Rocky Brands, Inc, a leading US-based designer, manufacturer and marketer of footwear and apparel, has reported a 1.6 per cent decline in net sales to $98.3 million in the second quarter of fiscal 2024 (Q2 FY24), compared to $99.8 million in the same period of 2023. Despite this overall decline, retail sales saw a positive increase of 4.1 per cent, reaching $26.1 million. Contract manufacturing sales, which include contract military sales and private label programs, also rose to $3.9 million from $3.3 million in the prior year period.

The company's gross margin improved to $38.0 million, or 38.7 per cent of net sales, up from $37.6 million, or 37.6 per cent of net sales, in the second quarter of 2023. Operating expenses were reduced to $33.5 million, or 34.1 per cent of net sales, compared to $35.4 million, or 35.4 per cent of net sales, a year ago. Adjusted operating expenses were $32.8 million, or 33.4 per cent, in the current period, slightly down from $33.6 million, or 33.2 per cent, in the previous year, the company said in a media release.

Income from operations increased to $4.5 million, or 4.6 per cent of net sales, from $2.2 million, or 2.2 per cent of net sales, in the same quarter last year. Adjusted operating income for the second quarter was $5.2 million, or 5.3 per cent of net sales, compared to $5.7 million, or 5.6 per cent of net sales, a year ago.

The company reported a net loss of $1.2 million, or $0.17 per diluted share, for the second quarter, an improvement from the net loss of $2.7 million, or $0.37 per diluted share, in the second quarter of 2023. Adjusted net income for the quarter was $1.3 million, or $0.17 per diluted share, compared to a break-even point of $0.0 million, or $0.00 per diluted share, in the same period last year.

“We continue to effectively navigate an unpredictable consumer environment thanks to our diversified brand portfolio and recently deployed cost saving initiatives. Strong double-digit gains in sales for our Durango and Xtratuf brands in both our wholesale and e-commerce channels helped offset softness in other areas of our business and generated low-single digit year-over-year recurring sales growth,” said Jason Brooks, chairman, president and chief executive officer.

Fibre2Fashion News Desk (DP)