Rocky Brands sales and earnings decline in the third quarter

Rocky Brands net sales decreased 8.8 percent to 114.6 million dollars in the third quarter of 2023.

"While cautious consumer spending outside of peak shopping periods and warm, dry weather acted as headwinds this quarter, the underlying strength of our business remains intact," said Jason Brooks, the company’s chairman, president and CEO in a release.”

Wholesale sales for the quarter were 84 million dollars, down 15.7 percent, while retail sales increased 9.2 percent. Contract manufacturing sales were 3.8 million dollars.

Gross margin in the third quarter was 43.6 million dollars or 38.1 percent of net sales, up 110-basis point. The company reported net income of 5.3 million dollars or 70 cents per diluted share, while adjusted net income declined to 5.8 million dollars or 77 cents per diluted share.

“Based on our current order book for 2025, we believe this softness is transitory and that recent brand and marketing investments, along with our improved capital structure, have the company well positioned to drive sustainable, profitable growth and long-term shareholder value," added Brooks.