“Our first quarter performance represents a solid start to the year. Cost-saving initiatives implemented throughout 2023 allowed us to redeploy a higher portion of our spend toward advertising programs which fuelled stronger-than-expected growth and meaningful expense leverage. We are pleased with the top-line momentum we experienced across our business, highlighted by double-digit gains for our Durango and XTRATUF brands. While the macroeconomic outlook remains uncertain, we continue to be cautiously optimistic that the Company is well positioned to generate enhanced profitability and increased shareholder value as 2024 unfolds”, commented Jason Brooks, Chairman, President and Chief Executive Officer.

First Quarter Results

In the first quarter of fiscal 2023, the company’s net sales reached 112.9 million US dollars, reflecting an increase of 2.2% on a comparable basis to the same period of last year; excluding the Servus brand, which was divested in March 2023, sales rose by 7.6% year-over-year.

The wholesale segment contributed 79.8 million US dollars to Rocky Brands’ first quarter sales, a slight decrease of 0.4%, as compared to the same period of the prior year; excluding the Servus brand, wholesale sales increased by 7.0%. Meanwhile, the retail segment contributed 29.5 million US dollars, up 3.0% year-over-year, and contract manufacturing sales increased to 2.7 million US dollars from 0.9 million US dollars in the same quarter of 2023.

The company’s gross margin in the first quarter of the current fiscal year was 39.1%, on a comparable basis to 39.6% in a similar period of the previous year.

In the three months ending on the 31st of March, Rocky Brands’ income from operations came at 8.0 million US dollars, ompared to 4.2 million US dollars in the same period of last year. Accordingly, adjusted operating income improved to 8.7 million US dollars from 4.9 million US dollars in the first quarter of 2023.

The company reported a first quarter net income of 2.6 million US dollars, or 0.34 US dollars per diluted share, on a comparable basis to a net loss of 0.4 million US dollars, or a loss of 0.05 US dollars per diluted share, in the same period a year ago. Adjusted net income totalled 3.1 million US dollars, or 0.41 US dollars per diluted share, as compared to a net loss of 0.8 million US dollars, or a loss of 0.12 US dollars per diluted share, in the first quarter of 2023.