• Q3 profit grows 6.9% to $3.1m
  • Net sales up 3.6% to $72.7m 
  • Wholesale sales rise 8.3% to $62.1m

An increase in wholesale revenues has resulted in a 6.9% third-quarter net profit growth for US apparel and footwear company Rocky Brands.

Net income reached US$3.1m for the three months to 30 September, compared to $2.9m in the same period a year ago.

Net sales increased 3.6% to $72.7m from $70.2m last year. Wholesale sales grew 8.3% to $62.1m including $4.4m in Creative Recreation branded sales. Retail and military sales, however, declined a respective 1% and 65.6% to $9.5m and $1.1m.

Nonetheless, president and CEO David Sharp said: "Following a strong first half of the year, our sales growth moderated during the third quarter. We believe consumer interest in our innovative product lines remains high; however, sell-through was hampered by a warm, dry September across much of the US."

He added that the group's wholesale dealers are now buying closer to need, which is shifting sales for its insulated and waterproof cold weather boots into the fourth quarter.

Gross margin improved to 33.4% from 32.4% in the prior year, thanks to higher wholesale margins which were attributable to improved operating efficiencies in the company's owned manufacturing facilities.