• Net income rose to $4.7m
  • Net sales climbed 12.3% to $74.8m
  • Wholesale revenues up 9%

Higher sales levels in both its wholesale and military segments have helped apparel and footwear maker Rocky Brands Inc to a 68% hike in third-quarter profit.

The Nelsonville, Ohio based firm, whose brands include Rocky, Georgia Boot and Durango, said net income rose to $4.7m or $0.63 per share, in the three months to 30 September, up from $2.8m or $0.50 per share a year ago.

Net sales climbed 12.3% to $74.8m, up from $66.6m last time, helped by a 9% rise in wholesale revenues. Retail sales slipped 3.5%, while military segment sales saw a six-fold increase.

Gross margin fell 70 basis points to 36.4% of sales, which the company said was due to an increase in sales to the military which carry lower gross margin than the wholesale and retail businesses. Inventory fell 7.6% to $62.9m.

“We are particularly pleased with our wholesale growth which is being driven by demand for our work footwear,” said chairman and CEO Mike Brooks.

He added: “We also recently secured a new credit facility that will further reduce our interest expense approximately $2m next year and free up capital to expand our business.”