Rocky Brands Q2 sales drop 38 percent, swings to loss

Rocky Brands has reported a 38.4 percent drop in sales in the second quarter citing “ongoing industry headwinds”.

The US footwear and apparel company made net sales of 99.8 million dollars in the three months to June 30, down from 162 million dollars the prior year.

It swung to a net loss of 2.7 million dollars from a profit of 0.92 million dollars the prior year.

Chair and CEO Jason Brooks said the company’s year-to-date results have been “more challenging than anticipated due in part to ongoing industry headwinds”.

However, he noted: “For the second quarter in a row, our sell-through performance at several of our major wholesale accounts outpaced sell-in as retailers continue to work on aligning overall inventory levels with the current market environment.

“Consumer response to our brand portfolio remains solid with strong full price selling and recent price increases helping drive a 440-basis point improvement in gross margin.”

Brooks said the company expects to improve over the remainder of the year “based on consumer demand for our products, our current order book, and recent conversations with key wholesale partners about their plans for the second half of the year”.