At press time, the footwear and apparel maker’s share price had dropped 8 percent after it reported revenue and profit that substantially declined year-over-year and also fell below Wall Street’s consensus estimates.
Rocky Brands’ Q4 net sales decreased 17.3 percent to $65.3 million. Analysts had bet on revenue of around $70.9 million. Meanwhile, the company’s net income shrank 69 percent year-over-year to $1.4 million, or 18 cents per diluted share (EPS), missing analysts’ estimate for EPS of 36 cents.
“While we are disappointed with our finish to 2015, we believe that our recent performance is not indicative of the strength of our brands, and we are cautiously optimistic we can reaccelerate top and bottom line growth in 2016,” Sharp said in a release. “This coming year, we will continue to shift more time and resources to support our largest growth prospects led by the Creative Recreation and Durango brands, both of which operate in much larger and less weather-sensitive segments of the market, namely casual and fashion footwear.”
Sharp added, “Importantly, we ended the year with a solid balance sheet highlighted by a 35 percent decrease in funded debt and lower inventory levels, leaving us well positioned financially to execute our strategic priorities.”