Rocky Brands, Inc. Announces Second Quarter 2023 Results

About this update from Rocky Brands, Inc.

[{"type":"text","content":"\n \n\n\n NELSONVILLE, Ohio--(BUSINESS WIRE)--\nRocky Brands, Inc. (NASDAQ: RCKY) today announced financial results for its second quarter ended June 30, 2023.\n\n\nSecond Quarter 2023 Overview\n\n\n\nNet sales decreased 38.4% to $99.8 million, or $101.4 million on an adjusted basis\n\n\nWholesale segment sales decreased 45.5%\n\n\n\nRetail segment revenue decreased 3.6%\n\n\n\n\n\n\nGross margin as a percentage of net sales increased 440 basis points to 37.6%\n\n\n\nOperating income was $2.2 million, or $5.7 million on an adjusted basis\n\n\n\nNet loss was $2.7 million, or $0.37 per diluted share\n\n\n\nInventories decreased 24.1% year-over-year\n\n\n\nTotal debt at June 30, 2023 was down 22.1% compared with June 30, 2022\n\n\n\nJason Brooks, Chairman, President and Chief Executive Officer, said “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. While our year-to-date results were more challenging than anticipated due in part to ongoing industry headwinds, we believe our business is positioned for improvement over the remainder of 2023 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.\"\n\n\nSecond Quarter 2023 Review\n\n\nSecond quarter net sales decreased 38.4% to $99.8 million compared with $162.0 million in the second quarter of 2022. Wholesale segment sales for the second quarter decreased 45.5% to $71.5 million compared to $131.2 million for the same period in 2022. Retail segment sales for the second quarter decreased 3.6% to $25.1 million compared to $26.0 million for the same period last year. Contract Manufacturing segment sales, which include contract military sales and private label programs, were $3.3 million in the second quarter of 2023 compared to $4.9 million in the prior year period. The decrease in Contract Manufacturing segment sales was due to the expiration of certain contracts with the U.S. Military. Adjusted net sales, excluding returns associ...

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