“Our sales trends accelerated as the holiday season progressed led by strong consumer demand for our Durango and XTRATUF brands, with particular strength in our direct-to-consumer channel which fueled our highest-ever sales quarter for our Retail reporting segment. We are pleased with our finish to the year, which included recurring Wholesale sales returning to growth and retail sales increasing over 15% for the fourth quarter. Increased marketing helped fuel our top-line performance as we brought spending back in-line with historical levels after under-investing in demand creation in the year ago period. Our fourth quarter momentum has carried into early 2025, providing us with a good start to the year”, commented Jason Brooks, Chairman, President and Chief Executive Officer.

Fourth Quarter Results

In the fourth quarter of fiscal 2024, the company’s net sales reached 128.1 million US dollars, an increase of 1.7% on a comparable basis to the same period of last year; excluding certain non-recurring sales in the fourth quarter of 2023, net sales increased by 8.8% year-over-year.

Wholesale net sales contributed 81.3 million US dollars to the total, down by 5.2% or up by 4.5% excluding non-recurring sales, and retail net sales contributed 43.6 million US dollars, up by 15.3% or 15.3% excluding non-recurring sales, as compared to the fourth quarter of 2023. Due to a new contract with the US military, contract manufacturing net sales contributed 3.2 million US dollars, up by 39.1% year-over-year.

In the three months ending in December, Rocky Brands’ gross margin improved year-over-year by 120 basis points to 41.5%. This expansion was attributed to an increase in the wholesale gross margin and a higher mix of retail segment sales.

In the fourth quarter of last fiscal year, the company’s income from operations was 8.5 million US dollars, as compared to 14.7 million US dollars, and adjusted income from operations was 13.2 million US dollars, as compared to 15.5 million US dollars in the same period a year ago.

The US company reported a fourth quarter net income of 4.8 million US dollars, or 0.64 US dollars per diluted share, on a comparable basis to a net income of 6.7 million US dollars, or 0.91 US dollars per diluted share, in the fourth quarter of 2023. Adjusted net income was 8.9 million US dollars, or 1.19 US dollars per diluted share, as compared to an adjusted net income of 7.3 million US dollars, or 0.98 US dollars per diluted share, in the fourth quarter of 2023.

Full Year Results

In the twelve months ending in December 2024, Rocky Brands’ net sales decreased by 1.7% to 453.8 million US dollars, as compared to 461.8 million US dollars in the previous year. This decrease was attributed to certain non-recurring sales that occurred in 2023 that are not expected on a go-forward basis.

The company’s full year net income was 11.4 million US dollars, or 1.52 US dollars per diluted share, as compared to a net income of 10.4 million US dollars, or 1.41 US dollars per diluted share, in 2023. Full year adjusted net income was 19.0 million, or 2.54 US dollars per diluted share, as compared to adjusted net income of 14.3 million US dollars, or 1.93 US dollars per diluted share, in 2023.

Rocky Brands highlighted that total debt decreased by 25.7% year-over-year to 128.7 million US dollars at the end of December. According to Jason Brooks, “the substantial reduction in our debt provides us with the financial flexibility to invest in growth and deliver enhanced earnings and greater value for our shareholders”.