NELSONVILLE, Ohio--(BUSINESS WIRE)--Jul 31, 2018--Rocky Brands, Inc. (NASDAQ: RCKY) today announced financial results for its second quarter ended June 30, 2018.
Second Quarter 2018 Sales and Income
Second quarter net sales were $58.2 million compared to $58.5 million in the second quarter of 2017. The Company reported second quarter net income of $2.6 million, or $0.35 per diluted share compared to a net income of $1.5 million, or $0.20 per diluted share in the second quarter of 2017.
Net sales were $119.6 million and $121.5 million for the six months ended June 30, 2018 and 2017, respectively. The Company reported net income of $5.9 million, or $0.79 per diluted share and a net income of $3.0 million, or $0.40 per diluted share for the six months ended June 30, 2018 and 2017, respectively.
Jason Brooks, President and Chief Executive Officer, commented, “We had an excellent second quarter highlighted by high-single digit growth in wholesale sales combined with continued strength in our retail division. Our focus on introducing innovative new products into the marketplace, supporting our retail partners with great service and enhancing our use of digital advertising is driving increased direct sales of Georgia Boot, Durango, and Rocky’s current offerings at higher gross margins. At the same time, our internal manufacturing capabilities are providing us with a great opportunity to expand our commercial military operations both in the U.S. and overseas. We are also encouraged with the ongoing success of Lehigh, our differentiated direct business-to-business model, which continues to grow through key account wins and increased participation and retention with existing accounts. Looking ahead, I’m confident that we have the right strategies and people in place to build on our recent accomplishments and deliver improved profitability and greater shareholder value for years to come.”
Second Quarter Review
Net sales for the second quarter decreased 0.4% to $58.2 million compared to $58.5 million a year ago. Wholesale sales for the second quarter increased 7.3% to $39.8 million compared to $37.1 million for the same period in 2017. Retail sales for the second quarter increased 6.7% to $11.7 million compared to $11.0 million for the same period last year. Military segment sales for the second quarter were $6.7 million compared to $10.3 million in the second quarter of 2017.
Gross margin in the second quarter of 2018 increased to $19.5 million, or 33.6% of sales, compared to $18.2 million, or 31.1% of sales, for the same period last year. The 250 basis point increase was driven by higher wholesale and retail margins combined with a lower percentage of military sales, which carry lower gross margins than wholesale and retail sales.
Operating expenses were $16.2 million, or 27.8% of net sales, for the second quarter of 2018 compared to $15.9 million, or 27.2% of net sales, a year ago.
Income from operations for the second quarter of 2018 was $3.4 million, or 5.8% of net sales compared to $2.3 million for the same period a year ago, or 3.9% of net sales.
Inventory at June 30, 2018 decreased 4.8% to $72.6 million compared to $76.3 million on the same date a year ago.
Conference Call Information
The Company’s conference call to review second quarter 2018 results will be broadcast live over the internet today, Tuesday, July 31, 2018 at 4:30 pm Eastern Time. The broadcast will be hosted at http://www.rockybrands.com.
About Rocky Brands, Inc.
Rocky Brands, Inc. is a leading designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names including Rocky®, Georgia Boot®, Durango®, Lehigh®, and the licensed brand Michelin®.
Safe Harbor Language
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but may not be limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management and include statements in this press release regarding our future profitability and the delivery of greater shareholder value (paragraph 3). These forward-looking statements involve numerous risks and uncertainties, including, without limitation, the various risks inherent in the Company’s business as set forth in periodic reports filed with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2017 (filed March 12, 2018) and quarterly report on Form 10-Q for the quarter ended March 31, 2018 (filed May 9, 2018). One or more of these factors have affected historical results, and could in the future affect the Company’s businesses and financial results in future periods and could cause actual results to differ materially from plans and projections. Therefore there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the Company, or any other person should not regard the inclusion of such information as a representation that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180731005834/en/
CONTACT: Rocky Brands, Inc.
Tom Robertson, (740) 753-9100
Chief Financial Officer
Brendon Frey, (203) 682-8200
KEYWORD: UNITED STATES NORTH AMERICA OHIO
INDUSTRY KEYWORD: DEPARTMENT STORES ONLINE RETAIL MANUFACTURING TEXTILES OTHER MANUFACTURING RETAIL FASHION SPECIALTY OTHER RETAIL
SOURCE: Rocky Brands, Inc.
Copyright Business Wire 2018.
PUB: 07/31/2018 04:05 PM/DISC: 07/31/2018 04:05 PM