Rocky Brands Posts Q3 Earnings

Durango kids' western boot
Durango Patriotic Western boot for kids.
Durangoboots.com

On Oct. 21, Rocky Brands Inc. reported earnings for the third quarter, ending Sept. 30, 2015.

Net Income: Profit totaled $1.8 million, compared with $3.1 million in the same year-ago quarter — a 42 percent decline year-over-year.

EPS: Earnings per diluted share were 24 cents, versus diluted EPS of 42 cents in the same period last year.

Net Revenue: Third-quarter net sales were $70 million, compared with $72.7 million in the third quarter of 2014 — a decrease of 4 percent year-over-year.

Executive Insights: “Our third-quarter performance reflects softer-than-expected demand in our work and hunting categories. The combination of warm temperatures, challenging retail-store traffic and weakening local economies tied to oil-and-gas production led to lower levels of reorders for many of our waterproof and insulated boot collections. This was partially offset by continued growth of our Durango brand and Commercial Military business, combined with a significant sales increase in our lower-margin contract military segment. While we are disappointed in our overall results and are being cautious about the remainder of this year given current trends, we believe our entire brand portfolio remains healthy and that the slowdown in our top line is temporary. We are confident that our product and distribution strategies will generate earnings growth in excess of sales growth over the long term as our business model has recently demonstrated.”
— David Sharp, Rocky Brands’ president and CEO, in a release.