Footwear maker Rocky Brands Inc has reported a 35% plunge in third quarter profit, reflecting what it describes as "ongoing challenges" in the outdoor segment and a slowdown in its fashion-oriented western footwear business.

Net income for the third quarter ended 30 September 2006 was $4.2m versus $6.5m in the same period last year. Net sales were down 17% to $78.1m compared to $94.1m last year.

Mike Brooks, chairman and chief executive officer, said the year-over-year comparisons were also hit by minimal footwear sales to the military. Military sales were $0.2 million in the third quarter compared to $9.4 million in the third quarter of 2005.

Rocky Brands, whose lines include Georgia Boot and Durango as well as the licensed brands Dickies and Michelin, reiterated its previous guidance for net sales of approximately $265m for the year ended 31 December 2006.