Rocky Brands, Inc.

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Rocky Brands Third Quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for you to queue up for questions. If anyone has any difficulties here in the conference, please press star zero for operator assistance at any time. I would like to remind everyone that this conference call is being recorded, and I will now turn the conference over to Cody McAllister of ICR.

Thank you, and thanks to everyone joining us today. Before we begin, please note that today's session, including the Q&A period, may contain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Such statements are based on information and assumptions available at this time and are subject to changes, risks, and uncertainties which may cause actual results to differ materially. We assume no obligation to update such statements. For a complete discussion of the risks and uncertainties, please refer to today's press release and our reports filed with the Securities and Exchange Commission, including our 10-K for the year ended December 31st, 2024. And I'll now turn the conference over to Jason Brooks, Chief Executive Officer of Rocking Brands.

Thank you, Cody. With me on today's call is Tom Robertson, our Chief Operating and Chief Financial Officer. After our prepared remarks, we'll take your questions. Overall, we are pleased with our third quarter results in light of what remains a difficult and dynamic operating environment. Sales for the quarter increased 7%. Gross margins were up 210 basis points. We delivered adjusted diluted EPS of $1.03, a 34% increase versus our Q3 last year. Our teams have done a great job at navigating higher tariffs imposed by the US on most trade partners, especially countries that count for the majority of global footwear production. We've moved quickly to diversify our sourcing base, including adding new Asian-based manufacturing partners outside of China and Vietnam, as well as leveraging our own facilities in the Dominican Republic and Puerto Rico. These actions, along with price increases and strong demand for our brands, should help mitigate the impact of the higher tariffs as they start to hit our P&L more meaningfully in the fourth quarter and next year. We are still ramping up production with our new partners which has resulted in some delayed shipments. However, we are confident that we'll start 2026 with our supply chain in a position of full capture demand. Tom will share more about our sourcing structure later in the call, but at first, I'll review the drivers of our third quarter performance by brand. Starting with Extra Tough, the brand continued its exceptional momentum delivering strong growth that significantly outpaced last year. U.S. wholesale stood out in the quarter, increasing double digits, while ExtraTough.com also posted double-digit growth compared with Q3 last year. From a product standpoint, our legacy 6-inch ankle deck boot, particularly the duck camo version, was once again the top performer and within the category of ADB Sports was the best performing collection. Camo continues to be in high demand across our men's, women's, and kids' offerings, demonstrating strong consumer performance for these designs. We were encouraged that the strong sell-through was broad-based with notable gains coming from big box sporting goods stores, traditional coastal retailers, pure play e-commerce retailers, and online marketplace. We are excited about the ExtraTuff prospects for the fourth quarter and with the launch of our cold weather collection, a Sesame Street collaboration for holiday at retail and online, plus several exciting ExtraTuff.com exclusives. Turning to Muck, coming off one of the strongest Q2 in years, The brand continued its positive trajectory in Q3, despite less favorable weather compared with a year ago period. Improved inventory positions, particularly in best-selling chore styles, combined with initial deliveries of our successful bone collector collaboration in the hunting channel, fueled double-digit growth in our U.S. wholesale business and meaningfully higher in our marketplace volumes. Also adding MUX performance and brand awareness was a highly successful feature on Good Morning America's Deals and Steals event over Labor Day weekend. Our women's business continues to be strong performance, led by the MUX2 Chicken Print series, while men's also had notable success in several regions. In terms of the channels, New product expansion fueled growth in the hardware stores, while our farm and ranch segments saw solid growth with multiple key retailers. As we anticipated, Durango sales were down year over year in Q3, as some key accounts pulled forward orders into Q2 ahead of the planned price increase we took to help offset higher tariffs. This was particularly offset by the consistent and steady growth Durango has experienced throughout this year in our farm and ranch accounts. Product highlights include Durango Shiloh Series, which continues to gain traction with consumers thanks to the great styling, great quality, and attractive price points. Our Legacy Rebel Series continue to sell through well at retail, and our On Trends Women Fashion Collection continues have proven extremely popular, leading into increased placement for these series. Georgia Boot delivered solid growth in the quarter, led by double-digit gains with major accounts and strong results in our field account business. This strength was driven by our largest farm and ranch accounts and e-commerce-only partners, supporting by successful new product launches and legacy bestsellers. New product launches were led by our Carbon Flex Wedge, a technology wedge with improved flexibility that booked so successfully we are launching a version in November featuring the BOA Lace Enclosure System. Field business followed similar patterns with new products, driving increases across most regions, compensation for mixed retail conditions in some areas. Rocky work, outdoor and western in total, was up versus last year, led by gains in the work and outdoor categories. Work was driven by new or expanding distribution across the country, including a new work program with a large farm and ranch retailer across the Mountain and Northwest region, led by several styles with the BOA lacing enclosure system. Rocky work also continued to sell well in key national safety footwear distributors plus multiple digital platforms. In outdoor, it was improved distribution nationwide with new and larger programs at key farm and ranch retailers and sporting good partners that fueled the year-over-year improvement. Within these channels, our new Wildcat series of hunting outdoor boots delivered great value at core price points, while premium Bearclaw outdoor boots reinforced Rocky's leadership and performance footwear. While Rocky Western sales declined year over year, our heightened focus on work Western products, particularly our Iron Skull Safety Toe Western Pull-On, is driving gains with several regional and national brick and mortars and online. Rocky Commercial Military and Duty posted its second consecutive quarter of improved results. Commercial military sales were up versus last year and exceeded plan as our strategic inventory management enabled us to maintain higher fill rates throughout the quarter. Duty also outperformed expectations driven by strong gains with our largest U.S. Postal Service customer, and continued double-digit growth in our FireBoot program. In retail, our Lehigh B2B business grew high single digits versus Q3 last year. We continue making operational improvements to our custom fit website and launched our new partnership with Bolle Eyewear for prescription safety eyewear through our managed PPE program. Customer spending remained consistent with good subsidy utilization, and new customer acquisition remained strong, more than offsetting impacts from supply chain and tariff uncertainty. Looking ahead, our view in the remainder of the year is based on the momentum we are currently experiencing with our brands, especially Extra Tough. Balanced with the Operate level of cautious, about the broader consumer environment and the anticipated impact on the fourth quarter gross margins from the higher tariffs. While there is still uncertainty with respect to the outcome of certain trade negotiations, we feel good about the changes we've made to our supply chain, in particular, the increased flexibility we have to shift sourcing and production if needed. And therefore, we are anticipating that the headwinds from higher tariffs implemented this year will abate midway through 2026. With that, I will turn the call over to Tom. Tom?