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

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

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

----

|                                            |                                                                                                                          | PAGE                    |
|-------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------|
|                                            |                                                                                                                          | NUMBER                  |
|                                            |                                                                                                                          |                    |
| PART I.  FINANCIAL INFORMATION        |                                                                                                                          |
|                                            |                                                                                                                          |                    |
| Item 1.                                    | Financial Statements                                                                                                          |                    |
|                                            |                                                                                                                          |                    |
|                                            | Condensed Consolidated Balance SheetsMarch 31, 2011 and 2010 (Unaudited), and December 31, 2010                               | 3                       |
|                                            |                                                                                                                          |                    |
|                                            | Condensed Consolidated Statements of Operationsfor the Three Months Ended March 31, 2011 and 2010 (Unaudited)                 | 4                       |
|                                            |                                                                                                                          |                    |
|                                            | Condensed Consolidated Statements of Cash Flowsfor the Three Months Ended March 31, 2011 and 2010 (Unaudited)                 | 5                       |
|                                            |                                                                                                                          |                    |
|                                            | Notes to the Interim Unaudited Condensed Consolidated Financial Statements for the Three-Months Ended March 31, 2011 and 2010 | 6 –15        |
|                                            |                                                                                                                          |                    |
| Item 2.                                    | Management's Discussion and Analysis of Financial Condition and Results of Operations                                         | 16 – 21 |
|                                            |                                                                                                                          |                    |
| Item 3.                                    | Quantitative and Qualitative Disclosures About Market Risk                                                                    | 22                      |
|                                            |                                                                                                                          |                    |
| Item 4.                                    | Controls and Procedures                                                                                                       | 22                      |
|                                            |                                                                                                                          |                    |
| PART II.  OTHER INFORMATION |                                                                                                                          |
|                                            |                                                                                                                          |                    |
| Item 1.                                    | Legal Proceedings                                                                                                             | 23                      |
|                                            |                                                                                                                          |                    |
| Item 1A.                                   | Risk Factors                                                                                                                  | 23                      |
|                                            |                                                                                                                          |                    |
| Item 2.                                    | Unregistered Sales of Equity Securities and Use of Proceeds                                                                   | 23                      |
|                                            |                                                                                                                          |                    |
| Item 3.                                    | Defaults Upon Senior Securities                                                                                               | 23                      |
|                                            |                                                                                                                          |                    |
| Item 4.                                    | Reserved                                                                                                                      | 23                      |
|                                            |                                                                                                                          |                    |
| Item 5.                                    | Other Information                                                                                                             | 23                      |
|                                            |                                                                                                                          |                    |
| Item 6.                                    | Exhibits                                                                                                                      | 23                      |
|                                            |                                                                                                                          |                    |
| SIGNATURE                                       | 24                                                                                                                            |

----

|                                                                                                                                          |   | March 31, 2011 |        |   | December 31, 2010 |   |        | March 31, 2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-------------|--------|-------------------|--------|-------------|----------------|--------|
|                                                                                                                                          |   | (Unaudited)    |        |   |              |   |        | (Unaudited)    |   |
| ASSETS:                                                                                                                                       |   |           |        |   |              |   |        |           |   |
| CURRENT ASSETS:                                                                                                                               |   |           |        |   |              |   |        |           |   |
| Cash and cash equivalents                                                                                                                     |   | $              | 2,230,661   |   |              | $      | 4,362,531   |           |   | $ | 3,517,629 |   |
| Trade receivables – net                                                                                                                 |   |           | 37,459,868  |   |              |   | 47,593,807  |           |   |   | 39,994,342 |   |
| Other receivables                                                                                                                             |   |           | 1,010,981   |   |              |   | 911,103     |           |   |   | 1,216,568 |   |
| Inventories                                                                                                                                   |   |           | 61,654,840  |   |              |   | 58,852,556  |           |   |   | 53,123,111 |   |
| Deferred income taxes                                                                                                                         |   |           | 1,218,101   |   |              |   | 1,218,101   |           |   |   | 1,475,695 |   |
| Prepaid and refundable income taxes                                                                                                           |   |           | 260,555     |   |              |   | -           |           |   |   | 420,150 |   |
| Prepaid expenses                                                                                                                              |   |           | 3,033,002   |   |              |   | 1,793,852   |           |   |   | 2,036,964 |   |
| Total current assets                                                                                                                          |   |           | 106,868,008 |   |              |   | 114,731,950 |           |   |   | 101,784,459 |   |
|                                                                                                                                          |   |           |        |   |              |   |        |           |   |   |   |   |
| FIXED ASSETS – net                                                                                                                      |   |           | 22,631,554  |   |              |   | 22,129,282  |           |   |   | 22,540,705 |   |
| IDENTIFIED INTANGIBLES                                                                                                                        |   |           | 30,512,025  |   |              |   | 30,495,485  |           |   |   | 30,519,994 |   |
| OTHER ASSETS                                                                                                                                  |   |           | 1,548,308   |   |              |   | 1,222,712   |           |   |   | 2,817,110 |   |
| TOTAL ASSETS                                                                                                                                  |   | $              | 161,559,895 |   |              | $      | 168,579,429 |           |   | $ | 157,662,268 |   |
|                                                                                                                                          |   |           |        |   |              |   |        |           |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY:                                                                                                         |   |           |        |   |              |   |        |           |   |   |   |   |
| CURRENT LIABILITIES:                                                                                                                          |   |           |        |   |              |   |        |           |   |   |   |   |
| Accounts payable                                                                                                                              |   | $              | 10,368,817  |   |              | $      | 9,024,851   |           |   | $ | 8,916,985 |   |
| Current maturities – long term debt                                                                                                     |   |           | 463,749     |   |              |   | 487,480     |           |   |   | 520,067 |   |
| Accrued expenses:                                                                                                                             |   |           |        |   |              |   |        |           |   |   |   |   |
| Salaries and wages                                                                                                                            |   |           | 961,408     |   |              |   | 2,702,166   |           |   |   | 940,916 |   |
| Co-op advertising                                                                                                                             |   |           | 30,623      |   |              |   | 109,003     |           |   |   | 186,588 |   |
| Interest                                                                                                                                      |   |           | 65,874      |   |              |   | 52,440      |           |   |   | 1,617,629 |   |
| Income taxes payable                                                                                                                          |   |           | -           |   |              |   | 422,229     |           |   |   | - |   |
| Taxes - other                                                                                                                                 |   |           | 554,680     |   |              |   | 590,217     |           |   |   | 468,119 |   |
| Commissions                                                                                                                                   |   |           | 596,293     |   |              |   | 669,389     |           |   |   | 496,856 |   |
| Current portion of pension funding                                                                                                            |   |           | 680,000     |   |              |   | 680,000     |           |   |   | 700,000 |   |
| Other                                                                                                                                         |   |           | 2,133,080   |   |              |   | 1,837,966   |           |   |   | 2,483,527 |   |
| Total current liabilities                                                                                                                     |   |           | 15,854,524  |   |              |   | 16,575,741  |           |   |   | 16,330,687 |   |
|                                                                                                                                          |   |           |        |   |              |   |        |           |   |   |   |   |
| LONG TERM DEBT – less current maturities                                                                                                |   |           | 27,300,087  |   |              |   | 34,608,338  |           |   |   | 46,225,039 |   |
| DEFERRED INCOME TAXES                                                                                                                         |   |           | 9,374,685   |   |              |   | 9,374,685   |           |   |   | 9,071,639 |   |
| DEFERRED PENSION LIABILITY                                                                                                                    |   |           | 2,738,374   |   |              |   | 2,839,293   |           |   |   | 3,638,475 |   |
| DEFERRED LIABILITIES                                                                                                                          |   |           | 179,560     |   |              |   | 177,814     |           |   |   | 186,227 |   |
| TOTAL LIABILITIES                                                                                                                             |   |           | 55,447,230  |   |              |   | 63,575,871  |           |   |   | 75,452,067 |   |
|                                                                                                                                          |   |           |        |   |              |   |        |           |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                 |   |           |        |   |              |   |        |           |   |   |   |   |
|                                                                                                                                          |   |           |        |   |              |   |        |           |   |   |   |   |
| SHAREHOLDERS' EQUITY:                                                                                                                         |   |           |        |   |              |   |        |           |   |   |   |   |
| Common stock, no par value;                                                                                                                   |   |           |        |   |              |   |        |           |   |   |   |   |
| 25,000,000 shares authorized; issued and outstanding March 31, 2011 - 7,489,995; December 31, 2010 - 7,426,787 and March 31, 2010 - 5,605,537 |   |           | 69,546,028  |   |              |   | 69,052,101  |           |   |   | 54,801,424 |   |
| Accumulated other comprehensive loss                                                                                                          |   |           | (2,755,425  | )      |              |   | (2,828,989  | )              |   |   | (3,127,193 | ) |
| Retained earnings                                                                                                                             |   |           | 39,322,062  |   |              |   | 38,780,446  |           |   |   | 30,535,970 |   |
| Total shareholders' equity                                                                                                                    |   |           | 106,112,665 |   |              |   | 105,003,558 |           |   |   | 82,210,201 |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                    |   | $              | 161,559,895 |   |              | $      | 168,579,429 |           |   | $ | 157,662,268 |   |

----

|                                                 |   | Three Months Ended |       |
|------------------------------------------------------|--------|--------------------|------------|
|                                                 |   | March 31,          |       |
|                                                 |   | 2011               |       |   | 2010 |   |
| NET SALES                                            |   | $                  | 52,306,275 |   |   | $ | 56,078,986 |   |
|                                                 |   |               |       |   |   |   |   |   |
| COST OF GOODS SOLD                                   |   |               | 33,040,330 |   |   |   | 37,322,137 |   |
|                                                 |   |               |       |   |   |   |   |   |
| GROSS MARGIN                                         |   |               | 19,265,945 |   |   |   | 18,756,849 |   |
|                                                 |   |               |       |   |   |   |   |   |
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES         |   |               | 18,229,351 |   |   |   | 18,024,687 |   |
|                                                 |   |               |       |   |   |   |   |   |
| INCOME FROM OPERATIONS                               |   |               | 1,036,594  |   |   |   | 732,162 |   |
|                                                 |   |               |       |   |   |   |   |   |
| OTHER INCOME AND (EXPENSES):                         |   |               |       |   |   |   |   |   |
| Interest expense, net                                |   |               | (215,532   | ) |   |   | (1,644,591 | ) |
| Other – net                                    |   |               | 12,554     |   |   |   | 36,685 |   |
| Total other - net                                    |   |               | (202,978   | ) |   |   | (1,607,906 | ) |
|                                                 |   |               |       |   |   |   |   |   |
| INCOME (LOSS) BEFORE INCOME TAXES                    |   |               | 833,616    |   |   |   | (875,744 | ) |
|                                                 |   |               |       |   |   |   |   |   |
| INCOME TAX EXPENSE (BENEFIT)                         |   |               | 292,000    |   |   |   | (315,000 | ) |
|                                                 |   |               |       |   |   |   |   |   |
| NET INCOME (LOSS)                                    |   | $                  | 541,616    |   |   | $ | (560,744 | ) |
|                                                 |   |               |       |   |   |   |   |   |
| NET INCOME (LOSS) PER SHARE                          |   |               |       |   |   |   |   |   |
| Basic                                                |   | $                  | 0.07       |   |   | $ | (0.10 | ) |
| Diluted                                              |   | $                  | 0.07       |   |   | $ | (0.10 | ) |
|                                                 |   |               |       |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |   |               |       |   |   |   |   |   |
| Basic                                                |   |               | 7,476,448  |   |   |   | 5,603,125 |   |
| Diluted                                              |   |               | 7,478,611  |   |   |   | 5,603,125 |   |

----

|                                                                              |   | Three Months Ended |        |
|-----------------------------------------------------------------------------------|--------|--------------------|-------------|
|                                                                              |   | March 31,          |        |
|                                                                              |   | 2011               |        |   | 2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                             |   |               |        |   |   |   |
| Net income (loss)                                                                 |   | $                  | 541,616     |   |   | $ | (560,744 | ) |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |               |        |   |   |   |   |   |
| Depreciation and amortization                                                     |   |               | 1,454,857   |   |   |   | 1,433,982 |   |
| Deferred compensation and other                                                   |   |               | 105,889     |   |   |   | 140,297 |   |
| Loss on disposal of fixed assets                                                  |   |               | 36,526      |   |   |   | 536 |   |
| Stock compensation expense                                                        |   |               | 122,500     |   |   |   | 129,900 |   |
| Change in assets and liabilities                                                  |   |               |        |   |   |   |   |   |
| Receivables                                                                       |   |               | 10,034,061  |   |   |   | 6,097,291 |   |
| Inventories                                                                       |   |               | (2,802,284  | ) |   |   | 2,297,356 |   |
| Other current assets                                                              |   |               | (1,499,705  | ) |   |   | (1,147,977 | ) |
| Other assets                                                                      |   |               | (325,596    | ) |   |   | 75,573 |   |
| Accounts payable                                                                  |   |               | 1,416,419   |   |   |   | 2,139,438 |   |
| Accrued and other liabilities                                                     |   |               | (2,172,949  | ) |   |   | 1,200,421 |   |
|                                                                              |   |               |        |   |   |   |   |   |
| Net cash provided by operating activities                                         |   |               | 6,911,334   |   |   |   | 11,806,073 |   |
|                                                                              |   |               |        |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                             |   |               |        |   |   |   |   |   |
| Purchase of fixed assets                                                          |   |               | (2,055,667  | ) |   |   | (1,317,282 | ) |
| Investment in trademarks and patents                                              |   |               | (28,706     | ) |   |   | (14,735 | ) |
| Proceeds from sale of fixed assets                                                |   |               | 1,724       |   |   |   | 19,600 |   |
|                                                                              |   |               |        |   |   |   |   |   |
| Net cash used in investing activities                                             |   |               | (2,082,649  | ) |   |   | (1,312,417 | ) |
|                                                                              |   |               |        |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                             |   |               |        |   |   |   |   |   |
| Proceeds from revolving credit facility                                           |   |               | 16,246,162  |   |   |   | 52,182,429 |   |
| Repayments of revolving credit facility                                           |   |               | (23,445,000 | ) |   |   | (60,904,022 | ) |
| Repayments of long-term debt                                                      |   |               | (133,144    | ) |   |   | (124,947 | ) |
| Proceeds from exercise of stock options                                           |   |               | 371,427     |   |   |   | 73,420 |   |
|                                                                              |   |               |        |   |   |   |   |   |
| Net cash used in financing activities                                             |   |               | (6,960,555  | ) |   |   | (8,773,120 | ) |
|                                                                              |   |               |        |   |   |   |   |   |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                  |   |               | (2,131,870  | ) |   |   | 1,720,536 |   |
|                                                                              |   |               |        |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                    |   |               | 4,362,531   |   |   |   | 1,797,093 |   |
|                                                                              |   |               |        |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS, END OF PERIOD                                          |   | $                  | 2,230,661   |   |   | $ | 3,517,629 |   |

----

| 1. | INTERIM FINANCIAL REPORTING |
|----|-----------------------------|

|                                                                          |   | (Unaudited)        |    |
|-------------------------------------------------------------------------------|--------|--------------------|---------|
|                                                                          |   | Three Months Ended |    |
|                                                                          |   | March 31,          |    |
|                                                                          |   | 2011               |    |   | 2010 |   |
|                                                                          |   |               |    |   |   |   |
| Net income (loss)                                                             |   | $                  | 541,616 |   |   | $ | (560,744 | ) |
| Other comprehensive income:                                                   |   |               |    |   |   |   |   |   |
| Amortization of unrecognized transition obligation, service cost and net loss |   |               | 73,564  |   |   |   | 89,951 |   |
| Total comprehensive income (loss)                                             |   | $                  | 615,180 |   |   | $ | (470,793 | ) |

| 2. | TRADE RECEIVABLES |
|----|-------------------|

----

| 3. | INVENTORIES |
|----|-------------|

|                                                           |   | March 31,   |       |   | December 31, |   |       | March 31,   |   |
|----------------------------------------------------------------|--------|-------------|------------|--------|--------------|--------|------------|-------------|--------|
|                                                           |   | 2011        |       |   | 2010         |   |       | 2010        |   |
|                                                           |   | (Unaudited) |       |   |         |   |       | (Unaudited) |   |
|                                                           |   |        |       |   |         |   |       |        |   |
| Raw materials                                                  |   | $           | 10,759,817 |   |         | $      | 7,728,707  |        |   | $ | 8,894,581 |   |
| Work-in-process                                                |   |        | 847,197    |   |         |   | 410,110    |        |   |   | 613,874 |   |
| Finished goods                                                 |   |        | 50,192,066 |   |         |   | 50,764,439 |        |   |   | 43,661,158 |   |
| Reserve for obsolescence or  lower of cost or market |   |        | (144,240   | )      |         |   | (50,700    | )           |   |   | (46,502 | ) |
|                                                           |   |        |       |   |         |   |       |        |   |   |   |   |
| Total                                                          |   | $           | 61,654,840 |   |         | $      | 58,852,556 |        |   | $ | 53,123,111 |   |

| 4. | SUPPLEMENTAL CASH FLOW INFORMATION |
|----|------------------------------------|

|                                                  |   | (Unaudited)        |    |
|-------------------------------------------------------|--------|--------------------|---------|
|                                                  |   | Three Months Ended |    |
|                                                  |   | March 31,          |    |
|                                                  |   | 2011               |    |   | 2010 |   |
|                                                  |   |               |    |   |   |   |
| Interest                                              |   | $                  | 209,900 |   |   | $ | 319,446 |   |
|                                                  |   |               |    |   |   |   |   |   |
| Federal, state and local income taxes, net of refunds |   | $                  | 974,785 |   |   | $ | 131,848 |   |
|                                                  |   |               |    |   |   |   |   |   |
| Fixed asset purchases in accounts payable             |   | $                  | 487,795 |   |   | $ | 147,547 |   |

----

| 5. | PER SHARE INFORMATION |
|----|-----------------------|

|                                                            |   | (Unaudited)        |      |
|-----------------------------------------------------------------|--------|--------------------|-----------|
|                                                            |   | Three Months Ended |      |
|                                                            |   | March 31,          |      |
|                                                            |   | 2011               |      |   | 2010 |   |
| Weighted average shares outstanding                             |   |               | 7,476,448 |   |   |   | 5,603,125 |   |
|                                                            |   |               |      |   |   |   |   |   |
| Dilutive stock options                                          |   |               | 2,163     |   |   |   | - |   |
|                                                            |   |               |      |   |   |   |   |   |
| Dilutive weighted average shares outstanding                    |   |               | 7,478,611 |   |   |   | 5,603,125 |   |
|                                                            |   |               |      |   |   |   |   |   |
| Anti-dilutive stock options/weighted average shares outstanding |   |               | 146,389   |   |   |   | 232,778 |   |

| 6. | RECENT FINANCIAL ACCOUNTING STANDARDS |
|----|---------------------------------------|

----

----

| 7. | INCOME TAXES |
|----|--------------|

----

| 8. | INTANGIBLE ASSETS |
|----|-------------------|

|                         |   | Gross  |       |   | Accumulated  |   |      | Carrying |   |
|------------------------------|--------|--------|------------|--------|--------------|--------|-----------|----------|--------|
| March 31, 2011 (unaudited)   |   | Amount |       |   | Amortization |   |      | Amount   |   |
| Trademarks:                  |   |   |       |   |         |   |      |     |   |
| Wholesale                    |   | $      | 27,243,578 |   |         | $      | -         |     |   | $ | 27,243,578 |   |
| Retail                       |   |   | 2,900,000  |   |         |   | -         |     |   |   | 2,900,000 |   |
| Patents                      |   |   | 2,443,398  |   |         |   | 2,074,951 |     |   |   | 368,447 |   |
| Customer relationships       |   |   | 1,000,000  |   |         |   | 1,000,000 |     |   |   | - |   |
| Total Identified Intangibles |   | $      | 33,586,976 |   |         | $      | 3,074,951 |     |   | $ | 30,512,025 |   |
|                         |   |   |       |   |         |   |      |     |   |   |   |   |
|                         |   | Gross  |       |   | Accumulated  |   |      | Carrying |   |
| December 31, 2010            |   | Amount |       |   | Amortization |   |      | Amount   |   |
| Trademarks:                  |   |   |       |   |         |   |      |     |   |   |   |   |
| Wholesale                    |   | $      | 27,243,578 |   |         | $      | -         |     |   | $ | 27,243,578 |   |
| Retail                       |   |   | 2,900,000  |   |         |   | -         |     |   |   | 2,900,000 |   |
| Patents                      |   |   | 2,414,692  |   |         |   | 2,062,785 |     |   |   | 351,907 |   |
| Customer relationships       |   |   | 1,000,000  |   |         |   | 1,000,000 |     |   |   | - |   |
| Total Identified Intangibles |   | $      | 33,558,270 |   |         | $      | 3,062,785 |     |   | $ | 30,495,485 |   |
|                         |   |   |       |   |         |   |      |     |   |   |   |   |
|                         |   | Gross  |       |   | Accumulated  |   |      | Carrying |   |
| March 31, 2010 (unaudited)   |   | Amount |       |   | Amortization |   |      | Amount   |   |
| Trademarks:                  |   |   |       |   |         |   |      |     |   |   |   |   |
| Wholesale                    |   | $      | 27,243,578 |   |         | $      | -         |     |   | $ | 27,243,578 |   |
| Retail                       |   |   | 2,900,000  |   |         |   | -         |     |   |   | 2,900,000 |   |
| Patents                      |   |   | 2,403,734  |   |         |   | 2,027,318 |     |   |   | 376,416 |   |
| Customer relationships       |   |   | 1,000,000  |   |         |   | 1,000,000 |     |   |   | - |   |
| Total Identified Intangibles |   | $      | 33,547,312 |   |         | $      | 3,027,318 |     |   | $ | 30,519,994 |   |

| 2012 |   |   | 48,093 |   |
|------|--------|--------|--------|--------|
| 2013 |   |   | 48,093 |   |
| 2014 |   |   | 48,093 |   |
| 2015 |   |   | 48,093 |   |
| 2016 |   |   | 48,093 |   |

----

| 9. | CAPITAL STOCK |
|----|---------------|

|                                   |   | Shares |    |   | WeightedAverageExercise Price |   |
|----------------------------------------|--------|--------|---------|--------|------------------------------------|--------|
|                                   |   |   |    |   |                               |   |   |   |
| Options outstanding at January 1, 2011 |   |   | 232,000 |   |                               | $      | 19.95 |   |
| Issued                                 |   |   | -       |   |                               |   | - |   |
| Exercised                              |   |   | (51,000 | )      |                               | $      | 7.28 |   |
| Forfeited                              |   |   | (35,000 | )      |                               | $      | 29.80 |   |
|                                   |   |   |    |   |                               |   |   |   |
| Options outstanding at March 31, 2011  |   |   | 146,000 |   |                               | $      | 22.01 |   |
|                                   |   |   |    |   |                               |   |   |   |
| Options exercisable at:                |   |   |    |   |                               |   |   |   |
| January 1, 2011                        |   |   | 232,000 |   |                               | $      | 19.95 |   |
| March 31, 2011                         |   |   | 146,000 |   |                               | $      | 22.01 |   |
|                                   |   |   |    |   |                               |   |   |   |
| Unvested options at March 31, 2011     |   |   | -       |   |                               |   |   |   |

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| 10. | RETIREMENT PLANS |
|-----|------------------|

|                                               |   | (Unaudited)        |     |
|----------------------------------------------------|--------|--------------------|----------|
|                                               |   | Three Months Ended |     |
|                                               |   | March 31,          |     |
|                                               |   | 2011               |     |   | 2010 |   |
|                                               |   |               |     |   |   |   |
| Service cost                                       |   | $                  | 30,840   |   |   | $ | 19,977 |   |
| Interest                                           |   |               | 156,330  |   |   |   | 161,677 |   |
| Expected return on assets                          |   |               | (156,591 | ) |   |   | (133,054 | ) |
| Amortization of unrecognized net gain or loss      |   |               | 54,763   |   |   |   | 71,853 |   |
| Amortization of unrecognized transition obligation |   |               | -        |   |   |   | - |   |
| Amortization of unrecognized prior service cost    |   |               | 18,801   |   |   |   | 18,098 |   |
| Net pension cost                                   |   | $                  | 104,143  |   |   | $ | 138,551 |   |

|                                             |   | 2011   |   |   | 2010   |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                             |   |   |   |   |   |   |
| Discount rate                                    |   |   | 5.51   | %      |   |   | 5.91 | % |
|                                             |   |   |   |   |   |   |   |   |
| Average rate of increase in compensation levels  |   |   | 3.0    | %      |   |   | 3.0 | % |
|                                             |   |   |   |   |   |   |   |   |
| Expected long-term rate of return on plan assets |   |   | 8.0    | %      |   |   | 8.0 | % |

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| 11. | SEGMENT INFORMATION |
|-----|---------------------|

|               |   | (Unaudited)        |       |
|--------------------|--------|--------------------|------------|
|               |   | Three Months Ended |       |
|               |   | March 31,          |       |
|               |   | 2011               |       |   | 2010 |   |
| NET SALES:         |   |               |       |   |   |   |
| Wholesale          |   | $                  | 39,794,825 |   |   | $ | 37,904,864 |   |
| Retail             |   |               | 11,743,667 |   |   |   | 12,925,940 |   |
| Military           |   |               | 767,783    |   |   |   | 5,248,182 |   |
| Total Net Sales    |   | $                  | 52,306,275 |   |   | $ | 56,078,986 |   |
|               |   |               |       |   |   |   |   |   |
| GROSS MARGIN:      |   |               |       |   |   |   |   |   |
| Wholesale          |   | $                  | 13,340,154 |   |   | $ | 12,177,996 |   |
| Retail             |   |               | 5,824,626  |   |   |   | 5,903,259 |   |
| Military           |   |               | 101,165    |   |   |   | 675,594 |   |
| Total Gross Margin |   | $                  | 19,265,945 |   |   | $ | 18,756,849 |   |

| 12. | LONG-TERM DEBT |
|-----|----------------|

----

| 13. | FINANCIAL INSTRUMENTS |
|-----|-----------------------|

----

|                                         |   | Three Months Ended |   |
|----------------------------------------------|--------|--------------------|--------|
|                                         |   | March 31,          |   |
|                                         |   | 2011               |   |   | 2010 |   |
| Net Sales                                    |   |               | 100.0  | % |   |   | 100.0 | % |
| Cost Of Goods Sold                           |   |               | 63.2   | % |   |   | 66.6 | % |
| Gross Margin                                 |   |               | 36.8   | % |   |   | 33.4 | % |
|                                         |   |               |   |   |   |   |   |   |
| Selling, General and Administrative Expenses |   |               | 34.8   | % |   |   | 32.1 | % |
|                                         |   |               |   |   |   |   |   |   |
| Income From Operations                       |   |               | 2.0    | % |   |   | 1.3 | % |

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| 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. |

----

|   | * | Filed with this report. |
|--------|---|-------------------------|

|   | + | Furnished with this report. |
|--------|---|-----------------------------|

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|                                |   | Rocky Brands, Inc.                                                       |
|-------------------------------------|--------|-------------------------------------------------------------------------------|
|                                |   |                                                                          |
| Date: April 29, 2011 |   | /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. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

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