• Q2 profit fell to US$0.2m from $2.3m
  • Sales dropped to $44.4m from $52.3m
  • Storms forced shut-down of distribution centre

Rocky Brands has seen its second-quarter profit slide after the US footwear company faced declining sales and distribution issues following severe storms in Ohio.

The company yesterday (24 July) said net income fell to US$0.2m over the quarter ended 30 June, from $2.3m in the same quarter of the year before. Sales fell to $44.4m, down from $52.3m last time.

The company said a severe storm in Ohio on 29 June knocked out the power in its distribution centre in Logan, which meant its shipping capabilities were temporarily suspended. The disruption caused some $2.5m worth of shipments to move from the second quarter into the third quarter.

It also saw declines in wholesale revenue in the hunting category, which it attributed to retailers buying closer to the season. Wholesale revenue declined to $34.7m, against $40.8m last year. Retail sales were also down, falling to $9.1m from $10.9m, while military segment sales were flat at $0.6m.

"We faced a significant challenge at the end of the quarter with the shut-down of our distribution centre," said president and CEO David Sharp.

"Our teams did a great job to ensure that all orders were shipped as soon as possible once power was restored early in July.

"Excluding the impact from this disruption, our business for the most part performed in-line with expectations however we did experience some softness in our hunting category. We believe this was primarily attributable to retailers buying closer to season and operating with leaner inventory positions compared with past years.

"Our work, western, and commercial military product lines continue to gain traction with the key retailers in their respective channels as new product introductions are resonating with our target consumers.

"Equally important, our balance sheet is in good shape with clean inventory levels and funded debt down 24% from a year ago."