Rocky Brands posts Q1 profit, sales increase 2.2 percent

Rocky Brands net sales increased 2.2 percent to 112.9 million dollars in the first quarter and increased 7.6 percent excluding Servus brand net sales from the year ago period.

The company said in a release that operating income increased 92.1 percent to 8 million dollars or 76.4 percent to 8.7 million dollars on an adjusted basis. Net income was 2.6 million dollars or 34 cents per diluted share, while adjusted net income was 3.1 million dollars or 41 cents per diluted share.

Commenting on the first quarter results, Jason Brooks, the company’s chairman, president and CEO said: “Cost saving initiatives implemented throughout 2023 allowed us to redeploy a higher portion of our spend toward advertising programs which fueled stronger than expected growth and meaningful expense leverage.”

The company added that wholesale sales were 79.8 million dollars compared to 80.1 million dollars for the same period in 2023. Excluding the Servus brand, wholesale sales increased 7 percent. Retail sales increased 3 percent to 30.4 million dollars, while contract manufacturing sales, which include contract military sales and private label programs rose to 2.7 million dollars.

On April 29, 2024, the company signed a definitive debt refinance agreement with Bank of America. The upsized, amended and extended ABL facility, consists of a 175 million dollars revolving credit facility and a 50 million dollars term facility, amending and restating the company’s existing 175 million dollars revolving credit facility with Bank of America.

The company further said that the proceeds from the refinance were used to retire existing senior secured term loan facilities agented by TCW Asset Management Company. The combined transactions are expected to generate an interest savings of approximately 2.9 million dollars for the remainder of 2024 and approximately 4.4 million dollars in 2025.