Rocky Brands' Post-Tariffs Margins Are Not Very Attractive, Back To A Hold Rating
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Rocky Brands, Inc. reported Q4 2024 earnings with 8.8% YoY growth but faced higher SG&A costs, impacting margins. The company anticipates FY 2025 topline growth without earnings improvement due to 10% China tariffs affecting EPS by $0.60.
February 26, 2025 | 7:45 pm
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NEGATIVE IMPACT
Rocky Brands' Q4 2024 earnings showed growth, but higher SG&A costs and 10% China tariffs are expected to impact margins and EPS negatively in FY 2025.
The company's earnings growth is overshadowed by increased SG&A costs and logistics expenses, leading to less profitable sales. The 10% China tariffs are expected to further impact earnings, reducing EPS by $0.60. This suggests a negative short-term impact on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100