Rocky Brands, Inc. announced financial results for its first quarter ended March 31, 2014.
First Quarter 2014 Sales and Income
First quarter net sales increased 22.5% to $65.8 million versus net sales of $53.7 million in the first quarter of 2013. The Company reported first quarter net income of $0.7 million, or $0.10 per diluted share compared with net income of $0.9 million, or $0.12 per diluted share in the first quarter of 2013.
David Sharp, President and Chief Executive Officer, commented, “2014 is off to a strong start driven by robust gains across our wholesale business. Each of our major categories, Work, Western, and Hunting posted strong double digit sales increases on a percentage basis as consumer response to our enhanced product offering combined with favorable weather fueled demand.
“At the same time, commercial military and duty sales rebounded nicely as we’ve moved beyond some of the government headwinds that impacted these categories last year. We are also pleased with the initial performance of the Creative Recreation brand which provides us with a viable platform to penetrate the broader casual footwear market.
“We are committed to investing in our brands to drive sustainable growth. This includes initiatives that impacted first quarter profitability. Foremost, we supported a seeding program with a key retail partner, funded additional advertising to promote our legacy brands and experienced start-up expenses to support Creative Recreation. We are confident that our strategies will yield improved profitability starting in the second half of the year and beyond.”
First Quarter Review
Net sales for the first quarter increased 22.5% to $65.8 million compared to $53.7 million a year ago. Wholesale sales for the first quarter increased 26.4% to $53.1 million compared to $42.0 million for the same period in 2013. This included a 16.8% increase in wholesale sales of the Company’s legacy brands. Retail sales for the first quarter increased to $11.1 million compared to $10.8 million for the same period last year. Military segment sales for the first quarter increased to $1.6 million compared to $0.9 million in the first quarter of 2013.