US footwear maker vows ‘aggressive’ rubber inventory drive

Nelsonville, Ohio - US-based footwear supplier Rocky Brands will invest more heavily in rubber inventory this year in response to increasing international trade barriers.

Speaking in the conference call for the company’s 2024 financial results, CEO Jason Brooks said: “We have very long lead times on our rubber product, so we're going to be investing in inventory."

The earnings call highlighted a major concern for Rocky Brands’ rubber and other import purchasing – fears of increased tariffs for product supplies from China.

Since the call, the US imposed a second 10% duty on imports from China, as well as 25% tariffs on Canada and Mexico, from 4 March.

Also on the call, COO/CFO Tom Robertson said Brands would urge its partners to establish footholds in other Asian countries.

Additionally, the company would seek to boost capacity in Vietnam and Cambodia and also, closer to home, the Dominican Republic.

The latest earnings call release showed a largely positive performance overall for the fourth quarter and full-year 2024.

Revenue rose 1.7% year-on-year to $128 million in the final quarter, but total year-on-year revenue for 2024 dropped by the same percentage to $453.8 million.