Rocky’s Q2 Falls

Rocky Brands Inc. saw lower sales and profit in the second quarter.

For the period ended June 30, the Nelsonville, Ohio-based firm earned $218,600, or 3 cents a share, a tenth of the $2.3 million, or 30 cents, earned in the same period a year ago.

Revenue totaled $44.4 million, down 15.1 percent from $52.3 million last year.

Wholesale sales for the quarter were $34.7 million, down from $40.8 million, primarily due to a reduction in sales in the hunting category.

Retail sales slipped to $9.1 million, from $10.9 million. Military segment sales were flat at $600,000.

The firm said earnings were partly impacted by a severe storm on June 29 that knocked out power to more than 660,000 homes and businesses in Ohio, including Rocky Brand’s distribution center in Logan.

As a result of this power outage, Rocky’s shipping capabilities were temporarily suspended, causing about $2.5 million worth of shipments to move from the second quarter into the third quarter, and impacting the bottom line by 6 cents a share.

“Excluding the impact from this disruption, our business for the most part performed in line with expectations. However, we did experience some softness in our hunting category. We believe this was primarily attributable to retailers buying closer to season and operating with leaner inventory positions compared with past years,” David Sharp, Rocky’s president and CEO, said in a statement. “Our work, Western and commercial military product lines continue to gain traction with the key retailers in their respective channels as new product introductions are resonating with our target consumers.”

Rocky ended the period with cash of $1.9 million, down from $3.2 million this time last year, as well as long-term debt of $29.9 million, down from $35 million.