Exhibit 99

Rocky Brands, Inc. Announces Fourth Quarter and Full Year 2022 Results

NELSONVILLE, Ohio, February 23, 2023 – Rocky Brands, Inc. (NASDAQ: RCKY) today announced financial results for its fourth quarter and year ended December 31, 2022.

Fourth Quarter 2022 Overview

Full Year 2022 Overview

“We completed a very solid year of growth with fourth quarter results that exceeded expectations,” said Jason Brooks, Chairman, President and Chief Executive Officer. “Strong gains in our direct channels helped partially offset anticipated challenges in our Wholesale segment due to a difficult comparison and an over-inventoried selling environment. The consistent consumer demand we experienced in 2022 across multiple footwear categories led by work, outdoor and western reflects the strength of our brand portfolio, the appeal of our products, and the loyalty we’ve built with our target audiences. In order to best capitalize on the market opportunities that we believe exist for our business, we have invested in expanding and upgrading our distribution and fulfillment capabilities, evolved and increased our marketing programs, and fortified our leadership team. While we are cautious about near-term trends given the heightened macroeconomic uncertainty, I am more confident than ever that we have the right foundation in place to drive profitable growth and enhanced shareholder value over the long-term.”

Fourth Quarter Review

Fourth quarter net sales decreased 18.0% to $138.9 million compared with $169.5 million in the fourth quarter of 2021. Wholesale segment sales for the fourth quarter decreased 26.6% to $98.9 million compared to $134.8 million for the same period in 2021. Retail segment sales for the fourth quarter increased 40.8% to $37.3 million compared to $26.5 million for the same period last year. Contract Manufacturing segment sales, which include contract military sales and private label programs, decreased 66.6% to $2.7 million compared to $8.1 million in the fourth quarter of 2021. The decrease in Contract Manufacturing sales was due to the expiration of certain contracts with the U.S. Military. 

Gross margin in the fourth quarter of 2022 was $56.7 million, or 40.8% of net sales, compared to $63.3 million, or 37.3% of net sales, for the same period last year. The 350 basis point increase in gross margin was attributable to a tariff refund with a net impact of approximately $2.4 million received in the fourth quarter 2022 and a higher mix of Retail segment sales which carry higher gross margins than the Wholesale and Contract Manufacturing segments.

Operating expenses were $43.1 million, or 31.0% of net sales, for the fourth quarter of 2022 compared to $45.1 million, or 26.6% of net sales, for the same period a year ago. Excluding $1.7 million of acquisition-related amortization and restructuring costs in the fourth quarter of 2022 and $1.6 million in acquisition-related amortization and integration expenses in the fourth quarter of 2021, adjusted operating expenses were $41.4 million for the fourth quarter of 2022 and $43.5 million for the same period a year ago. The decrease in operating expenses was driven primarily by a decrease in discretionary spending and improved distribution center efficiencies compared with the year ago period. As a percentage of net sales, adjusted operating expenses were 29.8% in the fourth quarter 2022 compared with 25.7% in the year ago period.

Income from operations for the fourth quarter of 2022 was $13.6 million, or 9.8% of net sales, compared to $18.2 million or 10.7% of net sales for the same period a year ago. Adjusted operating income for the fourth quarter of 2022 was $15.3 million, or 11.0% of net sales, compared to adjusted operating income of $19.8 million, or 11.7% of net sales, for the same period a year ago. 

Interest expense for the fourth quarter of 2022 was $5.9 million compared with $3.2 million a year ago. The increase reflected increased interest rates on interest payments on the senior term loan and credit facility.

The Company reported fourth quarter 2022 net income of $6.5 million, or $0.89 per diluted share compared to net income of $12.6 million, or $1.69 per diluted share, in the fourth quarter of 2021. Adjusted net income for the fourth quarter of 2022, was $7.9 million, or $1.08 per diluted share, compared to adjusted net income of $13.8 million, or $1.86 per diluted share, in the fourth quarter of 2021.

Full Year Review

Full year 2022 net sales increased 19.7% to $615.5 million compared with $514.2 million in 2021. Full year 2022 net sales include $3.6 million of inventory net sales related to the divestiture of the NEOS brand during the third quarter of 2022. Full year 2021 net sales include $179.0 million, or just over nine months, in net sales from the Acquired Brands. The Acquired Brands is defined as The Original Muck Boot Company, XTRATUF, Servus, NEOS and Ranger brands acquired from Honeywell International Inc. on March 15, 2021.

Wholesale segment sales for 2022 increased 24.0% to $484.8 million compared to $391.1 million in 2021. Retail segment sales for the year increased 21.9% to $115.4 million compared to $94.7 million for the same period last year. Contract Manufacturing segment sales, which includes contract military sales and private label programs, decreased 46.2% to $15.3 million compared to $28.5 million in 2021.

Gross margin in 2022 was $225.2 million, or 36.6% of net sales, compared to $194.5 million, or 37.8% of net sales, for 2021. Adjusted gross margin for 2022, which excludes $1.1 million related to the divestiture of the NEOS brand, was $224.1 million, or 36.6% of adjusted net sales.  Adjusted gross margin for 2021, which excluded approximately $3.5 million related to an inventory fair value adjustment, was $198.0 million, or 38.5% of net sales.

Operating expenses were $181.2 million, or 29.4% of net sales, for 2022 compared to $158.6 million, or 30.8% of net sales, for 2021. Excluding $5.7 million of acquisition-related amortization and integration costs, restructuring costs and disposition of assets in 2022 and $11.9 million in acquisition-related amortization and integration expenses in 2021, adjusted operating expenses were $175.5 million in the current year and $146.6 million in the prior year.

Income from operations for 2022 was $44.0 million, or 7.2% of net sales, compared to $36.0 million or 7.0% of net sales for 2021. Adjusted operating income for 2022 was $48.6 million, or 7.9% of adjusted net sales, compared to adjusted operating income of $51.4 million, or 10.0% of net sales, a year ago.

Interest expense for 2022 was $18.3 million compared with $10.6 million in 2021. The increase reflected an increase in interest rates on interest payments on the senior term loan and credit facility.

The effective tax rate for 2022 increased to 20.6% compared to 19.0% for the full year 2021.

The Company reported 2022 net income of $20.5 million, or $2.78 per diluted share compared to net income of $20.6 million, or $2.77 per diluted share in 2021. Adjusted net income for 2022, was $24.1 million, or $3.27 per diluted share compared to adjusted net income of $32.5 million, or $4.39 per diluted share in 2021.

Balance Sheet Review

Cash and cash equivalents were $5.7 million at December 31, 2022 compared to $5.9 million on the same date a year ago.

Total debt at December 31, 2022 was $256.9 million consisting of $116.3 million senior term loan and borrowings under the Company's senior secured asset-backed credit facility. Compared with December 31, 2021 and September 30, 2022, total debt at December 31, 2022 was down 4.9% and 9.8%, respectively.

Inventory at December 31, 2022 was $235.4 million compared to $232.5 million on the same date a year ago. Compared with June 30, 2022 and September 30, 2022, inventories at December 31, 2022 were down 18.2% and 11.2%, respectively.

Conference Call Information

The Company's conference call to review fourth quarter 2022 results will be broadcast live over the internet today, Thursday, February 23, 2023 at 4:30 pm Eastern Time. Investors and analysts interested in participating in the call are invited to dial (877) 704-4453 (domestic) or (201) 389-0920 (international). The conference call will also be available to interested parties through a live webcast at www.rockybrands.com. Please visit the website and select the “Investors” link at least 15 minutes prior to the start of the call to register and download any necessary software.

About Rocky Brands, Inc.

Rocky Brands, Inc. is a leading designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names. Brands in the portfolio include Rocky®, Georgia Boot®, Durango®, Lehigh®, The Original Muck Boot Company®, XTRATUF®, Servus® and Ranger®. More information can be found at RockyBrands.com.

Safe Harbor Language

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but may not be limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management and include statements in this press release regarding the ability of the Company to capitalize on market opportunities (Paragraph 2), the ability of the Company to successfully implement and recognize benefits from the expansion of, and upgrades to, its distribution and fulfillment capabilities, as well as changes to its marketing programs and leadership team (Paragraph 2), and the Company’s ability to drive profitable growth and enhance shareholder value over the long-term (Paragraph 2). These forward-looking statements involve numerous risks and uncertainties, including, without limitation, the various risks inherent in the Company’s business as set forth in periodic reports filed with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2021 (filed March 16, 2022), and quarterly reports on Form 10-Q for the quarters ended March 31, 2022 (filed May 9, 2022), June 30, 2022 (filed August 9, 2022) and September 30, 2022 (filed November 8, 2022). One or more of these factors have affected historical results, and could in the future affect the Company’s businesses and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation or warranty by the Company or any other person that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.

Rocky Brands, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except share amounts)

Rocky Brands, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except share amounts)

Rocky Brands, Inc. and Subsidiaries

Reconciliation of GAAP Measures to Non-GAAP Measures

(In thousands, except share amounts)

- The non-GAAP adjustments relate to our U.S. and foreign business and as such, the income tax charge is calculated using the effective tax rate for each period presented. 

Use of Non-GAAP Financial Measures

In addition to GAAP financial measures, we present the following non-GAAP financial measures: “adjusted gross margin,” “adjusted operating expenses,” “adjusted operating income,” “adjusted net income,” and "adjusted net income per share.” Adjusted results exclude the impact of items that management believes affect the comparability or underlying business trends in our consolidated financial statements in the periods presented. We believe that these non-GAAP measures are useful to investors and other users of our consolidated financial statements as an additional tool for evaluating operating performance. We believe they also provide a useful baseline for analyzing trends in our operations.

Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. See “Reconciliation of GAAP Measures to Non-GAAP Measures” accompanying this press release.