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Note 12 - Segment Information
 9 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

12. 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 2.9% and 4.8% of net sales for the three months ended  September 30, 2025 and 2024, respectively. Net sales to foreign countries represented approximately 2.8% and 3.2% of net sales for the nine months ended  September 30, 2025 and 2024, 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, 2025 and 2024:
 
   

Three Months Ended

    

Nine Months Ended

  
   

September 30,

    

September 30,

  

($ in thousands)

  

2025

    

2024

    

2025

    

2024

  

NET SALES:

                                

Wholesale

   $ 89,117     $ 84,033     $ 236,993     $ 232,082  

Retail

     29,518       26,771       95,905       83,288  

Contract Manufacturing

     3,905       3,750       9,362       10,348  

Total Net Sales

   $ 122,540     $ 114,554     $ 342,260     $ 325,718  
                                 

COST OF GOODS SOLD:

                                

Wholesale

   $ 53,937     $ 52,519     $ 142,226     $ 146,105  

Retail

     15,693       15,088       51,879       44,569  

Contract Manufacturing

     3,634       3,301       8,590       9,212  

Total Cost of Goods Sold

   $ 73,264     $ 70,908     $ 202,695     $ 199,886  
                                 

GROSS MARGIN:

                                

Wholesale

   $ 35,180     $ 31,514     $ 94,768     $ 85,977  

Retail

     13,825       11,683       44,025       38,719  

Contract Manufacturing

     271       449       772       1,136  

Total Gross Margin

   $ 49,276     $ 43,646     $ 139,565     $ 125,832  
 

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