Rocky Brands Inc., owner of Creative Recreation, Georgia Boot and other brands, today posted earnings for the first quarter ended March 31.
The company reported a net loss of $200,000, or 3 cents per diluted share (loss), compared to net income of $1.4 million, or 19 cents per diluted share in the first quarter of 2015. Analysts polled by Yahoo Finance projected earnings per diluted share of 14 cents.
The company’s first quarter net sales slid 12.2 percent to $57.5 million, compared with net sales of $65.5 million in the first quarter of 2015.
“We are making solid progress executing our strategies aimed at further diversifying our business,” Rocky Brands president and CEO David Sharp said in a release. “Earlier this month we announced actor and musician Nick Jonas as brand ambassador of the Creative Recreation brand. We are confident this exciting partnership will advance Creative Recreations’ position as a leading fashion brand with both consumers and key retailers and positively impact demand for the product line. At the same time, we’ve been successful at expanding distribution for our burgeoning Euro-Comfort brand Rocky 4Eur Sole.”
Still, macroeconomic pressures related to oil and gas production weighed on several of the company’s other categories in the quarter.
“Unfortunately the factors that impacted our core work, western and hunting categories during the second half of last year, namely warm temperatures and the softening of local economies tied to oil and gas production, created an inventory overhang in our channels of distribution that impacted fill-in of our Georgia Boot, Rocky and Durango brands during the first quarter,” Sharp said. “Therefore, we’ll continue to shift more time and resources to support our opportunities in the casual and fashion segments of the market which we believe will help reduce our dependency on weather and drive long-term growth and increased shareholder value.”