admin Third quarter net sales at Rocky Brands were 125.6 million dollars, a decrease of 14.8 percent or 12.7 percent on an adjusted basis.
Net income for the quarter increased 20 percent to 6.8 million dollars or 93 cents per diluted share and adjusted net income increased 47.6 percent to 8 million dollars or 1.09 dollars per diluted share.
Commenting on the third quarter update, Jason Brooks, chairman, president and CEO of Rocky Brands, Inc. said: “While current market conditions remain challenging, the pace of our sales picked up in the third quarter driven by improved retailer inventory positions and ongoing consumer demand for our durable, innovative and accessible priced work, western and outdoor footwear.”
“At the same time, the work we’ve done to enhance our distribution and fulfilment capabilities and reduce operating expenses translated into significantly higher quarterly profitability year-over-year, which along with lower inventories allowed us to pay down debt by nearly 25 percent over the same time period,” Brooks added.
The company said, contract manufacturing segment sales, which include contract military sales and private label programs, were 1.4 million dollars in the third quarter compared to 3.3 million dollars in the prior year period due to the expiration of certain contracts with the U.S. Military.
The company’s wholesale segment sales decreased 17.4 percent or 14.9 percent on an adjusted basis, while retail segment sales increased 4.7 percent.
Gross margin as a percentage of net sales increased 180 basis points to 37 percent, operating income increased 22.8 percent to 14.3 million dollars and increased 39.8 percent to 15.8 million dollars on an adjusted basis.
