Rocky Brands second-quarter profit lifts on sales gains
today Jul 25, 2019
Rocky Brands Inc. reported its second-quarter and half-year 2019 results on Wednesday, announcing net sales growth in the mid-single digits for the quarter, driven by double-digit retail sales growth.
The Nelsonville, Ohio-based company said net sales increased 6.4% to $62 million for the three months ending June 30, 2019, compared to $58.2 million in the second quarter of 2018.
The footwear company, which operates the Rocky, Georgia Boot, Durango and Lehigh brands, reported second quarter net income of $3.2 million, or $0.42 per diluted share, compared to net income of $2.6 million, or $0.35 per diluted share in the second quarter of 2018.
By channel, retail sales for the quarter increased 20.2% to $14.1 million, while wholesale revenues gained 2.1% for $40.6 million. Military segment sales for the quarter gained 8.4% to $7.2 million, said the company.
"We delivered another quarter of very solid results highlighted by year-over-year sales increases in all three of our segments and a nice improvement in overall profitability," said Jason Brooks, president and CEO.
"Our top-line performance was driven by twenty-plus percent growth in our retail division as our Lehigh CustomFit model gained further traction with existing and new accounts. At the same time, the combination of compelling products, impactful marketing programs and enhanced retailer support fueled gains in our wholesale business including our work, western, outdoor and domestic commercial military categories."
For the six months ending June 30, Rocky Brands revenues rose 6.9% to $127.9 million. The U.S. company reported net income of $6.8 million, or $0.91 per diluted share for the half-year period.
Addressing the escalating U.S.-China trade tensions during the first half of 2019, Brooks said the company refocused its manufacturing over the last six months, in preparation for any tariff increases on footwear imports. The result lead to improved efficiencies and better margins.
"We’ve bolstered our internal manufacturing capabilities which is driving improved efficiencies and increased margins while also providing the company with alternative sourcing options in the event of a tariff increase on footwear imports from China," he said.
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