Rocky Brands EPS Surges 245% to $1.90; Manhattan RPO Reaches $2.47B

For investors, the Q2 2026 scorecard from Rocky Brands and Manhattan Associates presents a tale of two risk profiles. Rocky Brands delivered adjusted EPS of $1.90, a 245% increase from $0.55, but strip out the $15 million net tariff benefit and the real picture is a gross margin of just 38.7%, weighed down by expedited freight and shelf-space incentives. Manhattan Associates, conversely, saw its remaining performance obligations swell to $2.47 billion — up 23% year-over-year — locking in predictable subscription revenue, while cloud revenue growth accelerated to 26%. With a win rate above 70% and conversions driving bookings, Manhattan offers the kind of compounder investors prize, whereas Rocky’s earnings quality raises questions about sustainability if tariff policies shift again.

The second quarter of 2026 delivered starkly contrasting earnings reports from two businesses tied to the broader supply chain and consumer goods ecosystem. Manhattan Associates, a leading provider of supply chain and omnichannel software, extended its record streak with cloud revenue accelerating 26% to $127 million and remaining performance obligations (RPO) swelling 23% to $2.47 billion. Rocky Brands, the footwear manufacturer behind XTRATUF, Georgia, Rocky, and Lehigh, posted its strongest revenue growth since 2022 — a 12% jump to $118.4 million — yet underlying profitability was heavily distorted by a one-time tariff refund. Together, these reports paint a picture of an industrial landscape where digital transformation is winning investment dollars, while physical goods makers grapple with a volatile tariff regime and rising operational costs.

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Rocky Brands delivered adjusted EPS of $1.90, a 245% increase from $0.55, but strip out the $15 million net tariff benefit and the real picture is a gross margin of just 38.7%, weighed down by expedited freight and shelf-space incentives.

Manhattan Associates’ results underscore a sustained shift toward cloud-first supply chain platforms. Cloud subscription sales now represent the primary growth engine, expanding 26% year-over-year, as more than 40% of new cloud bookings came from customers converting on-premises deployments to the Manhattan Active cloud suite. The company’s win rate above 70% and three consecutive quarters of record bookings indicate that enterprises — from retailers to logistics firms — are modernizing their order management, warehouse, and omnichannel systems at a brisk pace. CEO Eric Clark credited targeted investments in product specialists, partner channels, and agentic AI support engineers for the momentum. With RPO sitting at $2.47 billion, Manhattan has locked in nearly 2.5 times its annual trailing revenue, providing exceptional visibility into future cash flows.

Rocky Brands’ quarter was superficially robust but revealed significant operational headwinds. Net sales rose 12% to $118.4 million, driven by double-digit growth across the XTRATUF, Georgia, Rocky, and Lehigh safety business-to-business brands, alongside a 21.8% surge in retail sales to $36.2 million as direct-to-consumer (DTC) channels flourished. However, the reported gross margin of 51.4% was inflated by a $15 million net tariff benefit — comprising $18 million in IEEPA tariff refunds, partly offset by $3 million of current tariff costs. Excluding this non-recurring item, underlying gross margin shrank to just 38.7%, down significantly from the prior year, as the company faced higher expedited freight costs, promotional incentives to gain shelf space, changes in manufacturing and sourcing plans, and sales of discontinued styles. Adjusted earnings per share of $1.90, though a major jump from $0.55 a year earlier, would have been notably lower without the tariff windfall.