v3.26.3
Note 13 - Segment Information
 9 Months Ended
Sep. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

13. 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 over 10,000 retail locations representing a wide range of distribution channels in the U.S., the 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, catalogs, 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 platform, 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 3.7% and 2.9% of net sales for the three months ended  September 30, 2026 and 2025, respectively. Net sales to foreign countries represented approximately 2.7% and 2.8% of net sales for the nine months ended September 30, 2026 and 2025, respectively. 

 

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  three and nine months ended September 30, 2026 and 2025:
  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

 

($ in thousands)

 

2026

  

2025

  

2026

  

2025

 

NET SALES:

                

Wholesale

 $99,614  $89,117  $256,835  $236,993 

Retail

  35,417   29,518   114,360   95,905 

Contract Manufacturing

  3,783   3,905   10,388   9,362 

Total Net Sales

 $138,814  $122,540  $381,583  $342,260 
                 

COST OF GOODS SOLD:

                

Wholesale

 $55,202  $53,937  $144,828  $142,226 

Retail

  17,709   15,693   58,621   51,879 

Contract Manufacturing

  3,407   3,634   9,400   8,590 

Total Cost of Goods Sold

 $76,318  $73,264  $212,849  $202,695 
                 

GROSS MARGIN:

                

Wholesale

 $44,412  $35,180  $112,007  $94,768 

Retail

  17,708   13,825   55,739   44,025 

Contract Manufacturing

  376   271   988   772 

Total Gross Margin

 $62,496  $49,276  $168,734  $139,565 

 

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