US apparel and footwear company Rocky Brands has sold its Creative Recreation sneaker business to a private investment group.
The deal announced yesterday (27 November) by the Nelsonville, Ohio based company, includes the inventory, product designs and moulds, trademarks and related intangible assets of Creative Recreation along with certain licensing and other contracts. Terms of the transactions were not disclosed.
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“The sale allows us to focus 100% on our profitable work, western, hunting and military categories where we believe our most important growth opportunities lie,” says president and CEO Jason Brooks.
Rocky Brands bought Los Angeles-based Creative Recreation for $11m in 2014, describing it as “an exciting new growth vehicle.”
The sale leaves Rocky Brands with a portfolio of names including Rocky, Georgia Boot, Durango, Lehigh, and the licensed brand Michelin.
In its most recent third quarter, earnings jumped but revenues slipped. For the three months ended 30 September, net earnings surged to $2.23bn compared to $445.6m last year, but net sales fell 11.7% to $64.7m from $73.2m. Gross margin widened to 30.2% compared to 27% last year, with growth in both its wholesale and military segments.
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