Cautious inventory commitments and decreased consumer spending contributed to sales and earnings losses at Rocky Brands Inc. in the second quarter.
For the three months ended June 30, Rocky Brands reported a net loss of $1.4 million, or 25 cents a share, versus earnings of $700,000, or 13 cents, during the year-ago period.
Sales at the Nelsonville, Ohio-based company dropped 15 percent to $51.2 million, compared with $60.5 million last year. Sales in wholesale were down 11 percent to $37.9 million, while retail sales decreased 24 percent to $12.3 million for the quarter.
“Sales were down as retailers remained cautious with inventory commitments as the result of decreases in consumer spending and store traffic,” Mike Brooks, chairman and CEO of Rocky Brands, said in a statement.
For the first half of 2009, Rocky Brands recorded a net loss of $2.5 million, or 45 cents a share, versus revenue of $1 million, or 19 cents, last year. Sales decreased by 16 percent to $101.3 million.
Although the company’s second-quarter results were well below the loss of 6 cents a share that analysts had expected, earnings were close to the $52.2 million forecasted.
“Looking ahead,” said Brooks, “the combination of lower selling, general and administrative levels, our current order book and easier comparisons has us optimistic that we can deliver improved profitability year-over-year during the second half of 2009.”