Warm weather affects
Rocky Brands for Q4 and full year
Rocky Brands, Inc. announced Thursday its financial results for its fourth quarter and full year 2015 ended December 31, 2015. The company struggled to meet its numbers from last year due to unseasonably warm weather and weak retail store traffic.
Net sales in the fourth quarter decreased 17.3% to $65.3 million compared to $78.9 million in the fourth quarter of 2014. Net income also decreased to $1.4 million, or $0.18 per diluted share, from $4.5 million, or $0.59 per diluted share in the previous year.
For fiscal year 2015, net sales decreased slightly to $269.3 million from $286.2 million, a drop of 5.9%. Net income for the year dropped sharply to $6.6 million from $9.8 million.
David Sharp, President and Chief Executive Officer, commented, “The fourth quarter was challenging due to tough comparisons combined with warm temperatures and weak retail store traffic that pressured demand across each of our categories. 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.”
The company is starting 2016 on an upswing. On January 7, 2016, Rocky Brands announced that it received an order to fulfill a contract to the US Military to produce combat boots. The contract includes a minimum purchase amount of $13 million, which when added to the parties’ existing contract increases the total to $31 million in military orders. The entire order is scheduled for delivery between March and October 2016.
Sharp added about the year, “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. Importantly, we ended the year with a solid balance sheet highlighted by a 35% decrease in funded debt and lower inventory levels, leaving us well positioned financially to execute our strategic priorities.”
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