In This Article:
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Revenue: $114.5 million, down 2.4% year over year.
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Wholesale Sales: $84 million, down 9.7%.
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Retail Sales: $26.8 million, up 11.8%.
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Contract Manufacturing Sales: $3.6 million, up from $3.4 million last year.
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Gross Profit: $43.6 million or 38.1% of sales, up from 37% last year.
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Operating Expenses: $33.6 million or 29.3% of net sales, up from 25.7% last year.
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Adjusted Operating Income: $10.8 million or 9.4% of net sales, down from 12.6% last year.
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Net Income: $5.3 million or $0.70 per diluted share, down from $6.8 million or $0.93 per diluted share last year.
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Adjusted Net Income: $5.8 million or $0.77 per diluted share, down from $8 million or $1.09 per diluted share last year.
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Interest Expense: $3.3 million, down from $5.8 million last year.
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Total Debt: $150.3 million, a decrease of 13.2% from December 31 and 29.7% from last year.
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Inventories: $171.8 million, down 11.8% from last year.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Rocky Brands Inc (NASDAQ:RCKY) experienced double-digit growth for its Durango and XTRATUF brands in the US, highlighting the strength of its multiband, multichannel operating model.
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The company achieved over 100 basis points of gross margin improvement due to less promotional activity.
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Retail sales increased by 11.8% to $26.8 million, driven by strong performance from XTRATUF and Durango sites.
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Rocky Brands Inc (NASDAQ:RCKY) successfully added more than 200 new accounts in its B2B business, indicating a positive shift in recent trends.
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The company is making strategic investments in its brands to capitalize on momentum and reach a broader consumer audience, positioning for improved top-line performance in 2025.
Negative Points
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Rocky Brands Inc (NASDAQ:RCKY) faced inventory shortages and delivery delays, particularly affecting the XTRATUF brand, leading to missed sales opportunities.
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The company experienced a warm, dry fall, negatively impacting sales for weather-dependent products like Muck boots.
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Wholesale sales were down 9.7% to $84 million, reflecting challenges in certain segments.
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Operating expenses increased to $33.6 million, or 29.3% of net sales, due to higher brand and marketing investments.
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Net income decreased to $5.3 million, or $0.70 per diluted share, compared to $6.8 million, or $0.93 per diluted share, in the third quarter of 2023.
Q & A Highlights
Q: Can you elaborate on the inventory shortages and your initiatives to address them in Q4 and early next year? A: The demand for XTRATUF outpaced our forecasts, leading to inventory shortages. The longer lead times for rubber-based products have contributed to this issue. We are working on increasing capacity with our sourcing partners to catch up. For other brands like Durango, demand was high, and we are addressing capacity needs to ensure we are better prepared moving forward.