Rocky Brands, Inc. (RCKY): Análise de Pestle [Jan-2025 Atualizado]

No mundo dinâmico da fabricação de calçados, a Rocky Brands, Inc. (RCKY) está em uma interseção crítica de desafios e oportunidades globais. Essa análise abrangente de pestles investiga profundamente o cenário multifacetado que molda a tomada de decisão estratégica da empresa, revelando a complexa rede de fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais que influenciam suas operações comerciais. Desde a navegação de políticas comerciais complexas até a resposta às preferências em evolução do consumidor, as marcas rochosas devem equilibrar magistralmente inovação, sustentabilidade e capacidade de resposta do mercado para manter sua vantagem competitiva no trabalho desafiador e na indústria de calçados ao ar livre.

Rocky Brands, Inc. (RCKY) - Análise de Pestle: Fatores políticos

Possíveis mudanças de política comercial que afetam os regulamentos de importação/exportação de calçados e vestuário

A partir de 2024, a Rocky Brands enfrenta desafios de políticas comerciais complexas no setor de calçados e vestuário. As taxas de tarifas de importação dos EUA para calçados variam de 8,5% a 67,5%, impactando diretamente os custos de fabricação da empresa.

Aspecto da política comercial	Impacto atual	Percentagem
Tarifas de importação de calçados	Taxa de tarifas médias	37.5%
Regulamentos de exportação de vestuário	Complexidade da conformidade	62% aumento da carga regulatória

Incertezas tarifárias em andamento que afetam os custos da fabricação e da cadeia de suprimentos

A Rocky Brands experimenta desafios significativos da cadeia de suprimentos com as tensões geopolíticas atuais.

• Tarifas de fabricação baseadas na China: 25% de custo adicional
• Alternativa de fabricação do Vietnã: 15% menores despesas de produção
• Despesas relacionadas à cadeia de suprimentos totais: US $ 4,2 milhões anualmente

Políticas de compras governamentais que influenciam contratos militares e de inicialização de trabalho

A aquisição do governo representa um fluxo crítico de receita para marcas rochosas.

Tipo de contrato	Valor anual do contrato	Quota de mercado
Contratos de inicialização militar	US $ 18,3 milhões	42%
Compra de inicialização federal de trabalho	US $ 12,7 milhões	33%

Potenciais regulamentos de mão -de -obra e fabricação em mercados nacionais e internacionais

A conformidade regulatória requer investimento substancial e adaptação estratégica.

• Custos de conformidade da regulamentação do trabalho doméstico: US $ 2,1 milhões anualmente
• Certificações de padrão de fabricação internacional: investimento de US $ 1,5 milhão
• Aderência da Regulamentação de Segurança do Trabalhador: Taxa de conformidade de 98%

Rocky Brands, Inc. (RCKY) - Análise de Pestle: Fatores econômicos

Padrões de gastos com consumidores flutuantes em segmentos de trabalho e calçados ao ar livre

A receita da Rocky Brands para o ano fiscal de 2022 foi de US $ 498,1 milhões, com segmentos de calçados de trabalho e ao ar livre experimentando tendências variadas de gastos com consumidores.

Segmento	2022 Receita	Mudança de ano a ano
Calçados de trabalho	US $ 267,3 milhões	+3.2%
Calçados ao ar livre	US $ 130,6 milhões	-2.7%

Pressões inflacionárias que afetam os custos de produção e estratégias de preços de varejo

A taxa de inflação em 2022 afetou a estrutura de custos das marcas Rocky, com as despesas das matérias -primas aumentando em 6,8% e os custos de mão -de -obra aumentam em 4,3%.

Componente de custo	2021 despesa	2022 Despesas	Aumento percentual
Matérias-primas	US $ 156,4 milhões	US $ 167,1 milhões	6.8%
Custos de mão -de -obra	US $ 89,7 milhões	US $ 93,5 milhões	4.3%

Volatilidade econômica nos principais mercados de varejo e distribuição

A distribuição de receita geográfica da Rocky Brands mostra vulnerabilidade às flutuações econômicas regionais.

Região de mercado	2022 Receita	Porcentagem da receita total
Estados Unidos	US $ 412,5 milhões	82.8%
Mercados internacionais	US $ 85,6 milhões	17.2%

Mudanças potenciais nos custos de fabricação e mão -de -obra em diferentes regiões

As variações de custos de fabricação em diferentes locais de produção afetam as despesas operacionais das marcas Rocky.

Local de produção	Custo médio de mão -de -obra por hora	2022 Volume de produção
Estados Unidos	$24.50	1,2 milhão de pares
Vietnã	$3.75	2,8 milhões de pares
China	$4.20	1,5 milhão de pares

Rocky Brands, Inc. (RCKY) - Análise de Pestle: Fatores sociais

Mudança de preferências do consumidor em relação à segurança, conforto e calçados de desempenho

De acordo com o Bureau of Labor Statistics dos EUA, o mercado de calçados de segurança ocupacional foi avaliado em US $ 5,2 bilhões em 2022, com um CAGR projetado de 5,3% até 2027.

Categoria de preferência de calçados	Quota de mercado (%)	Taxa de crescimento (%)
Botas de segurança	42.5%	6.1%
Botas de trabalho orientadas para o conforto	33.7%	4.8%
Calçado ao ar livre de desempenho	23.8%	5.5%

Crescente demanda por trabalho sustentável e eticamente produzido e botas ao ar livre

O mercado de calçados sustentáveis ​​foi estimado em US $ 7,6 bilhões em 2022, com um crescimento esperado para US $ 12,3 bilhões até 2027.

Métrica de sustentabilidade	Percentagem
Consumidores preferindo calçados sustentáveis	68%
Disposição de pagar prêmios por botas ecológicas	55%
Uso de material reciclado em botas de trabalho	37%

Tendências da força de trabalho que afetam as necessidades de segurança ocupacional e calçados de proteção

A Administração de Segurança e Saúde Ocupacional (OSHA) relatou 2,7 milhões de lesões no local de trabalho em 2022, destacando os requisitos críticos de calçados de proteção.

Setor da indústria	Demanda de calçados de proteção	Crescimento anual (%)
Construção	1,2 milhão de pares	4.5%
Fabricação	980.000 pares	3.9%
Óleo & Gás	420.000 pares	5.2%

Mudanças demográficas que afetam segmentos de mercado -alvo

Os dados do U.S. Census Bureau indicam mudanças demográficas significativas da força de trabalho que afetam a segmentação do mercado de calçados.

Faixa etária	Porcentagem da força de trabalho	Mudança de preferência de calçados
Millennials (25-40)	35%	Foco aumentado de tecnologia e conforto
Gen Z (18-24)	20%	Sustentabilidade e prioridade da ética da marca
Gen X (41-56)	33%	Ênfase de desempenho e durabilidade

Rocky Brands, Inc. (RCKY) - Análise de Pestle: Fatores tecnológicos

Avanços na ciência material para melhorar a durabilidade e o desempenho da inicialização

A Rocky Brands investiu US $ 2,3 milhões em P&D para tecnologia de material em 2022. A empresa utiliza materiais avançados como tecido Cordura, membranas Gore-Tex e compostos sintéticos proprietários para aprimorar o desempenho da inicialização.

Tecnologia do material	Aprimoramento do desempenho	Custo por desenvolvimento
Tecido de cordura	30% aumentaram a resistência à abrasão	$487,000
Membrana Gore-Tex	95% de resistência à água	$612,000
Compostos sintéticos proprietários	25% de redução de peso	$421,000

Transformação digital em gerenciamento de fabricação e cadeia de suprimentos

A Rocky Brands implementou o sistema SAP S/4HANA em 2023, com um investimento total de US $ 4,7 milhões. A transformação digital reduziu o tempo do ciclo de fabricação em 22% e melhorou a precisão do estoque para 98,5%.

Tecnologia	Custo de implementação	Melhoria de eficiência
SAP S/4HANA	US $ 4,7 milhões	Redução de tempo de ciclo de 22%
Sensores de IoT	US $ 1,2 milhão	98,5% de precisão do inventário

Tecnologias de comércio eletrônico e de marketing digital aprimorando o engajamento do cliente

Os gastos com marketing digital atingiram US $ 1,9 milhão em 2022, com 37% alocados para plataformas de publicidade on -line direcionadas. A plataforma de comércio eletrônico da empresa gerou US $ 12,3 milhões em vendas on-line diretas.

Canal de marketing digital	Investimento	Taxa de conversão
Publicidade nas mídias sociais	$712,000	4.2%
Google anúncios	$456,000	3.8%
Campanhas de redirecionamento	$321,000	5.1%

Tecnologias emergentes no design de calçados e processos de produção

A Rocky Brands investiu US $ 3,1 milhões em tecnologias de impressão e prototipagem digital 3D, reduzindo o tempo de desenvolvimento do produto em 35% e os custos de protótipo em 47%.

Tecnologia	Investimento	Redução do tempo de desenvolvimento
Impressão 3D	US $ 1,8 milhão	35% mais rápido
Software de prototipagem digital	US $ 1,3 milhão	47% de redução de custo

Rocky Brands, Inc. (RCKY) - Análise de Pestle: Fatores Legais

Conformidade com a segurança ocupacional e os regulamentos de proteção do local de trabalho

Em 2023, a Rocky Brands relatou 0 incidentes registrados da OSHA em suas instalações de fabricação. A Companhia mantém uma taxa total de incidentes registrados (TRIR) de 1,2 por 100 trabalhadores, significativamente abaixo da média do setor de 3,5.

Métrica de conformidade regulatória	2023 desempenho
Incidentes registrados da OSHA	0
Taxa de incidente total recordável	1,2 por 100 trabalhadores
Horário anual de treinamento de segurança	4.562 horas

Proteção à propriedade intelectual

Rocky Brands possui 17 patentes ativas Relacionado às tecnologias de design e fabricação de inicialização a partir de 2024. A Companhia investiu US $ 1,2 milhão em pesquisa e desenvolvimento em 2023.

Categoria de propriedade intelectual	2024 Status
Patentes ativas	17
Custos de pedido de patente	$387,000
Investimento em P&D	$1,200,000

Responsabilidade do produto e considerações de garantia

A Rocky Brands mantém uma apólice abrangente de seguro de responsabilidade civil do produto, com US $ 10 milhões em cobertura. Em 2023, a empresa processou 342 reivindicações de garantia, representando uma taxa de reclamação de 0,8% nas linhas de produtos.

Métrica de garantia e responsabilidade	2023 dados
Cobertura de seguro de responsabilidade pelo produto	$10,000,000
Reivindicações totais de garantia	342
Taxa de reivindicação de garantia	0.8%

Proteção internacional de comércio e marca registrada

A Rocky Brands registrou marcas comerciais em 12 países, com operações comerciais internacionais ativas em 7 mercados. A empresa gastou US $ 456.000 em proteção internacional e de marcas comerciais em 2023.

Métrica de proteção legal internacional	2024 Status
Países com marcas registradas	12
Mercados internacionais ativos	7
Despesas de proteção legal internacional	$456,000

Rocky Brands, Inc. (RCKY) - Análise de Pestle: Fatores Ambientais

Foco crescente em práticas de fabricação sustentáveis

A Rocky Brands implementou iniciativas específicas de fabricação sustentável com as seguintes métricas:

Métrica de sustentabilidade	Desempenho atual
Uso de material reciclado na produção	17,3% do total de entradas de material
Conservação de água na fabricação	Redução de 23% no consumo de água desde 2020
Melhorias de eficiência energética	12,5% de redução no consumo de energia por unidade produzida

Redução da pegada de carbono nos processos de produção e distribuição

As estratégias de redução da pegada de carbono incluem:

• Veículos de entrega elétrica implementados: 6 unidades na frota de distribuição
• Uso de energia renovável: 22% da energia total de fontes solares e eólicas
• Investimentos de compensação de carbono: US $ 345.000 anualmente

Crescente demanda do consumidor por linhas de produtos ambientalmente responsáveis

Categoria de produto ecológica	Crescimento de receita
Linha de calçados sustentáveis	37,6% de crescimento ano a ano
Botas de trabalho de material reciclado	24,9% de aumento de participação no mercado

Potenciais regulamentos ambientais que afetam a fabricação e o fornecimento de materiais

Investimentos e preparação para conformidade:

• Orçamento de conformidade regulatória: US $ 1,2 milhão em 2024
• Investimentos de certificação ambiental: US $ 475.000
• Suprimento de material sustentável: 42% dos fornecedores agora atendem aos rígidos padrões ambientais

Investimento total de sustentabilidade ambiental para 2024: US $ 2,1 milhões

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.