“We completed a very solid year of growth with fourth quarter results that exceeded expectations. Strong gains in our direct channels helped partially offset anticipated challenges in our Wholesale segment due to a difficult comparison and an over-inventoried selling environment. The consistent consumer demand we experienced in 2022 across multiple footwear categories led by work, outdoor and western reflects the strength of our brand portfolio, the appeal of our products, and the loyalty we’ve built with our target audiences. (…) While we are cautious about near-term trends given the heightened macroeconomic uncertainty, I am more confident than ever that we have the right foundation in place to drive profitable growth and enhanced shareholder value over the long-term”, commented Jason Brooks, Chairman, President and Chief Executive Officer.

Full Year 2022

The Ohio-based company posted 2022 net sales of 615.5 million US dollars, which reflects an increase of 19.7% from 514.2 million US dollars in the previous year.

Last year, the wholesale segment sales grew by 24.0%, reaching 484.8 million US dollars, and the retail segment sales were up by 21.9%, amounting to 115.4 million US dollars, as compared to fiscal 2021. The Contract Manufacturing segment sales, which includes contract military sales and private label programs, instead, declined by 46.2% to 15.3 million US dollars, on a comparable basis to the prior year.

Rocky Brands' full year net income was 20.5 million US dollars, or 2.78 US dollars per diluted share, as compared to net income of 20.6 million US dollars, or 2.77 US dollars per diluted share, in 2021. Adjusted net income in 2022 totalled 24.1 million US dollars, or 3.27 US dollars per diluted share, on a comparable basis to net income of 32.5 million US dollars, or 4.39 US dollars per diluted share, in the previous year.

Fourth Quarter Results

In the fourth quarter of fiscal 2022, Rocky Brands' net sales declined by 18.0%, totalling 138.9 million US dollars, on a comparable basis to net sales of 169.5 million US dollars recorded in the same period of the prior year.

In this period, the wholesale segment sales were down by 26.6%, amounting to 98.9 million US dollars, while the retail segment sales increased by 40.8%, reaching 37.3 million US dollars, as compared to the same quarter of fiscal 2021. The company also reported that the contract manufacturing segment fourth quarter sales, which include contract military sales and private label programs, decreased by 66.6%, year-over-year, to 2.7 million US dollars due to the expiration of certain contracts with the US Military.

Rocky Brands' gross margin in the fourth quarter of the current fiscal year was 56.7 million US dollars, or 40.8% of net sales, as compared to 63.6 million US dollars, or 37.3% of net sales, in the same period of 2021.

In the three months to the 31^st of December, the company's net income totalled 6.5 million US dollars, or 0.89 US dollars per diluted share, as compared to a net income of 12.6 million US dollars, or 1.69 US dollars per diluted share, in the same period of the prior year. Adjusted net income in the period was 7.9 million US dollars, or 1.08 US dollars per diluted share, as compared to adjusted net income of 13.8 million US dollars, or 1.86 US dollars per diluted share, in the fourth quarter of 2021.