10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2013

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                                                 to                                               

Commission file number: 001-34382

ROCKY BRANDS, INC.

(Exact name of registrant as specified in its charter)

Ohio	31-1364046
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)

39 E. Canal Street, Nelsonville, Ohio 45764

(Address of Principal Executive Offices, Including Zip Code)

(740) 753-1951

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES x NO ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ¨	Accelerated filer x	Non-accelerated filer ¨	Smaller reporting company ¨
	(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ¨ NO x

As of July 26, 2013, 7,516,448 shares of Rocky Brands, Inc. common stock, no par value, were outstanding.

FORM 10-Q

ROCKY BRANDS, INC.

TABLE OF CONTENTS

			PAGE NUMBER
PART I. FINANCIAL INFORMATION
	Item 1.	Financial Statements
		Condensed Consolidated Balance Sheets June 30, 2013 and 2012 (Unaudited), and December 31, 2012	3
		Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2013 and 2012 (Unaudited)	4
		Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2013 and 2012 (Unaudited)	5
		Notes to the Interim Unaudited Condensed Consolidated Financial Statements for the Three and Six Months Ended June 30, 2013 and 2012	6 –13
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	14 – 19
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	20
	Item 4.	Controls and Procedures	20
PART II.  OTHER INFORMATION
	Item 1.	Legal Proceedings	21
	Item 1A.	Risk Factors	21
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	21
	Item 3.	Defaults Upon Senior Securities	21
	Item 4.	Mine Safety Disclosures	21
	Item 5.	Other Information	21
	Item 6.	Exhibits	21
SIGNATURE			22

2

PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

ROCKY BRANDS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2013		December 31, 2012		June 30, 2012
	(Unaudited)				(Unaudited)
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents	$	2,855,524	$	4,022,579	$	1,850,905
Trade receivables – net		46,429,928		44,555,057		36,729,487
Other receivables		496,669		575,984		760,596
Inventories		81,159,941		67,196,245		74,048,921
Income tax receivable		270,878		-		933,293
Deferred income taxes		1,252,030		1,252,030		1,154,040
Prepaid expenses		2,862,360		2,127,726		2,240,461
Total current assets		135,327,330		119,729,621		117,717,703
FIXED ASSETS – net		24,418,143		24,252,465		24,822,919
IDENTIFIED INTANGIBLES		30,503,659		30,498,802		30,490,861
OTHER ASSETS		330,743		363,527		436,525
TOTAL ASSETS	$	190,579,875	$	174,844,415	$	173,468,008
LIABILITIES AND SHAREHOLDERS' EQUITY:
CURRENT LIABILITIES:
Accounts payable	$	15,252,448	$	9,930,518	$	10,740,705
Accrued expenses:
Salaries and wages		1,157,593		592,568		1,122,898
Taxes - other		793,439		704,064		595,214
Accrued freight		652,695		857,991		511,152
Commissions		584,890		711,459		457,214
Income taxes payable		-		335,210		-
Other		1,577,503		1,162,650		933,674
Total current liabilities		20,018,568		14,294,460		14,360,857
LONG TERM DEBT		31,438,173		23,461,340		29,909,957
DEFERRED INCOME TAXES		11,148,333		11,148,333		10,987,395
DEFERRED LIABILITIES		255,906		303,406		488,437
TOTAL LIABILITIES		62,860,980		49,207,539		55,746,646
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock, no par value;
25,000,000 shares authorized; issued and outstanding June 30, 2013 - 7,516,448; December 31, 2012 - 7,503,568 and June 30, 2012 - 7,503,568		69,862,770		69,694,770		69,694,770
Retained earnings		57,856,125		55,942,106		48,026,592
Total shareholders' equity		127,718,895		125,636,876		117,721,362
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	190,579,875	$	174,844,415	$	173,468,008

See notes to the interim unaudited condensed consolidated financial statements.

3

ROCKY BRANDS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
NET SALES	$	59,419,751		$	44,408,358		$	113,135,227		$	97,734,276
COST OF GOODS SOLD		39,109,264			29,056,731			74,153,970			64,360,568
GROSS MARGIN		20,310,487			15,351,627			38,981,257			33,373,708
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		17,441,736			14,893,727			34,605,918			31,635,785
INCOME FROM OPERATIONS		2,868,751			457,900			4,375,339			1,737,923
OTHER INCOME AND (EXPENSES):
Interest expense, net		(147,194	)		(130,606	)		(276,752	)		(274,953	)
Other – net		4,723			13,270			(211	)		4,281
Total other - net		(142,471	)		(117,336	)		(276,963	)		(270,672	)
INCOME  BEFORE INCOME TAXES		2,726,280			340,564			4,098,376			1,467,251
INCOME TAX EXPENSE		954,000			122,000			1,434,000			528,000
COMPREHENSIVE INCOME	$	1,772,280		$	218,564		$	2,664,376		$	939,251
NET INCOME PER SHARE
Basic	$	0.24		$	0.03		$	0.35		$	0.13
Diluted	$	0.24		$	0.03		$	0.35		$	0.13
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic		7,516,448			7,503,568			7,516,306			7,503,419
Diluted		7,516,448			7,503,568			7,516,306			7,503,419

See notes to the interim unaudited condensed consolidated financial statements.

4

ROCKY BRANDS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Six Months Ended
	June 30,
	2013			2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	2,664,376		$	939,251
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		3,129,940			2,822,201
Loss (gain) on disposal of fixed assets		10,714			(57,503	)
Stock compensation expense		168,000			122,500
Change in assets and liabilities
Receivables		(1,795,556	)		8,465,396
Inventories		(13,963,696	)		(9,029,873	)
Other current assets		(1,005,512	)		552,851
Other assets		32,784			73,768
Accounts payable		5,658,892			4,990,781
Accrued and other liabilities		354,678			(1,614,007	)
Net cash (used in) provided by operating activities		(4,745,380	)		7,265,365
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of fixed assets		(3,654,890	)		(4,051,981	)
Investment in trademarks and patents		(31,062	)		(22,547	)
Proceeds from sale of fixed assets		37,801			99,820
Net cash used in investing activities		(3,648,151	)		(3,974,708	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facility		36,896,833			30,019,432
Repayments of revolving credit facility		(28,920,000	)		(35,109,475	)
Dividends paid on common stock		(750,357	)		-
Net cash provided by (used in) financing activities		7,226,476			(5,090,043	)
DECREASE IN CASH AND CASH EQUIVALENTS		(1,167,055	)		(1,799,386	)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD		4,022,579			3,650,291
CASH AND CASH EQUIVALENTS,
END OF PERIOD	$	2,855,524		$	1,850,905

See notes to the interim unaudited condensed consolidated financial statements.

5

ROCKY BRANDS, INC.

AND SUBSIDIARIES

NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2013 AND 2012

1. INTERIM FINANCIAL REPORTING

In the opinion of management, the accompanying interim unaudited condensed consolidated financial statements reflect all adjustments that are necessary for a fair presentation of the financial results. All such adjustments reflected in the unaudited interim condensed consolidated financial statements are considered to be of a normal and recurring nature. The results of the operations for the three and six months ended June 30, 2013 and 2012 are not necessarily indicative of the results to be expected for the whole year. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2012.

2. TRADE RECEIVABLES

Trade receivables are presented net of the related allowance for uncollectible accounts of approximately $820,000, $650,000 and $519,000 at June 30, 2013, December 31, 2012 and June 30, 2012, respectively. The allowance for uncollectible accounts is calculated based on the relative age and size of trade receivable balances. 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.

3. INVENTORIES

Inventories are comprised of the following:

	June 30,			December 31,			June 30,
	2013			2012			2012
	(Unaudited)						(Unaudited)
Raw materials	$	15,478,537		$	10,611,641		$	12,792,812
Work-in-process		1,010,923			407,262			993,791
Finished goods		64,787,021			56,359,742			60,371,168
Reserve for obsolescence or lower of cost or market		(116,540	)		(182,400	)		(108,850	)
Total	$	81,159,941		$	67,196,245		$	74,048,921

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4. SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information is as follows:

	(Unaudited)
	Six Months Ended
	June 30,
	2013		2012
Interest	$	269,953	$	319,432
Federal, state and local income taxes, net of refunds	$	2,020,008	$	273,766
Fixed asset purchases in accounts payable	$	281,812	$	207,731

5. PER SHARE INFORMATION

Basic earnings per share (“EPS”) is computed by dividing net income applicable to common shareholders by the weighted average number of common shares outstanding during each period. The diluted earnings per share computation includes common share equivalents, when dilutive. There are no adjustments to net income necessary in the calculation of basic and diluted earnings per share.

A reconciliation of the shares used in the basic and diluted income per common share computation for the three and six months ended June 30, 2013 and 2012 is as follows:

	(Unaudited)				(Unaudited)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Weighted average shares outstanding		7,516,448		7,503,568		7,516,306		7,503,419
Dilutive stock options		-		-		-		-
Dilutive weighted average shares outstanding		7,516,448		7,503,568		7,516,306		7,503,419
Anti-dilutive stock options/weighted average shares outstanding		9,000		10,000		9,160		11,813

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6. RECENT FINANCIAL ACCOUNTING STANDARDS

Recently adopted accounting standards

In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The update does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the update requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The amendments are effective prospectively for reporting periods beginning after December 15, 2012. The adoption of this standard did not have a material effect on our consolidated financial statements.

Accounting standards not yet adopted

In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The update provides that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this update do not require new recurring disclosures. The amendments are effective prospectively for reporting periods beginning after December 15, 2013. We are currently assessing the potential impact of the adoption of this update on our consolidated financial statements.

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7. INCOME TAXES

We file income tax returns in the U.S. Federal jurisdiction and various state and foreign jurisdictions. We are no longer subject to U.S. Federal tax examinations for years before 2009. State jurisdictions that remain subject to examination range from 2008 to 2011. Foreign jurisdiction tax returns that remain subject to examination range from 2006 to 2011 for Canada and from 2006 to 2011 for Puerto Rico. We do not believe there will be any material changes in our uncertain tax positions over the next 12 months.

Our policy is to accrue interest and penalties on any uncertain tax positions as a component of income tax expense. As of June 30, 2013, no such expenses were recognized during the quarter.

We provided for income taxes at an estimated effective tax rate of 35% and 36% for the three and six months ended June 30, 2013 and 2012, respectively.

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8. INTANGIBLE ASSETS

A schedule of intangible assets is as follows:

	Gross		Accumulated		Carrying
June 30, 2013 (unaudited)	Amount		Amortization		Amount
Trademarks:
Wholesale	$	27,243,578	$	-	$	27,243,578
Retail		2,900,000		-		2,900,000
Patents		2,547,465		2,187,384		360,081
Customer relationships		1,000,000		1,000,000		-
Total Identified Intangibles	$	33,691,043	$	3,187,384	$	30,503,659

	Gross		Accumulated		Carrying
December 31, 2012	Amount		Amortization		Amount
Trademarks:
Wholesale	$	27,243,578	$	-	$	27,243,578
Retail		2,900,000		-		2,900,000
Patents		2,516,402		2,161,178		355,224
Customer relationships		1,000,000		1,000,000		-
Total Identified Intangibles	$	33,659,980	$	3,161,178	$	30,498,802

	Gross		Accumulated		Carrying
June 30, 2012 (unaudited)	Amount		Amortization		Amount
Trademarks:
Wholesale	$	27,243,578	$	-	$	27,243,578
Retail		2,900,000		-		2,900,000
Patents		2,483,337		2,136,054		347,283
Customer relationships		1,000,000		1,000,000		-
Total Identified Intangibles	$	33,626,915	$	3,136,054	$	30,490,861

Amortization expense for intangible assets was $13,302 and $12,450 for the three months ended June 30, 2013 and 2012, respectively and $26,205 and $24,793 for the six months ended June 30, 2013 and 2012, respectively. The weighted average amortization period for patents is 15 years.

Estimate of Aggregate Amortization Expense for the years ending December 31,:

2014	$	52,328
2015		51,753
2016		48,979
2017		44,411
2018		38,267

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9. CAPITAL STOCK

On May 11, 2004, our shareholders approved the 2004 Stock Incentive Plan. The Plan includes 750,000 of our common shares that may be granted for stock options and restricted stock awards. As of June 30, 2013, we were authorized to issue approximately 321,370 shares under our existing plans.

The Plan generally provides for grants with the exercise price equal to fair value on the date of grant, graduated vesting periods of up to five years, and lives not exceeding ten years. The following summarizes stock option transactions from January 1, 2013 through June 30, 2013:

	Shares			Weighted Average Exercise Price
Options outstanding at January 1, 2013		10,000		$	24.36
Issued		-			-
Exercised		-			-
Forfeited		(1,000	)	$	24.36
Options outstanding at June 30, 2013		9,000		$	24.36
Options exercisable at:
January 1, 2013		10,000		$	24.36
June 30, 2013		9,000		$	24.36
Unvested options at June 30, 2013		-

During the six month period ended June 30, 2013, we issued 12,880 shares of common stock to members of our Board of Directors. We recorded compensation expense of $168,000, which was the fair market value of the shares on the grant date. The shares are fully vested but cannot be sold for one year.

In June 2009, our Board of Directors adopted a Rights Agreement, which provides for one preferred share purchase right to be associated with each share of our outstanding common stock. Shareholders exercising these rights would become entitled to purchase shares of Series B Junior Participating Cumulative Preferred Stock. The rights are exercisable after the time when a person or group of persons without the approval of the Board of Directors acquire beneficial ownership of 20 percent or more of our common stock or announce the initiation of a tender or exchange offer which if successful would cause such person or group to beneficially own 20 percent or more of our common stock. Such exercise would ultimately entitle the holders of the rights to purchase at the exercise price, shares of common stock of the surviving corporation or purchaser, respectively, with an aggregate market value equal to two times the exercise price. The person or groups effecting such 20 percent acquisition or undertaking such tender offer would not be entitled to exercise any rights. The Rights Agreement was renewed in June 2012 and expires in June 2017.

In the second quarter of 2013, we declared a dividend on our common stock of $0.10 per share with a record date of May 28, 2013 and payable on June 11, 2013. The $750,356 dividend paid is reflected as a reduction to retained earnings in the Condensed Consolidated Balance Sheet.

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10. SEGMENT INFORMATION

We have identified three reportable segments: Wholesale, Retail and Military. Wholesale includes sales of footwear and accessories to several classifications of retailers, including sporting goods stores, outdoor specialty stores, mail order catalogs, independent retailers, mass merchants, retail uniform stores, and specialty safety shoe stores. Retail includes all sales from our consumer websites, stores and all sales in our Lehigh division, which includes sales via shoemobiles to individual customers. Military includes sales to the U.S. Military. The following is a summary of segment results for the Wholesale, Retail, and Military segments.

	(Unaudited)				(Unaudited)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
NET SALES:
Wholesale	$	45,839,745	$	34,697,580	$	87,838,162	$	77,065,992
Retail		9,776,433		9,139,712		20,614,078		19,635,883
Military		3,803,573		571,066		4,682,987		1,032,401
Total Net Sales	$	59,419,751	$	44,408,358	$	113,135,227	$	97,734,276
GROSS MARGIN:
Wholesale	$	15,198,460	$	11,058,323	$	28,768,321	$	23,991,162
Retail		4,581,459		4,267,641		9,560,859		9,339,243
Military		530,568		25,663		652,077		43,303
Total Gross Margin	$	20,310,487	$	15,351,627	$	38,981,257	$	33,373,708

Segment asset information is not prepared or used to assess segment performance.

11. LONG-TERM DEBT

In October 2010, we entered into a financing agreement with PNC Bank (“PNC”) to provide a $70 million credit facility. The term of the facility is five years and the current interest rate is generally LIBOR plus 1.50%.

Our credit facility contains a restrictive covenant which requires us to maintain a fixed charge coverage ratio. This restrictive covenant is only in effect upon a triggering event taking place (as defined in the credit facility agreement). At June 30, 2013, no triggering event had occurred and the covenant was not in effect.

The total amount available under our revolving credit facility is subject to a borrowing base calculation based on various percentages of accounts receivable and inventory. As of June 30, 2013, we had total capacity under this facility of $70.0 million of which we had borrowings of $31.4 million.

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12. FINANCIAL INSTRUMENTS

Generally accepted accounting standards establish a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level l measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under generally accepted accounting standards are described below:

Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.

Level 2: Inputs to the valuation methodology include:

· Quoted prices for similar assets or liabilities in active markets;

· Quoted prices for identical or similar assets or liabilities in inactive markets;

· Inputs other than quoted prices that are observable for the asset or liability;

· Inputs that are derived principally from or corroborated by observable market data bycorrelation or other means.

If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The only asset or liability measured at fair value on a recurring basis by the Company at June 30, 2013, December 31, 2012 and June 30, 2012 was cash and cash equivalents of $2,855,524, $4,022,579 and $1,850,905, respectively. Cash and cash equivalents are considered to be Level 1.

The fair values of cash, accounts receivable, other receivables and accounts payable approximated their carrying values because of the short-term nature of these instruments. Accounts receivable consists primarily of amounts due from our customers, net of allowances. Other receivables consist primarily of amounts due from employees (sales persons’ advances in excess of commissions earned and employee travel advances); other customer receivables, net of allowances; and expected insurance recoveries. The carrying amounts of our revolving line of credit, our mortgages and other short-term financing obligations also approximate fair value, as they are comparable to the available financing in the marketplace during the year.

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ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

The following table sets forth, for the periods indicated, information derived from our Interim Unaudited Condensed Consolidated Financial Statements, expressed as a percentage of net sales. The discussion that follows the table should be read in conjunction with our Interim Unaudited Condensed Consolidated Financial Statements.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Net Sales		100.0	%		100.0	%		100.0	%		100.0	%
Cost Of Goods Sold		65.8	%		65.4	%		65.5	%		65.9	%
Gross Margin		34.2	%		34.6	%		34.5	%		34.1	%
Selling, General and Administrative Expenses		29.4	%		33.5	%		30.6	%		32.4	%
Income From Operations		4.8	%		1.1	%		3.9	%		1.7	%

Three Months Ended June 30, 2013 Compared to Three Months Ended June 30, 2012

Net sales. Net sales for the three months ended June 30, 2013 were $59.4 million compared to $44.4 million for the same period in 2012. Wholesale sales for the three months ended June 30, 2013 were $45.8 million compared to $34.7 million for the same period in 2012. The $11.1 million increase in wholesale sales was the result of an increase from all footwear and apparel categories, primarily led by a $5.4 million increase in our work footwear category, a $2.7 million increase in our western footwear category and a $1.0 million increase in our lifestyle footwear category. During first quarter of 2013, we began shipping to Tractor Supply under an agreement to produce boots under their trade name C.E. Schmidt. During the second quarter of 2013, we had sales of $3.5 million under this agreement that is included in the work footwear category. In addition, in the second quarter of 2012, severe storms knocked out power to our distribution center in Logan, OH. As a result, approximately $2.5 million of sales shifted from the second quarter of 2012 into the third quarter of 2012. Retail sales for the three months ended June 30, 2013 were $9.8 million compared to $9.1 million for the same period in 2012. The $0.7 million increase is primarily driven by a significant gain in our business-to-consumer e-commerce sales. Military segment sales for the three months ended June 30, 2013, were $3.8 million, compared to $0.6 million in the same period in 2012. We recently received an order to fulfill a contract to the U.S. Military to produce “Hot Weather” combat boots. Shipment of the boots under this contract began in March 2013.

14

Gross margin. Gross margin for the three months ended June 30, 2013 was $20.3 million, or 34.2% of net sales, compared to $15.4 million, or 34.6% of net sales, in the same period last year. Wholesale gross margin for the three months ended June 30, 2013 was $15.2 million, or 33.2% of net sales, compared to $11.1 million, or 31.9% of net sales, in the same period last year. The 130 basis point increase was primarily the result of improved manufacturing efficiencies. The Retail gross margin for the three months ended June 30, 2013 was $4.6 million, or 46.9% of net sales, compared to $4.3 million, or 46.7% of net sales, for the same period in 2012. Military gross margin for the three months ended June 30, 2013 was $0.5 million, or 13.9% of net sales, compared to less than $0.1 million, or 4.5% of net sales, for the same period in 2012.

SG&A expenses. SG&A expenses were $17.4 million, or 29.4% of net sales, for the three months ended June 30, 2013, compared to $14.9 million, or 33.5% of net sales for the same period in 2012. The $2.5 million increase primarily reflected increased advertising expenses of $1.0 million as well as increased selling costs of $0.7 million, higher distribution costs of $0.1 million and increased freight expenses of $0.3 million associated with the additional sales during the quarter.

Interest expense. Interest expense was $0.1 million in the three months ended June 30, 2013, compared to $0.1 million for the same period in the prior year.

Income taxes. Income tax expense for the three months ended June 30, 2013 was $1.0 million, compared to $0.1 million for the same period a year ago. We provided for income taxes at effective tax rates of 35% in 2013 and 36% in 2012. The estimated effective tax rate for 2013 is lower than the estimated rate for 2012 as we are anticipating making additional permanent capital investment in our operations in the Dominican Republic, which will reduce the amount of dividends that we need to provide for U.S. income taxes.

Six Months Ended June 30, 2013 Compared to Six Months Ended June 30, 2012

Net sales. Net sales for the six months ended June 30, 2013 were $113.1 million compared to $97.7 million for the same period in 2012. Wholesale sales for the six months ended June 30, 2013 were $87.8 million compared to $77.1 million for the same period in 2012. The $10.7 million increase in wholesale sales was the result of an increase from most of our footwear and apparel categories, primarily led by a $4.5 million increase in our western footwear category, a $4.0 million increase in our work footwear category, a $1.6 million increase in our lifestyle footwear category and a $1.5 million increase in our apparel sales, which was partially offset by a $1.3 million decline in our commercial military footwear category. During first quarter of 2013, we began shipping to Tractor Supply under an agreement to produce boots under their trade name C.E. Schmidt. During the first six months of 2013, we had sales of $5.8 million under this agreement that is included in the work footwear category. In addition, in the second quarter of 2012, severe storms knocked out power to our distribution center in Logan, OH. As a result, approximately $2.5 million of sales shifted from the second quarter of 2012 into the third quarter of 2012. Retail sales for the six months ended June 30, 2013 were $20.6 million compared to $19.6 million for the same period in 2012. The $1.0 million increase in retail sales was primarily driven by a significant gain in our business-to-consumer e-commerce sales. Military segment sales for the six months ended June 30, 2013, were $4.7 million, compared to $1.0 million in the same period in 2012. We recently received an order to fulfill a contract to the U.S. Military to produce “Hot Weather” combat boots. Shipment of the boots under this contract began in March 2013.

Gross margin. Gross margin for the six months ended June 30, 2013 was $39.0 million, or 34.5% of net sales, compared to $33.4 million, or 34.1% of net sales, in the same period last year. Wholesale gross margin for the six months ended June 30, 2013 was $28.8 million, or 32.8% of net sales, compared to $24.0 million, or 31.1% of net sales, in the same period last year. The 170 basis point increase was primarily the result of improved manufacturing efficiencies. The Retail gross margin for the six months ended June 30, 2013 was $9.6 million, or 46.4% of net sales, compared to $9.3 million, or 47.6% of net sales, for the same period in 2012. The 120 basis point decrease was largely due to lower average selling prices on our internet driven transactions than our mobile store transactions. Military gross margin for the six months ended June 30, 2013 was $0.7 million, or 13.9% of net sales, compared to less than $0.1 million, or 4.2% of net sales, for the same period in 2012.

15

SG&A expenses. SG&A expenses were $34.6 million, or 30.6% of net sales, for the six months ended June 30, 2013, compared to $31.6 million, or 32.4% of net sales for the same period in 2012. The net change primarily reflected increased advertising expenses of $1.1 million and higher freight costs of $0.8 million, partially offset by lower compensation and benefits costs of $0.4 million.

Interest expense. Interest expense was $0.3 million in the six months ended June 30, 2013, compared to $0.3 million for the same period in the prior year.

Income taxes. Income tax expense for the six months ended June 30, 2013 was $1.4 million, compared to $0.5 million for the same period a year ago. We provided for income taxes at effective tax rates of 35% in 2013 and 36% in 2012. The estimated effective tax rate for 2013 is lower than the estimated rate for 2012 as we are anticipating making additional permanent capital investment in our operations in the Dominican Republic, which will reduce the amount of dividends that we need to provide for U.S. income taxes.

Liquidity and Capital Resources

Our principal sources of liquidity have been our income from operations and borrowings under our credit facility.

Over the last several years our principal uses of cash have been for working capital and capital expenditures to support our growth. Our working capital consists primarily of trade receivables and inventory, offset by accounts payable and accrued expenses. Our working capital fluctuates throughout the year as a result of our seasonal business cycle and business expansion and is generally lowest in the months of January through March of each year and highest during the months of May through October of each year. We typically utilize our revolving credit facility to fund our seasonal working capital requirements. As a result, balances on our revolving credit facility will fluctuate significantly throughout the year. Our capital expenditures relate primarily to projects relating to our property, merchandising fixtures, molds and equipment associated with our manufacturing operations and for information technology. Capital expenditures were $3.7 million for the first six months of 2013, compared to $4.1 million for the same period in 2012. Total capital expenditures for 2013 are anticipated to be approximately $7.6 million.

In October 2010, we entered into a financing agreement with PNC Bank (“PNC”) to provide a $70 million credit facility. The term of the facility is five years and the current interest rate is generally LIBOR plus 1.50%.

Our credit facility contains a restrictive covenant which requires us to maintain a fixed charge coverage ratio. This restrictive covenant is only in effect upon a triggering event taking place (as defined in the credit facility agreement). At June 30, 2013, no triggering event had occurred and the covenant was not in effect.

The total amount available under our revolving credit facility is subject to a borrowing base calculation based on various percentages of accounts receivable and inventory. As of June 30, 2013, we had total capacity under this facility of $70.0 million of which we had borrowings of $31.4 million.

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We believe that our existing credit facility coupled with cash generated from operations will provide sufficient liquidity to fund our operations for at least the next twelve months. Our continued liquidity, however, is contingent upon future operating performance, cash flows and our ability to meet financial covenants under our credit facility.

Operating Activities. Cash used in operating activities totaled $4.7 million for the six months ended June 30, 2013, compared to cash provided by operating activities of $7.3 million in the same period of 2012. Cash used in operating activities for the six months ended June 30, 2013 was primarily impacted by increases in inventory and accounts receivable, partially offset by increases in accounts payable. Cash provided by operating activities for the six months ended June 30, 2012 was primarily impacted by decreases in accounts receivable and increases in accounts payable, partially offset by increases in inventory.

Investing Activities. Cash used in investing activities was $3.6 million for the six months ended June 30, 2013, compared to $4.0 million in the same period of 2012. Cash used in investing activities reflects an investment in property, plant and equipment of $3.7 million in 2013 and $4.1 million in 2012. Our 2013 and 2012 expenditures primarily relate to investments in molds and equipment associated with our manufacturing operations and for information technology.

Financing Activities. Cash provided by financing activities for the six months ended June 30, 2013 was $7.2 million and was primarily related to a net increase under the revolving credit facility of $8.0 million, partially offset by the payment $0.8 million of dividends on common stock. Cash used in financing activities for the six months ended June 30, 2012 was $5.1 million and entirely reflected a net reduction under the revolving credit facility.

Inflation

We cannot determine the precise effects of inflation; however, inflation continues to have an influence on the cost of materials, salaries, and employee benefits. We attempt to offset the effects of inflation through increased selling prices, productivity improvements, and reduction of costs.

Critical Accounting Policies and Estimates

“Management’s Discussion and Analysis of Financial Condition and Results of Operations” discusses our interim condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these interim condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. A summary of our significant accounting policies is included in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2012.

Our management regularly reviews our accounting policies to make certain they are current and also to provide readers of the interim condensed consolidated financial statements with useful and reliable information about our operating results and financial condition. These include, but are not limited to, matters related to accounts receivable, inventories, intangibles and income taxes. Implementation of these accounting policies includes estimates and judgments by management based on historical experience and other factors believed to be reasonable. This may include judgments about the carrying value of assets and liabilities based on considerations that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

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Our management believes the following critical accounting policies are most important to the portrayal of our financial condition and results of operations and require more significant judgments and estimates in the preparation of our interim condensed consolidated financial statements.

Revenue recognition

Revenue principally consists of sales to customers, and, to a lesser extent, license fees. Revenue is recognized when the risk and title passes to the customer, while license fees are recognized when earned. Customer sales are recorded net of allowances for estimated returns, trade promotions and other discounts, which are recognized as a deduction from sales at the time of sale.

Accounts receivable allowances

Management maintains allowances for uncollectible accounts for estimated losses resulting from the inability of our customers to make required payments. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The allowance for uncollectible accounts is calculated based on the relative age and size of trade receivable balances.

Sales returns and allowances

We record a reduction to gross sales based on estimated customer returns and allowances. These reductions are influenced by historical experience, based on actual customer returns and allowances. The actual amount of sales returns and allowances realized may differ from our estimates. If we determine that sales returns or allowances should be either increased or decreased, then the adjustment would be made to net sales in the period in which such a determination is made.

Inventories

Management identifies slow moving or obsolete inventories and estimates appropriate loss provisions related to these inventories. Historically, these loss provisions have not been significant as the vast majority of our inventories are considered saleable, and we have been able to liquidate slow moving or obsolete inventories through our factory outlet stores or through various discounts to customers. Should management encounter difficulties liquidating slow moving or obsolete inventories, additional provisions may be necessary. Management regularly reviews the adequacy of our inventory reserves and makes adjustments to them as required.

Intangible assets

Intangible assets, including goodwill, trademarks and patents are reviewed for impairment annually, and more frequently, if necessary. We perform such testing of goodwill and indefinite-lived intangible assets in the fourth quarter of each year or as events occur or circumstances change that would more likely than not reduce the fair value of the asset below its carrying amount.

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In assessing whether indefinite-lived intangible assets are impaired, we must make certain estimates and assumptions regarding future cash flows, long-term growth rates of our business, operating margins, weighted average cost of capital and other factors such as discount rates, royalty rates, cost of capital, and market multiples to determine the fair value of our assets. These estimates and assumptions require management’s judgment, and changes to these estimates and assumptions could materially affect the determination of fair value and/or impairment for each of our other indefinite-lived intangible assets. Future events could cause us to conclude that indications of intangible asset impairment exist. Impairment may result from, among other things, deterioration in the performance of our business, adverse market conditions, adverse changes in applicable laws and regulations, competition, or the sale or disposition of a reporting segment. Any resulting impairment loss could have a material adverse impact on our financial condition and results of operations.

Income taxes

Management has recorded a valuation allowance to reduce its deferred tax assets for a portion of state and local income tax net operating losses that it believes may not be realized. We have considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance; however, in the event we were to determine that we would not be able to realize all or part of our net deferred tax assets in the future, an adjustment to the deferred tax assets would be charged to income in the period such determination was made.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

Except for the historical information contained herein, the matters discussed in this Quarterly Report on Form 10-Q include certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities 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 our and management’s intent, belief, and expectations, such as statements concerning our future profitability and our operating and growth strategy. Words such as “believe,” “anticipate,” “expect,” “will,” “may,” “should,” “intend,” “plan,” “estimate,” “predict,” “potential,” “continue,” “likely” and similar expressions are intended to identify forward-looking statements. Investors are cautioned that all forward-looking statements contained in this Quarterly Report on Form 10-Q and in other statements we make involve risks and uncertainties including, without limitation, the factors set forth under the caption “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2012, and other factors detailed from time to time in our other filings with the Securities and Exchange Commission. One or more of these factors have affected, and in the future could affect our businesses and financial results and could cause actual results to differ materially from plans and projections. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that any of the forward-looking statements included in this Quarterly Report on Form 10-Q 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 by us or any other person that our objectives and plans will be achieved. All forward-looking statements made in this Quarterly Report on Form 10-Q are based on information presently available to our management. We assume no obligation to update any forward-looking statements.

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ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes since December 31, 2012.

ITEM 4 – CONTROLS AND PROCEDURES

Disclosure Controls and Procedures. Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information we are required to disclose in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management as appropriate to allow timely decisions regarding required disclosure.

As of the end of the period covered by this report, our management, with the participation of our chief executive officer and chief financial officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 promulgated under the Exchange Act. Based upon this evaluation, our chief executive officer and our chief financial officer concluded that our disclosure controls and procedures were (1) designed to ensure that material information relating to our Company is accumulated and made known to our management, including our chief executive officer and chief financial officer, in a timely manner, particularly during the period in which this report was being prepared, and (2) effective, in that they provide reasonable assurance that information we are required to disclose in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

Management believes, however, that a controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

Internal Controls. There has been no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Exchange Act) during our fiscal quarter ended June 30, 2013, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II — OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

None

ITEM 1A - RISK FACTORS

There have been no material changes to our risk factors as disclosed in Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2012.

ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4 – MINE SAFETY DISCLOSRES

None

ITEM 5 - OTHER INFORMATION

None

ITEM 6 - EXHIBITS

EXHIBIT EXHIBIT

NUMBER DESCRIPTION

31 (a)* Certification pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a) of the Chief Executive Officer.

31 (b)* Certification pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a) of the Chief Financial Officer.

32 (a)+ Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the Chief Executive Officer.

32 (b)+ Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the Chief Financial Officer.

21

101+ Attached as Exhibits 101 to this report are the following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 formatted in XBRL (“eXtensible Business Reporting Language”): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Statements of Cash Flows, and (vi) related notes to these financial statements.

* Filed with this report.

+ Furnished with this report.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Rocky Brands, Inc.
Date:    July 29, 2013	/s/ James E. McDonald
	James E. McDonald, Executive Vice President and
	Chief Financial Officer*

* In his capacity as Executive Vice President and Chief Financial Officer, Mr. McDonald is duly authorized to sign this report on behalf of the Registrant.

22

EX-31.A

Exhibit 31(a)

CERTIFICATION PURSUANT TO EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a) OF THE CHIEF EXECUTIVE OFFICER

I, David N. Sharp, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Rocky Brands, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: July 29, 2013

/s/ David N. Sharp

David N. Sharp

President and Chief Executive Officer

EX-31.B

Exhibit 31(b)

CERTIFICATION PURSUANT TO EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a) OF THE CHIEF FINANCIAL OFFICER

I, James E. McDonald, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Rocky Brands, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: July 29, 2013

/s/ James E. McDonald

James E. McDonald

Executive Vice President and Chief Financial Officer

EX-32.A

Exhibit 32(a)

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002, OF THE CHIEF EXECUTIVE OFFICER

In connection with the Quarterly Report of Rocky Brands, Inc. (the "Company") on Form 10-Q for the fiscal quarter ended June 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, David N. Sharp, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ David N. Sharp

David N. Sharp, President and Chief Executive Officer

July 29, 2013

EX-32.B

Exhibit 32(b)

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002, OF THE CHIEF FINANCIAL OFFICER

In connection with the Quarterly Report of Rocky Brands, Inc. (the "Company") on Form 10-Q for the fiscal quarter ended June 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, James E. McDonald, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ James E. McDonald

James E. McDonald, Executive Vice President and Chief Financial Officer

July 29, 2013

XML

12. FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Text Block]

Fair Value Disclosures [Text Block]

12. FINANCIAL INSTRUMENTS

Generally accepted accounting standards establish a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level l measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under generally accepted accounting standards are described below:

Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.

Level 2: Inputs to the valuation methodology include:

· Quoted prices for similar assets or liabilities in active markets;

· Quoted prices for identical or similar assets or liabilities in inactive markets;

· Inputs other than quoted prices that are observable for the asset or liability;

· Inputs that are derived principally from or corroborated by observable market data bycorrelation or other means.

If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The only asset or liability measured at fair value on a recurring basis by the Company at June 30, 2013, December 31, 2012 and June 30, 2012 was cash and cash equivalents of $2,855,524, $4,022,579 and $1,850,905, respectively. Cash and cash equivalents are considered to be Level 1.

The fair values of cash, accounts receivable, other receivables and accounts payable approximated their carrying values because of the short-term nature of these instruments. Accounts receivable consists primarily of amounts due from our customers, net of allowances. Other receivables consist primarily of amounts due from employees (sales persons’ advances in excess of commissions earned and employee travel advances); other customer receivables, net of allowances; and expected insurance recoveries. The carrying amounts of our revolving line of credit, our mortgages and other short-term financing obligations also approximate fair value, as they are comparable to the available financing in the marketplace during the year.

XML

ROCKY BRANDS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
NET SALES	$ 59,419,751	$ 44,408,358	$ 113,135,227	$ 97,734,276
COST OF GOODS SOLD	39,109,264	29,056,731	74,153,970	64,360,568
GROSS MARGIN	20,310,487	15,351,627	38,981,257	33,373,708
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	17,441,736	14,893,727	34,605,918	31,635,785
INCOME FROM OPERATIONS	2,868,751	457,900	4,375,339	1,737,923
OTHER INCOME AND (EXPENSES):
Interest expense, net	(147,194)	(130,606)	(276,752)	(274,953)
Other – net	4,723	13,270	(211)	4,281
Total other - net	(142,471)	(117,336)	(276,963)	(270,672)
INCOME BEFORE INCOME TAXES	2,726,280	340,564	4,098,376	1,467,251
INCOME TAX EXPENSE	954,000	122,000	1,434,000	528,000
COMPREHENSIVE INCOME	$ 1,772,280	$ 218,564	$ 2,664,376	$ 939,251
NET INCOME PER SHARE
Basic (in Dollars per share)	$ 0.24	$ 0.03	$ 0.35	$ 0.13
Diluted (in Dollars per share)	$ 0.24	$ 0.03	$ 0.35	$ 0.13
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic (in Shares)	7,516,448	7,503,568	7,516,306	7,503,419
Diluted (in Shares)	7,516,448	7,503,568	7,516,306	7,503,419

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5. PER SHARE INFORMATION

6 Months Ended

Jun. 30, 2013

Table Text Block [Abstract]

Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Table Text Block]

5. PER SHARE INFORMATION

Basic earnings per share (“EPS”) is computed by dividing net income applicable to common shareholders by the weighted average number of common shares outstanding during each period. The diluted earnings per share computation includes common share equivalents, when dilutive. There are no adjustments to net income necessary in the calculation of basic and diluted earnings per share.

A reconciliation of the shares used in the basic and diluted income per common share computation for the three and six months ended June 30, 2013 and 2012 is as follows:

	(Unaudited)				(Unaudited)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Weighted average shares outstanding		7,516,448		7,503,568		7,516,306		7,503,419
Dilutive stock options		-		-		-		-
Dilutive weighted average shares outstanding		7,516,448		7,503,568		7,516,306		7,503,419
Anti-dilutive stock options/weighted average shares outstanding		9,000		10,000		9,160		11,813

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2. TRADE RECEIVABLES (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012
Policy Text Block [Abstract]
Allowance for Doubtful Accounts Receivable	$ 820,000	$ 650,000	$ 519,000

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3. INVENTORIES (Tables)

6 Months Ended

Jun. 30, 2013

Inventory Disclosure [Text Block]

Inventory Related Text

Inventories are comprised of the following:

	June 30,			December 31,			June 30,
	2013			2012			2012
	(Unaudited)						(Unaudited)
Raw materials	$	15,478,537		$	10,611,641		$	12,792,812
Work-in-process		1,010,923			407,262			993,791
Finished goods		64,787,021			56,359,742			60,371,168
Reserve for obsolescence or lower of cost or market		(116,540	)		(182,400	)		(108,850	)
Total	$	81,159,941		$	67,196,245		$	74,048,921

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5. PER SHARE INFORMATION (Details) - Reconciliation of Diluted Shares	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Reconciliation of Diluted Shares [Abstract]
Weighted average shares outstanding	7,516,448	7,503,568	7,516,306	7,503,419
Dilutive weighted average shares outstanding	7,516,448	7,503,568	7,516,306	7,503,419
Anti-dilutive stock options/weighted average shares outstanding	9,000	10,000	9,160	11,813

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4. SUPPLEMENTAL CASH FLOW INFORMATION (Details) - Supplemental Cash Flow Information (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Supplemental Cash Flow Information [Abstract]
Interest	$ 269,953	$ 319,432
Federal, state and local income taxes, net of refunds	2,020,008	273,766
Fixed asset purchases in accounts payable	$ 281,812	$ 207,731

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10. SEGMENT INFORMATION (Details) - Segment Information (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Wholesale (Member)
GROSS MARGIN:
Gross Margin	$ 15,198,460	$ 11,058,323	$ 28,768,321	$ 23,991,162
Retail (Member)
GROSS MARGIN:
Gross Margin	4,581,459	4,267,641	9,560,859	9,339,243
Military (Member)
GROSS MARGIN:
Gross Margin	530,568	25,663	652,077	43,303
Total Gross Margin	20,310,487	15,351,627	38,981,257	33,373,708
Wholesale (Member)
NET SALES:
Net Sales	45,839,745	34,697,580	87,838,162	77,065,992
Retail (Member)
NET SALES:
Net Sales	9,776,433	9,139,712	20,614,078	19,635,883
Military (Member)
NET SALES:
Net Sales	3,803,573	571,066	4,682,987	1,032,401
Total Net Sales	$ 59,419,751	$ 44,408,358	$ 113,135,227	$ 97,734,276

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8. INTANGIBLE ASSETS (Details) - Estimate of Aggregate Amortization Expense for the years ending December 31,: (USD $)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Estimate of Aggregate Amortization Expense for the years ending December 31,: [Abstract]
2014					$ 52,328
2015				51,753
2016			48,979
2017		44,411
2018	$ 38,267

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3. INVENTORIES (Details) - Inventory Detail (USD $)	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012
Inventory Detail [Abstract]
Raw materials	$ 15,478,537	$ 10,611,641	$ 12,792,812
Work-in-process	1,010,923	407,262	993,791
Finished goods	64,787,021	56,359,742	60,371,168
Reserve for obsolescence or lower of cost or market	(116,540)	(182,400)	(108,850)
Total	$ 81,159,941	$ 67,196,245	$ 74,048,921

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1. INTERIM FINANCIAL REPORTING

6 Months Ended

Jun. 30, 2013

Significant Accounting Policies [Text Block]

Significant Accounting Policies [Text Block]

1. INTERIM FINANCIAL REPORTING

In the opinion of management, the accompanying interim unaudited condensed consolidated financial statements reflect all adjustments that are necessary for a fair presentation of the financial results. All such adjustments reflected in the unaudited interim condensed consolidated financial statements are considered to be of a normal and recurring nature. The results of the operations for the three and six months ended June 30, 2013 and 2012 are not necessarily indicative of the results to be expected for the whole year. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2012.

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3. INVENTORIES

6 Months Ended

Jun. 30, 2013

Inventory Disclosure [Text Block]

Inventory Disclosure [Text Block]

3. INVENTORIES

Inventories are comprised of the following:

	June 30,			December 31,			June 30,
	2013			2012			2012
	(Unaudited)						(Unaudited)
Raw materials	$	15,478,537		$	10,611,641		$	12,792,812
Work-in-process		1,010,923			407,262			993,791
Finished goods		64,787,021			56,359,742			60,371,168
Reserve for obsolescence or lower of cost or market		(116,540	)		(182,400	)		(108,850	)
Total	$	81,159,941		$	67,196,245		$	74,048,921

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6. RECENT FINANCIAL ACCOUNTING STANDARDS

6 Months Ended

Jun. 30, 2013

Policy Text Block [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

6. RECENT FINANCIAL ACCOUNTING STANDARDS

Recently adopted accounting standards

In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The update does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the update requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The amendments are effective prospectively for reporting periods beginning after December 15, 2012. The adoption of this standard did not have a material effect on our consolidated financial statements.

Accounting standards not yet adopted

In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The update provides that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this update do not require new recurring disclosures. The amendments are effective prospectively for reporting periods beginning after December 15, 2013. We are currently assessing the potential impact of the adoption of this update on our consolidated financial statements.

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4. SUPPLEMENTAL CASH FLOW INFORMATION

6 Months Ended

Jun. 30, 2013

Cash Flow, Supplemental Disclosures [Text Block]

Cash Flow, Supplemental Disclosures [Text Block]

4. SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information is as follows:

	(Unaudited)
	Six Months Ended
	June 30,
	2013		2012
Interest	$	269,953	$	319,432
Federal, state and local income taxes, net of refunds	$	2,020,008	$	273,766
Fixed asset purchases in accounts payable	$	281,812	$	207,731

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7. INCOME TAXES (Details)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Policy Text Block [Abstract]
Effective Income Tax Rate Reconciliation, Percent	35.00%	36.00%

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9. CAPITAL STOCK (Details) (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	750,000	750,000
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	321,370	321,370
Stock Granted During Period, Shares, Share-based Compensation (Deprecated 2011-01-31)		12,880
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures (in Dollars)		$ 168,000
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share)	$ 0.10
Payments of Ordinary Dividends, Common Stock (in Dollars)	$ 750,356	$ 750,357

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ROCKY BRANDS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals)	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012
Shares authorized	25,000,000	25,000,000	25,000,000
Shares Outstanding	7,516,448	7,503,568	7,503,568

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9. CAPITAL STOCK

6 Months Ended

Jun. 30, 2013

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

9. CAPITAL STOCK

On May 11, 2004, our shareholders approved the 2004 Stock Incentive Plan. The Plan includes 750,000 of our common shares that may be granted for stock options and restricted stock awards. As of June 30, 2013, we were authorized to issue approximately 321,370 shares under our existing plans.

The Plan generally provides for grants with the exercise price equal to fair value on the date of grant, graduated vesting periods of up to five years, and lives not exceeding ten years. The following summarizes stock option transactions from January 1, 2013 through June 30, 2013:

	Shares			Weighted Average Exercise Price
Options outstanding at January 1, 2013		10,000		$	24.36
Issued		-			-
Exercised		-			-
Forfeited		(1,000	)	$	24.36
Options outstanding at June 30, 2013		9,000		$	24.36
Options exercisable at:
January 1, 2013		10,000		$	24.36
June 30, 2013		9,000		$	24.36
Unvested options at June 30, 2013		-

During the six month period ended June 30, 2013, we issued 12,880 shares of common stock to members of our Board of Directors. We recorded compensation expense of $168,000, which was the fair market value of the shares on the grant date. The shares are fully vested but cannot be sold for one year.

In June 2009, our Board of Directors adopted a Rights Agreement, which provides for one preferred share purchase right to be associated with each share of our outstanding common stock. Shareholders exercising these rights would become entitled to purchase shares of Series B Junior Participating Cumulative Preferred Stock. The rights are exercisable after the time when a person or group of persons without the approval of the Board of Directors acquire beneficial ownership of 20 percent or more of our common stock or announce the initiation of a tender or exchange offer which if successful would cause such person or group to beneficially own 20 percent or more of our common stock. Such exercise would ultimately entitle the holders of the rights to purchase at the exercise price, shares of common stock of the surviving corporation or purchaser, respectively, with an aggregate market value equal to two times the exercise price. The person or groups effecting such 20 percent acquisition or undertaking such tender offer would not be entitled to exercise any rights. The Rights Agreement was renewed in June 2012 and expires in June 2017.

In the second quarter of 2013, we declared a dividend on our common stock of $0.10 per share with a record date of May 28, 2013 and payable on June 11, 2013. The $750,356 dividend paid is reflected as a reduction to retained earnings in the Condensed Consolidated Balance Sheet.

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ROCKY BRANDS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 2,664,376	$ 939,251
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	3,129,940	2,822,201
Loss (gain) on disposal of fixed assets	10,714	(57,503)
Stock compensation expense	168,000	122,500
Change in assets and liabilities
Receivables	(1,795,556)	8,465,396
Inventories	(13,963,696)	(9,029,873)
Other current assets	(1,005,512)	552,851
Other assets	32,784	73,768
Accounts payable	5,658,892	4,990,781
Accrued and other liabilities	354,678	(1,614,007)
Net cash (used in) provided by operating activities	(4,745,380)	7,265,365
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of fixed assets	(3,654,890)	(4,051,981)
Investment in trademarks and patents	(31,062)	(22,547)
Proceeds from sale of fixed assets	37,801	99,820
Net cash used in investing activities	(3,648,151)	(3,974,708)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facility	36,896,833	30,019,432
Repayments of revolving credit facility	(28,920,000)	(35,109,475)
Dividends paid on common stock	(750,357)
Net cash provided by (used in) financing activities	7,226,476	(5,090,043)
DECREASE IN CASH AND CASH EQUIVALENTS	(1,167,055)	(1,799,386)
BEGINNING OF PERIOD	4,022,579	3,650,291
END OF PERIOD	$ 2,855,524	$ 1,850,905

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ROCKY BRANDS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012
CURRENT ASSETS:
Cash and cash equivalents	$ 2,855,524	$ 4,022,579	$ 1,850,905
Trade receivables – net	46,429,928	44,555,057	36,729,487
Other receivables	496,669	575,984	760,596
Inventories	81,159,941	67,196,245	74,048,921
Income tax receivable	270,878		933,293
Deferred income taxes	1,252,030	1,252,030	1,154,040
Prepaid expenses	2,862,360	2,127,726	2,240,461
Total current assets	135,327,330	119,729,621	117,717,703
FIXED ASSETS – net	24,418,143	24,252,465	24,822,919
IDENTIFIED INTANGIBLES	30,503,659	30,498,802	30,490,861
OTHER ASSETS	330,743	363,527	436,525
TOTAL ASSETS	190,579,875	174,844,415	173,468,008
CURRENT LIABILITIES:
Accounts payable	15,252,448	9,930,518	10,740,705
Salaries and wages	1,157,593	592,568	1,122,898
Taxes - other	793,439	704,064	595,214
Accrued freight	652,695	857,991	511,152
Commissions	584,890	711,459	457,214
Income taxes payable		335,210
Other	1,577,503	1,162,650	933,674
Total current liabilities	20,018,568	14,294,460	14,360,857
LONG TERM DEBT	31,438,173	23,461,340	29,909,957
DEFERRED INCOME TAXES	11,148,333	11,148,333	10,987,395
DEFERRED LIABILITIES	255,906	303,406	488,437
TOTAL LIABILITIES	62,860,980	49,207,539	55,746,646
Common stock, no par value;
25,000,000 shares authorized; issued and outstanding June 30, 2013 - 7,516,448; December 31, 2012 - 7,503,568 and June 30, 2012 - 7,503,568	69,862,770	69,694,770	69,694,770
Retained earnings	57,856,125	55,942,106	48,026,592
Total shareholders' equity	127,718,895	125,636,876	117,721,362
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 190,579,875	$ 174,844,415	$ 173,468,008

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8. INTANGIBLE ASSETS (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Disclosure Text Block [Abstract]
Finite-Lived Intangible Assets, Amortization Expense (Deprecated 2012-01-31)	$ 13,302	$ 12,450	$ 26,205	$ 24,793
Finite-Lived Intangible Assets, Weighted-Average Useful Life (Deprecated 2012-01-31)			15

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10. SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2013

Segment Reporting Disclosure [Text Block]

Segment Reporting, Measurement (Deprecated 2012-01-31)

	(Unaudited)				(Unaudited)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
NET SALES:
Wholesale	$	45,839,745	$	34,697,580	$	87,838,162	$	77,065,992
Retail		9,776,433		9,139,712		20,614,078		19,635,883
Military		3,803,573		571,066		4,682,987		1,032,401
Total Net Sales	$	59,419,751	$	44,408,358	$	113,135,227	$	97,734,276
GROSS MARGIN:
Wholesale	$	15,198,460	$	11,058,323	$	28,768,321	$	23,991,162
Retail		4,581,459		4,267,641		9,560,859		9,339,243
Military		530,568		25,663		652,077		43,303
Total Gross Margin	$	20,310,487	$	15,351,627	$	38,981,257	$	33,373,708

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11. LONG-TERM DEBT (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Long-term Debt, Description
Line of Credit Facility, Maximum Borrowing Capacity	$ 70
Line of Credit Facility, Interest Rate During Period	1.50%
Line of Credit Facility, Current Borrowing Capacity	70.0
Long-term Line of Credit, Noncurrent	$ 31.4

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12. FINANCIAL INSTRUMENTS (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012
Fair Value Disclosures [Text Block]
Cash and Cash Equivalents, Fair Value Disclosure	$ 2,855,524	$ 4,022,579	$ 1,850,905

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8. INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2013

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

8. INTANGIBLE ASSETS

A schedule of intangible assets is as follows:

	Gross		Accumulated		Carrying
June 30, 2013 (unaudited)	Amount		Amortization		Amount
Trademarks:
Wholesale	$	27,243,578	$	-	$	27,243,578
Retail		2,900,000		-		2,900,000
Patents		2,547,465		2,187,384		360,081
Customer relationships		1,000,000		1,000,000		-
Total Identified Intangibles	$	33,691,043	$	3,187,384	$	30,503,659

December 31, 2012
Trademarks:
Wholesale	$	27,243,578	$	-	$	27,243,578
Retail		2,900,000		-		2,900,000
Patents		2,516,402		2,161,178		355,224
Customer relationships		1,000,000		1,000,000		-
Total Identified Intangibles	$	33,659,980	$	3,161,178	$	30,498,802

June 30, 2012 (unaudited)
Trademarks:
Wholesale	$	27,243,578	$	-	$	27,243,578
Retail		2,900,000		-		2,900,000
Patents		2,483,337		2,136,054		347,283
Customer relationships		1,000,000		1,000,000		-
Total Identified Intangibles	$	33,626,915	$	3,136,054	$	30,490,861

Amortization expense for intangible assets was $13,302 and $12,450 for the three months ended June 30, 2013 and 2012, respectively and $26,205 and $24,793 for the six months ended June 30, 2013 and 2012, respectively. The weighted average amortization period for patents is 15 years.

Estimate of Aggregate Amortization Expense for the years ending December 31,:

2014	$	52,328
2015		51,753
2016		48,979
2017		44,411
2018		38,267

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8. INTANGIBLE ASSETS (Details) - Intangible Assets (USD $)	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012
Trademarks:
Finite Lived Intangible Assets		$ 1,000,000
Total Identified Intangibles		33,659,980
Wholesale (Member) | Carrying Amount (Member)
Trademarks:
Indefinite Lived Intangible Assets	27,243,578	27,243,578	27,243,578
Wholesale (Member)
Trademarks:
Indefinite Lived Intangible Assets	27,243,578	27,243,578	27,243,578
Retail (Member) | Carrying Amount (Member)
Trademarks:
Indefinite Lived Intangible Assets	2,900,000		2,900,000
Retail (Member)
Trademarks:
Indefinite Lived Intangible Assets	2,900,000		2,900,000
Patents [Member] | Accumulated Amortization (Member)
Trademarks:
Finite Lived Intangible Assets	2,187,384	2,161,178	2,136,054
Patents [Member] | Carrying Amount (Member)
Trademarks:
Finite Lived Intangible Assets	360,081	355,224	347,283
Patents [Member]
Trademarks:
Finite Lived Intangible Assets	2,547,465	2,516,402	2,483,337
Customer Relationships [Member] | Accumulated Amortization (Member)
Trademarks:
Finite Lived Intangible Assets	1,000,000		1,000,000
Total Identified Intangibles	3,187,384		3,136,054
Customer Relationships [Member] | Carrying Amount (Member)
Trademarks:
Total Identified Intangibles	30,503,659		30,490,861
Customer Relationships [Member]
Trademarks:
Finite Lived Intangible Assets	1,000,000		1,000,000
Total Identified Intangibles	33,691,043		33,626,915
Retail (Member) | Carrying Amount (Member)
Trademarks:
Indefinite Lived Intangible Assets		2,900,000
Retail (Member)
Trademarks:
Indefinite Lived Intangible Assets		2,900,000
Accumulated Amortization (Member)
Trademarks:
Finite Lived Intangible Assets		1,000,000
Total Identified Intangibles		3,161,178
Carrying Amount (Member)
Trademarks:
Total Identified Intangibles		$ 30,498,802

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11. LONG-TERM DEBT

6 Months Ended

Jun. 30, 2013

Long-term Debt, Description

Long-term Debt, Description

11. LONG-TERM DEBT

In October 2010, we entered into a financing agreement with PNC Bank (“PNC”) to provide a $70 million credit facility. The term of the facility is five years and the current interest rate is generally LIBOR plus 1.50%.

Our credit facility contains a restrictive covenant which requires us to maintain a fixed charge coverage ratio. This restrictive covenant is only in effect upon a triggering event taking place (as defined in the credit facility agreement). At June 30, 2013, no triggering event had occurred and the covenant was not in effect.

The total amount available under our revolving credit facility is subject to a borrowing base calculation based on various percentages of accounts receivable and inventory. As of June 30, 2013, we had total capacity under this facility of $70.0 million of which we had borrowings of $31.4 million.

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7. INCOME TAXES

6 Months Ended

Jun. 30, 2013

Policy Text Block [Abstract]

Income Tax, Policy [Policy Text Block]

7. INCOME TAXES

We file income tax returns in the U.S. Federal jurisdiction and various state and foreign jurisdictions. We are no longer subject to U.S. Federal tax examinations for years before 2009. State jurisdictions that remain subject to examination range from 2008 to 2011. Foreign jurisdiction tax returns that remain subject to examination range from 2006 to 2011 for Canada and from 2006 to 2011 for Puerto Rico. We do not believe there will be any material changes in our uncertain tax positions over the next 12 months.

Our policy is to accrue interest and penalties on any uncertain tax positions as a component of income tax expense. As of June 30, 2013, no such expenses were recognized during the quarter.

We provided for income taxes at an estimated effective tax rate of 35% and 36% for the three and six months ended June 30, 2013 and 2012, respectively.

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2. TRADE RECEIVABLES

6 Months Ended

Jun. 30, 2013

Policy Text Block [Abstract]

Trade and Other Accounts Receivable, Policy [Policy Text Block]

2. TRADE RECEIVABLES

Trade receivables are presented net of the related allowance for uncollectible accounts of approximately $820,000, $650,000 and $519,000 at June 30, 2013, December 31, 2012 and June 30, 2012, respectively. The allowance for uncollectible accounts is calculated based on the relative age and size of trade receivable balances. 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.

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9. CAPITAL STOCK (Details) - Capital Stock (USD $)	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Capital Stock [Abstract]
	9,000	10,000
(in Dollars per share)	$ 24.36	$ 24.36
Forfeited	(1,000)
Forfeited (in Dollars per share)	$ 24.36

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4. SUPPLEMENTAL CASH FLOW INFORMATION (Tables)

6 Months Ended

Jun. 30, 2013

Cash Flow, Supplemental Disclosures [Text Block]

Supplemental Cash Flow Information Related Text

Supplemental cash flow information is as follows:

	(Unaudited)
	Six Months Ended
	June 30,
	2013		2012
Interest	$	269,953	$	319,432
Federal, state and local income taxes, net of refunds	$	2,020,008	$	273,766
Fixed asset purchases in accounts payable	$	281,812	$	207,731

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10. SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2013

Segment Reporting Disclosure [Text Block]

Segment Reporting Disclosure [Text Block]

10. SEGMENT INFORMATION

We have identified three reportable segments: Wholesale, Retail and Military. Wholesale includes sales of footwear and accessories to several classifications of retailers, including sporting goods stores, outdoor specialty stores, mail order catalogs, independent retailers, mass merchants, retail uniform stores, and specialty safety shoe stores. Retail includes all sales from our consumer websites, stores and all sales in our Lehigh division, which includes sales via shoemobiles to individual customers. Military includes sales to the U.S. Military. The following is a summary of segment results for the Wholesale, Retail, and Military segments.

	(Unaudited)				(Unaudited)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
NET SALES:
Wholesale	$	45,839,745	$	34,697,580	$	87,838,162	$	77,065,992
Retail		9,776,433		9,139,712		20,614,078		19,635,883
Military		3,803,573		571,066		4,682,987		1,032,401
Total Net Sales	$	59,419,751	$	44,408,358	$	113,135,227	$	97,734,276
GROSS MARGIN:
Wholesale	$	15,198,460	$	11,058,323	$	28,768,321	$	23,991,162
Retail		4,581,459		4,267,641		9,560,859		9,339,243
Military		530,568		25,663		652,077		43,303
Total Gross Margin	$	20,310,487	$	15,351,627	$	38,981,257	$	33,373,708

Segment asset information is not prepared or used to assess segment performance.

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9. CAPITAL STOCK (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable [Table Text Block]

	Shares			Weighted Average Exercise Price
Options outstanding at January 1, 2013		10,000		$	24.36
Issued		-			-
Exercised		-			-
Forfeited		(1,000	)	$	24.36
Options outstanding at June 30, 2013		9,000		$	24.36
Options exercisable at:
January 1, 2013		10,000		$	24.36
June 30, 2013		9,000		$	24.36
Unvested options at June 30, 2013		-

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5. PER SHARE INFORMATION (Tables)

6 Months Ended

Jun. 30, 2013

Table Text Block [Abstract]

Earnings Per Share, Policy [Policy Text Block]

	(Unaudited)				(Unaudited)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Weighted average shares outstanding		7,516,448		7,503,568		7,516,306		7,503,419
Dilutive stock options		-		-		-		-
Dilutive weighted average shares outstanding		7,516,448		7,503,568		7,516,306		7,503,419
Anti-dilutive stock options/weighted average shares outstanding		9,000		10,000		9,160		11,813

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Document And Entity Information (USD $)	6 Months Ended
	Jun. 30, 2013	Jul. 26, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	Rocky Brands, Inc.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		7,516,448
Entity Public Float	$ 6,782,137
Amendment Flag	false
Entity Central Index Key	0000895456
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2

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8. INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2013

Disclosure Text Block [Abstract]

Schedule of Finite-Lived Intangible Assets by Major Class [Table Text Block] (Deprecated 2012-01-31)

	Gross		Accumulated		Carrying
June 30, 2013 (unaudited)	Amount		Amortization		Amount
Trademarks:
Wholesale	$	27,243,578	$	-	$	27,243,578
Retail		2,900,000		-		2,900,000
Patents		2,547,465		2,187,384		360,081
Customer relationships		1,000,000		1,000,000		-
Total Identified Intangibles	$	33,691,043	$	3,187,384	$	30,503,659

December 31, 2012
Trademarks:
Wholesale	$	27,243,578	$	-	$	27,243,578
Retail		2,900,000		-		2,900,000
Patents		2,516,402		2,161,178		355,224
Customer relationships		1,000,000		1,000,000		-
Total Identified Intangibles	$	33,659,980	$	3,161,178	$	30,498,802

June 30, 2012 (unaudited)
Trademarks:
Wholesale	$	27,243,578	$	-	$	27,243,578
Retail		2,900,000		-		2,900,000
Patents		2,483,337		2,136,054		347,283
Customer relationships		1,000,000		1,000,000		-
Total Identified Intangibles	$	33,626,915	$	3,136,054	$	30,490,861

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

2014	$	52,328
2015		51,753
2016		48,979
2017		44,411
2018		38,267