In a dynamic market landscape, U.S. footwear group Rocky Brands faced a challenging third quarter, reporting net sales of $125.6 million, a 14.8% decline. The dip was primarily driven by double-digit decreases in the wholesale division, partially offset by a rise in the retail segment.
Wholesale segment sales experienced a 17.4% drop to $99.7 million, while the retail segment showed resilience with a 4.7% increase to $24.5 million compared to the same period last year. The contract manufacturing segment, inclusive of contract military sales and private label programs, reported sales of $1.4 million.
Despite the sales challenges, Rocky Brands demonstrated improved profitability, reporting a third-quarter net income of $6.8 million, or $0.93 per diluted share, a notable increase from the $5.7 million, or $0.77 per diluted share, in the third quarter of the previous year.
Jason Brooks, Chairman, President, and CEO of Rocky Brands, emphasized the company’s strategic positioning, stating, «Despite the difficult start to 2023, we were confident that our results for the first half of 2023 reflected macroeconomic headwinds and industry dynamics more than the strength and desirability of our brand portfolio.»
Brooks highlighted the company’s positive outlook, citing an uptick in sales driven by improved retailer inventory positions and sustained consumer demand for their diverse footwear offerings. He noted the company’s efforts to enhance distribution and fulfillment capabilities, resulting in significantly higher profitability year-over-year. Lower inventories allowed Rocky Brands to pay down debt by nearly 25% over the same period.
Looking ahead, Rocky Brands anticipates an improved balance sheet and positive momentum as they approach the fourth quarter and the beginning of 2024. Known for its diverse brand portfolio, including Rocky, Georgia Boot, Durango, and The Original Muck Boot Company, Rocky Brands remains resilient in a changing market landscape, reinforcing its commitment to footwear excellence.
Navigate the evolving market landscape with Rocky Brands, where earnings resilience meets strategic foresight.
