Rocky Brands CEO pleased with top-line performance for Q1

08 May '07

3 min read

Rocky Brands Inc announced financial results for its first quarter ended March 31, 2007.

For the first quarter of 2007, net sales increased 7.2% to $61.7 million versus net sales of $57.5 million in the first quarter of 2006. Net income was $0.8 million versus net income of $0.9 million and diluted earnings per share were $0.14 compared to diluted earnings per share of $0.16 a year ago.

Mike Brooks, Chairman and Chief Executive Officer, commented, “We were pleased with our top-line performance during the first quarter which was driven by gains in our work and outdoor segments, offset by a decrease in our western business. As we expected, gross margins declined as a result of a shift in our product mix combined with our strategic decision to reduce a portion of our inventory at closeout. At the same time, we benefited from a reimbursement of expenses from the U.S. military. Overall, we are encouraged by our start to the new year and we remain on track to achieve our near and long-term objectives.”

First Quarter Results:
Net sales for the first quarter increased to $61.7 million compared to $57.5 million a year ago. The increase in sales is primarily attributable to year-over-year improvements in our work footwear category, coupled with an increase in our retail operations.

Gross margin in the first quarter of 2007 was $26.1 million, which included $0.7 million of a reimbursement of expenses from the military, or 42.3% of sales, compared to $24.9 million or 43.3% of sales, for the same period last year. The decline was primarily due to a decrease in sales of our western footwear, which carry higher gross margins and an increase in closeout sales versus a year ago.

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