v3.25.4
Note 16 - Segment Information
12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

16. SEGMENT INFORMATION 

 

Reportable Segments - We have identified three reportable segments: Wholesale, Retail, and Contract Manufacturing.

 

Wholesale. In our Wholesale segment, our products are offered in thousands of retail locations representing a wide range of distribution channels in the U.S., U.K. and other international markets, mainly in Europe. These distribution channels vary by product line and target market and include sporting goods stores, outdoor retailers, independent shoe retailers, hardware stores, mass merchants, uniform stores, farm store chains, specialty safety stores, specialty retailers and online retailers.

 

Retail. In our Retail segment, we market directly to consumers through our Lehigh business-to-business including direct sales and through our CustomFit websites, consumer e-commerce websites, third-party marketplaces, and our Rocky Outdoor Gear Store. Through our outdoor gear store, we generally sell first quality or discontinued products in addition to a limited amount of factory damaged goods, which typically carry lower gross margins.

 

Contract Manufacturing. In our Contract Manufacturing segment, we include sales to the U.S. Military, private label sales and any sales to customers in which we are contracted to manufacture or source a specific footwear product for a customer.

 

Net sales to foreign countries represented approximately 2.3% of net sales in 2025 and 3.2% of net sales in 2024.

 

The net book value of fixed assets located outside of the U.S. totaled $11.1 million at December 31, 2025, of which approximately $3.7 million resides in the Dominican Republic and approximatel$7.4 million resides in China.

 

Our Chief Operating Decision Maker ("CODM") is our Chief Executive Officer (CEO), who evaluates operating results and performance based on net sales and gross margin. Our CODM also uses results of net sales and gross margin to evaluate segment performance and allocate resources as the primary metrics for overall segment evaluation. Operating expenses such as warehousing, distribution, marketing and other key activities supporting our operations are integrated to maximize efficiency and productivity; therefore, we do not include these expenses within our segment results, but instead review them at the consolidated level.

 

The following is a summary of segment results for the Wholesale, Retail, and Contract Manufacturing segments for the years ended December 31:

 

  

Year Ended

 
  

December 31,

 

($ in thousands)

 

2025

  

2024

 

NET SALES:

        

Wholesale

 $316,561  $313,340 

Retail

  152,889   126,868 

Contract Manufacturing

  12,526   13,564 

Total Net Sales

 $481,976  $453,772 
         

COST OF GOODS SOLD:

        

Wholesale

 $192,932  $196,095 

Retail

  79,835   66,715 

Contract Manufacturing

  11,919   11,952 

Total Cost of Goods Sold

 $284,686  $274,762 
         

GROSS MARGIN:

        

Wholesale

 $123,629  $117,245 

Retail

  73,054   60,153 

Contract Manufacturing

  607   1,612 

Total Gross Margin

 $197,290  $179,010 

 

Segment asset information is not prepared or used to assess segment performance.

 

Product Line Information - The following is supplemental information on net sales by product line for the years ended December 31:
 
  

2025

($ in thousands)

 

Wholesale

  

Retail

  

Contract Manufacturing

  

Total

  

% of Sales

 

Work footwear

 $100,250  $90,886  $2,504  $193,640   40.2%

Outdoor footwear

  120,484   45,216   -   165,700   34.4%

Western footwear

  67,483   8,897   -   76,380   15.8%

Duty and commercial military footwear

  27,432   3,297   -   30,729   6.4%

Military footwear

  -   -   10,022   10,022   2.1%

Other

  912   4,593   -   5,505   1.1%

Total

 $316,561  $152,889  $12,526  $481,976   100%

 

  

2024

($ in thousands)

 

Wholesale

  

Retail

  

Contract Manufacturing

  

Total

  

% of Sales

 

Work footwear

 $106,187  $81,873  $2,289  $190,349   41.9%

Outdoor footwear

  100,872   29,350   -   130,222   28.7%

Western footwear

  74,040   8,599   -   82,639   18.2%

Duty and commercial military footwear

  31,476   3,071   -   34,547   7.6%

Military footwear

  -   -   11,275   11,275   2.5%

Other

  765   3,975   -   4,740   1.0%

Total

 $313,340  $126,868  $13,564  $453,772   100%