Rocky Brands, Inc. (Nasdaq: RCKY) today announced financial results for its third quarter ended September 30, 2011.
Third quarter 2011 net income improved to $5.2 million or $0.70 per diluted share versus net income of $4.7 million or $0.63 per diluted share in the year ago period. Net sales were $71.0 million versus net sales of $74.8 million a year ago. The decrease in sales was due to reduced sales under military contracts and the discontinuation of the Dickies license which expired December 31, 2010. This was partially offset by increased sales from continuing operations.
David Sharp, President and Chief Executive Officer, commented, “We experienced growth in several areas of our wholesale business during the third quarter. Western sales increased 11% on higher demand for both Durango and Rocky branded product. Our hunting category was also up versus a year ago while gains in our Georgia Boot brand helped to partially offset the loss of the Dickies license in our work segment. We were particularly pleased with the performance of our commercial military business. This sales initiative has surpassed initial expectations as the product line has quickly gained traction within the military community. With regard to our retail division, operating profit improved meaningfully on slightly lower sales compared to a year ago as we continue to benefit from higher gross margins and reduced expenses. We are optimistic about the current pace of our overall business and continue to be excited about the longer-term growth strategies we are developing for our brands.”
Third Quarter Review
Net sales for the third quarter were $71.0 million compared to $74.8 million a year ago. Wholesale sales for the third quarter were $60.2 million compared to $59.4 million for the same period in 2010. Retail sales for the third quarter were $10.3 million compared to $11.0 million for the same period last year. Military segment sales for the third quarter decreased to $0.4 million compared to $4.3 million in the same period in 2010.