Rocky Brands has posted a significant increase in profit for the first quarter thanks to healthy demand across its portfolio.

For the quarter ended March 31, net income soared 88.5 per cent to $4.9 million, and operating income increased 8.8 per cent to $8.7 million.

Rocky Brands’ portfolio includes Rocky, Georgia Boot, Durango, Lehigh, The Original Muck Boot Company, Xtratuf and Ranger.

Net sales increased 1.1 per cent to $114.1 million, driven by a 20 per cent uplift in retail sales and strong performance of the Lehigh safety shoe business. Meanwhile, wholesale sales for the quarter decreased 6.3 per cent.

“We experienced healthy demand across our brand portfolio and throughout our distribution channels to start the new year,” said Jason Brooks, chairman, president and CEO.

“Better full-priced selling and a higher proportion of retail sales led to a 210-basis point increase in gross margin, which combined with a meaningful reduction in interest expense,” he added.

As of the end of the quarter, the company’s debt was down 17.5 per cent to $128.6 million.

To mitigate the impact of US tariff policies, Rocky Brands expects to implement price increases on most footwear styles later in the second quarter, as well as reduce the amount of product sourced from China.

“While we expect that higher price points will put some pressure on consumer demand, we believe the strength and desirability of our brands and products along with our diversified sourcing structure that includes our own manufacturing facilities in the Dominican Republic and Puerto Rico will allow us to achieve our financial targets for the year,” added Brooks.

The company’s net sales fell 1.7 per cent to $453.8 million in the last fiscal year.