Rocky Brands, a US designer, manufacturer and marketer of footwear and apparel, has reported a narrowing profit in the second quarter despite a 23.1 percent increase in sales.
Net income in the three months to June 30 fell to 0.9 million dollars from 3.9 million dollars a year earlier.
The company, whose portfolio includes brands Rocky, Durango, and The Original Muck Boot Company, posted net sales of 162 million dollars, up from 131.6 million dollars.
Breaking it down by segment, wholesale sales increased 29.7 percent to 131.2 million dollars, while retail sales were up 16.4 percent to 26 million dollars.
Meanwhile, contract manufacturing segment sales, which includes contract military sales and private label programs, fell 39.5 percent to 4.9 million dollars, with the company citing the expiration of contracts with the US military.
“We continued to experience solid demand for our portfolio of leading brands during the second quarter,” said Rocky Brands chair and CEO Jason Brooks in a statement.
He added: “While we didn’t experience any noticeable sales slowdown due to growing inflation and general economic uncertainty during the first half of 2022, our results were negatively impacted by higher than expected costs throughout our supply chain.”
Brooks said the company took action early in the year “to address certain cost pressures, and recently enacted price increases to help offset additional margin headwinds that emerged over the past couple of months”.