Footwear and apparel company Rocky Brands is taking a more cautious view of the rest of 2006 after posting disappointing results in the second quarter.

Net sales for the three-month period ending 30 June were down 12.5% to US$57.3m, although 2005's figures included about $5.8m in footwear sales to the military. The company's net loss of $0.2m compared with net income of $2.8m a year ago.

Chairman and CEO Mike Brooks described the results, particularly in outdoor footwear and apparel, as disappointing and added: "Given the current challenges to our outdoor business, coupled with a difficult economic environment, we believe it is prudent to take a more cautious approach to our outlook for the second half of fiscal 2006.

"Our entire team is dedicated to taking the necessary steps to improve our outdoor business and we are committed to capitalising on the many long-term growth prospects we believe exist for our company."

Rocky Brands now anticipates net sales for the year ending 31 December at about $265m, compared to previous guidance in the range of $287m-292m.