Rocky Brands reports Q2 earnings

Second quarter net sales at Rocky Brands decreased 1.6 percent to 98.3 million dollars.

The company said in a release that excluding the divestiture of the Servus brand, the change to a distributor model in Canada and temporarily elevated commercial military footwear sales to a single customer throughout 2023, net sales increased 6.1 percent.

Gross margin was 38 million dollars or 38.7 percent of net sales, up 110-basis point, net loss contracted to 1.2 million dollars or 17 cents per diluted share and adjusted net income was 1.3 million dollars or 17 cents per diluted share.

Commenting on the trading results, Jason Brooks, the company’s chairman, president and CEO said: “We continue to effectively navigate an unpredictable consumer environment thanks to our diversified brand portfolio and recently deployed cost saving initiatives."

The company’s wholesale sales for the quarter were 68.3 million dollars, down 4.5 percent or up 2.3 percent excluding the non-recurring sales. Retail sales increased 4.1 percent or 6.1 percent excluding the non-recurring sales related to the change in the Canada distribution model to 26.1 million dollars.

Contract manufacturing sales, which include contract military sales and private label programs, were 3.9 million dollars or up 2.6 million dollars excluding the aforementioned non-recurring sales.

"The second quarter was also highlighted by the refinancing of our debt and simplification of our capital structure which is expected to generate approximately 4.4 million dollars in annualised savings beginning in 2025,” added Brooks.