A prominent company known for its high-quality footwear and apparel, Rocky Brands recorded a 2.2 per cent increase in net sales, reaching $112.9 million during Q1 FY24 compared to $110.4 million in the same period last year.

While the company’s wholesale sales declined from $80.1 million to $79.8 million, retail sales grew by 3 per cent to $30.4 million from $29.5 million in Q1 FY23.

Additionally, there was a notable surge in contract manufacturing sales, including military contracts and private label programs, rising from $0.9 million to $2.7 million.

The company’s gross margin for the quarter was $44.1 million, representing 39.1 per cent of net sales, slightly lower than the 39.6 per cent recorded in the previous year. Operating expenses decreased significantly to $36.2 million, constituting 32 per cent of net sales, down from $39.6 million or 35.9 percent previously. This reduction in expenses led to an increase in income from operations to $8.0 million, or 7.1 per cent of net sales, a substantial improvement from $4.2 million or 3.8 per cent of net sales in Q1 FY23, as highlighted in the company's press release.

Net income for the quarter amounted to $2.6 million marking a significant turnaround from a net loss of $0.4 million in the previous year. Adjusted net income also showed improvement, reaching $3.1 million, compared to a net loss of $0.8 million in Q1 FY23.

Inventory levels at the end of March 2024 were reported at $165.1 million, indicating a notable decline of 26.3 per cent from $224.1 million a year ago, and a slight decline of 2.4 percent from $169.2 million at the end of December 2023.

Jason Brooks, Chairman, President, and CEO, states, the company’s first quarter performance reflects a strong start to the year. Cost-saving initiatives implemented throughout 2023 allowed Rocky Brands to allocate a higher portion of its spending towards advertising programs, resulting in stronger-than-expected growth and significant expense leverage.