• Swings to Q1 profit of $0.5m
  • Gross margin improved 340 basis points to 36.8%
  • Net sales dipped 7% to $52.3m

 

 

Higher margin sales of company-owned brands, coupled with lower interest expenses, helped Rocky Brands offset lower revenues and enabled the footwear and apparel maker to post its first profitable first quarter in three years.

Net income for the three months to 31 March was $541,616, or $0.07 per share, compared with a loss of $560,744, or $0.10 per a share a year earlier.

Net sales were down 6.8% to $52.3m, with wholesale sales up 5.0% to $39.8m and retail sales falling 9.3% to $11.7m. Military segment sales were down $4.4m to $0.8m, the company added.

“Our sales and marketing strategies continued to drive solid gains for our company owned brands in the wholesale channel," said Mike Brooks, chairman and CEO.

"Consumer demand for our new product lines has been very positive and helped to partially offset the expected sales decline in our military segment and replace the Dickies licensed business which, as previously announced last year, ceased as of the end of 2010."