Rocky Brands Inc. is climbing.
The Nelsonville, Ohio-based firm saw its second-quarter net income surge more than fourfold to $2.3 million, or 30 cents a share, versus net income of $524,000, or 8 cents, in the same period a year ago.
Net sales for the period, which ended June 30, were $52.3 million, down 5 percent from $55.2 million in the second quarter of 2010, due to reduced sales under military contracts.
Gross margin improved 480 basis points to 39.4 percent, primarily attributable to the decrease in sales in the military segment, which carry lower gross margins than retail and wholesale segments, coupled with higher average selling prices, the firm said.
“The increase in our bottom line over the past 24 months has primarily been achieved through increased operating efficiencies, higher gross margins and more recently reduction in interest expense,” David Sharp, president and CEO of Rocky, said in a statement.
“We also will look to take further advantage of our internal manufacturing capabilities to improve in-stock positions on popular styles, increase our speed to market and reduce costs,” he added.
Rocky ended the period with $3.2 million in cash and cash equivalents and $39.5 million in long-term debt.