Rocky Brands Q1 sales up 9% but tariffs crush margins; $20.5M refund claim pending

Filed May 5, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 8, 2025 · ~2 min read

Key Changes

• high

  Operating income fell 58% to $3.6M despite 9% sales growth as tariffs drove gross margin down 470 basis points to 36.5%. Management implemented price increases and sourcing shifts but only partially offset the cost impact.

  MD&A: Operating Results verify on EDGAR →
• high

  Company paid $20.5M in IEEPA tariffs invalidated by Supreme Court in Feb 2026 and is filing refund claims, but has not recorded a receivable due to uncertainty around timing and amount of any recovery.

  MD&A: Tariff Developments verify on EDGAR →
• high

  After IEEPA invalidation, U.S. imposed new temporary 10% general tariff under Section 122. Management flags tariff policy as "dynamic, unpredictable, and subject to ongoing modification," creating continued margin risk.

  MD&A: Tariff Policy verify on EDGAR →