Rocky Brands Confirms Price Hikes Starting in June, Plans Production Shifts

Rocky Brands Inc. is moving quickly to mitigate the impact from tariffs. “While the situation is very fluid and the outcome of ongoing negotiations is uncertain, we moved quickly to mitigate the impact of the higher tariffs and believe we have a sound plan in place to protect our gross profit dollars under multiple scenarios,” Jason S. Brooks, chairman, president and CEO, told investors in a first quarter earnings conference call Tuesday. “Based on current tariff rates, we expect to implement price increases on the majority of our footwear styles in early June and will maintain flexibility to adjust prices accordingly based on any future changes as they are announced.” He said the company is also “accelerating” its efforts to reduce the amount of products sourced from China. “This includes more footwear from partners in Vietnam, Cambodia, India, and as well, shifting production to our manufacturing facilities in the Dominican Republic and Puerto Rico,” Brooks said. As for the higher prices and impact on consumer spending, Brooks said: “While we anticipate that higher prices will put some pressure on the consumer demand, we believe the strength of our brands and the functionality of our products, along with our diversified sourcing structure, has

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