Rocky Brands, Inc.

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Rocky Brands' fourth 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 for questions. If anyone has any difficulties hearing 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 we'll now turn the conference over to Brendan Frey of ICR. Please go ahead, sir.

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 follow 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 Rocky Brands. Jason?

Thank you, Brandon. With me on today's call is Tom Robertson, our Chief Operating and Chief Financial Officer. After our prepared remarks, we will take your questions. We concluded 2025 with our highest quarterly growth rate of the year in the fourth quarter. delivering strong results that reflect the momentum that has us been building in our business. Net sales increased 9%, marking an excellent finish to what has been a very good year for the Rocky Brands, especially considering the industry headwinds we've navigated from the higher tariffs and deteriorating consumer sentiment. Our performance during the key holiday season was particularly encouraging. highlighted by exceptional demand in our direct-to-consumer channel, demonstrating the power of our brand portfolio and the strong consumer response to our merchandise offerings. For the full year, net sales grew 6% and gross margins expanded by 150 basis points even as we faced increased pressures from higher tariffs. I am incredibly proud of how our organization responded to the challenges over the past 12 months. Our teams executed exceptionally well, leveraging our manufacturing facilities to diversify our sourcing structure, which helped offset a meaningful portion of the impact from the higher tariffs and positioned us for margin tailwinds over the long term. The agility we demonstrated in adapting our supply chain while maintaining product quality and availability has been a key differentiation for us. The accomplishments for this past year have us well positioned to capitalize on the growth opportunities we believe exist in 2026 and beyond. Our diversified brand portfolio, operational flexibility, and strong balance sheet provide us with multiple avenues for continued growth and value creation. Before I hand over to Tom for detailed looking at the financials, I will walk through our fourth quarter brand and channel performance. Extra Tough delivered another exceptional quarter, continuing its position as our fastest growing brand with strong performance across all channels, led by e-commerce, which was almost triple digits. Wholesale was up nicely, driven by traditional big box, outdoor specialty retailers, and regional partners across the Southeast and Pacific Northwest. Product-wise, our most popular styles dominated sales throughout the quarter, including our core ankle deck boots, including our sports and legacy collection. A standout performer was our new cold weather collection, fleece-lined versions of our classic ankle deck boots for both men and women that sold very well and proved attractive to both new customers and existing extra tough fans in colder environments. The Q4 launch of our new Sesame Street licensed product was also well received, particularly through e-commerce, adding momentum to our rapidly growing kids' business. Muck also had a very good quarter with sales increasing in the low 20% range. Growth was driven by our branded website, which was up mid-double digits, while marketplace volumes more than doubled, driven in part by two successful Good Morning American deals and steals events during the quarter. This strong performance reflects our inventory position compared to 2024. successful National Muck Day execution in early October, favorable weather conditions in early December, and continued strong brand demand. Our women's business continues to excel, led by the Arctic Sport II series, and continued success with the women's original series. We also saw strength in the men's Arctic collection, particularly in the Midwest, West, and the Rocky Mountain regions, while the kids business also experienced strong growth with the added bone collector kids foods contributing to the uptick. Durango finished the quarter with a good December performance, especially in farm and ranch accounts benefiting from increased foot traffic due to the wet and snowy weather conditions. This was offset by softness in our key account base year over year due to bulk buy timing and carryover inventory impacts that negatively impacted wholesale sell-in. Durango.com continues to perform well, increasing low double digits in Q4 as legacy collections and new styles from our Shiloh series were in high demand. For spring, we're adding new men's and women's square-toe series at key price points that are being carried by key accounts and large farm and ranch retailers. Like Durango, it was a tale of two channels for Georgia Boot in the fourth quarter. Lackluster wholesale results, in part due to timing of certain customer orders, were partially offset by a strong double-digit gain in e-commerce, driven by a strong holiday season online for the brands. Our strongest offerings include items with the trending BOA lacing system across categories, including the Technically Carbon Flex Wedge, the LTX Logger, and the General Work Durablend Styles. We are pleased to share that the BOA Carbon Flex Wedge will be prominently featured at one of Georgia Boot's largest customers beginning in Q1 2026. We have also been expanding our Super Light Concept, launching a wedge version for the spring 26 that was picked up by a large farm and ranch customer in the Pacific Northwest. Rocky work, outdoor and western, ended Q4 on a positive note as favorable boot weather drove sales of insulated and waterproof products across brick and mortar and e-commerce channels. For the full year, the wow categories ended positively, reversing the trend of recent years with rugged outdoor product, leading the way with low double-digit year-over-year increases in work products, achieving high single-digit growth over 2024. Sales were led by solid gains in national e-commerce companies and our own RockyBoots.com site, along with diverse brick-and-mortar retailers, including major national sporting goods outlets and safety footwear suppliers. The year was highlighted by new programs with major retailers, including an important new work footwear program with a major farm store in the Northwest and renewed programs with key sporting good chains that reclaim shelf space in the outdoor category. Commercial military and duty closed out 2025 Q4 sales nearly in line with the year ago period, despite battling significant challenges from the 43-day government shutdown that affected military personnel pay periods and defense logistic agency operations. A big highlight in the quarter was our rocky code red Wilderness 77 fire boot, which delivered another double-digit sales increase. We are encouraged with the momentum for both segments heading into 2026. which we expect to build with positive marketplace response to both spring and fall collections. Turning to retail. As I touched on in each of the brand discussions, e-commerce particularly, our own branded websites had a fantastic quarter, fueling 30 plus percent growth in our overall retail sales. Also contributing to the segment improvement year over year, was our B2B Lehigh business, which grew mid-single digit versus Q4 last year. Of particular note, our new partnership with Bolle Eyewear continues generating positive incremental growth in a prescription safety eyewear as an extension of our management PPE program. At the same time, new customer acquisitions remain very strong, as we continue adding accounts to drive growth. Looking ahead to 2026, we are optimistic about several key developments across our brand portfolio, and we'll be leaning into our highest growth opportunities, which increase marketing spend to drive full price selling this year and into the future. With that, I'll turn over to Tom, the review of the financials. Tom? Thanks, Jason.