus géographiques de Rocky Brands montre une vulnérabilité aux fluctuations économiques régionales.

Région de marché	2022 Revenus	Pourcentage du total des revenus
États-Unis	412,5 millions de dollars	82.8%
Marchés internationaux	85,6 millions de dollars	17.2%

Changements potentiels des coûts de fabrication et de main-d'œuvre dans différentes régions

Les variations de coûts de fabrication entre différents emplacements de production ont un impact sur les dépenses opérationnelles des marques de roche.

Emplacement de production	Coût moyen de la main-d'œuvre par heure	2022 Volume de production
États-Unis	$24.50	1,2 million de paires
Vietnam	$3.75	2,8 millions de paires
Chine	$4.20	1,5 million de paires

Rocky Brands, Inc. (RCKY) - Analyse du pilon: facteurs sociaux

Changer les préférences des consommateurs vers la sécurité, le confort et les chaussures de performance

Selon le Bureau américain des statistiques du travail, le marché des chaussures de sécurité au travail était évalué à 5,2 milliards de dollars en 2022, avec un TCAC projeté de 5,3% à 2027.

Catégorie de préférence de chaussures	Part de marché (%)	Taux de croissance (%)
Bottes de sécurité	42.5%	6.1%
Bottes de travail axées sur le confort	33.7%	4.8%
Performances des chaussures extérieures	23.8%	5.5%

Demande croissante de travaux et de bottes extérieures durables et éthiques

Le marché des chaussures durables était estimé à 7,6 milliards de dollars en 2022, avec une croissance attendue à 12,3 milliards de dollars d'ici 2027.

Métrique de la durabilité	Pourcentage
Les consommateurs préférant les chaussures durables	68%
Volonté de payer la prime pour les bottes écologiques	55%
Utilisation des matériaux recyclés dans les bottes de travail	37%

Tendances de la main-d'œuvre ayant un impact sur la sécurité au travail et les besoins de chaussures de protection

L'Administration de la sécurité et de la santé au travail (OSHA) a signalé 2,7 millions de blessures en milieu de travail en 2022, mettant en évidence les exigences de chaussures de protection critiques.

Secteur de l'industrie	Demande de chaussures protectrices	Croissance annuelle (%)
Construction	1,2 million de paires	4.5%
Fabrication	980 000 paires	3.9%
Huile & Gaz	420 000 paires	5.2%

Chart démographique affectant les segments de marché cibles

Les données du Bureau du recensement américain indiquent des changements démographiques importants affectant la segmentation du marché des chaussures.

Groupe d'âge	Pourcentage de main-d'œuvre	Changement de préférence de chaussures
Milléniaux (25-40)	35%	Une mise au point de la technologie et du confort accrues
Gen Z (18-24)	20%	Priorité de la durabilité et de l'éthique de la marque
Gen X (41-56)	33%	Performance et durabilité l'accent

Rocky Brands, Inc. (RCKY) - Analyse du pilon: facteurs technologiques

Avancement de la science des matériaux pour améliorer la durabilité et les performances des bottes

Rocky Brands a investi 2,3 millions de dollars dans la R&D pour la technologie des matériaux en 2022. La société utilise des matériaux avancés comme le tissu Cordura, les membranes Gore-Tex et les composés synthétiques propriétaires pour améliorer les performances de démarrage.

Technologie matérielle	Amélioration des performances	Coût par développement
Cordura	30% ont augmenté la résistance à l'abrasion	$487,000
Gore-TEX membrane	Résistance à 95%	$612,000
Composés synthétiques propriétaires	25% de réduction du poids	$421,000

Transformation numérique dans la fabrication et la gestion de la chaîne d'approvisionnement

Rocky Brands a mis en œuvre le système SAP S / 4HANA en 2023, avec un investissement total de 4,7 millions de dollars. La transformation numérique a réduit le temps de cycle de fabrication de 22% et amélioré la précision des stocks à 98,5%.

Technologie	Coût de la mise en œuvre	Amélioration de l'efficacité
SAP S / 4HANA	4,7 millions de dollars	Réduction du temps de cycle de 22%
Capteurs IoT	1,2 million de dollars	98,5% de précision des stocks

Technologies de commerce électronique et de marketing numérique Amélioration de l'engagement client

Les dépenses de marketing numérique ont atteint 1,9 million de dollars en 2022, avec 37% alloués aux plateformes de publicité en ligne ciblées. La plate-forme de commerce électronique de la société a généré 12,3 millions de dollars en ventes en ligne directes.

Canal de marketing numérique	Investissement	Taux de conversion
Publicité sur les réseaux sociaux	$712,000	4.2%
Publicités Google	$456,000	3.8%
Reciblage des campagnes	$321,000	5.1%

Technologies émergentes dans la conception des chaussures et les processus de production

Rocky Brands a investi 3,1 millions de dollars dans les technologies d'impression 3D et de prototypage numérique, réduisant le temps de développement des produits de 35% et les coûts du prototype de 47%.

Technologie	Investissement	Réduction du temps de développement
Impression 3D	1,8 million de dollars	35% plus rapidement
Logiciel de prototypage numérique	1,3 million de dollars	Réduction des coûts de 47%

Rocky Brands, Inc. (RCKY) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations sur la sécurité au travail et la protection du lieu de travail

En 2023, Rocky Brands a signalé 0 incidents enregistrables OSHA dans ses installations de fabrication. La société maintient un taux d'incident enregistrable total (TRIR) de 1,2 pour 100 travailleurs, nettement inférieur à la moyenne de l'industrie de 3,5.

Métrique de la conformité réglementaire	Performance de 2023
Incidents enregistrables de l'OSHA	0
Taux d'incident total enregistrable	1,2 pour 100 travailleurs
Heures de formation en sécurité annuelles	4 562 heures

Protection de la propriété intellectuelle

Rocky Brands tient 17 brevets actifs liés aux technologies de conception et de fabrication de démarrage en 2024. La société a investi 1,2 million de dollars dans la recherche et le développement en 2023.

Catégorie de propriété intellectuelle	Statut 2024
Brevets actifs	17
Frais de demande de brevet	$387,000
Investissement en R&D	$1,200,000

Considérations du passif et de la garantie des produits

Rocky Brands maintient une police complète d'assurance responsabilité civile des produits avec une couverture de 10 millions de dollars. En 2023, la société a traité 342 réclamations de garantie, représentant un taux de réclamation de 0,8% entre les gammes de produits.

Garantie et passif	2023 données
Couverture d'assurance responsabilité du fait du produit	$10,000,000
Réclamations totales de garantie	342
Taux de réclamation de garantie	0.8%

Protection du commerce international et des marques

Rocky Brands a enregistré des marques dans 12 pays, avec des opérations commerciales internationales actives sur 7 marchés. La société a dépensé 456 000 $ pour la protection internationale juridique et de marque en 2023.

Métrique internationale de protection juridique	Statut 2024
Pays ayant des marques enregistrées	12
Marchés internationaux actifs	7
Dépenses internationales de protection juridique	$456,000

Rocky Brands, Inc. (RCKY) - Analyse du pilon: facteurs environnementaux

Accent croissant sur les pratiques de fabrication durables

Rocky Brands a mis en œuvre des initiatives de fabrication durables spécifiques avec les mesures suivantes:

Métrique de la durabilité	Performance actuelle
Utilisation des matériaux recyclés en production	17,3% des intrants totaux de matériaux
Conservation de l'eau dans la fabrication	23% de réduction de la consommation d'eau depuis 2020
Améliorations de l'efficacité énergétique	12,5% de réduction de la consommation d'énergie par unité produite

Réduction de l'empreinte carbone des processus de production et de distribution

Les stratégies de réduction de l'empreinte carbone comprennent:

• Véhicules de livraison électrique implémentés: 6 unités dans la flotte de distribution
• Utilisation d'énergie renouvelable: 22% de l'énergie totale des sources solaires et éoliennes
• Investissements de compensation de carbone: 345 000 $ par an

Demande croissante des consommateurs de gammes de produits responsables de l'environnement

Catégorie de produits respectueux de l'environnement	Croissance des revenus
Ligne de chaussures durables	37,6% de croissance en glissement annuel
Bottes de travail des matériaux recyclés	Augmentation de la part de marché de 24,9%

Règlements environnementaux potentiels affectant la fabrication et l'approvisionnement en matières

Investissements et préparation à la conformité:

• Budget de conformité réglementaire: 1,2 million de dollars en 2024
• Investissements de certification environnementale: 475 000 $
• Approvisionnement en matières durables: 42% des fournisseurs répondent désormais aux normes environnementales strictes

Investissement total de durabilité environnementale pour 2024: 2,1 millions de dollars

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.