What changed in this filing

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Item 1. Financial Statements

2026-08-04 compared with 2026-05-05 · 110 added, 36 removed, 397 unchanged (27% of the section changed)

14 unchanged sentences

Income tax receivable

1,158 1,050 -

Prepaid expenses

33 unchanged sentences

25,000,000 shares authorized;

issued and outstanding March 31, 2026 - 7,536,488 ;

issued and outstanding June 30, 2026 - 7,487,899 ;

December 31, 2025 - 7,505,139 ;

March 31, 2025 - 7,451,996

June 30, 2025 - 7,461,167

Additional paid-in-capital

12 unchanged sentences

Three Months Ended

Six Months Ended

$ 118,368 $ 105,647 $ 242,769 $ 219,720

COST OF GOODS SOLD

57,564 62,366 136,531 129,431

60,804 43,281 106,238 90,289

OPERATING EXPENSES

41,119 36,125 82,919 74,427

INCOME FROM OPERATIONS

19,685 7,156 23,319 15,862

INTEREST EXPENSE AND OTHER – net

( 1,995 ) ( 2,519 ) ( 4,029 ) ( 4,874 )

INCOME BEFORE INCOME TAX EXPENSE

17,690 4,637 19,290 10,988

INCOME TAX EXPENSE

3,809 1,029 4,151 2,438

$ 13,881 $ 3,608 $ 15,139 $ 8,550

INCOME PER SHARE

$ 1.85 $ 0.48 $ 2.01 $ 1.15

$ 1.83 $ 0.48 $ 1.99 $ 1.14

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING

7,509 7,461 7,522 7,460

7,598 7,493 7,607 7,493

See Notes to Unaudited Condensed Consolidated Financial Statements

8 unchanged sentences

7,454 $ 73,866 $ 158,358 $ 232,224

THREE MONTHS ENDED MARCH 31, 2025

SIX MONTHS ENDED JUNE 30, 2025

$ 4,941 $ 4,941

7 unchanged sentences

7,452 $ 74,070 $ 162,143 $ 236,213

$ 3,608 $ 3,608

Dividends paid on common stock ($ 0.155 per share)

( 1,156 ) ( 1,156 )

Stock compensation expense

BALANCE - June 30, 2025

7,461 $ 74,470 $ 164,595 $ 239,065

BALANCE - December 31, 2025

7,505 $ 76,090 $ 175,998 $ 252,088

THREE MONTHS ENDED MARCH 31, 2026

SIX MONTHS ENDED JUNE 30, 2026

$ 1,259 $ 1,259

6 unchanged sentences

7,536 $ 76,456 $ 176,088 $ 252,544

$ 13,881 $ 13,881

Dividends paid on common stock ($ 0.17 per share)

( 1,272 ) ( 1,272 )

Repurchase of common stock

( 54 ) $ ( 1,990 ) - ( 1,990 )

Stock issued for options exercised, including tax benefits

Stock compensation expense

BALANCE - June 30, 2026

7,488 $ 74,935 $ 188,697 $ 263,632

See Notes to Unaudited Condensed Consolidated Financial Statements

3 unchanged sentences

(In thousands)

Three Months Ended

Six Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES:

$ 15,139 $ 8,550

Adjustments to reconcile net income to net cash provided by operating activities:

5 unchanged sentences

Change in assets and liabilities:

( 16,502 ) 6,068

2,644 ( 20,134 )

Other current assets

( 1,883 ) ( 2,338 )

( 109 ) ( 70 )

Accounts payable

Operating lease liability

( 1,466 ) ( 1,402 )

Accrued and other liabilities

( 5,024 ) 710

Net cash provided by operating activities

1 unchanged sentence

Purchase of fixed assets

( 4,826 ) ( 3,872 )

Net cash used in investing activities

( 4,826 ) ( 3,872 )

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from revolving credit facility

22,919 23,710

Repayments on revolving credit facility

( 19,250 ) ( 16,000 )

Repayments on term loan

( 4,181 ) ( 4,181 )

Payments of debt issuance costs and loan fees

( 142 ) ( 145 )

Proceeds from stock options

1 unchanged sentence

Repurchase of common stock

( 1,990 ) ( 201 )

Dividends paid on common stock

Net cash used in financing activities

( 2,441 ) ( 2,312 )

Net cash (used in) provided by financing activities

( 5,160 ) 890

DECREASE IN CASH AND CASH EQUIVALENTS

( 275 ) ( 940 )

CASH AND CASH EQUIVALENTS:

1 unchanged sentence

END OF PERIOD

$ 2,627 $ 2,779

See Notes to Unaudited Condensed Consolidated Financial Statements

10 unchanged sentences

All such adjustments reflected in the Unaudited Condensed Consolidated Financial Statements are considered to be of normal and recurring nature.

The results of operations for the three months ended March 31, 2026 and 2025 are not necessarily indicative of the results to be expected for the whole year.

The results of operations for the three and six months ended June 30, 2026 and 2025 are not necessarily indicative of the results to be expected for the whole year.

The December 31, 2025 Unaudited Condensed Consolidated Balance Sheet data was derived from the audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP").

41 unchanged sentences

The fair values of cash and cash equivalents, receivables, and payables approximate their carrying values because of the short-term nature of these instruments.

Receivables consist primarily of amounts due from our customers, net of allowances, and expected insurance recoveries.

Receivables consist primarily of amounts due from our customers, net of allowances, expected insurance recoveries, and expected IEEPA tariff refunds.

The carrying amounts of our long-term credit facilities and other short-term financing obligations also approximate fair value, as they are comparable to financing in the third -party marketplaces due to their variable interest rate terms.

6 unchanged sentences

Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs.

There was no impairment charge for such assets recorded during the three months ended March 31, 2026 and 2025 .

There was no impairment charge for such assets recorded during the six months ended June 30, 2026 and 2025 .

Nature of Performance Obligations

13 unchanged sentences

These reserves are based on the amounts earned, or to be claimed, on the related sales of our products.

Elements of variable consideration including discounts and allowances and rebates are determined at contract inception and are reassessed at each reporting date, at a minimum, to reflect any change in the types of variable consideration offered to the customer.

Elements of variable consideration including discounts, allowances, and rebates are determined at contract inception and are reassessed at each reporting date, at a minimum, to reflect any change in the types of variable consideration offered to the customer.

We determine estimates of variable consideration based on evaluations of each type of variable consideration and customer contract, historical and anticipated trends, and current economic conditions.

9 unchanged sentences

Current contract liabilities are performance obligations that we expect to satisfy or relieve within the next twelve months, advance consideration obtained prior to satisfying a performance obligation, or unconditional obligations to provide goods or services under non-cancellable contracts before the transfer of goods or services to the customer has occurred.

As of March 31, 2026 , December 31, 2025 and March 31, 2025 , there were no contract receivable or contract liability balances outstanding.

As of June 30, 2026 , December 31, 2025 and June 30, 2025 , there were no contract receivable or contract liability balances outstanding.

Disaggregation of Revenue

8 unchanged sentences

Our credit policy generally provides that trade receivables will be deemed uncollectible and written off once we have pursued all reasonable efforts to collect on the account.

Trade receivables are presented net of the related allowance for credit losses of approximat ely $ 0.8 million , $ 0.7 million, and $ 0.9 million at March 31, 2026 , December 31, 2025 , and March 31, 2025 , respectively.

Trade receivables are presented net of the related allowance for credit losses of approximat ely $ 0.8 million, $ 0.7 million, and $ 0.8 million at June 30, 2026 , December 31, 2025 , and June 30, 2025 , respectively.

Inventories are comprised of the following:

1 unchanged sentence

Finished goods

$ 149,466 $ 161,770 $ 169,710

Raw materials

22,943 18,776 16,313

Work-in-process

The asset associated with our returns reserve included within inventories wa s approximatel y $ 1.0 mill ion, $ 1.1 million, and $ 0.9 million as of March 31, 2026 , December 31, 2025 , and March 31, 2025 , respectively.

1,116 588 813

$ 173,525 $ 181,134 $ 186,836

The asset associated with our returns reserve included within inventories wa s approximatel y $ 0.9 mill ion, $ 1.1 million, and $ 0.9 million as of June 30, 2026 , December 31, 2025 , and June 30, 2025 , respectively.

GOODWILL & IDENTIFIED INTANGIBLE ASSETS

There was no change in goodwill during the three months ended March 31, 2026 .

There was no change in goodwill during the six months ended June 30, 2026 .

Intangible assets other than goodwill at the respective balance sheet dates consisted of the following:

March 31, 2026

June 30, 2026

($ in thousands)

21 unchanged sentences

( 1 ) Relates to the impairment of the Muck brand for the year ended December 31, 2024.

March 31, 2025

June 30, 2025

($ in thousands)

9 unchanged sentences

( 1 ) Relates to the impairment of the Muck brand for the year ended December 31, 2024.

The weighted average remaining life of patents and customer relationships is 2.2 years and 10.0 years, res pectively.

Amortization expense for intangible assets subject to amortization for each of the three months ended March 31, 2026 and 2025 was $ 0.7 million.

As of March 31, 2026 , a schedule of approximate expected remaining amortization expense related to intangible assets for the years ending December 31 is as follows:

The weighted average remaining life of patents and customer relationships is 2.0 years and 9.8 years, respectively.

Amortization expense for intangible assets subject to amortization for each of the three months ended June 30, 2026 and 2025 was $ 0.7 million.

Amortization expense for intangible assets subject to amortization for the six months ended June 30, 2026 and 2025 was $ 1.4 million.

As of June 30, 2026 , a schedule of approximate expected remaining amortization expense related to intangible assets for the years ending December 31 is as follows:

($ in thousands)

20 unchanged sentences

The ABL Facility includes a separate first in, last out (FILO) tranche, which allows the Company to borrow at higher advance rates on eligible accounts receivable and inventory balances.

As of March 31, 2026 , we had borrowing capacity of $ 48.5 million under the ABL Facility.

As of June 30, 2026 , we had borrowing capacity of $ 46.3 million under the ABL Facility.

The Term Facility provides for monthly principal payments until the date of maturity, at which date the remaining principal balance is due.

8 unchanged sentences

Base Rate FILO Loan

2.75 % 1.50 % 1.25 % 0.00 % 1.75 % 0.50 %

>33.3% and < or equal to 66.7%

3.00 % 1.50 % 1.50 % 0.00 % 2.00 % 0.50 %

< or equal to 33.3%

3.25 % 1.75 % 1.75 % 0.25 % 2.25 % 0.75 %

In connection with the ABL Agreement, we paid certain fees that were capitalized and will be amortized over the life of such agreement.

1 unchanged sentence

($ in thousands)

Term Facility that matures in 2029 with an effective interest rate of 7.00% as of March 31, 2026, 7.50% as of December 31, 2025 and 7.97% as of March 31, 2025, respectively

Term Facility that matures in 2029 with an effective interest rate of 7.00 % as of June 30, 2026, 7.50 % as of December 31, 2025 and 7.69 % as of June 30, 2025, respectively

$ 22,581 $ 26,762 $ 30,942

ABL Facility that matures in 2029:

SOFR borrowings with an effective interest rate of 5.57% as of March 31, 2026, 5.62% as of December 31, 2025 and 6.23% as of March 31, 2025, respectively

Prime borrowings with an effective interest rate of 7.06% as of March 31, 2026, 7.16% as of December 31, 2025 and 7.80% as of March 31, 2025, respectively

SOFR borrowings with an effective interest rate of 5.51 % as of June 30, 2026, 5.62 % as of December 31, 2025 and 6.22 % as of June 30, 2025, respectively

100,500 94,300 103,300

Prime borrowings with an effective interest rate of 7.18 % as of June 30, 2026, 7.16 % as of December 31, 2025 and 7.94 % as of June 30, 2025, respectively

790 3,321 288

123,871 124,383 134,530

Unamortized debt issuance costs

( 1,480 ) ( 1,741 ) ( 2,002 )

Total debt, net of debt issuance costs

122,391 122,642 132,528

Debt maturing within one year

( 8,361 ) ( 8,361 ) ( 8,361 )

Long-term debt

$ 114,030 $ 114,281 $ 124,167

A schedule of debt payments for the next five years is as follows:

3 unchanged sentences

The ABL Facility and Term Facility also contain restrictions on the amount of dividend payments and share repurchases.

As of March 31, 2026 , we were in compliance with all credit facility covenants.

The effective tax rate for the three months ended March 31, 2026 and 2025 w as 21.4 % an d 22.2 %, r espectively.

As of June 30, 2026 , we were in compliance with all credit facility covenants.

The effective tax rate for the three months ended June 30, 2026 and 2025 was 21.5 % and 22.2 %, respectively.

The effective tax rate for the six months ended June 30, 2026 and 2025 was 21.5 % and 22.2 %, respectively.

The effective tax rate used for interim reporting purposes is based on management’s best estimate of factors impacting the effective tax rate, including projected income from our domestic and international businesses, for the full fiscal year and includes the impact of discrete items recognized in the quarter.

4 unchanged sentences

Our policy is to accrue interest and penalties on any uncertain tax position as a component of income tax expense.

No such expenses were recognized during the three months ended March 31, 2026 and 2025 .

No material expenses were recognized during the three and six months ended June 30, 2026 and 2025 .

We do not believe there will be any material changes in our uncertain tax positions over the next 12 months.

4 unchanged sentences

Three Months Ended

Six Months Ended

(shares in thousands)

Basic - weighted average shares outstanding

7,509 7,461 7,522 7,460

Dilutive restricted share units

1 unchanged sentence

Diluted - weighted average shares outstanding

7,598 7,493 7,607 7,493

Anti-dilutive securities

89 179 89 179

SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information for the three months ended March 31, 2026 and 2025 is as follows:

Three Months Ended

Supplemental cash flow information for the six months ended June 30, 2026 and 2025 is as follows:

Six Months Ended

($ in thousands)

Interest paid

$ 3,363 $ 4,593

Federal, state, and local income taxes paid, net

$ 1,091 $ 1,639

Property, plant, and equipment purchases in accounts payable

$ 1,110 $ 800

Right-of-use assets obtained in exchange for operating lease liabilities, net of terminations

2 unchanged sentences

Wholesale, Retail, and Contract Manufacturing.

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.

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.

4 unchanged sentences

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 2.0 % of net sales for the three months ended March 31, 2026 and 2025 .

Net sales to foreign countries represented approximately 2.3 % and 3.6 % of net sales for the three months ended June 30, 2026 and 2025 , respectively.

Net sales to foreign countries represented approximately 2.1 % and 2.8 % of net sales for the six months ended June 30, 2026 and 2025 , 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.

3 unchanged sentences

The following is a summary of segment results for the Wholesale, Retail, and Contract Manufacturing segments for the

three months ended March 31, 2026 and 2025 :

three and six months ended June 30, 2026 and 2025 :

Three Months Ended

Six Months Ended

($ in thousands)

2 unchanged sentences

Contract Manufacturing

3,293 2,809 6,605 5,457

Total Net Sales

4 unchanged sentences

Contract Manufacturing

2,985 2,461 5,993 4,956

Total Cost of Goods Sold

4 unchanged sentences

Contract Manufacturing

307 348 611 501

Total Gross Margin

14 unchanged sentences

No refunds were received for the

three months ended March 31, 2026

six months ended June 30, 2026

June 30, 2025

We are accounting for these post summary corrections as a gain contingency, and as such have not recorded these potential refunds within the accompanying Unaudited Condensed Consolidated Balance Sheet due to uncertainty of collection.

1 unchanged sentence

SUBSEQUENT EVENTS

Subsequent to March 31, 2026, we repurchased 26,537 shares of common stock under our authorized share repurchase program.

The shares were purchased at an aggregate cost of $ 1.0 million and an average price of $ 37.32 per share.

Subsequent to June 30, 2026, we have received approximately $ 8.2 million of the $ 16.8 million IEEPA tariff receivable included within "other receivables" within the accompanying Unaudited Condensed Consolidated Balance Sheet as of June 30, 2026.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements