Rocky Brands reports Q1 loss, sales drop 33.9 percent

First quarter net sales at Rocky Brands decreased 33.9 percent to 110.4 million dollars.

The company reported a first quarter net loss of 0.4 million dollars or 5 cents per diluted share compared to net income of 7.3 million dollars or 99 cents per diluted share in the first quarter of 2022. Adjusted net loss was 0.8 million dollars or 12 cents per diluted share, compared to adjusted net income of 8.2 million dollars or 1.10 dollars per diluted share in the year ago period.

“In response to more challenging market conditions, we are taking actions to reduce expenses and protect profitability. We also generated over 2 million dollars in annualised interest expense savings by utilising the proceeds from our sale of the Servus brand in March to pay down more than 17 million dollars on our senior term loan and credit facility. While the year has started slower than expected, we are confident that the strength of our brand portfolio has the company positioned to accelerate growth once the operating environment improves,” said Jason Brooks, the company’s chairman, president and CEO.

The company’s wholesale sales for the quarter decreased 40.2 percent to 80.1 million dollars, while retail sales increased 3.1 percent to 29.5 million dollars. Contract manufacturing sales, which include contract military sales and private label programs, were 0.9 million dollars in the first quarter compared to 4.4 million dollars in the prior year period due to the expiration of certain contracts with the U.S. Military.

Gross margin was 43.8 million dollars or 39.6 percent of net sales, compared to 62.8 million dollars or 37.6 percent of net sales, for the same period last year.